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Midland Credit Management (MCM) is one of the largest debt buyers in the U.S., operating globally with over 4,000 employees. Unlike traditional collectors, MCM purchases delinquent accounts - credit cards, loans, utilities, and more - directly from creditors at reduced prices. This ownership allows them to negotiate flexible settlements, offer tailored payment plans, and take legal action if necessary. They emphasize compliance with laws like the FDCPA and FCRA, supported by their "Consumer Bill of Rights" and data-driven strategies.
Key points:
MCM's approach focuses on resolving debts ethically while maintaining profitability through advanced analytics and consumer-focused practices.
Debt Buyer vs Third-Party Collector: Key Differences
MCM buys large portfolios of delinquent consumer accounts in bulk from original creditors. Typically, this happens after about 180 days (six months) of non-payment. By this point, the original creditor has "charged off" the debt - essentially writing it off as a loss - and is ready to sell it to recoup some of the value.
The process of acquiring these portfolios is rooted in data analysis. Using advanced analytics, MCM evaluates each portfolio's potential recovery value by examining financial, demographic, and behavioral data. This approach allows them to buy debt at discounted prices while ensuring profitability, even if they recover less than the total owed.
Once the purchase is finalized, legal ownership of the debt transfers from the original creditor to MCM or its affiliates, such as Midland Funding, LLC, Asset Acceptance, or Atlantic Credit & Finance. At this point, the original creditor no longer has any involvement with the account. MCM gains full rights to collect the outstanding balance, including any applicable interest and fees.
This ownership model sets MCM apart from traditional third-party debt collectors, as explained below.
The key distinction between MCM and traditional third-party collectors lies in who owns the debt. MCM purchases and owns the debt outright, while third-party collectors act as intermediaries, collecting on behalf of the original creditor for a commission or contingency fee.
| Feature | Debt Buyer (MCM) | Third-Party Debt Collector |
|---|---|---|
| Ownership | Purchases and owns the debt outright | Does not own the debt; acts as an intermediary |
| Compensation | Keeps all recovered funds minus acquisition costs | Earns commission or contingency fees |
| Flexibility | Can negotiate settlements and payment plans independently | Bound by the original creditor's instructions |
| Control | Original creditor has no control | Original creditor retains ownership and control |
This ownership structure gives MCM significant freedom in managing accounts. They can approve settlements for less than the full balance, set up personalized long-term payment plans, and decide whether to take legal action - all without needing the original creditor's approval. Since MCM buys debt at discounted rates, they can offer more favorable settlement terms while maintaining profitability.
MCM employs a variety of methods to connect with debtors, including letters, phone calls, emails, and text messages. Letters are the primary way MCM provides debt validation and formal account details, while phone calls allow for direct discussions and negotiation in real time.
Text messages have become a key tool in their communication arsenal, but MCM only sends them to individuals who have explicitly consented. These messages typically come from the number 312-224-1639 and often include links to mcmtext.com, where consumers can securely access account details and payment options. Federal regulations limit phone calls to the hours of 8:00 AM to 9:00 PM in the debtor's local time zone, and consumers can opt to receive communication exclusively through U.S. Mail if preferred.
"In our written correspondence with consumers, we provide clear communications, straightforward disclosures, and robust account information to maximize consumer comprehension and recognition of their account." - Midland Credit Management
MCM tailors its approach based on individual circumstances. For instance, the company pauses collection efforts for active-duty servicemembers, natural disaster victims, and those whose income comes solely from exempt sources like Social Security. Any payment agreements made over the phone are confirmed in writing and sent to the debtor’s address to ensure clarity and transparency.
These strategies are supported by advanced tools and data-driven processes that enhance the overall effectiveness of their outreach.
To complement its outreach efforts, MCM leverages financial, demographic, and behavioral analytics to improve collection outcomes and keep contact information up to date. When consumers change their phone numbers or addresses, MCM uses skip tracing technology to locate updated contact details. If mail is returned as undeliverable, the address is deactivated, and skip tracing is initiated immediately.
MCM also provides a secure online portal where consumers can independently manage their accounts. This portal enables users to review account documentation, explore payment plans, and access resources 24/7 - without any obligation to pay immediately. Additionally, an online debt calculator helps individuals determine payment amounts that align with their financial situations before interacting with account managers.
