I recently spoke with a woman who had just been sued by Midland Funding LLC for a debt they bought from Citi bank. The amount she is being sued for is a few thousand dollars. She is being sued by a debt collection attorney in her state after collection attempts were first made by Midland Credit Management (MCM). Both Midland Funding and MCM are part of Encore Capital Group, which is one of few publicly traded debt buying companies in America, and one of the largest in the world.
I want to share the facts of her situation because they may help if you are getting collection notices and phone calls from Midland Credit Management, or if you are being sued by Midland Funding. Many of you reading this can prevent escalated collections from Midland in the courts, and anyone already in the courts will want to know how best to navigate things from here.
There will be many a reader just looking for why Midland Funding is appearing on your credit reports. Once you know why Midland is on your credit, many of you will want to know some things you can do to improve your credit.
Be certain to read the updates regarding Midland Funding on your credit reports that I posted at the end of the article. They have set themselves apart from any other debt collection company in the country by developing a consumer friendly credit reporting policy.
Credit card bills that go unpaid are packaged up in large bundles and sold off to bad debt investors in the normal course of lending. A portfolio of debt being bought by companies like Midland Funding could include your account, and thousands of other unpaid credit card bills.
Having your credit card debt bought by a debt buyer like Midland Funding is not unusual. And depending on how the debt collection and debt buying landscape changes in the next year or three, it could become even more common than we see today.
Midland Funding LLC and Midland Credit Management are Different
While Midland Credit and Midland Funding LLC share the same ownership under Encore Capital, each company does something different, and those differences matter to you. Midland Funding is the debt purchasing arm, while MCM will be recognized as the active debt collection agency, similar to how you would view any other debt collector.
Midland Credit Management sent a debt collection letter to the woman I reference above. Receiving a debt collection letter from a collection company you don’t immediately recognize is a normal occurrence. Collection agency letters and phone calls are the 2 primary ways a debt buyer, or the debt collectors they hire, will try to get you to pay.
You have options for handling the collection efforts from Midland Credit. If you are in a position to work out a settlement for less than what is owed on the now purchased account, doing so after the first phone call or collection letter you receive, is something to consider.
Understand that making arrangements to pay a debt buyer the full amount for a debt they bought is not going to go to your original creditor. The debt buyer is not a lender, but an investor. They are risking money to buy up bad debt to turn a profit.
Midland Funding is willing to accept less than the face value of your debt through its debt collection arm Midland Credit Management. How much less will vary. You are welcome to call me at 800-939-8357, ext 2, in order to get help settling with them.
Midland Funding generally shows up on your credit reports. Once on them, you cannot pay Midland to delete the derogatory in the first 2 years they have your account. You can negotiate a lower payoff and Midland Funding will update your credit reports to show the account is resolved and a zero balance owed. This will help you get a home loan through, and benefit you in other ways too.
There is a delay between Midland Funding buying your debt, and them reporting to the credit bureaus. Midland Credit Management will often start off the collection process by sending you a collection notice, or make collection phone calls that you may pick up. In the letter or phone call Midland may offer you the opportunity to settle or set up payments on your account in order to prevent the credit reporting of the collection account from occurring at all. As of the most recent update to this article, you have three months from the date they get your account to take advantage of this offer. If you can afford the money to settle, or set up payments you are confident you can pay each month, there are immediate and long term benefits to doing this. It is not a trick, they actually do this, and may be the only debt collectors making this type of offer.
If you want to settle with Midland Credit Management for less than the balance owed; can afford 50%; and sometimes spread out over 24 months; click the get debt help tab at the top of this page and create your user profile.
You can get help settling with MCM and have a deal done within days (as long as MCM has not already sent your account to a collection law firm). The Network I helped build has many negotiators, and we all charge 15% of savings. No savings, no fee.
Debt Validation Request Letter Sent to Midland Credit Management
The woman I refer to in this article sent Midland Credit a validation request in response to a collection letter MCM sent her. Sending a debt validation letter to a debt collector is your right. If for any reason you question the nature of the debt being collected, requesting validation from a collection agency or debt buyer will accomplish a couple of things:
- Triggers an obligation under federal law on the part of the debt collector.
- A written response from the debt buyer should include the original creditor, the amount owed, and these days, we are seeing some form of documentation to back up their claim (not simply a reference to their own spread sheet of debts they purchased).
- Debt buyers and debt collectors do not always respond to your request for validation, but the response is often sufficient to meet the standard that would allow them to continue to collect (the federal debt validation standard is low enough to trip over, your state law standard may be a little tougher).
- Debt buyers may never respond to a debt validation letter. The account may end up with a different collection agency, or sold off to a different debt buyer (Midland has not been much of a debt reseller of late).
Midland Credit Management did not respond to her validation request to her knowledge.
It is not uncommon for a debt buyer to ignore a validation request. The reason validation of debt requests are ignored by Midland Credit Management, and other debt collectors and debt buyers, is that sometimes no meaningful information was included when the debt was purchased. There are sometimes options to acquire detailed information from the original creditor at an additional cost, but that is not always the case. And you may not appear all that collectable to a debt collector, and they just may not bother if they see a low probability that you will pay anything.
When debt validation requests are ignored, Midland Funding may still send your account to a collection attorney.
Many years ago, I came to the conclusion that sending debt validation requests to a debt collector like Midland Funding, when you already recognize the debt as yours, and your goal is to resolve the debt by settling with the collector for the lowest amount possible, is counterproductive.
Midland Credit Management Sues in Order to Collect
The woman who inspired this post next received a collection letter from a well known and very active debt collection law firm in her state. She sent a new validation request to the attorney debt collector hired by Midland Funding. The collection attorney responded to the validation request with some basic information about the original account including monthly billing statements from Citibank. Shortly after receiving the debt validation response in the mail from the Midland Funding attorney she was served with a lawsuit.
Debt buyers will target accounts they buy for aggressive collection. Midland Funding is part of the largest debt buying collection brand in the nation. Lawsuits to collect can play a big part in how a debt buyer like Midland Funding will look to turn a profit on their investment in defaulted credit card debts.
The debtor, in this case, shared with me that she knew the sister of the process server that showed up at her door to serve the lawsuit. With that connection, a friendly enough conversation took place. The process server shared the fact that she had a list of Midland Funding lawsuits to serve… about two hundred of them. She lives in a county with a small population. Two hundred or so lawsuits on debts bought by Midland Funding is not unremarkable given the amount of people there are in the area.
Midland Credit Pre-Legal Notification Letter
Update February 2023: Like many creditors, Midland Credit will often send a letter telling you of their intent to escalate collections by taking you to court. These mailed notices will typically include the words “Pre-Legal Notification” in larger and bolder letters.
A Pre-Legal notice from Midland Credit should generally not be construed as an empty threat, or just a collection tactic. They are telling you that your file has been selected for collection attorney placement, which is the precursor to a lawsuit being filed to collect. And you can prevent this.
Always open your mail from Midland Credit. If you see a pre legal notice, you typically have time to negotiate a settlement with them for a much better savings than when it goes to the attorney. The main reason I am posting this 2023 update is that I am seeing Midland send out their first collection notice, that they then follow up by sending a pre-legal notice only a few weeks later. There is often more time between their first collection notice and the legal placement letter. But they are accelerating collections with many accounts. And because they give you a timeline to resolve the debt before they take that step, your next move is important if you intend to try to settle the account
Go here to schedule a call with me to talk about settling with Midland. I can often get these accounts settled for fifty percent of the balance or lower, and the settlements can often be paid over a couple years if you need time.
I can help you settle once the account goes legal too, but the deals after attorneys get your account, or an action has been filed in the courts, are not as good, and the process is much more formal.
What to Do About Midland Funding LLC Collecting Your Debt
If you are contacted by Midland funding LLC, or by Midland Credit Management, or some other Encore debt collection brand (Atlantic Credit and Finance, Asset Acceptance), consider the following:
- Are you able to come up with a plan to resolve the debt for half of what is owed? If you can afford to settle with MCM or Midland Funding you can contact them and work toward getting a deal negotiated, a written agreement on the collectors letter head outlining the terms, and pay it off. While it is recommended to negotiate and settle with MCM or Midland Funding in a single lump sum payment whenever possible, you can also look to set up monthly payments that you are confident you can afford and follow through with to completion. Midland Credit Management and Midland Funding both offer different methods to resolve debts they are collecting while giving you time to pay.
- If you are not familiar with the debt they allege you owe, request the debt be validated. Send your request in writing via certified mail. If you do not hear back from them do not assume they went away. I do not recommend this approach if you want to resolve a debt that you know to be yours.
- Be certain you are aware of how long it has been since you last paid on the account and compare that to the SOL (statute of limitations) for being sued on your type of debt in your state. You may learn that you cannot legitimately be sued for the debt as it has passed the SOL. That does not mean the debt can no longer be collected, or that you should ignore it. The account is likely showing up on your credit report. If you have a goal of buying a home, or refinancing an existing home, you may find you are forced to settle collection accounts in order to qualify for a loan later on. And settling later on may come at a higher price. Avoid applying for credit of any nature just prior to negotiating with Midland Credit and other debt collectors (it makes you look more collectable)
Depending on your current financial situation, looking for affordable settlements and paying off debts with Midland Credit Management and Midland Funding will set you up for less stress and the ability to achieve later financial goals.
The woman who inspired this article was someone I worked with a few years ago. She was laid off from work and struggled to find a new job. She could no longer afford to make payments on her credit card debts and was referred to me by her accountant. I worked with her and her husband to develop a plan to settle her unpaid debts, rather than file bankruptcy (they had filed in the 90’s and did not want to go through that again). She was able to knock down her largest 6 credit card balances by settling with her original creditors using money she was able to borrow from a family member. Her husband’s hours were then cut back at his job, and it became impossible for her to follow through with the plan, leaving a couple of her smaller balance accounts unresolved, the Citibank account Midland Credit Management began collecting was one of them.
She did not reach back out to me for feedback on dealing with the Midland Credit Management collection letter she received. Instead, she went to the internet and found what she said was the consistent advice to send a debt validation letter to MCM. She thought the collection account was behind her when she did not hear back from MCM. When she received the attorney collection notice in the mail for the same debt, she simply repeated her debt validation request again. She did not know how, or what, to respond to the collection attorney with, once they mailed back evidence of a debt she already knew she owed. She only contacted me again after she was sued by Midland Funding.
Settling with Midland Funding LLC When Sued
I suggested she connect with a local consumer attorney about her options to handle the lawsuit. After that consultation, she decided to settle the lawsuit from Midland Funding. We got a good deal, to be sure, but she was settling on a total balance that had increased due to attorney costs. We could have settled directly with Midland Credit Management early on, and for a much better savings, and less stress.
There is, often enough, also going to be a difference between the amount you can negotiate and get approved to settle for, when you are dealing with a debt collection attorney. It is not uncommon to see a 20 to 40 percent premium to settle a Midland Funding debt once sued for collection, compared to negotiating before the account lands in court.
If you are just not in any shape financially to follow through with any strategy to resolve the debt with Midland, you may end up with a judgment against you. Judgments can be settled for less down the road, so keep that in mind. But you may want to consider defending against any collection lawsuit too. There are good resources that can help you, but you will want to assess the costs and time involved in any effort to defend collection lawsuits.
What You Can Do to Resolve Debt with Midland
You may be reading this and in a situation where you cannot possibly think of how you can resolve a debt being collected by MCM or Midland Funding LLC. I understand that. The situation is what it is, and sometimes all you can do is wait for things to improve before tackling old debts. However, you may want to at least learn about the options available to you to tackle debts Midland is collecting. You may be surprised by some of the flexibility that is available. You may even be able to avoid being sued later, by taking action today.
If you have received collection notices from an attorney for Midland Funding, or have been sued by an attorney for collection, you will want to contact the attorney directly. You should also consider speaking with an experienced collection defense attorney of your own.
If you are trying to resolve an existing judgment from Midland Funding, you have options for that as well.
There will be additional pressures on Midland Funding, Midland Credit Management, Encore Capital Group, and many other collectors and debt buyers, as a result of new federal regulatory supervision. The CFPB has already had a huge impact on Midland Funding. I will keep the article updated as things develop.
Midland Funding LLC on Your Credit Reports
I am updating this article as of 1/10/17 to include information about Midland Funding credit reporting policy changes that are way ahead of the curve when it comes to providing you the ability to meet your current and future personal credit goals. Be sure to click through and learn more about how Midland Funding will handle credit reporting when it comes to accounts you have with them.
- Midland Funding will not show on your credit reports if you are able to make payment arrangement, or settle with them for less, in the first 180 days after they purchase your account. This is obviously ideal when you can commit to resolving accounts with Midland Funding early on.
- Midland Funding will remove all credit reporting if you pay or settle a debt with them. This is an obvious benefit to those of us who had financial setbacks that lingered longer, and who could not take advantage of the opportunity to keep Midland off our credit reports from the beginning, when they sent their first collection notice.
- I have seen it take up to 60 days for the Midland Credit account to be deleted from your credit reports.
There are many examples of people in the comments below, and who I have spoken with on the phone, who are taking advantage of Midland’s credit reporting policy.
Midland Funding is leading by example with this credit reporting policy.
Updated 2/20/20 – Three additional debt buyers have since followed the example Midland set for credit reporting.
If you would prefer to get help settling your Midland Credit Management debts, let us know by scheduling a phone call using the box below, or the help tab up top. We can help you and typically for a fraction of what most companies charge.
Hi I own $237.23 to mcm I been calling them like every week to make a settlement to pay them $100.00 but they keep on telling me no! people there are just to hard to talk to I don’t have a job to pay in full so I don’t know what to do anymore.
NELY – Smaller balance accounts like yours do not generally settle for the best savings – no matter who is collecting on them. See this report for more details about this issue.
rec’d a call from midland but they didn’t leave a message. i’m assuming it’s about an old credit card debt from 2009. i’m not going to call them back but I know the SOL in my state is PA. Could they try to sue me even if they know, i’m sure, that it’s too late? thanks for any help.
lisa – They could sue, but if the SOL is expired, your response would be real short and to the point. You could pick up the phone and just let them know your intentions. It could help eliminate additional collection phone calls.
I have a situation with Midland that has been going on for almost 7 years. They started calling a relative’s home in 2007 about a supposed credit card debt. When the relative finally gave them my phone number, it became clear that this was not my debt! I had my identity stolen in 2002 and over a few years found out about accounts that were opened using my name. It took a while, but I thought I had resolved all of them…until 2007. Midland began sending me statements and when I requested documentation\n, I got a call from one of their agents telling me that there was none and that the only way they were going to stop calling and writing me was if I paid the debt. Everytime they got a letter from me requesting documentation, they added the account to my credit report, and each time I disputed it and it was removed. Well, it has been quite for two years until this week when once again, I received a statement in the mail from Midland for almost double what they wanted two years ago. This time, they acknowledged that the statute of limitations was up, but now they are offering me a settlement of $200 on a $2700 debt and have explicit language indicating that the rest will be reported to the IRS as income! As you can imagine, after almost 7 years of this I am just at wits end…I have contacted a local attorney who deals in collection agency violations, but can you tell me what options I have…can I sue them for emotional distress and harrasement at this point?
Debra – I am not sure what you would get out of the suit. I suspect little. Did the Midland account show back up on your credit reports?
If I had to guess, it appears your file in Midland’s system, at least at one point, was coded correctly as ID theft. But something was introduced to the system to spit out form letters to older accounts, and yours was included in that mailing. A simple phone call would likely get this corrected, but I understand if you do not want to pick up the phone on this. Sending a letter would be a good alternative.
What did the attorney suggest?
Hi, I received a letter from MCM today for a debt that they are trying to collect on for HSBC Card Services. Honestly, I don’t even remember having a card with HSBC and if I did, its been more than 10 years ago. The letter offered me a 90% discount on the debt, stating that it was a one time offer and only good through March 30th.
With that being said, there is a statement underneath the signature line that says “The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it, we will not report it to any credit reporting agency, and payment or non-payment of this debt will not affect your credit score.” The way I’m reading this statement is that, there will be no affect on credit score, if I pay this debt or not and that they have no legal right to pursue the debt collection. I pulled my credit report and nothing in regard to this debt was listed, other than “customer closed account”.
So, I don’t want to pay this, if I don’t have to, but will, if its going to cause my a headache in the long run. Any thoughts?
BB – Based on what you shared, and how debt collection on really old account like this work, there would be no headaches from not paying. And if there were head aches, any can be eased fairly simply.
At this point, whether you take the settlement offer from Midland Credit Management or not, it should be based on personal choice. All of the typical collection leverage is gone.
Hey Michael,
I just worked out an agreement with Midland. Wasn’t easy, but couldn’t have done it without you and the website. They reduced my so-called debt from $2100 to $1200 and I will make monthly payments of $100 for a year. Basically what I owed Credit One when I stopped paying 2 years ago. They are making money and i am fulfilling an obligation. I proposed it and he agreed to it. (After some heated conversation, I might add)
Thank you very much for giving me the courage to stand up and hopefully resolve a very painful issue.
Sincerely,
Robert
Congratulations Robert. Settling with Midland Credit is often a matter of a phone call or two. Be sure to get everything that was agreed to in writing too.
Was this the last debt you had to resolve, or were there more?
I have 2 more credit card debts for smaller balances that I am sure will surface at some point. Little bites, one at a time. Hopefully i will get squared up eventually. Thanks again for your help.
Robert
Dear Mr. Bovee,
MCM is sueing me for a charged-off Credit One account that I stopped paying on in 2012. I had gone through an extended period of unemployment and in November 2011 I had to have my right carotid artery cleaned out due to a 99% blockage. In 2008, I had a triple heart bypass. The last credit card statement I received showed a balance of $1400.
