Sued by Midland Credit Management in Oregon? 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 Oregon, the statute of limitations for credit card debt is 6 years. If your last payment was more than 6 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 Oregon 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.

Oregon Wage Garnishment Exemptions

Greater of 75% of disposable earnings or $254/week exempt. Oregon has a higher floor than federal law.

Oregon Unlawful Trade Practices Act

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

Oregon Court System

Small claims limit $10,000. Circuit court handles all other civil cases. Filing fees in Oregon typically range $50-$300.

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 Oregon?

30 days from service.

What is the SOL in Oregon?

6 years for all contract types.

Can wages be garnished?

Yes, but Oregon provides more wage protection than federal law with a higher weekly minimum exemption.

Where are cases filed?

Small claims up to $10,000. Circuit court for larger amounts.

How does Oregon's Unlawful Debt Collection Practices Act differ from the federal FDCPA?

The Oregon UDCPA is similar in spirit to the federal FDCPA but has several important differences. First, the federal FDCPA generally applies only to third-party debt collectors and debt buyers, not to original creditors collecting their own debts. Oregon's UDCPA, found at ORS 646.639, applies to both original creditors and third-party collectors when collecting consumer debts. Second, Oregon UDCPA violations are also actionable as unlawful trade practices under ORS 646.638, which can trigger attorney fee shifting and additional statutory damages. Third, Oregon courts have read the UDCPA to cover some communication practices that federal courts have not always reached under the FDCPA. Practically, if a debt collector contacts you in Oregon in a deceptive, harassing, or abusive way, you may have parallel federal FDCPA and state UDCPA claims, and stacking them can substantially increase your leverage in settlement negotiations or in a counterclaim against a debt buyer.

I was sued by a debt buyer in Oregon. Are they required to attach documents to the complaint?

Yes. Oregon law has specific pleading requirements for debt buyers. Under ORS 646A.670 and related provisions, a debt buyer suing a consumer on a consumer debt is required to include certain information in the complaint, such as the original creditor, the original account number, the chain of title showing how the buyer acquired the debt, the date of last payment, and the amount due broken out by principal, interest, and fees. If the complaint does not include this information or the required attached documents, you can move to dismiss or strike the complaint, and many Oregon trial courts have done so. This is one of the strongest tools Oregon law gives consumers in debt buyer cases. Examine the complaint as soon as you are served, and if the required attachments are missing or boilerplate, raise the issue in your answer or by motion before the clock to respond runs out.

How much of my paycheck is protected from garnishment in Oregon?

Oregon provides much stronger wage garnishment protection than the federal minimum. Under ORS 18.385, the amount of your disposable earnings that is exempt is the greatest of 75% of disposable earnings, an amount equal to a state-specified minimum based on weekly, biweekly, or monthly pay periods, or the federal minimum (30 times the federal minimum wage). The state minimum dollar floor is updated periodically, and as of recent years has been roughly $254 per workweek, with adjustments. That means a creditor in Oregon can usually only take a smaller bite of your wages than in most other states. If a garnishment is issued, you receive a written notice with a Challenge to Garnishment form you can use to claim exemptions and to dispute the amount. File it with the court promptly. If you are paid in cash, by self-employment income, or as an independent contractor, different rules apply, and consulting a consumer attorney is worthwhile.

What is the statute of limitations on debt in Oregon?

Oregon's general statute of limitations on a written contract is six years under ORS 12.080. Credit card debt has historically been treated as an account or as a written contract depending on the agreement and the court. Some Oregon courts have treated credit card debts as accounts subject to a six-year statute. For installment loans and most personal loans, the clock starts on the date of default and runs as to each missed payment, although acceleration by the lender can start the full balance running at once. Oregon also has a borrowing statute, ORS 12.430, which can apply the limitations period of another state where the claim arose if that period is shorter. As in other states, making a partial payment or written acknowledgment of an old debt can restart the clock under ORS 12.230. If you are sued on a debt that is past the limitations period, you must raise the defense in your answer or risk waiving it.

Can I report an Oregon debt collector to the state and what happens?

Yes. The Oregon Department of Justice Consumer Protection Section, reachable at 877-877-9392, accepts written complaints against debt collectors. You can file online through the consumer protection portal at the Oregon DOJ website. Oregon also requires debt collection agencies and debt buyers to register with the Oregon Department of Consumer and Business Services under ORS 697.005 et seq. before collecting from Oregon consumers, and you can check the registration of any collector contacting you. Filing a complaint does not directly recover money for you, but it adds to the regulator's record on that company, and DOJ has used registration revocation, civil penalties, and assurances of voluntary compliance to discipline repeat offenders. If you want personal recovery, you generally need to bring a private action under the UDCPA, UTPA, or FDCPA. A combination of a regulatory complaint and a private demand letter is often more effective than either alone.