Midwest Recovery Systems, LLC

Last Updated:
FTC Matter/File Number:

1923042

Civil Action Number:

4:20-cv-01674

Federal Court:
Eastern District of Missouri

Case Summary

The Federal Trade Commission has taken action against a debt collection company that allegedly placed bogus or highly questionable debts onto consumers’ credit reports to coerce them to pay the debts. Under a settlement with the FTC, the company, Midwest Recovery Systems (Midwest Recovery), is prohibited from the practice, known as “debt parking,” and required to delete the debts it previously reported to credit reporting agencies. The FTC alleged that Midwest Recovery collected more than $24 million from consumers on such debts, largely by debt parking.