MCM is sueing for $1900 and I was served in December of last year. I immediately filed an answer with the small Justice of Peace court here in Fort Bend County, Texas. A mediation hearing has been set for April 1o, 2014. Or a month from now.
Since December (after the suit was filed) I have been receiving 2 to 3 calls a day from Midland. I have ignored them, but kept a record of each call on my cell. This afternoon I finally decided to talk to the caller.
After I filed my answer back in December I e-mailed the attorney of record acknowledging the debt and saying I could pay 50 t0 $60 per month but wanted some type of concession on the amount. Never heard back from her. The balance has now grown to $2100. I was informed of this today.
My health is poor due to other blockages in my body and the doctor who did the carotid procedure said a couple more years will probably be it for me. We will see. I started drawing my social security retirement early at age 62. It started last August. $1525 per month and I have moved in with my son and his family.
The so called legal assistant on the phone today said they would accept $100 per month for 21 months. I refused and know they may have paid 10 cents on the dollar for my debt.
He is supposed to call me back tomorrow with some kind of offer.
At this point, I would just as soon take my chances with the JP as accept this deal. A huge company sueing a 62 year old in bad health. Doesn’t the over 250 phone calls from them since December seem excessive? Especially since the suit is in motion and a court date is already set.
Any help or advice is greatly appreciated.
Robert
Robert – It is strange to receive that many calls after litigation started. Is social security your only source of income?
Thanks Michael. I do have a part-time night job that pays me $1200 per month and I am limited to $15,420 annually by the social security administration. I will earn that this year.
Hello Michael:
Over three years ago Midland sued me over a card balance owed to Citibank. The papers during a rough period in our marriage and got ignored. Once they got a default judgment, I came to my senses and filed a motion to vacate. It got denied without even a hearing. I filed a motion to reconsider. It got denied without a hearing. They got a judgment for $14K. Its now costing me more for insurance, preventing me from refinancing, etc. I’m in a better place than I was three years ago and have about 5K saved up which I could use to settle this if they’d take it. What should I do? I need this off my credit report. I’m in NJ. Thanks for the help.
Joe – Settling judgment debt is pretty common with debt collectors like Midland Funding. I would realistically be prepared to pay more than what you have available (depending on how collectable you look on paper) – more on the order of 50%.
Check out this page, and the many comments, for more tips and things to consider when negotiating judgment debts:
Joe – You may also want to read up on some realities related to judgments on your credit report: https://consumerrecoverynetwork.com/question/judgment-collection-removed-from-credit-report-public-record/
Thanks Michael — I’ve read the threads you directed me to and they’re very informative. I have a couple more questions, though.
The lawyers who’ve obtained the judgment for Midland are Pressler & Pressler in Parsippany NJ. Should I try to negotiate a settlement with them or with Midland Financial directly. I see an address for them in NYC.
Second, I want to resolve this but I’m a little scared to stir the pot. I haven’t been hiding and I’m easy to find. I have a bank account in a bank 3 blocks from my home address that my paycheck gets direct deposited into and my house is in my name and my wife’s and has a mortgage in my name and my wife’s that’s current.
Midland has done nothing at all in 3 years to collect from me. If I suddenly “perk up” and can’t reach an agreement with them are they then inclined to garnish or levy on my account? Thanks again. You & this site are a fantastic resource.
I had a default judgment against me for roughly $1900.00 from a credit card debt incurred back in 2001. The judgment was issued in 2010 and there was a garnishment against my bank account by Asset Acceptance Corp in 2012. There was Satisfaction of Final Judgment filed acknowledging full payment dated 2-1-12. Midland has now contacted me to try and collect on this debt referencing the original creditor from back in 2001. What can I do to make them stop? Thank you in advance for your input.
~Jim
Jim – You could pull the summary from the court, or the satisfaction of judgment filing, and send that to Midland Credit Management along with a letter outlining the history of the account. Send any mail certified return receipt and keep a copy of all. If you want calls to stop about a debt you are certain you no longer owe, request they cease trying to communicate with you in the letter you send along with the account history. But I only recommend that you ask that phone calls and letters from Midland stop, if you are certain the debt is resolved.
Thanks Michael. I do have a copy of the satisfaction of judgment that was filed by the court. Is this proof enough if I send this to them along with the other information you suggest to put an end to any further action that may pursue? Is a copy sufficient or do I need to have something with raised seal? I appreciate your time.
~Jim
Jim – If it were me, I would only use a copy. They can look up the court record to authenticate. I would also call and open dialogue, and then send the documentation by mail.
I don’t know if anyone can help me, but I have been sued by Midland. I was served by a sheriff a couple weeks ago, being told that if I did not show up to court tomorrow, I could be arrested. Apparently, the court sent paperwork to a residence I have not lived at for over a year, in August 2013, for a court date for October 2013. Since I never got this paperwork, as it went to an old address, I left a forwarding address with the Post Office when I moved, however the court told me they do not forward court paperwork, I was found guilty and a judgement was made against me for $1,564.52. Now, I am going to court tomorrow, however, I have a 17 year old, a 13 year old, a 19 month old and a 4 month old, and I am on SS Disability. I am a single mom, I have NO idea what this debt is for, I’m stressed over this and scared!! I am doing my best to support my children on my own with no help. How am I ever going to pay this, and can they put me in jail if I cannot pay??? Any advice is greatly appreciated. Thank-You
Kristin – Show up at court tomorrow. Let the judge know this is all new to you, and why. From what you shared, you may be uncollectable, but lets get more into that after you get back from court. It is important you show, as that is how situations like this lead to big problems. It is the not showing up when compelled by the court part of this that leads to jail, not the fact that you owe this type of debt, and cannot pay.
The court is not scary in these situations. The process is about as exciting as contesting a traffic ticket. But being nervous is normal. Post an update when you get back with what happened.
Because of what you are dealing with, I should point out that it would be a good idea to run all of this by your own attorney. You may qualify for low income legal aid assistance, so look for an office near you, and call in the morning if you have time.
Michael-
TY for replying. I don’t have an attorney, I had previously called around, but no one would take me without me paying. I will post an update after court. Ty again, I have never had anything like this happen to me. I just plan on pleading my case in front of the judge and going from there.
Michael – So I went to court yesterday and met with the lawyer in the little room, there was no judge. I brought my supporting financial documentation, and he dropped it due to inability to pay, he was definitely not happy! I just want to add a couple things in case it might help anyone. At the court, I looked closer at the old address where the original court paperwork to appear last year went to. It went to an address that I have not lived at for 6 years! When I asked the gentleman what this was for, he said it was for an old debt to Credit Management! Once he said this, I knew exactly what it was! It was a starter credit card I had 13 years ago with a limit of $300. Somehow, Midland bought it out, got a default on me and raised what I owed to $1,564.63. Other than knowing the name of the original creditor, the guy knew nothing about that debt, or me! However, because I have a good memory, I remembered! Please understand, I realize people need to pay their debts, but circumstances sometimes come along that we are unable to control, and the debts go unpaid, sometimes food is more important. My heart broke as there were about 15 other people there with me for the same reason, most of them elderly. Morally, I have a hard time understanding how a company can legally go around acquiring minuscule debts, more than tripling them, and coming back on a consumer, years later to take monies that never belonged to them in the first place. Unfortunately, I was put in a position where court paperwork was sent to an address, whereupon I never would have gotten it in the first place, therefore, never knowing there was a court date, I couldn’t state my case, ask for supporting documentation from them on what I owed, to whom, and why, so I was defaulted on! If I had been able to, and given the amount of time that had lapsed, I believe I could have stated my case back then and won against them, being on disability or not, knowing what I know now. Morally and ethically, I think these people are wrong for doing what they do, but that is my own opinion. My advice to anyone in this situation would be to do your homework, investigate the original debt, get as much info as possible and ask for original documentation on the original debt and empowered with all the information you can get, stand up to them. 9 times out of 10, they won’t have all the information you require, and you might possibly win your case. Again, this is only my personal observation and opinion. Thank-You again for your time and attention.
~Kristin
Hello, MC and their attorney at the time Steven Spechman won a bank garishment, against. And was oder to pay remaining balance, court fees,attorney fees and interest. It was paid. Now I receiving another letter from a different attorney representing themselves asking for interest on the same judgment that was paid. How do I go about handling this?
Audrey – If you have not called the attorney or Midland Credit to ask what is going on with this new collection effort on an amount you know to be paid, call them, or the new attorney. Post what you learn and lets go from there.
Is the judgment showed as satisfied in the court record?
Th judment occured in october 2013, well over 4 years after my settlement withWashington Mutual..however the paperwork was finalized and give to my bank on February 25th….
David – What happened with the lawsuit last year? You were served the summons, then what? Please offer a chronology of what you did from there, as it will help me better offer feedback that is more than just generalized.
Hi Michael,
I have a judgment on my credit report in favor of Midland funding. I am not sure who the original creditor was because it is not listed. The date filed was 01/2008 for $3223.00. My concern is that I was never served by a process server or anyone for this law suit. I also never received any court notices or court appearances in the mail. How should I handle this?
Nelson – It is really rare to get a judgment from 6 years ago backed out. But if that is the goal you want to accomplish, you should talk to an experienced consumer law attorney about your options. Get a copy of the court record and be prepared.
Do you have some other credit goal right now, or other reason to resolve the account?
I had a Washington Mutual Credit card line of 1000.00 after a year or so I settled with them for 650.00 in March of 2009. In April 2010 about a year later I get a phone call from Midland Funding stating that I owe about 1,500.00 in and account from Chase. I never had and account with Chase I later found out that sometime in 2009, shortly after I settled with Washington Mutual, Chase had taken over.
I explained to Midland Funding that I had paid a settlement with Washington Mutual and on my credit card report it stated that my credit card regarding this incident case was closed. They proceeded to tell me that they had no paperwork of any such transactions, and that I needed to make a payment. I told them that I would not pay any more money in a credit card which was already settled. Washington Mutual did send me a letter stating the case was closed however with time a accidently misplaced the letter.
I recall writing out a check for 650.00 and give or take a dollar to Washington Mutual for the settlement. All of the sudden Chase took over and now there is no paper trail of my payment.
And now more than 5 years have passed and today 2-24-2014, I was contacted by my bank and they advised me that Midland Funding had placed a Levi (hold) on my bank account. They once again would like for me to make a payment on an account that I settled for back in march of 2009.
And to make matter worse they want 3000.00 this time. I don’t know what to do. This company has made no attempt to contact me in the last year or so, and all of the sudden my account is frozen. I settled with Washington Mutual it reflects on my credit report and a check made out to them in march of 2009. Why is my funds frozen I feel like I am pressured to pay for something that I do not owe. The fact that Chase took over and has no paperwork of this is not my fault. And here I write this desperate as my account has been frozen and I do not have access to one single penny. As a father of four I am worried, bills need to be paid and rent is due along with all everything else, food gas for work etc. I don’t know what to do
please help
David – You mentioned settling a case with WAMU, and Midland has levied your bank account. In order to levy the account there would have been a judgment. Was the judgment from 2009, or is there a judgment after that. My feedback will be different depending on the answer.
Michael,
I called Midland Funding and when I gave them my social security number they told me that they do not have anything with my name or social on their records. When I told them that there’s a judgement on my credit report they didn’t know why… I’m having a difficult time finding an attorney that is willing to work with a judgment that is 6 years old.
My goal for resolving this issue is to purchase a home. My wife and I were approved for an owner financed home and we were not able to close on the house when this judgment was discovered.
What I would also like to know is that when a judgment becomes 7 years old and it no longer reports onto your credit report, are you able to purchase a home or does it still come up?
Thanks for your advice
Nelson – A title company and other types of credit checks can turn up matters of public record too. The tendency is to rely on the credit reports, but it is still possible for the judgment to get in the way. And judgments to not go away like other debts. They can grow over time, and be renewed for a very long shelf life in most states.
Do you have a copy of the judgment?
Hi,
Right before Thanksgiving my boyfriend was served a summons by midland. Apparently he had three outstanding credit card debts that were bought. They never sent a demand for payment just a summons. At the summons, the attorney gave three options, file an answer, pay $40/month for 5 years (which is still the total amount), or do nothing and get a default judgement. The attorney would not give him any other options so he filed an answer. Right before Christmas he received a letter demanding payment on another account for $422. We have made every attempt to contact legal aid services and consulted with several attorneys. Neither of us can afford an attorney but my boyfriend cannot represent himself. We aren’t making much progress in finding representation but I feel he will lose the case if he has to defend himself. He called a debt management company we found online and the woman he spoke to told him to try and settle the smaller debt. He called midland funding and agreed to pay off the two smaller accounts after the debt was discounted down. As for the big debt, they have a pre-trial and trial dates set and mandatory mediation. He called the plaintiffs lawyer directly to set it up. She asked if he was given options by the collector who answered the phone to settle or pay off his debt (which would stop the legal action) and he said no. So she transferred him back to the collector who said they wanted $465 in payments to stop the legal action. My boyfriend told him, his paychecks were barely at $250 each week plus rent, food, gas, bills, and child support. I pay some of it but I won’t get my paycheck till Feb 14th. We live paycheck to paycheck right now and we can’t afford a lawyer or to settle. It’s like being backed into a corner. He made an attempt to prevent further legal action and it failed. They were not willing to work with his income. I’m not sure if there is anything else we can do?
Julie
Denver, CO
I forgot to mention a few things! The account he is sued for was through Washington Mutual. He was making payments when Chase bought it out and raised the interest rate to 31.99% He said he was paying more than minimum amount and not putting a dent in it. He got overwhelmed and couldn’t catch up. He requested discovery from the plaintiffs and we got a packet full of crap! The credit card agreement was a copy of a sample agreement with *insert name here* at the top. The chain of sale only shows that Chase bought Washington mutual and Midland bought some charged off accounts but there were no account numbers or names on them. A poorly copied affidavit, and a bunch of statements addressed to Steve. There wasn’t much there to show they actually owned his account.
On a side note: He received a letter about a class action lawsuit against Midland Funding that settled. It was giving him the chance to opt in for getting part of the settlement. He qualifies because they found his info in Midlands computer systems and he is currently being sued. Do you think he should opt in?
Julie – I had not seen this additional comment before replying to the other. The packet of discovery docs may/may not meet his requests, and can contain many points of contention in situations like this. It is up to him to learn and follow local and state court rules in order to poke holes in Midland Funding’s lawsuit. But you indicated he is not prepared to do that. Why do you say that? Your comment shows at least some awareness of the issues.
I am happy with the way class action lawsuits regarding consumer-centric issues can often lead to major shifts and changes in how consumers are treated more fairly. I am not a fan of class action when looked at through the lens of the individual consumer, who rarely receive anything meaningful by way of recompense, when the action is resolved. I personally would see no reason to join the class.
Julie – Where does the current lawsuit stand? Are there any discovery items/requests pending? What is the total amount of the debt being sued for?
Hi Michael,
I posted a question earlier but it seems to have disappeared. I currently took out a credit card from best buy of which I have been paying onetime since i received it. However on my credit report it says that I am in good standing with such credit card BUT it was “purchased by another lender” which I think is MCM since they have been calling me everyday. I have not answered their calls. Furthermore, on that credit account it says it was closed in september, two months after i opened the account. How could this happen? What can I do?
Paui – Something went haywire and Home Depot treated your account as a loss; and Midland Funding picked it up (bought it), now Midland Credit is collecting. All of that is normal stuff for accounts that go delinquent. It is not normal for accounts that are opened and then paid on time. I would contact both Midland Credit and customer service with Home Depot credit cards and find out what happened. Post an update with what you learn.
Hi Michael,
I just found out a little bit more on my credit report. One of my credit cards was sold to a lender, of which I believe is MCM. But as I said in my earlier post I have been paying this card and my report says it is still in good standing, but it also says “date closed” in september. what does this mean?
Hi Michael,
I have been receiving calls from MCM since last month. I have not answered a single call. I owe no debt and I currently checked my credit report and it is in good standing. I make my monthly bank and retail store payments. I am a current college student with government loans but I do not have to pay until 2017. Why could they be calling me? I am afraid to answer the phone in fear of it escalating. I read that if I do not answer their calls, it can impact my credit score? What can I do? Thank you.
Hello, I have a question about settling an old debt with Midland. I was actually sued by Midland in my county court back in 2010 for roughly $10,000.00. I was able to find legal aid to help with this matter. Midland was unable to prove the debt and withdrew the claim with prejudice. I received a letter from legal aid after this happened saying the suit had been dropped. I thought this meant this was over and off of my credit. I recently started looking into buying a house and find out this is still on my credit report. I contacted legal aid and was told that since this was withdrawn with prejudice that they can come back to sue me at any time. I of course can not get a home loan until this is taken off of my credit report. I am unsure of how to deal with this now. It shows as a debt of over $12,000.00, I am assuming interest? I am not sure if I can call Midland myself to negotiate this to a lower amount. I am scared to call and make things worse. I have not been contacted by this company in years. Should I contact an attorney to help me negotiate this down? My loan officer said he could get this off my credit report if I could pay this off and get it in writing. Thanks for any advise you may have!
Cassie – When was it you first missed a payment on this debt to the original creditor? What state do you live in? You can call and negotiate a lower payoff with Midland Funding. Depending on how collectable you look, and how old this debt is, you can probably negotiate a good savings. Having said that, maybe it makes more sense to wait until Midland is dropped from your credit report.
You qualified for low income legal aid back in 2010, but it sounds like things have turned around well, so asking the legal aid attorney for help may not work. You certainly can connect with an attorney of your own to help you negotiate a settlement, but could likely do just as well yourself, and save money that way.
