Sued by Midland Credit Management in Michigan? Here’s What to Do

Midland Credit Management, Inc. is a debt buyer headquartered in San Diego, California. They are a subsidiary of Encore Capital Group, Inc. (NASDAQ: ECPG), one of the largest publicly traded debt collection companies in the United States.

Midland buys defaulted consumer debts — typically credit card accounts — from original creditors like Capital One, Citibank, Synchrony Bank, JPMorgan Chase, and Bank of America. They pay pennies on the dollar for these portfolios, often 4 to 8 cents per dollar of face value.

In Michigan, Midland is the dominant debt buyer filer. Industry data from court records shows Midland accounts for roughly 20% of all debt buyer lawsuits filed in Michigan state courts — more than any other plaintiff, ahead of Portfolio Recovery Associates, Jefferson Capital Systems, and LVNV Funding. Their attorneys in Michigan are typically Stenger & Stenger or Weltman Weinberg & Reis, both firms specializing in volume debt collection litigation.

The most important fact about Midland: they bought your debt for a tiny fraction of what they’re claiming. They have strong financial incentives to settle for less than the full amount, and even stronger incentives to abandon cases where the defendant fights back with documented defenses.

In September 2015, the Consumer Financial Protection Bureau ordered Midland Credit Management and its parent company Encore Capital Group to pay a combined $79 million in penalties and consumer relief. The CFPB found that Midland had filed thousands of false or misleading affidavits in debt collection lawsuits, including affidavits signed by employees who had no personal knowledge of the underlying debts.

The CFPB’s consent order required Midland to stop filing affidavits without firsthand knowledge, stop collecting on debts they couldn’t substantiate, and pay millions in restitution to consumers who had been harmed.

Why this matters for your case in Michigan: if Midland is suing you, demand to see the affidavit they filed. Demand to know whether the affiant has personal knowledge of your specific account. Demand the underlying account documents the affidavit references. Midland’s history of false affidavits is part of the public record and can be raised as part of your defense.

Under Michigan Court Rule 2.108(A)(1), you have 21 days from the date you were served to file an Answer with the court. Miss this deadline and the court will enter default judgment for the full amount plus interest, court costs, and attorney’s fees.

Default judgment is permanent. It can be collected from your wages through wage garnishment, from your bank account through bank levy, and as a lien against your property. It also damages your credit for 7 years.

The 21 days starts on the date you were personally served — not the date the lawsuit was filed. If you were served by mail, you have 28 days (the standard 21 days plus 7 additional days). Check your summons carefully for the exact deadline.

For District Court cases (under $25,000), the procedure is more streamlined. For Circuit Court cases (over $25,000), formal pleadings under the Michigan Court Rules apply.

Michigan has a procedural rule that catches many pro se defendants by surprise. Under MCL 600.2145, when a plaintiff in a debt collection case files an account-stated affidavit (a sworn statement that the debt is owed), the defendant must file a counter-affidavit within the time allowed for an Answer — or the plaintiff’s affidavit becomes prima facie evidence of the debt.

In practice, this means: if Midland files an affidavit from a witness claiming you owe the debt, and you only file a generic Answer denying the allegations, the court can treat Midland’s affidavit as accepted evidence of the debt. To preserve your defenses, you must file your own counter-affidavit denying the debt under oath.

This is a procedural trap that has caused many Michigan defendants to lose cases they should have won on the merits. When you file your Answer in a Michigan debt case, file a counter-affidavit alongside it specifically addressing any account-stated affidavit Midland filed.

Under MCL 600.5807(9), the statute of limitations on most consumer credit card debt and other contracts in Michigan is 6 years from the date of breach (typically the date of your last payment).

If your last payment on the underlying debt was more than 6 years ago, the case is time-barred and you can move to dismiss it. Calculate this carefully.

The clock starts on your last payment, not the date the debt was charged off. The clock does not restart if Midland bought the debt more recently. The clock does not restart unless you made a new payment or signed a new agreement acknowledging the debt.

Demand the original account statements in discovery. The date of last payment is your statute of limitations defense. Midland often sues on debts that are very close to the statute of limitations cutoff because they buy aged portfolios — verify your dates carefully.

Statute of limitations. If your last payment was more than 6 years ago, the case is time-barred under MCL 600.5807(9). Midland often sues on aged debt — check your dates carefully.

Lack of standing. Midland must produce documentation showing the complete chain of assignment from the original creditor. Even though Midland often buys directly from original creditors, the assignment documentation is sometimes incomplete.

Counter-affidavit defense under MCL 600.2145. File a counter-affidavit alongside your Answer to prevent Midland’s account-stated affidavit from becoming prima facie evidence.

Motion to Compel Arbitration. Most consumer credit agreements (Capital One, Synchrony, Citibank, etc.) contain mandatory arbitration clauses. Filing a Motion to Compel Arbitration moves the case out of Michigan court and forces Midland to file with the American Arbitration Association (AAA). When Midland fails to comply with AAA, the case can be dismissed.

Michigan Consumer Protection Act (MCL 445.901) and Michigan Regulation of Collection Practices Act (MCL 445.251). Michigan has two state-level consumer protection statutes that prohibit unfair or deceptive collection practices. Violations can support both defenses and counterclaims.

In 2025, I was sued for $2,892.96 by Plaza Services LLC, another debt buyer, in Eau Claire County Small Claims Court in Wisconsin. I had no lawyer. I’d never been in a courtroom before.

I read my original credit agreement carefully. It contained a mandatory arbitration clause requiring all disputes to be resolved through the American Arbitration Association. I filed a Motion to Compel Arbitration in Wisconsin Circuit Court.

The plaintiff didn’t comply with AAA’s procedural requirements within the deadline. The court dismissed the case.

That same playbook works against Midland in Michigan. The credit agreements they sue on — Capital One, Synchrony Bank, Citibank, Chase — almost universally contain arbitration clauses. When you compel arbitration and Midland fails to comply with AAA’s procedural requirements, the court can dismiss the case.

I built Answered specifically because I went through this process and realized how few defendants know they have these defenses. Most pro se defendants either default or panic and settle for amounts they don’t actually owe.

File at the court named on your summons. For most Midland cases under $25,000, this will be District Court. Larger cases go to Circuit Court.

Filing fees vary by case type and amount in controversy. District Court fees are typically $25 to $150. Circuit Court fees are higher, around $150 to $300. Michigan offers fee waivers for qualifying low-income defendants — file Form MC 20 to apply.

Michigan courts increasingly accept e-filing through MiFILE. Check whether your county requires e-filing or accepts paper filing.

Your Answer must include numbered paragraph denials matching the complaint, your affirmative defenses (statute of limitations, lack of standing, etc.), your verified signature, and a certificate of service. Critically, file a counter-affidavit alongside your Answer if Midland filed an account-stated affidavit, to address the MCL 600.2145 procedural rule.

The court schedules a status conference or pretrial hearing. Midland must produce evidence supporting their claim — the credit agreement, account statements, and assignment documents.

You can request discovery, demanding Midland prove ownership and the amount they’re claiming. Specifically request the affidavit Midland filed and ask whether the affiant has personal knowledge of your account, given the CFPB’s findings about Midland’s affidavit practices.

If Midland can’t produce documents, you can file a Motion to Dismiss or Motion for Summary Disposition (Michigan’s term for summary judgment).

Many Midland cases settle for far less than the demanded amount, or get dismissed before trial. Midland’s parent company Encore Capital reports settlement rates publicly in their SEC filings — most cases never go to trial. The single most important fact about Midland cases is that they abandon most cases where defendants fight back with documented defenses.