The CFPB charged the largest debt collectors in the United States with violations of the Consumer Financial Protection Act ("CFPA") and the Fair Debt Collection Practices Act ("FDCPA").

In a Complaint filed in the U.S. District Court for the Southern District of California against Encore Capital Group, Midland Funding, Midland Credit Management and Asset Acceptance Capital Corp., the CFPB alleged that the debt collectors, in violation of a previous Consent Order, did not (i) possess the required documentation before suing consumers or (ii) provide the required disclosures before engaging in collections. The CFPB alleged that the debt collectors also falsely stated that they would provide consumers with Original Account Level Documentation within 30 days of a request. Further, the CFPB alleged that the debt collectors sued consumers for time-barred debts that were legally unenforceable.

The CFPB charged the debt collector with violations of Sections 1031 ("Prohibiting Unfair, Deceptive, or Abusive Acts or Practices") and 1036 ("Prohibited Acts") of the CFPA and Sections 1692l ("Administrative Enforcement") and 1692e ("False or Misleading Representations") of the FDCPA.

The CFPB is seeking (i) permanent injunctions, (ii) damages, (iii) redress to consumers, (iv) disgorgement and (v) civil money penalties.