My first missed payment was somewhere around 2009-2010. I of course do not have any of the original paper work because I thought this was reolved. I live in Pennsylvania. How long does it take for this to drop from a credit report. My husband and I want to buy a house but I can’t do anything with this debt showing on my report. Otherwise, my credit is good and I have no other outstanding debts. I have been able to put together a small lump some to offer as a payoff. Will I have to contact the lawyer who represented Midland in the suit or can I call Midland directly?
Hello, I have question. MCM had bank funds garished for few days and also took me to court back in April of 2013. In which the judge send,I was order to pay the debt. They collected debt which inlcuded attorney,court and interest fees,driectly from my bank account. I just recently received a letter again from them requesting that, I pay an unpaid interest. I would like to know what are my rights and how to handle this. IF, I already paid them the total amount they took me o court for. I the SOL on debt is expired,but was entacted back in 2008. when I agreed. Since, I paid this account. Can they continue send pay request for this debt I paid completely. PLease help what are my options.
Audrey – The best resource to ask about your legal rights is an attorney, and with this type of thing, one whose practice focuses on consumer law. You can also call or write a letter to Midland Credit asking for an accounting. They may respond with what you are looking for.
SOL to be sued for collection is different than the SOL to enforce a judgment.
Hi Michael,
I’m speaking in behalf of my mother who received a letter from Midland Credit Management two days
ago. She never finished high school and English is her second language. I can best explain her issue with MCM.
The letter stated, on 11-21-2013, her Washington Mutual bank account was sold to Midland Funding LLC, and Midland Credit Management, Inc. according to MCM, debt owe by mom is $19,699.52 and offered three types of payment plan options. Also stated in the letter, Because of the age of your debt, we will not sue you for it. If you do not pay the debt , we will report it to the credit reporting agencies”
and so on… I’m trying to find the best way to handle this with MCM or maybe seek legal advice.
I’ve been taking care of my mother since her husband (my stepfather) passed away 2005. I had to fly
to Arkansas (where they lived at that time), to bring her home with me. He died of cancer and I have
the death certificate.
We soon found out that my stepfather died leaving credit cards debts. Creditors started calling or writing and I explained to them that my mother knew nothing about this debt. The irony of it all
is that his profession was a debt collector. He also served in the Korean war. This was a big blow to
me and my mom. The calls and letters stopped until two days ago when I received the letter. I don’t even have the heart to show her the letter.
I’d appreciate any advice or comment.
Best
Margaret
Margaret – It sounds like the debt originally with WAMU (now with Midland Credit) is passed the SOL for filing a legitimate collection lawsuit. That would take pressure off. What is her goal with this account?
Michael,
Thank you for taking time and reading my letter.
My mom ‘s goal is to send MCM a Cease and Desist Letter. My stepfather never made her aware
of his debts. Some credit cards were opened under her name and she never even signed for them. Upon further investigation, I looked at her credit report and noticed that she never even resided in one of the addresses (residence) shown.
My mom is responsible with paying her own credit cards (2) that she currently have and If MCM reports her to the credit bureau agencies, it won’t matter because it’s been ruined after my stepfather’s death. My stepfather didn’t have any assets. My mom took care of him during his illness. She does not want to be harassed by creditors.
Hi Michael,
My situation seems a little different than other posts I’ve read on here. I pulled my credit report last night, and to my surprise Midland Funding has TWO accounts of mine that are negatively affecting my credit score. One of them was for Verizon (my last payment to Verizon was in 2006) and the other one, I’m not so sure what it’s from. I am not being sued by them (yet!), but what is bothering me is that when Midland bought these debt from the original creditors, they RE-AGED the debt! They bought the debts back in March of 2012, but the last payment to Verizon was in 2006 (Well passed the SOL in New York) and the other one I’m almost sure is from AAMCO, which the last payment is from 2007 (Also, passed the SOL). Are the allowed to re-age a debt after THEY buy it if I haven’t made a payment of acknowledged that this debt was valid?? Isn’t that illegal, and shouldn’t it have time-barred? Please help! I don’t know what step to take in order to get these to stop reporting negatively to my credit, considering they have been already for 7-8 years. *ALSO!* When I called Midland Funding last night to dispute this, they told me “last time you spoke with us, you told us you had an attorney handling this case so we are unable to talk to YOU about this account” unable to talk to ME?! It’s MY credit! And I’ve NEVER spoken to them, and certainly NEVER told them I had an attorney handling the case. I’ve never had an attorney in my whole life! Thank you!
Vicky – Debt collectors like Midland Funding are hyper aware of different obligations they have under state and federal laws. While I think telling someone – who is the subject of a collection account – that they cannot talk to them due to a prior limited power of attorney being sent in, is taking that too far, it is not my opinion that matters. Even though you never sent any such document, or made any prior reference, they have your account coded that way. If you want to work this out with them over the phone you will probably have to fax something in about removing any limited authorizations in order to proceed. But if it were me, I would probably send them a credit reporting dispute letter outlining the facts you shared in your comment, and any other relevant ones, sent certified mail return receipt. You could also send those disputes to the credit reporting agencies in the same manner.
Do Verizon and AAMCO still show on the credit reports at all?
Thank you for your response. I wasn’t sure if I should be sending the dispute letter straight to the collection agency, or skip that all together and send it to the credit bureau. Both Verizon and AAMCO sold the debt to midland, so they no longer show up on my credit report, just midland. But again, those original debts are from at least 7-8 years ago, so midland bought them in march of 2012, they re-aged the debt to that new date- not the original date. They should NO longer be reporting to my credit, yet they are. I’m at a loss at what to do. I read a lot that when you dispute a debt and the credit bureau ‘investigates’ they don’t go too far into it and when they contact the collection agency, of course the CA says it’s valid and that’s about the end of the investigation. How do I go about telling the CA that this debt is time-barred and the fact that they re-aged the debt is illegal. I need this debt to stop reporting negatively towards my credit.
Hi. Asset sold my debt, do i still owr a wage.garnishment? Thks eileen
Asset Acceptance, the whole company and not just a portfolio of collection accounts, was purchased by Midland. A wage garnishment is made possible by a court judgment, so yes, you still owe it, but Asset Acceptance did not change their name or anything like that, so you should still be able to call AA directly if you have questions or want find out how you can resolve the garnishment.
Asset accep won a wage garnishment on me. I just got a letter Midland bought them, do i still owe a wage garnishment? They said i need to call should i call? 🙁 thks,
eileen – Asset Acceptance was purchased by the Encore/Midland brand. Wage garnishment is the result of a court judgment. The judgment is not going anywhere, so yes, I would call them.
Michael,
I just wanted to share my personal experience with midland credit management for everyone. 2010 I stopped paying on a debt with HSBC. $7500 was charged off and sold to Asset acceptance. They sent me offers and everything for years until about 4 months ago it went from asset to Midland credit. By the time they got it the debt was around $10,300. They sent me an offer letter for 70% off to settle for $3100. I was skeptical at first but wanted this done and over with so I payed them the offered amount. When I called them the account handler informed me I had another debt with them from citi around $1,200 and said they would settle that one for $600. It was indeed my debt but they did also tell me that because of the age of the account that they could no longer sue me in the state of Texas. They sent that offer letter as well and even stated on the offer letter that they could not sue me. I went ahead and paid that one off too. I checked my credit report this month and they held true to their word and the accounts show as being paid in full. My credit score then went from a 609 to a 657. So anyone saying that paying off collections does not raise your credit score is extremely misinformed. They really weren’t that bad to deal with and I finally have the mess behind me. Just want everyone to know there is light at the end of the tunnel.
Thanks for sharing your story with Midland Credit Billy.
I have no problem telling people Midland Credit and Midland Funding are pretty easy to work with. I generally find they stick to the Consumer Bill of Rights on their website.
Michael,
My ex wife was served by a lawyer for Midland Funding. She is currently in CO with a 6 year SOL. The debt is for a CC for a Nevada Bank and the SOL in NV is 4 Years. Is it ok to use the state of residence instead of the state of the contract, just to enlarge the SOL? I wrote her answer for her and used all potential affirmative defenses, including they were not the proper part to sue, SOL, and no evidence of any contract written or stated was presented with the complaint. The court has set a hearing on the motion to dismiss I prepared for 13 Jan. My question is what proof do the need to show they bought the debt and they are the real party in interest to sue? Also what do they need to show that colorado is the correct venue not NV? Since it would state on the original documents what the correct method of dealing with default is, should they have to provide the signed original documents?
Michael – It is most common for collection lawsuits to be brought in consideration of the SOL in the state where the debtor resides. There are some arguments, when made correctly, that have successfully used the creditors incorporation state as the SOL measurement. I do not think that is a common occurrence though. To be sure this question, and all of your legal questions, are answered thoroughly and accurately, you really should be speaking with an experienced attorney in your state of Colorado.
I am currently being sued by Midland Funding in New Hampshire for an account with Dell that my ex-wife has opened without my knowledge. I requested Debt Validation and got in return copies of “bill of sale” multiple pages none of which have my name or signature (Nothing they sent has my signature since I never signed anything nor opened any account). Also copies of previous mailed bills to address I haven’t lived at since my separation (divorce) in 2011. All in all, no page from what they sent to me has my signature owning up to any relationship with said debt. Lastly, just received second packet (same as first) with front letter asking to resolve (settle) issue without going to court, does this mean they have no proof and trying to intimidate me into settled without going to trial ?
Also like to add that only the copies of mailed bills to old address have my name, since that is what my ex used to open account, and I believe one other page. There must be about 15 – 20 pages total, again none have a signature.
Thanks so much for any information and/or advice!
I would not get too hung up on the signature thing, unless you want to approach this a little differently.
Your ex appears to have screwed you on this. What if any discussion have you had with her about this?
Joseph – Some debt buyers have a tendency to offer to negotiate a settlement at different stages of a collection suit. I would say Midland Funding is one of the easier buyers to deal with at this stage of collection. If your goal is to settle, sounds like now is a good time to see what that would look like.
Nothing you shared suggests to me they do not have proof, or access to what is needed. But that is not always the driver to settling – nor is ready access to proving a debt a reason to back off from any position you have.
How much is the debt? What is the offer?
Micheal,
Thanks for the reply. They have not addressed any settlement amount yet, I have only just received my appearance date in Small Claims (Feb 2014). They first sent the packet of copies of their “proof” and another of the same copies yet with this packet is attached a cover letter stating ” Now that you have this, would you please advise if we can resolve this matter ? It is our hope that we can do so without the need for legal involvement. If not, however, and a trial is necessary, this is to advise that we intend to seek introduction of these documents”.
As for my comment not showing they have no proof, they provided no signed contract of obligation to said debt nor signature of mine of which isn’t anywhere within the copies they sent to me because I never signed nor opened any account with Dell, my ex-wife had without my consent.
Thanks I appreciate your time,
J. Thibault
You can bring up the subject of settling, and target a realistic offer in your negotiations with Midland, at any time.
Unsecured credit contracts may be instigated on line, and through electronic signatures/agreements, more than on sight and mailed applications are sent in at this point. That is partially why getting hung up on their having a wet ink signature is not the most productive thing to focus on.
Here is the thing – Your ex screwed you on this. What if any responsibility is she willing to take for this? If none, are you willing to throw her under the bus? If not, what is your goal to resolve this?
Hi Michael,
I got a letter from midland saying that I owe 500 and some dollars from a citibank credit card that I closed in 2007, so I went to a citibank branch and ask. they said I don’t owe them anything, and they didn’t put me on collections. Back in 2010 I got a call from a collection company i don’t remember if it was midland or someone else and I payed 300 at that time. what Should I do please help. Thank you
ah – What state do you live in? Also, any chance you have a letter or any other form of documentation about the account you paid pack in 2010?
i have a past debt with tmobile and mcm have sent me a letter saying that they are willing to reduce the amount i owe and resolve my account with them. i am in the process of trying to rebuild my credit since i am a fresh college graduate trying to get a start in life. i want to pay it at the reduced rate they have offered me but i am not sure it that will drop my credit score or not since i am not sure how they will report to the credit reporting agencies. does showing paid look better than settled on my report? so if they do report to it as being paid then should i pay the reduced amount? the debt has been on my report since 2011. or should i just leave it alone because i dont want to pay money to have my score dropped even lower.
Indy – Whether Midland Credit shows up on your credit report as paid, or settled, the impact to your credit report is going to likely be the same. The goal in this will be having the account show as a zero balance owed.
There are instances where a collection account getting resolved, and updated as no longer owed on your credit, will temporarily drop your credit score. But if you are actively makes strides to improve your credit, it is short lived, and often a much more effective approach than leaving the debt unresolved, and waiting roughly 7 years for it to fall off on its own.
I am in Pennsylvania. Midland Credit is trying to collect on an old T-Mobile debt at the amount of $825. They “hired” a company called Diversified Consultants to collect on their behalf of which had been calling my job and home repeatedly every day for two weeks straight prior to me eventually answering the phone on November 13 and talking to one of their representatives. The woman told me that their records show that the last payment I made to T-Mobile was in 2007. The account was paid off but I think they are trying to collect the full balance left on the phone because I did not complete the new 2-year contract and an early termination fee. Anyhow, the woman did not give me an exact date that this payment was made and I do not remember quite remember myself. Two days later I wrote a letter to Diversified & Midland repeating what the rep told me and letting them know that the debt was SOL under Federal (2 years for cell phone bills) from what I have been told (for Pennsyvlvania SOL is 4-years from last payment made). Midland then sent me a copy of a electronic T-Mobile customer account information record showing that the last billing date was 2/1/11. It shows a debt of $727.03. (Actual debt $470.59 + late payment fee of $4.43 + a one time unspecified charge of $257.03). Althought it does not show the payment that was made in 2007, the date of this record still puts their efforts at collecting this debt beyond the SOL.
This debt shows up on my credit report under Midland Funding on my credit report however, it does not show accurate information. It shows Placed for Collection 10/31/11; Updated 6/26/13 and the amount of $825.
By the way, Pennsylvania’s SOL is 4 years from the last payment made on the account.
Should I try to bargain with them? Wait until they sue me? Which they are not supposed to do on an SOL debt anyway. What should I do?
Lisa – If you are confident the last payment ever made to the cell phone bill with TMobile was 2007, if sued you could defend against it fairly simple using the time barred in PA SOL angle.
By bargain with them, I assume you mean settle. You can certainly negotiate with Midland Credit. What is your goal?
Hello:
I am being sued by an attorney working for Midland for a Washington Mutal account for $ 4,640 that I had opened in 2004. The last time it was active was in 07/2008. The claim states that account is from Chase. I already aswered my summons and stated that I had never herd from them that they had no proof that this debt was mine and to provide proof that this debt was mine, and we are now scheduled for a pre-trial conference. What should I write as a disclosure statement? They have not provided me with any documentation such as Application /contract for this credit card, no payment history, no bill of sale for this debt to them, plaintiff affidavit, nothing signed by me. The only thing they will present as evidence is a billing statement from WaMu from 2008 that they got through cardmember services. Is this enough to prove this account is mine? What should I write on my disclosure statement? Should I ask for more proof that this debt is mine? Do you think we will go to trial? I am a single mom of 3 kids and make $890 a month. I cannot afford to hire an attorney so I am doing everything on my own 🙁
Bianca – What state are you in?
Arizona
Mi pretrial conference is set for 1/7/2014.
Bianca – While only anecdotal, and every case is different, the stuff I have seen out of Arizona this year suggests negotiating some form of settlement to be the better path to take for many people. I am not suggesting you cave your defense, but I have seen collection suits in Arizona result in judgments even when people are represented by experienced consumer law attorneys.
You could stick to your guns and potentially get this dismissed prior to trial; show for pretrial conference and find some middle ground for settling or affordable payments; or indeed find yourself having to prepare for trial. In any of these events, it would be best to have some form of experienced legal support. Have you connected with any low income legal aid offices in your area?
Could this get dimissed prior to the pretrial conference or would it happens, if it does, after the pretrial conference?
Bianca – Lawsuits can be dismissed for a myriad of reasons, and at different times. The best resource for your concerns would be boots on the ground (attorneys) dealing with your local courts, or that have already worked opposite of the attorneys suing you.
Hi, Michael.
I am dealing with Midland for a debt with Citibank (for Home Depot) for $4500. I have been served papers and have until Monday Dec. 8th to file an answer.
I talked with Midland today and am going to try and settle this. They say it is now a$5300 and they will accept $4300 lump sum to settle. I told them I would call back today and see what I can come up with. I can come up with around $2800.
My 2 questions: Do I need to file a response with the court by Monday, even tho I’m talking with Midland now? And what are the chances they will accept my $2800? It is all I can get. I cannot afford any monthly payments as I cannot afford the monthly payments I have now…it’s why I’m in this mess to begin with. lol.
Thanks for any help.
Steve
Steve – I was jammed up on some deadlines Friday, so missed answering your post.
If you were able to agree to a settlement with the attorney for Midland Funding in a single lump sum payment, filing an answer to their complaint may not have been necessary. If you got an agreement in writing outlining the settlement terms (which you should always do), what did it say?
Settling debts when sued is a moving target as far as what you can get them to agree to. You are targeting roughly 50%, and if your hardship scenario warrants it, they may go for it.
I am in a very poor situation with Midland. I have a court date for December 10 2103. I owe about 25K I have phoned Midland several times to attempt to make a payment plan. I can only pay around $ 350-400 a month. To make a payment plan with them to do this I need a down payment of 3K. I have not got this, and cannot borrow it, or get it any way. I am single mother of two children 6 and 8. I have no financial support from my ex. My life is a very serious financial struggle. I am willing to pay this money back, but I cannot seem to stop this freight train from rolling on top of me. Do you have any advice?
Kim – What is the December 10 date about?
Debt collectors, including Midland Funding, rarely accept payment plans that extend as long as you are asking for. At $400 a month, it would take more than 5 years to pay this off. But there are instances where the court can be part of an affordable payment solution.
