Sued by Midland Credit Management in Missouri? Here's What to Do Next

2015 · consent order

$42M in consumer refunds + $10M civil penalty; ceased collection on $125M in debt

CFPB found that Encore, Midland Funding, and Midland Credit Management violated the FDCPA, CFPA, and Fair Credit Reporting Act by collecting on debts they could not substantiate, filing misleading affidavits in court, and pursuing debts past the statute of limitations.

CFPB source

2020 · lawsuit settled

$15M civil penalty + consumer redress

CFPB sued Encore and its subsidiaries for violating the 2015 consent order — including continuing to collect on time-barred debt without required disclosures. The settlement extended the conduct provisions of the 2015 order for five additional years.

CFPB source

Statute of Limitations Defense

In Missouri, the statute of limitations for credit card debt is 5 years. If your last payment was more than 5 years ago, the debt is time-barred. Midland Credit Management has been the subject of CFPB findings related to suing on time-barred debts — check your dates carefully and raise the SOL defense in your Answer.

Lack of Standing / Chain of Title

As a debt buyer, Midland Credit Management must prove they actually purchased your specific account. Demand the complete chain of title — the purchase agreement, bill of sale, and assignment documents. In Missouri courts, failing to produce this documentation can result in dismissal.

Challenge the Amount

Demand a complete accounting from the original creditor's last statement through the current claimed balance. Any unauthorized fees, post-charge-off interest, or collection costs not in the original agreement should be disputed line by line.

Missouri Wage Garnishment Exemptions

Greater of 75% of disposable earnings or 30x federal minimum wage exempt. Head of household may get 90% exemption.

Missouri Merchandising Practices Act

In addition to the federal FDCPA, Missouri's Missouri Merchandising Practices Act may provide additional protections and remedies against Midland Credit Management's collection practices.

Missouri Court System

Small claims limit $5,000. Circuit court handles larger civil cases. Filing fees in Missouri typically range $40-$250.

Who is Midland Credit Management?

Midland Credit Management (MCM) is a debt collection company and subsidiary of Encore Capital Group. They purchase defaulted debts from banks and other creditors, then aggressively pursue collection including filing lawsuits.

How do I respond to a Midland Credit Management lawsuit?

You must file a written Answer with the court before your state's response deadline. In your Answer, you should deny the allegations you dispute, raise affirmative defenses like statute of limitations or lack of standing, and demand they prove they own the debt.

Can Midland Credit Management garnish my wages?

Only after they obtain a court judgment against you. If you do not respond to the lawsuit, they will get a default judgment. Some states like Texas, Pennsylvania, and North Carolina do not allow wage garnishment for consumer debts.

What if Midland Credit Management is reporting wrong information?

If MCM is reporting inaccurate debt information to credit bureaus, this may violate the FDCPA and the Fair Credit Reporting Act (FCRA). You can dispute the information with the credit bureaus and file complaints with the CFPB.

Is Midland Credit Management the same as Midland Funding?

Midland Funding LLC is the entity that purchases the debts, while Midland Credit Management is the collection arm that contacts consumers. Both are subsidiaries of Encore Capital Group and often appear together in lawsuits.

How long to respond in Missouri?

30 days from service.

What is the SOL in Missouri?

5 years for credit cards. 10 years for written contracts.

Can wages be garnished?

Yes, but head of household may qualify for 90% exemption.

Where are cases filed?

Small claims up to $5,000. Circuit court for most debt lawsuits.

What is the statute of limitations on credit-card debt in Missouri?

Missouri's SOL depends on how courts classify the underlying obligation. For open accounts and contracts not in writing, the SOL is 5 years under RSMo § 516.120. For written contracts, it is 10 years under RSMo § 516.110 - one of the longer SOLs in the country. Courts have generally treated credit-card debt as a written contract subject to the 10-year SOL when the cardholder agreement is in writing, which is most cases. Federal student loans have no SOL. Once the relevant period has passed (5 or 10 years from breach), the SOL is a complete defense if pleaded in your answer. Partial payments and written acknowledgments can restart the clock. Because Missouri's SOL is long, you may face suits on debts other states would consider stale - so confirm the dates carefully. If a collector sues on a debt past the SOL, plead it as an affirmative defense. Suing on time-barred debt is also a federal FDCPA violation, giving you a possible counterclaim.