Since its founding in 1953, MCM’s data-driven methods and consumer-focused tools have helped over 7 million people resolve their debts.
Midland Credit Management (MCM) offers two main ways to address debt: installment plans and lump-sum settlements. Installment plans break the debt into smaller, monthly payments that align with a debtor's income, helping them pay off the full balance - or nearly all of it - over time. On the other hand, lump-sum settlements allow debtors to resolve their accounts by making a one-time payment, typically between 30% and 50% of the total debt owed.
"We offer flexible repayment options to consumers in an effort to establish a mutually beneficial resolution that the consumer can afford." – Midland Credit Management Consumer Bill of Rights
For those facing hardships like medical emergencies, job loss, or natural disasters, MCM provides additional support. This includes temporarily suspending collection efforts. Consumers can explore these options independently through MCM’s secure online portal.
MCM emphasizes the importance of early engagement, which can lead to better outcomes for debtors. Acting within the first six months of initial contact offers unique advantages. For example, maintaining an agreed-upon payment plan during this period ensures that MCM does not report the debt to credit bureaus.
"If you begin repaying during those first six months and continue to make all payments as agreed until the account is resolved, we will never report your account to the credit reporting agencies." – Midland Credit Management
Early engagement also keeps the account in the negotiation stage, reducing the risk of legal actions like lawsuits, wage garnishments, or property liens. Additionally, debtors who resolve their accounts - whether by full payment or settlement - benefit from MCM’s policy of requesting the removal of their tradeline from credit bureau reports. This process, which typically takes up to 45 days, can significantly improve a debtor's credit profile.
These approaches highlight MCM’s focus on offering flexible and fair solutions, giving debtors more control over their financial recovery.
When debtors stop making payments and fail to address their outstanding accounts, Midland Credit Management (MCM) may decide to take legal action. Typically, this process starts with a pre-litigation notice, giving consumers one last chance to settle their debt before the case is referred to a law firm for formal proceedings.
Once a lawsuit is filed, the timeline for consumers to respond to a court summons depends on state law, ranging from 14 to 30 days. Ignoring the summons can lead to a default judgment, which allows MCM to take enforcement actions like wage garnishment, bank account levies, or placing liens on property. However, MCM does not pursue legal action against individuals actively making payments on their accounts.
Before initiating a lawsuit, MCM ensures the debt is within the statute of limitations. This precaution prevents them from pursuing "time-barred" debts, which consumers could use as a defense in court.
"Prior to pursuing litigation, our attorneys and law firms confirm that the applicable statute of limitations on the debt has not expired." – Midland Credit Management Consumer Bill of Rights
MCM also emphasizes ethical legal practices. Their law firms are instructed to avoid coercive measures, such as requesting bench warrants to force court appearances, unless a court independently enforces its order after a judgment. This approach aligns with their commitment to following federal regulations.
Beyond legal enforcement, MCM prioritizes compliance with federal regulations and adheres to its own Consumer Bill of Rights, which outlines ethical standards for interacting with debtors. Newly hired collection representatives undergo rigorous training, including passing a comprehensive exam, and all employees must complete annual recertification and ongoing training on federal and state laws, particularly the Fair Debt Collection Practices Act (FDCPA).
To maintain quality and accountability, MCM uses several control measures, including:
Additionally, MCM requires authorized representatives to verify the accuracy of legal affidavits before signing them.
Despite these measures, MCM has faced regulatory challenges. In October 2020, the Consumer Financial Protection Bureau (CFPB) settled a case with Encore Capital Group and its subsidiaries, including MCM. The settlement imposed a $15 million civil penalty and $79,308 in consumer redress. This case addressed allegations that MCM violated a 2015 consent order by suing consumers without proper documentation, attempting to collect on time-barred debts, and using unlawful collection tactics.
"We maintain a training program for newly hired collection representatives that includes passing a comprehensive examination, as well as ongoing training and recertification each year that covers state and federal laws and interpersonal skills." – Midland Credit Management
MCM also demonstrates flexibility in specific situations. They halt communication upon receiving a written request and suspend collection efforts for consumers facing severe financial hardships. This includes cases involving medical issues, natural disasters, or when the consumer's sole income comes from exempt sources like Social Security or Supplemental Security Income (SSI).