I do have some additional feedback, but have some questions first.
Do you have any other debts unpaid? If so, what are the balances?
Do you have other unsecured debts you are paying on? What are those balances?
Hello Michael,
I was sued by Midland and a judgement was entered against me. I did not try to contact them to validate before this and quite honestly, I was going through difficult financial stress and it all became overwhelming. I was in the process of losing my home with Bank of America and it took me two and a half years to finally work out loan modification with them. This all took place during my negotiations with BOA. Not to make excuses, I just couldn’t handle another negotiation and was financially strapped and did not have ability to make any payment arrangements. Moving forward, I was sued, judgement entered against me. Writ of execution was filed and they were able to freeze my bank account. I had money saved and borrowed for my mortgage/modification. This is the money that they were able to take. My debt is about 2400.00 and they froze 2800. I contacted both Midland and their lawyers. They refused to work with me. I explained my situation and they said they could not help me. I then filed an exemption. I was granted this exemption. Now they have sent letters to other banks to freeze accounts. I do not have accounts at these other banks. My question is first, will they be able to take my vehicle that I have a loan on at this point? The writ says for property, but does not specify property other than bank accounts at the banks listed, one of which I do have auto loan. Second question, how do I resolve if they refuse to offer payment plan at this point and just keep filing writ of execution to seize any/all property? Any advice or help you can offer would be greatly appreciated. Thank you for taking the time to help people like me and alleviate some of the stress.
Marinia – You are still paying the finance company for the auto loan, so they have title. Your car is not likely at any risk.
You should be able to get set up on a payment plan by working with the attorney for Midland Credit. What efforts have you made to do that so far (calling/writing letters)? What amount can you budget for monthly?
Hello Michael,
Thank you very much for your reply. I tried to contact Midland when I received the writ of execution. They told me it was in the hands of the attorney and I would need to contact them. I contacted their attorney and was advised there was not anything they could do to help me unless I had the money to pay the judgement. I went back to Midland, a second gentlemen told me he would see what he could do and get back to me, but in the meantime have the bank fax over their answer to the writ of execution. He did not get back to me. When I went to the hearing for the exemption I had a meeting in the hallway with their attorney and explained my situation and asked if they could work something out with me that I needed to have these funds released for my loan modification. He said he didn’t really see any reason to release the funds and I given opportunity before this point to pay the debt. He said the only option was to speak to the judge. I believe they felt the judge would agree with them and deny my exemption. However, she sided with me and they were not happy when they left the court room. I remained in the courtroom to sign final documents and to get copy of the decree. I once again contacted Midland, this time the original woman who handled my case and she advised basically the same thing as the attorney I was given ample notice to pay or make arrangements. There was not anything they could do at this point unless I was willing to settle the claim in full. She said I was more than welcome to contact the attorney. Left a message, honestly I did not hound them because I thought since they lost in court they would be more willing to make arrangement because there was no other way for them to receive funds. I don’t know, but it seems as if they are going to contact every bank in the city assuming I am hiding money until they are able to seize a bank account. Will it be at that point they will make a payment arrangement? I am not sure how to get them to make arrangement or what my options are at this point. I do not have a lot in my budget at this time. Hopefully that will change within the next month. I just interviewed for another part time position starting in January, and in another month I will have two other credit cards paid off. That will give me $60.00, yes they were low. I received bad news yesterday and told my modification will now increase by $50.00 a month due to taxes/insurance and that will be permanent. I am sorry to go into such great detail, but wanted to give you full story. Thank you again for your time and help.
No apologies for the details. The more information, the better ability to offer feedback.
They were unable to retain the funds from the bank levy (and you now know to keep little funds in any account until this is resolved); there is little or nothing to seize as non exempt property; and no wage garnishment because you live in a state that prevents that, or would be considered partially/fully exempt; puts you in a unique position.
You can work to save up the funds to settle the judgment with the attorney for Midland. This would take some time based on what you shared about your ability to budget each month, and you will be looking over your shoulder the whole while. And the balance of the judgment is likely increasing from interest allowed by the court. Can you think of any resources you can pool money from other than your monthly income?
You can set up a meaningful payment plan. I am at somewhat of a loss as to why a payment arrangement has been difficult to obtain at this point. With no other immediate term collection angle, some form of payment is better than none. What law firm are you dealing with? What state are you in?
I am in Pennsylvania, I know that they are not allowed to garnish wages. The law firm is Weltman, Weinberg and Reis. I am going to try and contact them again. I can only make guess as to why the refusal for payment plan. It seems they are going to try to levy and make sure that there are no other funds before they agree to payment. As stated, they did have levy on my account and there was money to cover judgement. This was money I saved over time to cover mortgage. I am trying to increase $$ /budget. Selling on Ebay and flea markets and other resources. Maybe now, that they are finding out that I do not have no other bank accounts they would be willing to make arrangements. Would it be best to contact attorney again or go to Midland directly? I would think the attorney since they are filing for levy and notified that there are no accounts at these banks. What is your experience with the bank levy? Do they continue issuing until all financial institutions are covered, e.g. credit unions, banks?
I will contact them again today and let you know of outcome. Thank you again for your help.
Marinia – Over the last decade I consider Weltman Weinberg and Reis to be one of the easier firms to work with to resolve debts (whether a pro is negotiating or the consumer themselves). That experience reflects about 90% of files that are settling with a lump sum, so not completely relevant to your situation, but payment plans are rarely problematic to set up when caught early. There are files that hit roadblocks for predictable reasons, and it could be that yours is one of them. Paying other creditors on time is an example of why a collection file may be viewed differently.
Calling Weltman is how to make progress from here.
As far as bank levies go, yes, a collection attorney is often going to extend every effort to collect. In states like PA and NC, where wages are protected, that limitation can make repeated attempts to levy more of a normal practice.
I have another situation to run-by-you. I was sued by American Express and have been paying on the judgement for 13 months through a wage assignment to the tune of about $8000.. Now I have received a letter from NCO Financial demanding payment for $2640. When I contacted the lawfirm, they informed me that the debt was recalled and that they were having the wage assignment discontinued and that I now need to deal with NCO Financial. I don’t understand all of this! I only owed another 4 months to satisfy the entire debt. Now I’m getting calls up to 6 times a day from NCO and when I call back, I only get voicemails! How do I know they hav the correct amount since I know the letter they sent me was before the last wage garnishment?
Kim – That is really odd! You can reach out to AMEX directly and inquire about the amounts they show as owing. If there is a discrepancy in their records I would want to get to the bottom of that first. You can also request NCO provide that detail.
Can you confirm that your payments through garnishment were being processed through the court? If so, can you get a copy of that accounting?
What is the name of the attorney firm this was going through?
Michael:
Thank you for your prompt response. The law firm is:
Gordon and Wong Law Group
510 Myrtle Ave. Suite 102
South San Francisco, CA 94080
All I know is that the $625 on my pay stub reads “Riverside Sheriff Wage Assignment.”
Where, at the courthouse would I go to get the accounting on the wage assign. amount?
I guess I should send a certified letter to NCO Financial and request an accounting showing all the wage assign. payments.
What do you think?
Kim – Contact the sheriffs office or the court clerk about how you can obtain an accounting. And yes, if it were me, I would both write to NCO, and call American Express.
Michael:
After being bombarded with phone calls from an Alice Marie Hughes of NCO Financial three to four times a day, I quickly made a concerted effort to contact this woman at the number she gave me. I called at different hours of the day and left messages on her voicemail with the proper acct. number. I even gave her a several good times to reach me. Finally I just mailed (via registered mail with a signed receipt) the payment amount of $2640.62 in a cashiers check. I received notice that it was received and the calls have since ceased. My question is where do I go from here? I’ve been reading horror stories here of yet other collection agencies demanding payment for debts paid off! How do I know that the judgement has been satisfied? Since NCO “recalled” the debt and I have paid what they asked, what happens with the court judgement? And how do I know it won’t come back on me? The attorneys for American Express won’t discuss it with me since NCO recalled the debt. I’m retiring in June and I need this put to rest before then. Should I send another registered letter to NCO requesting a letter from them that the debt has been satisfied? I had a judgement with another credit card co. who dismissed the lawsuit and I received a letter to that effect. Please advise.
Kim
Kim – Getting this all documented more clearly would have been ideal, before sending off payment. Because this is a judgment debt, remitting payment through the court may have been a better course, if the judgment creditor, or their assignee NCO, were unresponsive.
When was it that they received and processed your payment?
Michael:
They received the cashiers check on February 12, 2014. When it was processed, I don’t know. NCO Financial hasn’t called me since they received it.
Kim
Kim – I have done settlements on judgment debts that took a few months to update in the court record. You also have the option of moving the court to update the judgment as satisfied. Do you have proof of all payments?
Michael:
My proof of payment is the wage garnishment except for the last payment to NCO Financial (the $2640. that I sent in a cashiers check via registered mail).
Kim
You could light a fire under NCO’s butt by calling AMEX direct, and if not a satisfactory experience, file a complaint with the CFPB. If it were me, and I did not have a credit goal in the next 60 days, I would give it another 30 days, but I do appreciate any apprehension you may have with waiting.
Hello. I just recently received a letter from MCM demanding payment on a debt that has run the statute of limitations (which in CA is 4 yrs.). I haven’t even heard from the original creditor for 2 years until recently when they notified me that I would be contacted by MCM. In the communication from MCM, they even stated that they cannot sue due to the statute of limitations. As a result, I have no intentions of paying the debt (which is for @ $7000). How do you suggest I proceed in dealing with all the harassing phone calls and letters?
Kim – If you are certain the debt is passed the SOL you can send them a cease communication letter to stop those calls and letters. Just be certain the SOL is expired, as once you send a request that all communications cease, the only door left open for communication is the one entering the court house.
The date of the debt is August of 2008 and I’ve had no communication since then. So the SOL has passed. I might just wait-it-out. Shouldn’t it fall off my credit report after 7 years?
I can always try blocking the annoying calls.
Both the original creditors charge off entry, and a debt collectors negative reporting, should fall off the credit report after no later than 7.5 years from the date you last made a payment in 2008. So you have a ways to go before that happens.
I went to court over a debt that wasn’t mine. The court sided with me and it was dismissed. I sent court documents to all three credit bureau’s and they refuse to take off the debt. So a court of law says that I am not responsible for a debt that isn’t mine but these credit bureau’s are allowed to ruin my credit by refusing to remove false information?
Barbara – I would need a whole lot more details to understand your situation. What specifically happened in court? Why did the judge determine the debt was not yours? Where did the debt originate from? Is that being reported along with any other collection trade line?
If I knew the answers to the above questions I could better offer meaningful feedback.
I was contacted by Midland today. I have seen them on my credit report. They purchased a debt of mine from 2005. They said last activity was 2007. He told me on the phone that I was sued and had a judgement filed against me and it is on my credit report. I monitor my report and there is nothing showing on my report in form of a judgement. I never received anything in the mail from them stating they were filing against me. I flipped out on the guy to and refused to take his number. 2014 will be the statue of limitations on this thing. I am nervous after now seeing on other sites that they garnish wages and bank accounts. I live in Pa and the company was from NJ. I don’t know if that makes a difference with the way the handle things or are allowed to.
Jamie – Have you lived at the same address since the debt was incurred? If so, check your local court record and verify whether a suit was filed. A judgment will not always appear on your credit reports. The easiest and quickest thing to do would be to call Midland and provide your information and ask what court a judgment exists in, and then you can pull the information together. Right now you are on a fact finding mission, so keep any conversation brief and business like. Post a follow up comment with what you learn and lets go from there.
Thank you for your last response. I was you going to write you with some questions on proceeding with trying for a settlement. My grandpa passed away and I just got back into time yesterday. It had been one thing after another. Like I had told you my contact at Midland told me to contact him by the 21st because he would be out for the holidays after that. I was just served papers tonight with the plaintiff being midland. I was to they were taking my account out of dispute (regarding my dv letter) after my fax was sent to them. Why is this now happening? I had told them I was going to work with them. I thought after I contacted them it would take out the possibility of going to court. Is this a mistake in documentation? What do I do know? I would like to call first thing in the am and see why this is.
Please advise. Thank you so much.
Laurie – I typically do not see that occurring when you are openly trying to work something out with Midland. Rather than speculate as to why that may have happened through comment exchanges, I am available to dig into this over the phone. I am signing off for tonight, but can be available most of tomorrow. You can reply to the email you get from me, or call the number in my signature line.
When he asked what I wanted to do I told him I would really to get it reduced to half ($4,000) and of course he didn’t act like that was possible. I would love to pay $250/mo for 6 months and pay $2000 after taxes. I do think that is feasible for me with my first pmt being in dec. I feel like they will keep wanting more however and not accept this. How do you suggest I go about getting them to agree to a deal such as this. He told me when I contact him with a plan he will let me know right away if it is reasonable or not.
Thanks again.
Laurie – You have to convey your hardship and inability to pay. Settlement with debt collectors works best when you have a lump sum to offer. When you start talking payments you are conveying room in your budget to pay for much longer. You have to work the numbers to show this is as good as it gets, and stick to your guns about the deal you would potentially agree to.
If your health insurance premium is going to go up as a result of the Affordable Care Act.
If you are going to have to ask for family support to get through paying something monthly until you get your tax refund.
If you have to make up the difference in helping a son or daughter who will need some financial support starting in January (college, grand baby on the way, lay off etc).
There are many reasons someone has to project their budget aside from meeting normal monthly expenses. You need to be able to convey what is happening in your life.
You can get some help and one on one coaching if you feel you need it. If you get stuck post an update and I can offer some further suggestions.
Hello again,
I was able to get a letter faxed to mcm and then the person I spoke to last week called me today. I briefly told him what you said and a bit about my situation. He right away put me on hold and came back with the amt of $6100 lump sum settlement. I told him that was not even close to possible. He asked me what I wanted to do. I told him I would like to lower it to 50% if possible and then start paying towards it and hopefully finish the balance with my tax return in time. I told him I wasn’t at a position where I could pay something today however. He said if I called him back in a week or two and had something I could put down he would then go to bat for me. I was kindof rushed off the phone at that point. I told him I didn’t want to make a small pmt of $300 or so if I didn’t know my end goal settlement amt. he was polite and just told me to call back. Sound right?
Thanks again very much.
Sounds about right Laurie. I would not want you to pay anything without a clear plan you can afford being outlined in a written agreement.
How would affordable payments look if you were able to get a 50% settlement with payments spread out over 12 months?
What if you made arrangements to pay the settlement over 6 months, with the final payment being the largest after you get your tax return? Could you swing 250.00 a month for 5 months with the final payment being a couple grand? Is your tax refund consistent, and estimable now?
Hello,
I received a collection letter from MCM regarding an old cell phone bill, about $200. I sent a debt validation letter to them. MCM responded with a some type of bill showing my name, the cell phone company name, account #, and the amount owed. They also sent out a settlement offer stating that if I paid they would report the account as paid in full. I sent a pay for delete offer, but have not heard back from them. It’s been almost 3 weeks. What should I do next?
Thanks,
Kiki – Pay for delete is just not a common occurrence with Midland Credit Management (or other collectors). Taking the offer and getting your credit report to show the account is paid is likely as good as it will get. Do you have other collection items showing on your credit report?
I have 2 others but they are paid. So should I contact them by phone or letter to try and settle the debt?
I would call the phone number on the collection notice MCM sent you and confirm the details and follow through that way.
Thank you again. I called and spoke with a gentleman who asked if I had called in prior because my account says it is in dispute status. I told him I sent a Dv letter but hasn’t heard back and he told me that was why. He said they are glad I want to work something out however they need me to fax a letter saying I am not disputing and would like to work with them. Then he said they will be able to look at my options. Does this sound correct?
Thank you.
Laurie – Yes. Sending debt validation letters to debt collectors like Midland Credit (and many others) will trigger certain behavior on their part. You just need to send them something that takes your file out of whatever category your letter put you in. Then follow up.
Ok, I hope so. Do you suggest I just state right away that I am interested in coming to a settlement agreement, however need some time to prepare a lump sum or would have to start payments when possible? And then go into my situation?
I would lead with:
I want to come up with a workable solution to this.
The situation, and why I am not in good position to commit to a solution to put this behind me today, but am confident I can in the near future.
I am calling to find out what my options look like.
Listen, thank them for their time, and that you will follow up with them.
Debt collectors are trained to establish a commitment on every call. Unless you hear something that you are confident you can do (very possible), I would not commit. Get anything you do negotiate in writing.
That really helps. Thank you very much. The last letter I received from them was dated oct 8th. it was about sending my account to internal legal to possibly initiate legal proceedings but says they would have offers to help accommodate if we’re contacted. I plan on calling them tomorrow to start this. Do you think I am too late?
No, I do not think tomorrow would be too late.
I replied to the wrong link apparently. What do you think of my response in regard to starting by calling them and negotiating ? Will this stop the legal process from at least starting? I would like to come up with an agreement and the later it has to start with a payment the better.
Thank you so much.
Thanks for keeping the discussion on the site Laurie. As you can tell from the above article, if avoiding a lawsuit is the goal, starting the discussion with MCM early is better. I have seen people able to avoid accounts being placed for legal collection by remitting small payments, or by being upfront that there is no money available to start to put together a plan, until the following month etc. Professionals in my industry are often able to successfully communicate with Midland Credit Management, or Midland Funding, to defer aggressive collection efforts. But people should realize they can do the same by communicating their hardship themselves.
You do have to be prepared for the fact that most debt collectors have real time access to credit report information. If things do not look like you are at the edge financially there, you should be prepared to share why that is not an accurate reflection of what is going on now. The fact that you may have had to borrow money to stay afloat; that having led to marital discord; leading to a pending divorce; that means surviving on one income with most of the same bills that were a stretch on two incomes – while rightfully viewed as private and personal, will often play to your favor in collection situations. Put another way – the stuff that sucks for you financially is the same stuff that can help you out of a jam like this.