What is Missouri's head-of-household wage-garnishment exemption?

Missouri has one of the strongest wage-garnishment protections in the country for heads of household. Under RSMo § 525.030, a head of household supporting one or more dependents can claim a 90% exemption from wage garnishment - meaning only 10% of disposable income (after taxes) can be garnished, instead of the federal 25%. Single individuals and non-heads of household are subject to the regular 25% federal cap or 30-times-minimum-wage floor, whichever is less. To claim the head-of-household exemption, you typically file a Claim of Exemption with the court that issued the garnishment, including proof of head-of-household status (tax returns, dependents, etc.). Many Missouri garnishments proceed without the consumer knowing about this exemption - they end up paying 25% when they could be paying 10% or nothing. If you are facing a Missouri garnishment, file the head-of-household claim as soon as possible. Missouri legal aid organizations and consumer attorneys handle these claims regularly, and federal FDCPA fee-shifting can fund representation if there are also collection-violation issues.

What is the Missouri Merchandising Practices Act and how does it help with collection?

The Missouri Merchandising Practices Act (RSMo Chapter 407) is one of the country's broader UDAP statutes. Section 407.020 prohibits "any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or the concealment, suppression, or omission of any material fact" in connection with the sale of merchandise. Missouri courts have applied the MMPA to debt-collection misconduct - false statements about amounts owed, threats of suit on stale debt, misrepresentation of legal status, harassment, etc. Section 407.025 allows private suits for actual damages, punitive damages, and attorney's fees. Recent amendments have added some procedural requirements but the statute remains a strong tool. Many Missouri consumer attorneys plead MMPA claims alongside federal FDCPA claims, multiplying the available remedies. The combined statutes can result in statutory damages, punitive damages, and full attorney-fee recovery. Document every violation carefully and keep records (calls, letters, account statements, court filings) to build the strongest possible case.

How do I respond to a Missouri Associate Circuit Court collection suit?

You generally have 30 days from service to file a written Answer with the court. Never ignore it - that leads to default judgment, which is enforceable for 10 years under RSMo § 516.350 (renewable). In your answer, raise every available affirmative defense: statute of limitations (5 or 10 years depending on debt type), lack of standing by debt buyer (demand chain-of-title proof), failure to validate under federal FDCPA § 1692g, improper service, head-of-household exemption (if garnishment is possible), and any specific factual disputes about the amount or existence of the debt. Missouri Associate Circuit Court is generally less formal than full Circuit Court, but the rules of evidence and procedure still apply. Many debt-buyer cases fail at trial because the buyer cannot produce the original cardholder agreement and full chain of assignments. Consider filing a counterclaim for federal FDCPA and Missouri MMPA violations if the collector engaged in any abusive conduct. Missouri Legal Services and private consumer attorneys take these cases on fee-shifting bases - representation often costs nothing if you have valid defenses.

Can a Missouri collector seize my bank account?

Yes, but only after suing and obtaining a judgment, and even then subject to important exemptions. After a Missouri judgment is entered, the creditor can serve a writ of garnishment on your bank under RSMo Chapter 525 to freeze and seize funds. However, many categories of income are exempt: Social Security, SSI, VA benefits, unemployment, workers' compensation, child support received, and most public assistance. Federal regulation (31 CFR Part 212) requires banks to automatically protect two months of federal-benefit deposits in your account. Missouri also exempts certain wages already deposited under the head-of-household rule. If your account is frozen, file a Claim of Exemption with the court that issued the garnishment immediately - typically within 20 days under Missouri rules. Bring proof of the source of the funds (Social Security award letter, pay stub, VA letter, etc.). A Missouri consumer attorney can usually get exempt funds released quickly, and federal FDCPA fee-shifting often pays for representation. If the underlying judgment is challengeable (improper service, SOL, debt buyer with no proof), the entire judgment may be set aside.