Handling payments efficiently and closing accounts promptly play a crucial role in rebuilding consumer credit and completing Midland Credit Management's (MCM) debt recovery process. By following strict legal and ethical guidelines, MCM ensures that payment processing supports smooth account resolution.
MCM offers multiple payment options to make the process as convenient as possible. Payments can be made through a 24/7 online portal, via phone support available every day of the week, or by mail.
Through the online portal, consumers can use:
Payments made over the phone allow for the same electronic options, plus the convenience of check payments over the phone. For those who prefer traditional methods, mail payments are also accepted. These can be sent in the form of personal checks, money orders, or cashier's checks to the following address:
320 E Big Beaver Rd., Suite 300
Troy, MI 48083
Be sure to include your MCM account number on mailed payments to ensure proper crediting. To protect consumers' financial data, MCM partners with trusted security providers like DigiCert for secure online transactions.
"Midland Credit Management accepts most forms of payment including checks, electronic checks (ACH), debit cards, Visa, MasterCard and Discover credit cards, prepaid cards, and check by phone." – Midland Credit Management
Once a payment is processed, MCM begins the next steps toward account resolution.
After the final payment, it may take up to 30 days to confirm that funds have cleared and no insufficient funds notifications have been received. Once the account is resolved - whether fully paid or settled for less than the full balance - MCM submits a request to credit bureaus to remove its tradeline entirely, rather than just marking the account as "paid." Credit reporting agencies can take up to 45 days to process this deletion.
For consumers who need immediate proof of resolution, such as during a loan application, a "paid-in-full" letter can be requested through the online portal, live chat, or by phone. Enabling email notifications can help speed up the delivery of this documentation. Additionally, any arrangements made over the phone are confirmed in writing and sent via mail.
MCM has helped more than 7 million people resolve their financial obligations to date.
"It can take up to 30 days after your last payment to fully resolve your account. This period is required to ensure funds have fully cleared and no insufficient funds notice has come back from your payment." – Midland Credit Management
Midland Credit Management (MCM) has solidified its position as a leader in the debt collection industry by owning its debt portfolios and adhering to ethical practices. This ownership gives MCM the flexibility to negotiate settlements and create payment plans tailored to individual circumstances - something that sets it apart from third-party collectors who operate under creditor-imposed guidelines and commission-based structures.
MCM's approach to debt management is rooted in a combination of advanced strategies. By utilizing data analytics, multi-channel outreach, and a digital-first mindset, the company improves recovery rates while maintaining strict compliance. These efforts are bolstered by its large-scale operations and a focus on consumer success.
Ethics also play a central role in MCM's operations. The company's Consumer Bill of Rights reflects its commitment to fair treatment, setting a high standard for consumer trust. Certifications like ISO 27001:2013 and comprehensive compliance training programs further reinforce its commitment to regulatory excellence. However, the $15 million settlement with the CFPB in 2020 highlights the ongoing need to adapt and refine practices in an ever-changing regulatory landscape.
Key strategies, such as acquiring debt at an average cost of 3.1 cents on the dollar and offering settlements between 40% and 60% of the outstanding balance, provide valuable insights into the dynamics of debt trading. Additionally, MCM’s policy of not reselling accounts to third parties builds long-term trust with consumers and reshapes how debt portfolios are valued and managed over time. These practices underscore the importance of understanding MCM’s approach for anyone involved in debt portfolio trading.
If you want to confirm that MCM owns your debt, you can request validation details. Be sure to ask for specifics like the name of the original creditor, the exact amount owed, and any supporting documentation. MCM is obligated to provide this information within a set timeframe, which helps ensure clarity and adherence to legal requirements.
If you get a pre-lawsuit notice from MCM, take a close look at the documents and double-check the debt details. It’s a good idea to reach out to a consumer protection or debt defense attorney to explore your options and figure out the best way to respond before the deadline. Acting quickly is key to safeguarding your rights and handling the situation properly.
When you pay Midland Credit Management (MCM), it doesn’t mean the debt will instantly vanish from your credit report. However, if you pay or settle the account in full, MCM usually requests a tradeline deletion within about 45 days. That said, the debt itself can still stick around on your credit report for up to seven years from the date it first became delinquent.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
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