Hello-
I sent mcm a DV letter certified. I then received from them a letter stating they were sending my account to their internal attorney to possibly initiate litigation. I’ve heard it is best to correspond by mail with them, however in doing so will they ignore anything sent and end up suing me by mail? What do you suggest I do? I have no money to put down but suppose I could do payments until I get some saved up. Do i call and start this over the phone? Please advise!
Thank you.
Laurie – There is no shortage of places on line that support the idea that corresponding with debt collectors of all flavors should only be done through the mail. That is terrible advice for those who want to resolve their debt. Depending on the contents of a letter you send, you could indeed increase the likelihood of being sued, or complicate your efforts to settle or set up payment arrangements. This concern is not limited to MCM.
Calling Midland Credit Management is how you settle a debt, or get set up with payments you can afford. Is this the only debt you have to contend with?
Yes it is my only debt that went to charge off. It is for $8100. Would trying for a 40% settlement sound reasonable? My husband and I are separated and will end up filing for divorce it seems, so I would only be able to do payments with my income. This is not in his name so I know I am responsible. Do you think they will work with me? I really appreciate your time and help.
Laurie – Midland Credit will work with you. How they settle with people is often dependent on how collectable you look to them in their system. Their system is not going to know you are getting divorced and will have to survive on a single income where there was once two. Use that as part of your hardship explanation.
Settling at 40% is possible in the right situation, but you need to be ready with the funds. If you need affordable monthly payments that will last a while (more than a few months) – 40% will often not be as realistic. Call them and see where you can get to. But do not agree to anything if you know you cannot afford to follow through.
Hi Michael–I’m currently being sued by Midland Funding. I responded to the claim back in September (as a method to avoid a default judgment) and we were ordered for mediation by the court. My full intent is to settle and avoid having this continue to trial, but my question is this: is there anything to stop me from calling Midland’s lawyer and starting the settlement process now? The court said that we would have to split the cost of the mediator and our meeting is scheduled for later this month, but if possible, I’d like to just try and hammer this out with the lawyer so that I can avoid the additional cost of mediation sessions. Would speaking directly with Midland’s lawyer be a sound strategy to coming to terms with a reasonable settlement offer? Thank you!
Adam – Nothing should prevent you from negotiating a deal with the attorney Midland Funding placed the account with. Your goal is to settle with them from the outset, so that conversation was going to be had regardless. Just be careful to come off as wanting to resolve this as a matter of convenience, and not because you are concerned with continuing in the court. In other words – keep a good posture.
Michael;
I received a verification of debt could you email me so I can ask you my question. I don’t know how to put in this comments. Thank you
Claudia
Claudia – Any email you send in reply to the comment notices you receive from this site can be replied to. All of those emails come direct to me only.
I was served a summons from Midland recently. The amount is around $3000. I immediately called and offered a lump sum of $1500. The lady told me that the person who is in charge of my case would contact me the next day. I actually ended up calling them back. The lady who is in charge of my case was unavailable, so the one who answered my call told me that there was information stating they would settle for $1800. I asked to leave a voicemail for my caseworker. In my message, I mentioned the $1800 settlement. When she returned my call, she said that there was no $1800 settlement and that she was sorry for the misinformation. The lowest settlement she said they could offer was $2400. The caseworker was extremely unprofessional and seemed flustered throughout our conversation. I told her that I was going to contact my attorney and get back with them the following week. I am curious about the “misinformation” I was given. It seems to me that there was information in the system that I was not supposed to be privy to and was given to me prematurely. I am unsure what to do at this point and welcome any advice. Should I ask for proof that they even own this debt? Should I attempt to get the $1800 settlement?
dander – You can seek proof of the debt through the court process now that you have been sued. You would need to file an answer to the lawsuit and get the proof in the discovery process. This approach is best handled by an experienced debt collection defense attorney. There are good ones out there that can help you, but they do charge a fee and cannot guarantee success. You would probably settle with Midland for what it would cost to defend the case. I would recommend you keep at it and target the 1800. I have seen Midland Funding settle collection lawsuits for this type of reduction.
Why did one rep for Midland say they could accept a settlement for lower than what is being offered? It was either an error on the first persons part, or there is something in their files that suggests you are more collectable. Are you keeping current on other loans (credit cards, car, home)?
Hi,
I had been an ex-employee of Mid-land i know how it works so maybe i could advice you on this situation. The reason your offer was not accepted is because you called yourself with 50% settlement offer now they know that you want to settle. So they would try to collect the maximum amount they can . if you would have called with $2400 again they would have denied that and ask you to pay more. So you give an offer $1500 tell them if they would accept it or they can talk to your attorney and wait . If any questions you can ask me anytime.
Thanks
Gagan,
I saw your recent post and would appreciate any advice you have regarding dealings with mcm. I have a charge off with Wells Fargo for what now is $8000. Long story short, I sent a certified letter to them saying I wanted DV after receiving a letter from them saying I had 30 days to respond or they would send to an attorney. Today I got a letter from them saying they were sending my account to their internal legal dept for possible initiation of legal proceedings against me. How should I respond? I haven’t gotten anything back in response to my DV letter. How serious are they now about legal proceedings and what are my chances for settling for a much lower amount in payments most likely? I won’t have a larger amount to put down for a few months at the least or even until tax refund time. I really need to stall for as long as possible until I am more prepared with $1000 or so to start. I really appreciate any insight you have into these situations.
Thank you.
My friend’s wife died of cancer and the cancer treatment center “wrote off” the remaining debt, I suspect as treatments not covered by the insurance as necessary or standard of care. Now he is being harassed by a third party collecting agency. Can a medical provider “write off” debt receiving tax breaks/and or considerations and then sell the debt to a third party so that it can be collected legally?
suzanne – Debts are indeed legitimately sold off in the normal course of debt collection. How the seller accounts for, or receives tax breaks, is something they must contend with on their end. It is not a safe assumption that the seller receives a full tax benefit.
Is your question about Midland Funding buying this debt?
Also, your friend may not be liable for the debt of his wife now that she has passed on.
They call my job everyday, anywhere from 10-20 times per day (actually have record of it). They never leave a message except the one time my co-worker answered the phone. Not sure what they are calling about as they’ve never sent any type of correspondence.
What would you suggest to have them stop calling my employer in the manner they do?
Thanks
Janice – You should contact them and find out what debt they area calling about, and at the same time let them know that calls to your employer are not allowed and those need to stop.
Post more details about the debt when you learn more and lets go from there.
Hello Michael,
I was served a summons yesterday. I am being sued by a law office here in Illinois on behalf of Midland Funding LLC for the amount of $1883.42 + costs. It’s for an old Chase cc account. I have a return date on the summons of 10-10-13 and today is 9-17-13. Do you think it’s still possible to work on a settlement before I would be required to appear in court to answer to the complaint? The problem is-I DON’T HAVE ANY MONEY! I have several part time jobs, but I have no savings and no real assets besides my car. I don’t want to miss a scheduled day of work( of course my court date is one of the few days I’m actually working), and even paying the “FEE TO FILE FOR APPEARANCE” would be a burden($186.00). Not sure what to do. I’ve heard that here in Illinois you can be thrown in jail if you default on court ordered payments. What would you suggest? Thank you.
Orlando – You can indeed work out a payment arrangement with Midland, even at this late stage of collection. You would likely have to sign a stipulation to judgment in order to get affordable monthly payments. This usually means you are not settling for less, but agreeing to payments.
The issue here is money. If you cannot afford to file an answer, how much can you agree to pay monthly? Is there anyway you can tap a friendly resource to settle this quickly?
You cannot be thrown in jail for a debt like this. You could be found in contempt of court if you failed to show up for an asset discovery hearing the court ordered, or something similar. But you would be able to rest this concern better by talking about it with an attorney.
So in the last year I have had two letters, one just came a few days ago and the other was a year ago, come from Midland about collecting for a T Mobile account I had over three years ago that I closed because the couldn’t provide service for the job I was doing. Whole different story for that one. Anyway, those two letters are the only contact I have gotten from Midland, and they are your basic collection letters, saying if you pay us $270 out of the $350 that is owed, we will call your debt paid. Now, seeing as this was the only contact I have had from them, I have been searching around online, seeing if they are a legitimate company, which they seem to be, but I have also been reading from numerous sources that they are terrible to deal with and even some cases where if you pay off the account, they will send you letters from a different office claiming you still owe. I would like to get it paid off, and seeing as I don’t agree with why T Mobile charged me in the first place, I would like to do it for as cheaply as possible. Is there a good way going about this? Should I even try and call to negotiate even lower than the letters then sent me, or just send the check and hopefully be done with it? I also discovered a lawsuit by the Minnesota Attorney General that was settled in December 2012 that states:
To address the problem that people who don’t owe the money are improperly subjected to collection requests, Midland must verify the identity and address of an individual claimed to owe money at the outset, before any collection effort is made.
Would that be something that could help me, seeing as the have not verified anything with me? Thanks for any input you have!
You can write to or call Midland and verify anything you need to over the phone. But it sounds like you are already aware the debt is yours. I am not sure where you read about Midland settling a debt, only to later try and collect again, but that is just not common. Even if that occurs, the offer letter you have, and proof that you paid it by the date outlined, would put a stop to any other collections. If something like that were to happen, post an update to this comment thread and I can offer more feedback.
When it comes to calling Midland and negotiating a better deal than what is in the offer they mailed you – you certainly can. But with smaller balance debts like this it is not likely going to result in much more of a reduction. Be prepared to answer some questions about your financials and any hardship you may have in order to get the best reduction if you do call. And if calling Midland to negotiate a better reduction results in a better outcome, be sure to get a new written agreement from them before paying.
Hi Michael, I just got out of court and all went well as for now. The attorney representing Midland took me in a small room before going in front of the judge. He ask if there is something we can workout. Well I explained to him that I never received any notices or letters claiming that I owe them and that if I do indeed owe them that I need something showing this information. He then proceeded to ask if I ever had an acct with household and I told him that I did but there wasn’t a balance and this was so long ago.
Well he begin looking in his file and said that well they didn’t send me any other information so I am going to dismiss your case. And that they may re-file later after sending me some information or you might just get lucky. Well I did get this dismissed but it is without prejudice. My question is, if they re-file what would be the statue of limitation date considered to be? If it shows a last report date or activity date of Sept. 2009 and they indeed file after this time would this be a Sol issue?
If they decide not to pursue this again can I get all activities from them removed from my credit report?
Again thanks for your help.
Tammi – The SOL date would not change from the date you started missing your payments to the original creditor. There are some scenarios where the SOL can restart, but it does not sound like you are dealing with anything like that.
I am not sure what you described what you are seeing on your credit report, but the SOL is generally going go by the first missed payment, and where no other additional payments were applied thereafter. SOL to sue does not really go by what is on your credit report, though there is an SOL for reporting negatives which is typically going to 7.5 years from the first delinquency.
How you get this removed from your credit report is a different story. I am working on article about that. You may want to subscribe to the RSS on this site to get alerts about new debt and credit guides that are coming out.
Hi Michael, I just noticed that my credit report has now changed to “Account in dispute – Reported by subscriber (FCBA)” & and “No condition/status”.
It is no longer showing a balance.
Do you have any idea on what this means? Should I try to get this removed or will it just stay on my credit report?
Please note as mentioned before my case was dismissed without prejudice. The Sol date from the original creditor (miss payment) 08/2009. Not to mention all of the discrepancies on this acct.
Did you send a dispute notice to anyone at any time on this account? If so, who to and when?
No, I have not sent any dispute to Midland. I have sent a dispute long time ago to the original creditor. They removed it but It seem that they reported it as a different acct no. Hsbc has 2 different balance. below is what my current report states:
05/2006 05/2006 No information reported
Account Number 51559900
Account Status Charge-Off Unpaid balance reported as a loss by credit grantor
Ownership I I
Monthly Payment
Balance Amount $0.00
Balance Date 03/2010 02/28/2010
High Balance / Credit Limit $590.00
Prior Delinquency 200912 201001
TransUnion
Date Open No information reported No information reported 05/29/2006
Account Number 51559900
Account Status Paid or paying as agreed
Ownership I
Monthly Payment
Balance Amount $0.00
Balance Date 10/31/2008
High Balance / Credit Limit $766.00
Prior Delinquency
Past Due Amount $0.00
Comment Closed – Account information disputed by consumer
TransUnion
Date Open No information reported No information reported 05/29/2006
Account Number 51559900
Account Status Charged off as bad debt
Ownership I
Monthly Payment
Balance Amount $0.00
Balance Date 02/28/2010
High Balance / Credit Limit $1,004.00
Prior Delinquency
Past Due Amount $0.00
Experian
TransUnion
Date Open No information reported 02/2010 No information reported
Account Number 85337190
Account Status No condition/status
Ownership I
Monthly Payment
Balance Amount
Balance Date 08/19/2013
High Balance / Credit Limit
Prior Delinquency
Past Due Amount
Comment Account in dispute – Reported by subscriber (FCBA)
Comment Purchased by another lender
tammi – I do have a credit reporting section guide that will be up shortly. One of the pieces speaks to your situation. I cannot link you to it now, so here is what I would encourage:
Dispute the accounts you know that are not yours as “not mine” with the bureaus. Sent a copy of your disputes to anyone furnishing the information (Midland/HSBC). Send certified mail return receipt. Keep a copy of all correspondence and the return receipts. Allow 30 days to hear back from all recipients after you get the green cards back from USPS. Your next steps will depend on the responses you get.
michael — so today i tried calling MCM and spk w/ zach who was foreign as heck from the debt dept. He read my notes and seen where they are sending a hardship package for their atty to reveiw. I told him i could send, but i refuse to send them all my personal info along w/ my bank acct. I dont feel comfortable and I dont want them to have access to everything of mine. So he told me that my bal was now a little over 3500.00 and that he could offer me a settlemnt for 2650 in full, or pay 100 a month. I told him that was impossible that i was trying my best to get this resolved which is why i was calling. SO i explained that they mailed me the letter offering the 40% discount in sept 2012 where my current bal was 3471.54 and it offered the 2082 in full settlment or 50 a month. I explained what if i were to come up with that option. I can possible borrow money to pay the 2082 . and they denied me, told me obviously i didn’t read and that offer has expired and they refuse. if i want this taken care of to pay them the 2650 and they will only take a minimum of 100.00. I am doin the best i can and i dont understand what is the different and why they wont even accept the offer. I understand it was a yr ago, but if im willing to come up with that amt why would they refuse and still continue to take me to court when again i dont have anything. Ive called 2 times within the week. Do you think they will eventually accept the offer given to me from last yr or what should i do.
christina – debt collectors will often use a scoring model to determine what they will settle for. You may look more collectable to them than you really are. There is also an element of what debts can be settled for once the account reaches legal collections often being a higher amount than when you can tackle it prior to that happening.
There are times where your persistence will pay off to settle. Just not always.
michael = i have recently rcv’d a certified letter from MCM to take me to court b/c of a debt that had w/ chase bank. i stopped paying on the credit card about 2 years ago b/c i wasn’t financially stable. I had to move out on my own again, then my job laid off over 300 employees and I was one of the ones still left but my income went down dramatically b/c it was based on commission. I work as a debt collector so i understand where everyone comes from and believe me I know how hard it is to pay your bills. I for one only may 550 every 2 wks = and with my rent , utilities, car insurance, paying on my school loan and the one credit card agreement i made with their atty. I just cant do it…Grant it , its my fault , i allowed myself to get into the debt that i did b/c i wasn’t makeing what i use to and put everything on credit cards. where i live its oil heat and i can’t even afford oil which is why i chrged on the credit card that i cant pay to this day. MCM has called me unknown for many many months. Chase put on my credit bur as a charge off and forward my info to MCM and said they are now handling my acct. I called them on 8/16 and told them with what i make and what i pay out to, i was only able to afford 25 a month. the women i spk w/ at MCM told me that wasnt acceptable b/c it had to be paid off within a 12mo period. i cant’ come up with a settlment amt b/c i have nothing. They sent me a letter back in 9-21-2012 and offered me a lump sum settlemnt of 2082.92 if i paid by 10/21/2012– or gave me option 2 to pay 462.84 in 6monthly pymnts..the current balance was showing 3471.54. Again i was financially not able to do so b/c of me being on my own and paying all my bills myself as im still doing. Im frustated, im nervous, i just dont know what to do. I dont have any assets, i own nothing. my vehicle is all that i own and its last life with all the constant problems Im having with it which scares me b/c thats my transportation to and from work. I have rcv’d 2 notices from the magistrate for them requesting court b/c of this debt but haven’t rcv’d letter b/c of me not being home at the time this is issued. I thought when you offer to pay something they have to accept it. i agreed on 25 but apparently that wasn’t good enough and i just dont know what to do. She said she would send me a hardship package from their atty and i have to send them all info, including my bank statmnts for the past several months, my pay stubs, all the bills i pay and then they will review and see what they feel im able to pay. I had asked the atty that represents our company if that was a good idea and he immediately said to not send them any personal info of mine b/c that gives them full access to my personal info and for them to tell me what they expect me to pay or to tack onto my bank acct. He said To try call them again and see what they would offer me and what im able to afford. But like i said i can do 25, possible 35 a month. i see a lot of bad reviews on MCM, how its a scam, and how they offer you a settlment and paymnt arrangmtns but months later they screw you and say they never offered you anything and you have to start over. I just dont know what to do. Please give me the best advice and help me figure out the best solution b/c i really dont want to deal with anymore bad luck. The last credit card company tried to do the same thing with me but it was through capital one. they didnt transfer my info to a collection company. they tried to send me the same ceritified infront of magistrate to sue me. i owe them 3500.00. they said they wouldn’t accetp anything less but then agreed to 40 a month without chrging me anymore fees. so why wont MCM accept the 25 monthly pymnts and not chrge me any additional fees.
