Sued by Midland Credit Management in Rhode Island? 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 Rhode Island, the statute of limitations for credit card debt is 10 years. If your last payment was more than 10 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 Rhode Island 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.

Rhode Island Wage Garnishment Exemptions

Federal limits apply.

Rhode Island Deceptive Trade Practices Act

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

Rhode Island Court System

Small claims limit $5,000. District court handles larger civil cases. Filing fees in Rhode Island typically range $40-$200.

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 Rhode Island?

20 days from service.

What is the SOL in Rhode Island?

10 years for all contract types — one of the longest in the country.

Can wages be garnished?

Yes. Federal limits apply.

What courts handle debt cases?

Small claims up to $5,000. District court for larger amounts.

I was sued by a debt buyer in Rhode Island District Court. How do I respond?

Read the summons carefully. In Rhode Island District Court, you typically have 20 days from service to file a written answer. If you do not respond, the debt buyer will move for a default judgment and almost certainly get one. Your answer can be a short written document denying the substantive allegations and listing affirmative defenses. Common defenses to debt buyer suits include lack of standing because the buyer cannot prove ownership of the debt, statute of limitations, failure to attach the underlying contract, and lack of personal jurisdiction or improper venue. File the answer with the clerk and mail a copy to the plaintiff's attorney. Once your answer is on file, you have access to discovery and can demand that the debt buyer produce the original credit agreement, the chain of assignments, and account statements showing the alleged debt. Many debt buyer cases collapse in Rhode Island when these documents cannot be produced or are incomplete. Consider also filing a counterclaim under FDCPA and the DTPA if the collector's conduct has been abusive or deceptive.

Is the collector calling me registered to do business in Rhode Island?

Probably required, and you can verify. Under R.I.G.L. § 19-14.9 and related sections, debt collection agencies and debt buyers operating in Rhode Island generally must register with the Department of Business Regulation. You can search the DBR licensing database online to confirm whether the company calling you holds an active registration. If a collector is contacting Rhode Island consumers without proper registration, that conduct may violate state licensing law and, in some courts, can be used as a defense or counterclaim. The Department of Business Regulation also accepts written complaints against licensees. Filing a complaint with DBR does not directly recover money for you, but DBR can take administrative action, including fines and license revocation, which sometimes leads to a settlement of your individual matter. Combine a DBR complaint with a written dispute and validation request to the collector, since unverified debts cannot be collected on or reported until verification is provided.

What is the statute of limitations on debt in Rhode Island?

Rhode Island's general statute of limitations on contracts is ten years under R.I.G.L. § 9-1-13, although the analysis is more nuanced for credit card and account debts. For sales of goods and certain commercial transactions, R.I.G.L. § 6A-2-725 provides a four-year statute of limitations under the Uniform Commercial Code. Some Rhode Island courts have applied the four-year UCC period to credit card debt; others have applied the ten-year contract period. Because of this uncertainty, a strong statute of limitations defense in a Rhode Island debt buyer case often hinges on the specific terms of the cardholder agreement and the choice-of-law clause. Many cardholder agreements specify the law of another state, such as Delaware, South Dakota, or Utah, with shorter limitations periods. If you are sued in Rhode Island on a credit card account, raise the statute of limitations as an affirmative defense and review the cardholder agreement to determine which state's law applies.

Can a debt collector contact my employer or family in Rhode Island?

Strictly limited. Under the federal FDCPA at 15 U.S.C. § 1692c(b), a debt collector generally may not communicate with any person other than the consumer about the consumer's debt, except to obtain location information about the consumer. Location calls are themselves restricted by 15 U.S.C. § 1692b, which prohibits the collector from stating that the consumer owes a debt, identifying the collector's debt collection business unless asked, and contacting the same third party more than once except to confirm or update information. The collector cannot leave detailed messages with coworkers, send postcards, or talk to your relatives about the debt. If a collector has contacted your employer, family, or neighbors about your debt in Rhode Island, save the evidence. That conduct can support an FDCPA claim worth up to $1,000 in statutory damages plus actual damages and attorney fees, and a parallel claim under the Rhode Island Deceptive Trade Practices Act for additional relief.

What happens if a Rhode Island court enters a judgment against me?

Once a debt buyer or creditor obtains a judgment in Rhode Island, they gain new collection tools that they did not have before. They can request a writ of execution to levy on personal property, garnish wages up to 25% of disposable earnings, attach bank accounts, and place a lien on real estate. A judgment also accrues post-judgment interest, which in Rhode Island is currently 12% per year under R.I.G.L. § 9-21-10, far above market rates. That interest compounds quickly on an unpaid judgment. A Rhode Island judgment is enforceable for 20 years under R.I.G.L. § 9-25-1 and can be renewed. If you have a judgment against you, consider whether the underlying case is still subject to a motion to vacate on grounds like lack of service, void judgment, or mistake under Rhode Island District Court Civil Rule 60. The time to move is limited, often one year for some grounds, so act quickly.