Asset Acceptance: What to Do If They Contact You

If Asset Acceptance is showing up on your credit report, there’s important context you need to know. The company was acquired by Encore Capital Group in 2013 and all Asset Acceptance accounts are now serviced by Midland Credit Management (MCM). Asset Acceptance’s own website directs every inquiry to MCM.

That matters because Asset Acceptance had a major run-in with federal regulators in 2012 over the exact practices that commonly show up on consumer credit reports today: time-barred debts, improper verification, and misleading collection tactics. Old accounts with Asset Acceptance on your credit report may have specific leverage points that don’t apply to other collectors.

This guide walks through what Asset Acceptance actually is today, why the account is on your report, and how to handle it.

What Asset Acceptance Is Today

Asset Acceptance, LLC was founded in 1962 and became one of the largest debt buyers in the United States. In 2013, Encore Capital Group acquired the company for $200 million. Today, Asset Acceptance operates as a wholly owned subsidiary of Encore, and Midland Credit Management (MCM), Encore’s primary collection arm, services all Asset Acceptance accounts.

If you have an Asset Acceptance collection on your credit report, you’re effectively dealing with Midland Credit Management. Any payment, dispute, or negotiation goes through MCM at (800) 296-2657. The Asset Acceptance name remains on the credit report, but the operating company behind it is MCM.

The 2012 FTC Settlement That Still Matters

Before the Encore acquisition, Asset Acceptance paid a $2.5 million civil penalty to the FTC in 2012, the second-largest FTC debt collection penalty at that time. The FTC’s nine-count complaint alleged:

• Misrepresenting that consumers owed debts without proper substantiation.
• Failing to disclose when debts were too old to legally enforce (time-barred).
• Providing inaccurate information to credit bureaus.
• Failing to investigate disputed debts before continuing collection.
• Repeatedly calling third parties who did not owe the debt.
• Informing third parties about consumer debts (privacy violations).
• Failing to verify debts when disputed.

The settlement required Asset Acceptance to disclose that it would not sue on time-barred debts, investigate disputes before continuing collection, and notify consumers before reporting negative information to credit bureaus. These are directly relevant to how accounts from this era should have been handled.

Why the Age of Your Asset Acceptance Debt Matters

Because Asset Acceptance stopped buying new debt after the 2013 Encore acquisition, most Asset Acceptance accounts on credit reports today are old. Many are at or past the statute of limitations in your state.

Every state has a statute of limitations on debt, which is the window of time a creditor can sue you to collect. Once that window closes, the debt is time-barred. Credit card debts typically fall under the 3 to 6 year range depending on your state. An Asset Acceptance account from the mid-2010s is often beyond this window.

Critically, the 2012 FTC settlement required Asset Acceptance to disclose when debts are time-barred. If they failed to do so in communication with you, that’s a potential FDCPA violation.

Federal Laws That Protect You

The Fair Debt Collection Practices Act (FDCPA) applies to Asset Acceptance and its current servicer, MCM. Under the FDCPA, they cannot:

• Threaten arrest or jail: Consumer debt is not a criminal matter.
• Call at odd hours: Contact is only allowed between 8 a.m. and 9 p.m. in your time zone.
• Contact third parties about your debt: This was specifically part of the 2012 FTC complaint.
• Use harassing language: Profanity and repeated calls meant to annoy violate the law.
• Sue on time-barred debts: Specifically addressed in the FTC order.
• Lie about what you owe: Misrepresenting amounts or consequences is prohibited.

The Fair Credit Reporting Act (FCRA) gives you the right to dispute inaccurate information. If MCM or Asset Acceptance violates either law, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov.

Demand Documentation Before Paying

Don’t pay or admit the debt is yours until you’ve verified it. Given the age of most Asset Acceptance accounts and the FTC’s findings about documentation gaps, verification is especially important here.

Send a written debt validation request by certified mail to MCM within 30 days of first contact. Ask for:

• The original creditor’s name and the original account number.
• The chain of ownership from the original creditor to Asset Acceptance to MCM.
• The original charge-off date.
• A complete payment history, including any payments made after charge-off.
• The statutory or contractual authority for any interest charges added to the balance.

If the documentation is incomplete, the debt may not be enforceable.

How to Spot Credit Report Errors on Asset Acceptance Accounts

Pull your credit reports from all three bureaus at AnnualCreditReport.com. Look at how the Asset Acceptance account is reporting. Check for:

• Incorrect balance.
• Wrong original creditor.
• Duplicate entries under both Asset Acceptance and MCM.
• Re-aging (reporting a date more recent than the actual date of first delinquency).
• Accounts past the 7-year reporting limit.

Duplicate reporting is particularly common given the Asset Acceptance-to-MCM servicing transition. If the same debt appears twice, dispute the duplicates with each credit bureau.

How to Resolve an Asset Acceptance Account

Once you understand what you’re dealing with, consider these paths:

• Dispute if time-barred: If the debt is past your state’s statute of limitations, dispute with the credit bureaus and consider whether the reporting itself violates FTC consent order provisions.
• Negotiate a settlement: MCM often accepts 40 to 60 percent on older accounts. Get any agreement in writing.
• Request a pay-for-delete: Some collectors agree to remove the account in exchange for payment. Get it in writing.
• Wait it out: If the account is close to the 7-year credit reporting limit, it will fall off your report on its own.

Can Asset Acceptance Sue You?

Technically yes, though MCM handles any litigation since they service the accounts. However, the FTC order specifically prohibits Asset Acceptance from suing on time-barred debts. Given the age of most Asset Acceptance accounts, many are now time-barred and cannot legally be pursued in court.

If MCM sues you on an Asset Acceptance debt, do not ignore the complaint. Respond within the deadline and raise the statute of limitations defense if applicable. Consult a consumer protection attorney. Many offer free consultations.

How to Contact Asset Acceptance (and MCM)

Asset Acceptance directs all inquiries to Midland Credit Management. Handle communication in writing whenever possible.

• Midland Credit Management: (800) 296-2657 (primary contact for Asset Acceptance accounts)
• MCM mailing address: PO Box 939069, San Diego, CA 92193
• Asset Acceptance legacy address: 28405 Van Dyke Ave, Warren, MI 48093

If you do need to speak by phone, take notes with the date, time, the name of the person you spoke with, and what was said.

Bottom Line

An Asset Acceptance account on your credit report today is a legacy entry that’s almost certainly old, serviced by Midland Credit Management, and potentially past the statute of limitations. The 2012 FTC settlement established specific rules about how time-barred debts should be handled, and those rules still apply.

Verify the debt, check the age against your state’s statute of limitations, and respond strategically. Many Asset Acceptance accounts have more vulnerabilities than consumers realize.