Please help me! since i missed the 2 notices for the certified it said the next one i will apparently get is 8/30 and the women is sending this hardship package, (whatever thats suppose to be). another thing is when i get this certified presented to me in person since i missed the first 2 – should i appear, what do i say, what do i do. or should i try call again and offer 35 or see what they can do for me..
christina – Thank you for all of the details. One thing to be clear about – creditors and collectors of unsecured credit card debt are not required to accept any payment you offer – just because you offer it. There needs to be an agreement between you both, and it is best that it be done in writing. About the only place you will see that occur is through the court. And that leads to your current situation. If you cannot get Midland Credit to agree to the monthly payment you can afford right now, you may find you can reach that arrangement through the court. You absolutely will need to be a participant in the process. At 25.00 a month it would take over 10 years to pay that off. That type of payment agreement would be pretty unusual.
Then what are my options! What would be the best advice for me to do. It’s my debt , so I can’t and won’t deny that! 🙁
I am being sued by Midland Financial and is due in court tomorrow. They are seeking 1071 but I don’t agree with the amount and dont trust to talk to them over the phone. I have a few copies of my credit report that list this account 2 times with different amounts. My 2012 report list Household bank high limit @ $570 (charged off or sold..closed) and as $1004 and Midland @ reports high credit $1004 (opened in collections.. ). My 2013 credit reports shows that household now reports 1003 (charged off or sold closed) and Midland reports high credit 1004 with 1071 being due (closed, charged off). I know I didnt have a credit limit of 1000 and dont see how this same acct number balance is changing after it was considered charged off. When going to court can I ask for them to provide All orginal documents showing how they came up with this figure including any bills that lead them to a much higher amount? Please note that I am in Ga.
Tammi – When an account goes unpaid it will grow from late fees, over limit fees, and default interest rates. With smaller balance accounts it is common for the balance to double very quickly.
Yes, you have the ability to request all the information they have that substantiates the amount they are trying to collect. But when you are being sued that is typically done prior to appearing in court. You can indeed raise your concerns in court tomorrow.
What is your ultimate goal with this account?
Thank you for your help, but I have a few more questions. Is it normal for the original creditor to list two different amounts for the same acct on the same report. If the additional amount was interest and charges why wouldn’t they just report this amount? Household listed 570 and 1004 on the same report (both being charged off, sold). One this same report Midland reports 1004 as the high credit plus about $71 in interest added this is on their complaint as well. What household did was reported the first few numbers of the acct. on one amount and the last few numbers of the acct. for the other. Is it possible to ask for the original, authentic documents that would support this and maybe request for them to bring a witness from Midland or HBC to confirm this info? If so, is there a special way to ask for this information? I previously called the original creditor to obtain and confirm the amount due. The only thing that they could provide is the two acct numbers that I have ever had with them. One of which was closed a long time ago (paid) and this one. The 1st time I called they said that they were going to send out the last bill but I never received it. The second time I called they stated that they don’t have any information in regards to the amount. Also, I was reading that most collectors pay is pennies on a dollar for these accts. If they purchase this acct for a lot less, can they sue for the full amount? If not, can I request this information as well?
I do not want a judgment on my report but nor do I want to pay more than what’s due. I don’t want to sound stupid in front of the judge but I really don’t want to be taken advantage of. Because of the things I have heard about this creditor, it is hard to trust what they say. They called me 2days ago but I don’t trust to talk to them over the phone at this point because I still have to go to court. And if they can prove this and we come to some type of agreement, I can get this all in writing at that time v/s a verbal agreement.
Again your help is gladly appreciated.
One more thing to report. I was under the assumption and please correct me if I am wrong. If a collection agency fails to validate whatsoever do they not have to stop any and all collection attempts? Isn’t this against consumers rights?
Generally speaking, yes. But in the context of your comments that are focused on credit reporting, that will not always be the case. Ideally you should run the scenario by a consumer law attorney.
So in other words Midland is allowed to absolutely destroy credit without any proof. Credit bureaus say verified etc… What is wrong with this picture. Midland sues in court fails to provide any type of documentation during discovery. Asks for a Dismissal without prejudice. Never refiles. Continue to report to CRA’s way beyond SOL and nobody helps. Credit bureaus verify a debt they never investigated. Midland re-ages accounts and consumers are just plain done for Credit scores in the dump.
Danielle – What you described does indeed happen. What is it you mean by “nobody helps”?
Also, this far along in the life cycle of a debt, the Midland reporting would not typically be the sole reason for a credit score being in the dumps. Do you have additional collections reporting on your credit? Have you taken steps to improve your credit profile in the last couple of years? Do you have positive trade lines that are being maintained? Once you remedy the credit reporting with Midland, what are your immediate and mid term credit goals?
Michael,
I have a question for you? If Midland never validates a debt or responds. They take you to court and during discoveries are unable to provide any documents what so ever how are they able to continue to report to CRA’s. Wouldn’t that be like hypothetical anyone could say “Judge I pinky swear Mr xx owes me money but I have no documentation what so ever” How are they allowed to continue to report to credit bureaus? Isn’t that continued collection attempts after failing to provide proof?
Danielle – Mixing what happened with the dismissed suit and credit reporting may lead to the wrong assumptions. I wish it were that straight forward.
The way I understand your situation from your comments above on 8/4 and 8/5:
You stopped paying a debt on a certain date more than 7 years ago. Midland Funding ended up with the debt. The original creditor trade line aged off of your credit report at either 7 or 7.5 years after your first missed payment. Midland is on your credit report but is set to fall off 11 months after the original creditor. If I use the timelines you shared, with the OC falling off 9 months ago, the Midland Funding credit report entry would fall off in 2 more months.
The Midland entry should have fallen off with the original creditor entry.
I suggested you file a dispute with the credit bureaus (copying Midland). Have you done that? What was the response?
I have a question. I am being sued by Midland Funding for a credit card debt in Oregon. However, when I look up Division of Finance and Corporate Securities (DFCS) in Oregon, they’re not a registered collection agency. Can I still win this case? Or do they have the right to still sue me?
Nikki – States have different requirements for who must be registered. Not all of them will require a debt buyer, which is basically an investor, to register. The debt collector that is working for the buyer may be who Oregon requires to be listed and current with the Division of Finance. You could call the department directly and ask whether Midland is required to be registered as a debt buyer.
Whether you can succeed in defending the case is a loaded question. You did not provide much detail. But if your core focus is the registration question, that may not help much.
Thank you Michael. So I am wondering if it’s too late to file for bankruptcy as I am tired of all this court things. I’m 7 months pregnant and it has been stressing me out. I just want all this to end. If I file for bankruptcy, will the JDB still get judgement (if I lose) and take away my money from my check? or will bankruptcy stop them from taking my money?
Nikki – Bankruptcy, once filed, will put an automatic stay on any collection activity. No collections will resume once debts are discharged in a chapter 7, whether in court or out of court.
Hi Michael I was sued by Midland a few months ago the judge dismissed the case here in mesquite tx now I just found out that they are after me again trying to serve me with papers. They also put the debt on my credit originally it was on my husband. I lost my job yesterday & now have no income coming in at all I applied for unemployment & food stamps in order to put food on the table. How is this possible?
If the suit was dismissed due to some deficiency the court found, or was dismissed without prejudice, it can be refiled.
What is the amount of the debt?
$5300
Okay. Because of the deterioration in your finances due to job loss, you may be able to put together a repayment scenario that could work. I have seen cases like this get settled for a good reduction with time to pay longer than a year.
The alternative will be to engage in the court process which also has its risks and rewards.
What is your goal with this account?
I can’t do nothing I have nothing. Thanks to midland I’m going through dispersion and thoughts of suicide
Debt is just math. Stay focused on the realities of the numbers. You can either afford to do something today, over a period of time, or later on when you bounce back financially.
The emotional part of debts in collection are just what each of us assign to the process. Most of that emotion, at least from my experience working with people, is due to:
1. Fear of the unknown. What happens if type stuff.
2. Frustration over the whole financial situation, not a specific debt.
I cannot fix your personal finances when you are temporarily stalled out, but I can guide you through the unknown.
Depression over debt and finances are very real. I understand that. But owing a debt that you cannot deal with immediately does not mean someone can steal your birthday.
You live in a state with great consumer protection laws. You also may be noncollectable. Even if a judgment was entered, you can navigate that, and resolve it later.
Are there other unpaid debts out there than this one? If so, list the amounts and when last paid. Also list any unsecured debts you may be current in paying.
Hello Michael,
Midland funding sued me for a debt in march of 2011 and in May of 2011 they were unable to provide any proof of ownership of debt. Judge dismissed in May of ’11. But Midland has continued to report with CRA and to make matters worse they have reaged the debt to continue to report. They are way out of SOL. And I also thought if they could not provide proof they can no longer continue to report to CRA. Very frustrating.
Thank you
Danielle – Credit reporting and unsuccessfully being sued for a debt are two different things. I would need to understand a good deal more details to offer anything other than general feedback. Have you already disputed the entries with the credit reporting agencies, copying Midland Funding as well? If you have already done that, is that what you mean by proof, or are you referring to proof related to the court action? When you say they have reaged the account, is the date of last payment for the Midland entry different than that of the original creditor? Does the credit report contain a date for the Midland entry to fall off your report that is later than that of the original creditor?
Hi Michael,
To answer to your response. Let me make it a little clearer, sorry. Yes the original creditor fell off approximately 9 months ago. And the date that midland gave on the court documents does match the date from original creditor of last payment made. But, the date Midland has on the credit report is like 11 months later from the original creditor.
Okay. It sounds like the original creditor reporting aged off of your credit report. Any additional collection entry should age off of the credit report at the same time. The exception would be a judgment in the court for the same account (it gets a new 7 year shelf life). You did not get a judgment. You should send a dispute letter to all credit reporting agencies that have the entry and point to it being related to an account that has passed the SOL for credit reporting. Copy Midland on the letter. Send all communication certified mail return receipt. Post a comment update to this string with the result of that and lets go from there.
AF – Glad this all got resolved and thank you for posting the updates. This site is about people helping people. Your experiences and warnings about being diligent on following up will help others.
I do not think this was anything shady. If I took a guess at what happened it would be the attorney that had your file first did not do a thorough job and the records just were not complete. Due to the CFPB’s hyper attention to the debt collection industry right now, any debt collector, and especially a large one like Midland Funding, is making adjustments to new regulatory and supervision realities. Now would be the wrong time to purposefully use collection tricks. Resolving debts like this will also get a bit more streamlined in California with the new Fair Debt Buyers Practices Act set to go into effect January 2014.
Congratulations and best of success!
I received a notice in the mail from a Superior Court (Special Civil Part) in a county over an hour away from where I live. I have been living in my current apartment for 15 years and in town for 17 years. The notice is for a judgement of $523.93 that was made in 8/27/2008 however I NEVER received a summons or any notice stating I was being sued. They sued me twice before (again, I never received notice of the lawsuit) and my wages were garnished. It just so happens I am currently unemployed and now they are looking for more money. I check my credit reports and I see anything other than my federal student loans as my existing debt (payments deferred). I tried to contact the court but I get no answers other than being told I should have showed up for the court hearing. How can I show up for a court hearing I knew nothing about?? Does anyone have any advise on how to handle this? I live in the State of New Jersey. It does not seem to matter how much they take from me they will keep coming at me regardless if I owe something or not. Somthing is too fishy about Midland Funding.
Jules – I am not sure I understand what you have going on. You have been sued and garnished multiple times, but have questions about whether you owe the debt or not? This most recent collection stems from a judgment you are only now learning exists from 2008?
Is the total amount that is due today 524.00?
Are you able to pool together resources to resolve the debt, or is it that you believe the debt is not even yours?
Who was the original creditor listed as in the judgment?
Hi, Michael.
I posted a few days ago with some background on my account at Midland.
To refresh your memory here it is again.
The balance is approximately $500. Opened in 2006, last payment $25-5/26/010, charged off 12/31/2010. It was originally a WAMU account, then Chase, Hilco bought it in 2011 then it was sold to Midland in 5/2012
I live in Missouri.
I spoke to Midlands by phone for the first time 7/28/2013, but I believe they have been trying to contact me for some time but did not have my current address. I requested a debt verification letter at that time but have not received it yet. From reading this board Midland seems quick to file suit and I’m worried they may file before I can offer a settlement. The Verification letter request served to buy some time to raise funds for a settlement offer and I’d rather negotiate with Midland than an attorney. Does Midlands ever file immediately without providing any verification at all?
Here is my information and background:
I am collecting Social Security Disability and have no other source of income. There is a home mortgage on my credit reports because my name is on the loan, but I have no interest in the property since the terms of the divorce required me to sign a quit claim deed. I do not even have a car at this time and I think most of my accounts on my credit report show delinquent.
Given the number of times this debt has changed hands Midland probably has flimsy evidence to prove chain of custody in court, my income is limited and cannot be garnished and I have no assets.
Using this information here is my initial settlement offer.
-My offer of settlement in no way means I admit ownership or responsibility for this debt or that Midland has the right to collect it.
-50%-$250. At an assumed .03 on the dollar Midland paid around $15 for this debt.
-Pay to delete the account on my credit reports.
-A letter releasing me from the debt
This is only a starting point. If I’m lucky here is what I would accept and be happy with.
-$300-2 payments of $150. I know payments will weaken my negotiating position but my income requires it.
-“”Paid in Full” on my credit reports. I do not want “settled” at all.
-A letter releasing me from the debt.
I’d like to hear your thoughts. Thank you for your help.
William – Thanks for the additional follow up detail and how you laid out your plan. Based on that, you have a high likelihood of achieving your goal. But maybe not exactly how your thinking this will play out. I think you have an impression that this is more complicated than it is.
1. You can call and set up a settlement and payment today. Even if the first payment is not set for a few weeks, it is better to be proactive and let them know you are willing and able to pay what you can afford. Doing so early on actually can, in my experience, prevent the account getting placed with an attorney.
2. You cannot pay to delete with this type of thing. The term pay for delete gets thrown around the internet like its normal. It isn’t. Utility bills, maybe. Some one off cases with medical debt, sometimes. With credit card debts owned by your creditor, or a debt buyer, rarely. As in Yeti sightings rare.
3. Paid in full vs settled does not really have a significance at this point. The account is resolved and a zero balance owed updated to your credit report is what matters.
4. A letter from Midland Funding releasing you from the debt is going to be a simple settlement letter. It is a common type of template letter, and definitely a common occurrence to receive from Midland when you resolve the account. I am pointing this out so that you do not have some expectation that the letter says something that it won’t. But the verbiage of the settlement letter will contain the elements you need to protect yourself later if needed.
I had a Wells Fargo charge off 2 years ago and was contacted by mcm to pay them. I sent a debt validation letter and 6 months later got very little info back. Now my credit report is just stating account closed and has 0 deragatory marks. What does this mean?
Thank you!
Not sure if you saw my answer to your comment from yesterday on the question and answer page, if you can follow up on my suggestions in that comment, and have additional questions afterward, post them and let’s go from there.
I was contacted by Midland Credit Management 7/9/2013.
I requested a debt validation letter and have not received it yet.The account is a WAMU/Chase credit card-balance- approx. $500.00. My last payment was $25 5/26/10 and charged off 12/2013.
I’m prepared to settle. I have no assets-my interest in a house was lost in a divorce and I’m currently on SS disability
I live in Missouri. Do you have any advice for settlement terms to negotiate?
Thanks
Bill – Settling with Midland Credit Mgmt will be targeted at different rates for different situations. Given your limited income and no assets, you will not look as collectible. I would start off by offering something reasonable, but less than 50%. If you are prepared to settle for as much as 50% you should succeed.
You can get payments along with the less than full balance agreement. But that is only something I suggest when you cannot swing the lump sum settlement. Signing on to a monthly payment can mean settling for a higher amount, and there is always the issue of a payment not being made, which wipes out the deal. But there are times where settling and making the monthly payments will be necessary.
The letters for settlement Midland will send out after you negotiate are pretty standard.
Michael , I am currently in the process of cleaning up a mess from a fail small contruction buisness . I have 2 judgments from Midland 2200.00 originally 700.00 and 18,000.00 originally 13,000.00 . Under the Judgment they come up one letter off in my name instead of David its Dave and a r instead of a n on my last name . Any way they are my debts and I have a good job now and I am looking to clear them up. Should i hire a consultant or call them directly ? At the time I can pay the smaller one but will need time on the bigger one unless they will negotiate down. I have a few smaller others out there and will pay them accordingly. But dealing with these is the hardest . Looking for direction TY
Dave – I do not necessarily think you need to pay someone to settle these for you, but I do think you should talk with a pro about the situation. There are reasons to wait to settle them both at once, and reasons to jump in now and lock something in. You can reach a specialist with CRN (people I know and work with) at 800-939-8357 ext. 3.
I can help you through making your “whats next” decision process too. Post a follow up comment and let me know how long it would take to pool together about half of the judgment amounts.
