Midland Credit Management
Midland Credit Management is a United States debt buyer and debt collection company owned by Encore Capital Group.
Last updated August 31, 2026
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Overview
Midland Credit Management, Inc. is an American debt purchasing and collection company headquartered in San Diego, California. The company acquires portfolios of charged-off or otherwise delinquent consumer accounts and seeks repayment from account holders through collection activities, payment arrangements, and account servicing. It operates as a wholly owned subsidiary of Encore Capital Group, Inc., a publicly traded company whose shares trade on Nasdaq under the ticker ECPG. The business traces its origins to 1953. Its corporate history later became connected with MCM Capital Group, an entity that completed an initial public offering in 1999 and was renamed Encore Capital Group in 2002. Midland Credit Management subsequently operated as Encore's principal United States consumer-debt purchasing and collection business. The company is described as one of the largest debt collectors in the United States and has maintained operations and offices in the United States, India, and Costa Rica. Midland's business model is based on purchasing delinquent consumer debt, generally at a substantial discount to the face value of the accounts, and attempting to collect amounts owed under applicable law. Its activities have included direct communications with consumers, payment-plan administration, credit-reporting activity, and litigation-related collection practices. The company has stated that millions of consumers have paid off debt to Midland; ConsumerAffairs reported a figure of more than seven million consumers as of 2021. The company has also been the subject of regulatory and judicial scrutiny. Disputes have addressed the interest rates that a debt buyer may charge after acquiring a loan from a bank, the application of federal banking protections to nonbank debt buyers, and compliance with federal consumer-protection statutes. In 2015, Midland entered into a consent order with the Consumer Financial Protection Bureau concerning alleged violations of the Consumer Financial Protection Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act. The CFPB later alleged that Midland violated the consent order; the matter was resolved in 2020 with a $15 million civil money penalty. Midland's public profile has also been shaped by broader criticism of the debt-collection industry. The company was discussed in Jake Halpern's book Bad Paper and was mentioned during a 2016 Last Week Tonight with John Oliver segment about debt collection. These references contributed to public debate about documentation, disputed debts, consumer communication, and the use of litigation in collecting older accounts. Despite this scrutiny, Midland Credit Management remains an active operating brand within Encore Capital Group's United States platform.
History
Midland Credit Management was founded and incorporated in 1953. Its later development took place within the modern debt-buying industry, in which companies purchase portfolios of delinquent consumer accounts and seek repayment over time. The company became associated with MCM Capital Group during a period of ownership and organizational change in the late 1990s. In 1998, an investor group led by Nelson Peltz, Peter May, and Kerry Packer acquired a majority interest in the operations. That year Midland announced plans to expand employment at its call centers in the East Phoenix, Arizona, region, with a stated long-term objective of reaching 2,000 employees there. The expansion reflected the labor-intensive nature of account servicing and collection operations. In 1999, MCM Capital Group became part of a publicly traded company when it completed its initial public offering. In 2002, MCM Capital Group changed its name to Encore Capital Group, Inc. Midland Credit Management became a wholly owned subsidiary of Encore and continued to serve as a major United States operating company within the group's debt-purchasing platform. Midland's activities have included purchasing consumer debt in the United States and attempting to collect or resolve the acquired accounts. The company has also maintained offices and operational capabilities in India and Costa Rica. According to a 2021 ConsumerAffairs account cited in reference material, more than seven million consumers had paid off debt to Midland by that time. The company's history includes significant legal and regulatory disputes. In 2013, the United States District Court for the Southern District of New York ruled that Midland could charge the same interest rate that had applied to the original bank loan, applying the principle commonly described as the loan's terms being valid when made. In 2015, the Second Circuit reversed that result and concluded that Midland did not receive the relevant usury protection. The Supreme Court declined to review the case in 2016. In 2019, the Second Circuit further held that Midland was not protected under the National Bank Act. The Office of the Comptroller of the Currency subsequently issued a final rule intended to address the legal uncertainty surrounding the valid-when-made doctrine. In September 2015, Midland entered into a CFPB consent order concerning alleged violations of federal consumer-protection laws, including the Consumer Financial Protection Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act. In 2020, the CFPB brought an action alleging that Midland had violated the consent order. The case ended in a settlement requiring a $15 million civil money penalty. The company has also appeared in broader cultural and journalistic examinations of debt collection, including Bad Paper by Jake Halpern and a 2016 television segment by John Oliver. Midland remains an active subsidiary of Encore Capital Group.
- 2020
CFPB enforcement matter settled
[1]A CFPB action alleging violations of the 2015 consent order was resolved with a $15 million civil money penalty.
- 2019
Second Circuit addresses National Bank Act protection
[1]The Second Circuit ruled that Midland Credit Management was not protected under the National Bank Act in the relevant dispute.
- 2016
Supreme Court declines review
[1]The Supreme Court of the United States declined to review the Second Circuit dispute concerning Midland's claimed usury protection.
- 2015
Second Circuit reverses interest-rate ruling
[1]The Second Circuit overturned a district-court decision concerning Midland's ability to apply the interest rate charged by the originating bank.
- 2015
CFPB consent order
[1]Midland entered into a Consumer Financial Protection Bureau consent order concerning alleged violations of federal consumer-protection statutes.
- 2002
MCM Capital Group becomes Encore Capital Group
[1]MCM Capital Group changed its name to Encore Capital Group, under which Midland Credit Management operates as a wholly owned subsidiary.
- 1999
Parent company completes initial public offering
[1]MCM Capital Group completed its initial public offering, bringing Midland into the structure of a publicly traded parent.
- 1998
Investor group acquires majority interest
[1]An investor group led by Nelson Peltz, Peter May, and Kerry Packer acquired a majority interest in the operations. Midland also announced plans to expand its East Phoenix call-center workforce.
- 1953
Company founded and incorporated
[1]Midland Credit Management was founded and incorporated in the United States.
Products and positioning
A large-scale consumer debt buyer and collection servicer operating within Encore Capital Group, with an emphasis on purchasing delinquent accounts and managing repayment or resolution processes.
Debt purchasing
Purchased consumer debt portfolios
Midland acquires portfolios of delinquent consumer accounts, typically after the original creditor has charged off the debt. The acquired portfolios form the basis for the company's collection and account-resolution activities.
Debt collection
Consumer debt collection
The company contacts consumers regarding accounts it owns or services and seeks repayment under applicable federal and state requirements. Collection work may involve account servicing, correspondence, telephone communications, and arrangements for repayment.
Consumer financial services
Payment and account-resolution arrangements
Midland administers mechanisms through which consumers can repay, settle, or otherwise resolve eligible accounts. Specific terms depend on the account, applicable law, and the arrangement offered.
Controversies
2020
CFPB enforcement action and civil penalty
The CFPB alleged that Midland violated the 2015 consent order. The matter was settled with a $15 million civil money penalty.
2015
CFPB consent order
Midland entered into a CFPB consent order concerning alleged violations of the Consumer Financial Protection Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.
Brand decisions
2002
Continue under Encore Capital GroupStrategyBackground
MCM Capital Group changed its corporate name to Encore Capital Group.
Action taken
Midland Credit Management operated as a wholly owned subsidiary of the renamed parent.
Aftermath
The change established the Encore Capital Group identity under which Midland's United States operations continue.
1998
Expand East Phoenix call-center operationsStrategyBackground
Midland announced plans to increase employment at its East Phoenix, Arizona, call centers as its collection operations expanded.
Action taken
The company set a stated long-term goal of employing 2,000 people in the region.
Aftermath
The announcement marked an effort to enlarge the operational workforce supporting Midland's account-collection activities.
Sources1 sources
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