Hi. I am being sued my an Atlanta law firm on behalf on Midland Funding for a credit card debt. I live in Fulton County GA and the complaint was filed on June 27th however I have not been served as of yet. I no longer reside at the residence that Midland has on file (my brother does). I haven’t lived there in 3 years. I found out about the lawsuit on July 17th when various law sent advertisements. The last payment I made was 04/2008. I went to the Magistrate Court to get a copy. Attached is an affidavit from a legal specialist in MN, 4 pages of transaction history (has my name at the top left and a visa acct # in the top right), and 2 assignment of accounts (one from Compucredit to Jefferson Capital and the other from Jefferson Capital to Midland Funding). The balance allegedly owed is $1,016.31 plus $76.50 in filing fees. The “transaction history” does list my last payment on 04/2008 however I sent a letter to the original creditor on March 25, 2008 asking them to close my account. They did not close my account, they proceeded to charge an annual fee plus 8 months of over the limit, late fees and account maintenance fees that amount to $727.00. I have never received any correspondence from Midland, Jefferson or any collection agency in regards to this debt (no verbal – no written). Question: Do I have to wait until I am served before I provide an answer to the court? Also, I have called a few of the law firms and they all tell me that they charge $750.00 (not affordable for me right now). I am willing to settle for $400.00 (I don’t feel the additional charges after I asked to close account were warrantied). Should I go away and contact Midlands attorney with this settlement offer or wait for the court process and hopefully introduce settlement offer then?
Tina – If payments were not made on time after you closed the account (even if they did not close it in a way you would recognize, but you stopped using the card),the balance will grow from late fees, default interest rates, and potentially over limit fees from the other fees. You certainly do have the option to question fees, and whether they can be justified. A simple letter or phone call is often all that is needed to get clarity. But when the account is placed with an attorney to collect, and they sue, that process is going to be something that gets accomplished through the court.
It is possible to work out a settlement at this stage. It is also possible to do during the court process. I am partial to heading this stuff off whenever possible, so would encourage the proactive approach of reaching out to them now. Just realize that you may not get the 400.00 settlement you feel is the right amount (not that you shouldn’t try). If you are motivated to avoid the court process and settle early, a couple hundred more than you are targeting for your settlement would be more realistic.
Thanks for your insight Michael. I will file an answer to the complaint immediately then contact plaintiff to offer a settlement.
Hi. I was sued by Midland for over $5,000. This was for a Charged Off Credit Card Debt. I went to court and ended up settling out of court in June of 2011, by setting up a payment plan before going in front of the judge. I only made a few payment at that time as my circumstances changed shortly after, and I had to move. The issue I am running into now is that I did not know at the time I consented to the payment plan, but Midland actually obtained this Charge Off over 3 years after my last payment, which in MD has a 3 year SOL. Besides charging interest for a time at which they did not owe this debt (due to the time frame they indicate is not the actual time frame they bought this) as well as having an invalid Affidavit filed in which I was part of a Class Action Law Suit for, I went back to court today to dispute the SOL. My garnishment actually started in Jan. of this year. The judge told me today there was nothing I can do because it is past the filing point where I am able to dispute this charge. Is this true? How can they unfairly get a Judgement against me when they knew this was past the SOL, and then when I dispute it two years after the original court date, but while I am still being impacted as my wages are still currently garnished, now I am unable to dispute any wrong doing because I waited to long? It doesn’t seem fair that they can get away with this and I have no voice. I obviously was unaware of these types of laws and limitations or I would have disputed this much sooner. But I get faulted because I can’t afford legal counsil? Any advise? Thanks in advance.
HeatherRay – There are indeed timelines for setting aside a judgment, which is what you describe the judge referring to. The assumption is likely that you agreed to the debt at the time because you set up the payments and gave consent. How much is still owed on the debt?
I am so glad I found this site. I gotten letters from MCM, I do owe from an old Verizon bill 2008 that I have never been financially able to pay back but I am ready to get this off my back. The current balance is $671 and a payment of $269 according to their letter will be consider PAID in FULL and that the three major credit agencies would be updated accordingly, I have to paid by July 19, 2013.
Is still legit? I am scared that if I get a certified check and mail to a PO Box that a few months or years from now they will claim they never got payment.
I would like to send it certified mail but I cannot do return receipt (signed) if it is sent to a PO.
Do they truly considered it settled?
I plan on scanning the front and back notice/payment coupon, the certified check and if I can only send it certified mail without a required signature, I will scan whatever the post office gives me.
Thanks a millions…
isogurl – That is a pre-approved settlement offer that is pretty standard with MCM, so yes, they will consider it settled. Their receiving and depositing the funds will also be proof they got it. If you are going to send a certified check, get one issued to you from your bank, and drawn from your account. That will give you easy access to the proof of payment if you ever needed that later.
MCM is fairly good about updating your credit report that zero is now owed within a month, two at the most.
My mother has had both mailed statements and phone calls on a credit card debt, at least 10 years old, listed in a bankruptcy settlement. This card was solely in my father’s name. He is in the final stages of dementia, in a nursing home. The total claimed due is less than $1500, though on my mother’s fixed income this is a great deal. Also, to reiterate, this account was settled as part of a bankruptcy case. The Midland rep is harassing, rude, and nasty when he calls. is she at all liable for this if her name was never even on this credit card account?
Was the bankruptcy a chapter 7? What year was the discharge? Can you see the account listed in the bankruptcy schedule? How does it appear on your fathers credit report?
Well, Mom and Dad were never great about keeping things long enough, so I’ll have to see if she still has the documents regarding the bankruptcy. I’ve looked at the $1 version of Dad’s credit report and there is nothing there that shouldn’t be. –No mention of this long unpaid bill and the Credit and Retail Card Debt amount reflects the one card Mom does continue to use, not this nearly $1500 that Midland is claiming is owed.
I’ll do some research and find the answers I can to your questions. Thanks!
I have a judgement for midland funding LLC on my credit report. So I also am assuming I missed the whole process and the sued me went to court the whole nine. I know in October someone levied my bank account for 539.13 but I am not sure who. I was given a law firm but I still dont have the number. Should I call the bank and find out and try to pay them. My judgement is for 840 dollars they have already taken 539. I vaguely but certain when I talked to the lady before she told me that I owed 1200 but my judgement is for 840. I am in no means trying to give them 1200 dollars but I am willing to give them 301 if they can take it off of my credit is that at all possible. Just looking for the best thing to do. I am almost certain it had to be them because thats the only judgement that is on my credit report I believe for a waaaaaay old capitol one credit card. Just want to do whats best for me and getting it off would surely be a win since they have already gotten more that half of there money from me. Any help would be greatly appreciated. I dont want to sign up for months with lexington law because I have done most of the work and raised my credit score more than 100 points in 2 months.
Thanks Nicole
Nicole – Good job raising your credit score!
Judgment debt can grow in size due to the interest rate set by the court.
Whether you pay the balance of the judgment off, or settle for a lower amount, the court record itself is the reason for it showing on your credit report. You would have to get the court to remove it from their record. Unless there is a good reason to challenge the entry, and you are ready to pay a skilled attorney to take a shot at getting the judgment vacated, the judgment is going to be on your credit report for 7 years from the date of entry.
Paying it off, or negotiating a settlement on the remaining balance owed, should include updating the court record so that the judgment is shown as satisfied.
Thank you appreciate your time
Hi Michael,
Thanks for responding. Yes, the SOL for Georgia is 6 years. I believe my last payment was around August or September 2007. When I received my last statement, my minimum payment was a little over $200, which was up from $45. When I called the org creditor to inquire about the increase, I was advised that Rooms To Go did not submit the information/agreement based on the terms of no interest/no payment for 1 year. Unfortunately, I have moved several times due to job loss and life style changes and have lost documents, but I am certain that the amount they are suing me for is not correct.
Hi,
I have been sued by Midland Funding LLC. for a debt owed to CitiFinancial. CitiFinancial charged off the account and I am assuming that Midland Funding LLC purchased the debt. The issue is the amount they say I owe, $3746.00, I am disputing. In May 2012 , I disputed this amount with Equifax, asking for validation of the debt owed. I wanted to know how the balance that I knew I had increased by appx $2000.00. I am assuming that they did not answer because the debt account was updated to “zero balance” and “paid in full” by the credit bur. However, it is now showing up again with a balance of $3746.00
Also, In reviewing my credit report, I noticed that my original creditor reported first day of delinquency at 9/2007. After doing some research, I noticed that Midland Funding LLC has re-aged my first day of delinquency to 7/2009. I know by doing so, increases the SOL for suit.
Also, in reviewing my credit report for 2013, I noticed that Midland Funding LLC reported my last payment in 2/2013. I have never agreed to pay them anything. I am also disputing this information with the credit bur. I also know by making a payment, restarts the 7 years. Based on my research
I also noticed that the original creditor has been deleted from my 2013 credit report. Because this is the same debt being pursued by a debt-buying agency, shouldn’t their debt be deleted as well?
And I also noticed that the account number listed on the summons isn’t my account number-as I still have the original card that was issued to me. The summons only list the last 4 digits but they do not match.
I am currently preparing my answer and will deliver it next week.
Any advice on my findings as I have included them in my answer
T – Can you confirm the date you last paid CitiFinancial with certainty? Do you know your states SOL? I have feedback, but would like to weave my response around your answers to those 2 questions.
Hi,
Just got a call from MCM regarding a Tmobile account from 2005 with the last payment in 2008. The only problem is, I have never had a Tmobile account so perhaps someone used my debit card without my knowing to set it up. They gave me the option of going to the police station and filing a complaint and sending them the complaint letter. The amount of money is not the issue as it is a relatively small sum, I just wonder what my options are since I don’t even know what they are talking about? Any suggestions would be much appreciated.
Kyle – They are suggesting you go on file with a complaint of identity theft, but this may just be a simple mistaken file merge on the part of TMobile. Have you checked your credit report for things you do not recognize, or other collection items?
This is the only item on my credit report that is suspicious. Is it worth contesting or would it be simpler and better for my credit to just pay MCM and be done with it?
If it were me, I would contest it, as it is not mine and does not belong there. Paying a nominal amount to get this out of the way is an option, and would be less of a hassle than contesting, but I would not go there just on principal alone.
Hello, I just received a letter from MCM and it states I can pay a lump sum of $983 at 40% discount from the original $1,690 or have payments of about $220 for 6 months. I kind of just wanna take on the payments for 6 months so it’s easier on me. However, I heard never to give these debt collectors your bank info or debit card info that I wish to pay with. Is this true? Should I not give them this info? Is it better to just mail them money grams monthly? Will they actually mark the debt as “paid in full” as the letter states? Please help.
Arthur – Midland Credit Management makes this type of offer in the normal course of business. They do update the debt on your credit reports once you make that final payment on the 6 month option.
When it comes to how you make your payments on the settlement agreement, I prefer people follow this guide: https://consumerrecoverynetwork.com/paying-your-credit-card-debt-settlements/.
I know sending in payments via check seems like it is more convenient and protects you, but these days there can be more snafus with mailed payments than when you follow the recommendations made in that linked report by setting up a different account for all things settlement. You can have the account set up in 30 minutes at the same bank you have now. And can better track all payments, have easily accessible proof of payments, and only put enough in there to cover each payment a couple days before the scheduled day each month.
So MCM isn’t just a scam? I’ve read reviews about them “scamming ” people one way or another? I will definitely be opening another account just for that purpose. But by hopping online and signing into my account with them and paying money, am I being protected that they’ll hold up their end of the deal and all collecting calls/letters will stop? Would they eventually sue me if I ignore the letters? I definitely do NOT want that. Thank you
Arthur – MCM is a debt collector. There are scam review posts about virtually all debt collectors on line. Some of the stuff I read about collections is more akin to an emotional reaction to being stuck with debts that cannot be afforded, but written as “don’t let (insert debt collector name) scam you”. There are also some things you read about debt collectors that raise legitimate concerns over business practices.
If you recognize the debt MCM is offering the settlement on, and you are in a position to resolve it and move on with your life, you are not being scammed by MCM.
If you agree to the settlement and pay it up front in one amount, or over 6 months, the collection calls on the debt will stop.
Midland can and does sue. Whether or not you will be sued I cannot say. If you read the original article above you will get the gist that settling a debt with MCM will often mean saving more than trying to deal with it later on if sued.
I went ahead and called MCM and worked out a payment plan that will save me money. I understand you recommend checking credit report 30-60 days after paid in full, correct? Then you say if it’s not updated to have proof of their promise to take action on my credit report. My question is, is the letter they sent out with the payment options and the statement “once you’ve paid all 3 major credit bureaus will be updated and your account will be marked with 0 balance/ paid in full” enough? Does that suffice to cover my butt if they don’t update my report? Or do you suggest something else?
Thank you!
Glad to hear you worked it out Arthur. Yes, for credit reporting purposes, the verbiage you quoted provides what you need. If MCM somehow does not update their credit entry, you can get what you need done on your own.
I came across this site because I too was served with a summons from Midland in December. I have NEVER received anything prior to being served stating they were collecting a debt. The amount is under $1200. I feel that at this point we must go to court because 1) I don’t have a job, because I am collecting SS for taking care of a spouse/children 2) I feel that if I try to make a deal with them I can’t live up to it because I don’t have income that I could use for payment and I really am so stressed I can’t remember if i had this debt. I really am at a loss and unsure what to do.
Originally when I responded to the summons (I had 30 days) I denied everything and ask for validation/proof of the debt (found the correct legal verbiage online). I have sent one reply, and about to send a second (all via registered mail) to see what they have any proof as I honestly don’t recall this debt. To this date I have no received any type of response. I think I am going to send another one, but I don’t even have the money for return receipt.
Today I found out that the court reassigned courthouses/judges. Court is at the end of June. I don’t know what to do.
Dee – Because you are not certain if the debt is yours, the path you are on to identify if the debt belongs to you is a good start. The papers Midland Funding’s attorney filed with the court would typically list who the credit originator was. Who was listed? Did you ever have an account with that creditor? If so, do you recall when you last made a payment? What state do you live in?
It is best to consult with an experienced attorney when ever you have been sued. With an income limited to social security you may be eligible for low income legal aid. It is worth looking into.
If your cash flow is so tight that you cannot afford postage, working out some form of payment (if you determine the debt as your own), sounds like it is out of reach. But you cannot know what type of arrangement can be made without engaging in the conversation with them.
You have gotten this far, but now express you are not sure what to do. What is it you want to do? What is your goal?
Hi Michael. I am being sued by Midland Funding through Johnson Mark their attorney and I don’t know what to do next. I need some help. I did hire lawyer to help me because I had no idea what to do, but then he told me that he had no experience with these type of cases. He has done so many mistakes in the paperwork he has submitted and therefore I don’t want to continue using his services so now I don’t know what to do.
Anyway, he first submitted a motion to dismiss because the last payment I made was more than 4 years ago and midland had not provided a signed agreement. They opposed to our motion to dismiss by saying that a signed agreement is not needed as montly statements can suffice and that we had not provided any evidence that the last payment was in 2008. My lawyer didn’t tell me that they had filed this opposition and that I only had 5 days to respond so we did not send a response. Now I received a document from the court saying that my motion to dismiss was denied. They are also ordering me to submit bank statements for 6 years and any other documents pertaining to the debt because midland said we failed to provide those documents and they wanted the court to order us to submit those papers.
I don’t have the money to pay them and I have no idea what to do next because I almost feel like I already lost because of all the mistakes that my attorney did. But at the same time I don’t want them them to get a judgement just because I failed to respond or failed to provide the documents they requested. Someone Please Help!
Loida – The first thing I want to key in on is the 4 year time frame mentioned. What state do you live in? Are you raising the 4 year issue because the debt may be passed the SOL for Midland Funding to legitimately file suit? What was the date of your last payment on this debt? Who was the original creditor? What is the balance you are being sued for?
this account under my name is identity fraud
Travis – I am not why you posted your comment with just a blunt statement like that. Is there something you are seeking assistance with, or questions you have?
Hi Michael,
I’m glad I found your site! I was also served with a summons from Midland and answered it. I am now required to be in court on a specific date and time for trial. Of course Midland has ignored my requests for debt validation! I have disputed the debt and I am still disputing the debt. I am in the state of Georgia and not sure how to proceed with this case. Please help!
Thanks!
Maira – Are you disputing the debt Midland is suing on because it is not yours, or more on the basis that it is sometimes difficult for a debt buyer to meet requests to prove the debt? My feedback would be different depending on the circumstances you are in. Please post a comment reply with more details.
I am being sued in California by Midland Funding for an old Chase credit card I had. I understand the statute of limitations is four years from the date of first missed payment (September 2008). On my credit report, it shows a few more months of 30 days late. Then the account was closed on December 2008 until April 2010. In May of 2009 it shows 30, 60, 90, 150, 180 again until June 2012, back to closed. My credit report shows Midland having the account starting in May 2012. After the first time I was late I did not make another payment on the account. How does an account go from closed to late again? Does this possible “reopened” account start the SOL clock again at May 2009?
Shane – Credit reporting gets goofed up, and reaging can often happen when accounts get transferred and sold. If nothing else, news about Chase credit card record keeping and data tracking over the last couple of years shows poor system maintenance and account integration.
Based on what you shared, Midland Funding is suing you on an account that is outside the SOL for California. Have you filed an answer to the complaint? If so, did you raise the SOL defense?
I did state that defense in my response. After going back and forth through the legal process with Midland, I have a court date this week. I am a little worried that the judge will see the reaging and award Midland a judgment against me. From you experience and understanding does this seem a likely scenario?
Shane – If you defend the suit as time barred due to the expiration of the SOL, and raise those arguments well, while placing the ball firmly in the Midland Funding court to prove the debt is not passed the SOL, you have a good shot at it being dismissed.
Am i able to argue this too my last payment was made on 01/04/2013 and i’m in Louisiana i was thinking the SOL is 3 years so how can i be sued now?
When did Midland Funding file the lawsuit against you in the court?
I had an Chace bank card since 1996…I was sued by Midland for 12k, In the answers, I asked that they provide me with the original amounts/balances from Chase and Midland, they were unable assumingly….two weeks after I went to pre trial, I received a letter from their Atty and the local court stating the case was “dismissed with our predjudice” it has been 4 months and I just got a letter from Midland to settle for 70% of the 12k….should i send a validation of debt letter?
kwirth – When did you last make a payment to Chase on this account and what state do you live in?
Recently I received a NOTICE TO CONSUMER OR EMPLOYEE AND OBJECTION on a case I did not know was in a court for a card credit debt. I do not recall having being served. The lawyer representing Midland Funding LLC was requesting a subpoena to one company I am having an account requesting information like work phone number, cell phone number, banking information among others. As per the information the case was open and judged in 2010 by default. Of course I was not served or improperly served and they have their default. This is water under the bridge. Question is : At this point is anything can de done. I have already asked for documentation proving my debt on certified mail. To squash the subponea I only have 5 days since the letter was received only 11 days before the date that Midland Funding is seeking to request examination of my records. Please let me know
Antonio – You should really look to get advice from an experienced debt collection defense attorney in a situation like this. General information cannot replace what you need to know about your state laws and local court rules.
Generally speaking: The debt collector attorney is looking for ways to get paid on the judgment from 2010. Asking for documentation proving a debt would have been timely either before you were sued by Midland, or through the court process, but before a judgment. I realize you were not ware of the suit, so not all that helpful to point out here. My point is that a judgment is in the court, so the debt is proven unless you get that unwound.
Fight them!!!!! Do not give in you can win as I did they never showed up to court!
Adam – Are you referring to fighting a debt collection lawsuit from Midland Funding?
I was hoping you could help me. I am currently in debt about 30,000 with 7 cards.
Two cards are Capitol One, 3 master cards and two Visas held by Bank of america.
I have been late here and there with payments but have tried to always pay the min balance due to not fall too much behind. Because I have done this I cannot afford to pay the round of next months bills.
I do have family that is willing to lend me a lump sum to clean up this mess. I would like to come to settlements on these accounts and move forward. Do you think this is possible and at what percentage?
Please advise.
Thank you.
Beth – You have some great questions. I can assist you with the estimate of how much money you will realistically need to settle with Bank of America and Capital One. This post is better reserved for discussing resolving debts with Midland Funding LLC or Midland Credit Management. If you plan your strategy for settling correctly, you will never have to deal with either.
Please follow this link: Settle credit card debt directly with bank. Post a rounded balance for each account and identify which balance is owed to whom. I will then be able to give you a good target amount to expect for your end results.
Hi Michael,
Just wanted to update you on what’s happened. I had mediation with Midland Funding’s attorney and we agreed that in lieu of judgement they would dismiss my case. In order to get them to do this however, I agreed to pay $50 a month for the first year and $100 starting next year until the balance of $3295 is paid in full. I had to sign an agreement that if I defaulted that a judgement would be entered with the court.
I feel this was a good option for me. I get the low monthly payments that I need while in nursing school and I avoid the judgement, while paying off a debt that I needed to pay anyways. Thanks for your advice while going through all of this. I really appreciated your time and reading your other posts…..Misty
Misty – I am glad you were able to work out a payment arrangement with Midland Funding that works for you. It sounds like you were able to get your deal set up in a way that will keep you from having a judgment in the court, and on your credit report, as long as payment are made on time. That is great too. Best of success to you!
Hello Michael!
Thanks for the service you are providing. Here is my situation…
Midland Financial just served me for a PayPal to Providian to Wamu to Chase Credit Card where my last payment was made on May 18th, 2009 … 4 years ago. I’m located in Colorado – and I believe the SOL is 3 years, but others say it is 6 (perhaps you can share some light 🙂 ). I would like to validate this debt, but from what I have read through your amazingly informative comments… is too late for that step?
My question to you is should I send a letter to validate the debt and go from there … or should I attempt to settle with the law firm representing Midland Funding LLC in this case.
Their Law Firm is:
Ferrell & Seldin
7807 E. Peakview Ave., Ste. 410
From what I have read… It sounds like I should NOT call them until I am ready to settle on the account – and to do everything else in writing. My court date is set for early June.
Thanks for the help Michael!
Greg – You are looking at a 6 year SOL in Colorado for credit card debt. You are correct about it being too late for sending the general request for debt validation. You can still get what you are looking for from a validation request, but you have to do all that through the formal court process at this point.
If you are in a position to be able to fund a settlement quickly, yes, calling and negotiating with the attorney for Midland Funding is how to get the ball rolling. What is the amount you are being sued for, and what amount can you come up with to settle?
Have you filed an answer to the lawsuit, or are you hoping to settle this quickly at this point?
I have yet to file an answer to the lawsuit … I was going to call the county to be sure they actually filed the case before I responded to them but wanted to get your opinion first. There isn’t a Case Number on the Subpoena and everything I’ve read about debt collection with Midland Funding and Farrell & Seldin is sketchy. They are saying I owe $8500 and if I needed to settle I could come up with $2200 right now. I would love your opinion. Thanks Michael.
Greg – Check with the county. It would be interesting to hear if you uncovered anything out of the ordinary.
I am not all that confident you would be able to settle for the 2200.00. You may be better off getting your ducks in a row with the court in order to reach an amount you can afford to settle with.
It is always a good idea to connect with your own attorney in a situation like this. Have you considered doing that?
Michael, just yesterday my boyfriend received a letter from midland stating that he owed a debt bought from t-mobile for $1600. My boyfriend has never had an account with t-mobile so the debt can’t possibly be his, but with all these stories of midland ignoring DV’s and continuing to sue anyway, we’re not sure what to do. Especially since he’s 19 years old with little to no resources to fight them. Please help?
Diana – He has not been sued yet. So lets make sure that does not happen. Send in your request and get right to the point that the debt is not his and that there is a mistake being made. Was your boyfriend recently a victim of identity theft?
We’re thinking it could have been identity theft but credit companies don’t seem to have any record at all for him (since he hasn’t built credit yet) and his bank account seems fine as well. Now when you say send in a request do you mean the DV? (Since I’m thinking this isn’t something that should be handled over the phone?)
Diana – Yes, sending Midland a debt validation request or disputing as not your is the first step. You can follow it up with a phone call, but it is a good idea to get the issue documented. If your boyfriends ordeal is not corrected you will want that documentation. Be sure to send all communication certified mail return receipt requested. Post an update to this comment string as things progress.
Hello, my husband from whom I have been separated for 4 years, is being sued by Midland Funding, he retained a lawyer to respond to the summons. He owes the money, orginally $6000, now $7000 with interest, but he is on Social Security only with no other income. After the suit was filed he offered Midland about 30% which was all the cash money he had, they responded with a hardship P&L request which we gave to the lawyer, she said to not fill it out yet. We own no real estate and he has a 401k and IRA in his name only. He paid the lawyer $1500 and now she wants him to admit truthfullyon Midland court response that he does owe the money, but we are not sure if she is going to try and settle for less. He is willing to take some money from his 401k to pay the debt, but just the original amount of $6000. If they get a judgement for more, can they garnish his Social Security, 401k or IRA accounts? They are not big by any means. Also, are my checking/savings accounts in jeopordy? It is not my charge account and they do not mention me in the suit. Thank you.
gail – Social security is exempt from garnishment. So are retirement accounts in situations like this. You are not named in the suit so you are not generally at risk from the suit. If your husbands name is also on your bank account, and were a judgment entered, there could be some risk of a bank levy. If your husband was intent on settling, the 1500 would have been better used for that. Please keep me updated with how this plays out by posting an update to this comment thread. There are other ways to manage the situation. You or he are both welcome to call us here at CRN for a consultation. There is no fee for that.
Hi Michael,
Thank you for the response, I sure wish I had found this website before it all began, thank you SO much for helping those in these situations. I feel that most of us want to pay what we owe in good faith, but when finanacial situations arise that prevent you, you just need some guidance and suggestions. While we did offer Midland some money, they did respond with a request for personal financial information, but we had already contacted a lawyer becuase we did not respond to the summons, and she told us not to provide that to them just yet. The lawyer is filing a response in which my husband answered the questions truthfully, that it is his account and would like to pay the original amount owed the original lender and based on his financial situation make a payments that he can afford. There were many other situations that prevented us from paying, we sold a house and the mortgage broker/title company was owned by the same person and they took off with $50k, so it’s not like we did not want to pay. Anyway, I will keep you posted and good luck to everyone. The lesson we have learned over the years is to not borrow money, we are totally debt free (thanks to Dave Ramsey) and I’m sure we will clear up the problem in an ethical way.
I’m in Illinois by the way.
Michael,
State police just left papers at my parents house for me. Midland Funding, LLC is suing me for $1,937+costs for a Chase Credit card account. I have never in my life received any collection notices from Midland. It says I have to appear in court in 15 days. What are my options? I have no job, no income, and no assets. I’m literally broke right now and probably can’t even afford someone to represent me. What can I do?
Mike – Unfortunately your options are limited. You can file an answer and defend the suit with or without an attorney. You can raise the money to settle with Midland Funding. You can agree to some form of payment.
The other option, and it is not a good one, is to do nothing. The suit will go to judgment, but you can settle that when you get back on your feet.
What are your options to raise funds?
What is your inclination?
Michael,
I have also received a summons from Midland Funding 764.47. I understand this is less than many people have out there, but I do not wish to have debt lingering over my head. They also have an attorney to represent, assuming this goes to court without settling. I am interested in settling because I’m looking to pay off debts. Am I correct in saying I would contact the listed attorney to arrange a settlement? Also, assuming that he accepts the settlement, should I still send an answer to the court? If I send an answer to the court and the attorney not admitting or denying the debt, could I then contact him later to save for a better lump some? Assuming he accepts the settlement, how will the courts know? Will I need to provide the documentation he sends to me, to the court? Or will he do it? I would rather have this settled outside of the court room if possible.
Chris – At the point where your Midland Funding places your account with an attorney for collection, and most certainly once the attorney files suit, you will need to work something out with the attorney when settling or setting up payments.
Sound advice is that you should contact an experienced consumer law attorney regarding your many questions. I can offer you some general feedback though.
If you settle before your answer to the complaint and get that documented and paid, an answer would not necessarily be required, as you resolved it. The attorney would dismiss the suit shortly after your settlement money clears.
You can always contact the attorney after responding through the court in order to resolve the debt. With the balance as low as yours, I just would not expect the amount of the settlement to change.
If the settlement is accepted and funded, the collection attorney would typically file a motion with the court dismissing the case. You would not normally need to notice the court yourself, but one of the reasons you get everything document before paying a settlement is in the event you needed to show your issue is resolved. Attorneys and law firms make mistakes, stuff can slip through the cracks, accidents occur, human error… it’s just best to be prepared.
Michael,
Thanks for your feedback. I have an Answer to send to the Attorney on Monday morning. Would there be any harm in sending the answer and then contacting him the same day to arrange settlement? Or just not send one at all. I just have a simple DV letter written up. Also, as far as the settlement amount… from your experience, do you not expect them to take less than the 764? I understand it’s a smaller amount..but I was thinking of offering maybe 60% of the amount owed? Part of my letter is posted below:
According to the Summons I received, it states I am indebted to you in the amount of $764.47. At this time, I do not have proper evidence to agree these funds are owed. Under the Fair Debt collection Practices Act (FDCPA), I have the right to request validation of the debt you say I owe you. I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation that is binding on me to pay this debt.
Be advised this is not a refusal to pay, but a notice that your claim is disputed and validation is requested. This is not a request for “verification” or proof of my mailing address, but a request for validation. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you. I will require 30 days to investigate this information once received.
Chris – I am sorry, but you are making this a bit more complicated than it really is. The FDCPA section about debt validation requests is not going to apply now that you have been sued. You can certainly go after that same type of information, but you will now have to get that through the court process that has already been instigated. There is no reason to send a validation request to Midland Funding, or the attorney. They have no obligation to respond now.
Yes, I regularly see 60% settlements with Midland Funding. Each settlement is a bit situational, but I think you have a shot at that target.
If it were me, I would call and negotiate a settlement first. I would say something like “I got served these papers, but I do not really agree I owe this amount. I am prepared to defend the suit, but thought I would call to see if this can just be settled right now for XXX.XX?” If there is nothing to discuss, than you have preserved your right to defend it.
Michael,
Thanks so much. I’m very unfamilar with this process as this is one of two cards I have (and the first time going through this process). I will scratch the letter for now and contact the attorney on Monday. I appreciate your feedback.
I called and spoke with them and they would not do a settlement if I did not provide my employment information. I did agree to payment arrangement but they said the attorney’s are still going to request a judgement. This means I will still need to go to court, correct?
I understand that setting up payment arrangement is sometimes the only way to get through a collection event, but you would be better served by settling if you can afford to. That is how you avoid a the consent or stipulation to judgement being part of the court record and part of your credit report for the next 7 years.
What amount of money can you come up with?
I owed $6429 to Bank of America. The last reported date on this account was 03/08.
Midland purchased this account on 06/11 and has been reporting collection on my credit since then.
I live in Texas and the SOL for our state is 4 years. So legally they can’t do anything but they’re trashing my credit.
I am sure I received a letter from them on 2011 but since I know the SOL was passed I did not request a DV.
Now I am trying to refinance my house the this report will stop me getting approved.
Is there anything I can do about this? I appreciate any help you can give me.
Tony – In order to get over the refi goal line you will likely have to settle with Midland Funding and get their entry to show a zero balance owed.
If the date of last activity with BofA was 3/2008, you have 2 to 2.5 years of the Midland Funding credit report entry to show before it should age off of the credit report along with the Bank of America charge off.
If you weigh the value of settling the Midland collection account at say 50% beside what you save with a lower interest rate on your home, settling and getting the refi should win. Otherwise, you could wait out the credit reporting time line. If you go this route, make sure you monitor your report to see that Midland’s entry falls off at the same time BofA does. That is how it should work, but doesn’t always, and it is a quick fix.
The payment was made at the end of January. They Jacked up to a high figure including court costs. I settled with Midland for $900. the strange thing is that it appears as unpaid for Capital One, with court judgement underscored. That is deregatory. Both Midland and capital one have told me that the court judgement will not be removed even if I have settled for less amount or half amount. The original creditor , I believe, had gotten its loan amount, however I paid a total of $2,400 for a loan of $1,500, what I paid each month is less. I sent to Midland Credit management, LLC, but the debt show as Capital One with Court Judgememnt. As early as yesterday some told me (capital One and Midland), it will take another 3-4 months to show on my credit report but the court judgement will not be removed. It looks like a life sentence affecting one’s livelihood. I appreciate this web site for the exchange and discussion, you made me feel home. We need a reform to put the phone numbers of each creditor, when the loan is bundled up and sold to another creditor. Calling them is a nightmare. Each transfers you to another caller and some tell you that reporting to the credit Bureau is not their job,- they evADE RESPONSIBILITY. yESTERDAY i HAVE TO HOLD HOURS. i BELIEVE SOME TELEPHONE NUMBERS ARE OUTSOURCED, BECAUSE i HEAR PEOPLE WITH ACCENTS ALSO. tHANK YOU FOR YOUR SOLUTIONS.
Gedlu – I have some concerns with what you are sharing. You should not be dealing with Capital One and Midland Credit Management on the same account that is in the courts. The best way to get to the bottom of this, that will help me provide meaningful feedback, would be to speak with you. Scroll all the way up on this page and fill in the form box in the right column that is used to request a CRN consultation and hit submit. I will connect with you from there.
I settled a debt with Midland Funding LLC after they sued me in St. Louis. I disputrd things I did not buy using my credit card. Theu publicised my name. I settled with midland. It did not improve my credit score. I understand that they bundle the debt and sold it to Mid Land LLC. may be we sent our money to the wrong place. I settled few little amounts with AFNI too. The attorneys have several names in many places. My court case# in St. Louis Circuit Cpourt , Division 27 is : 1022-AC06363. I need some help how to contact the lawyer to send me a letter that the account has been paid. In my opinion to say they are thieves is an understatement. We need a reform in debt collection!
Gedlu – Debt Collection in the US has long been in need of reform.
If you have already paid what was agreed to settle the collection with Midland, where was that payment sent, to the attorney suing you, or to a Midland Funding address?
When was the payment made, and what is showing about this account in your credit report right now?
I have the money to settle two accounts that are currently held by a Law Firm from Midland Funding. My question is regarding my credit. Is there any way to negotiate with the Attorneys to have my debt removed once payment has been made or I do I have to wait the typical seven years before it is removed from my credit?
I sent the Law Firm a letter stating that I am willing to pay the accounts in full if they would remove all the negative information from my credit, but I have not heard back from them. It has been about a month.
Claudia – Are the Midland Finding debts with the law firm part of any court action, or is the collection firm only recently trying to collect from you?
If these are not judgments, paying the debts in full or for less is not going to get the credit reporting removed. The collection firm has absolutely no part of the credit reporting anyway. You can expect your credit reports to be updated after payment with a zero balance owed. It can take up to 60 days after payment for the credit report to be updated. If it somehow fails to be updated, you can get it corrected yourself. Be sure that any arrangement you make with the law firm is documented before making any payment. You may need that documentation and proof of payment later.
The credit reporting entry from Midland Funding LLC (if any), is related to accounts with your original creditor who would be showing a charge off status. The negative entry from the original lender, and any credit report entry from Midland Funding should age off of your credit report no later than 7.5 years from the date you first missed a payment to the original lender. Even though the negative collection and charge off reporting stays on your credit report for a considerable amount of time, you credit will improve over time. You can still access credit at fair pricing in the near future, and before this stuff ages off.
If you want to resolve the debts I would not waste much effort with writing letters. Phone calls are more effective 99% of the time in my experience.
don – Yes and no. You do not typically see an immediate bump to your credit score from the “act” of settling with Midland or other collectors and creditors that are showing a key derogatory or collection item on your credit report. What you do see within usually 30 days is a zero balance owed updated to the credit report. This helps your debt to income ratio part of calculating your score, and would help get approved for mortgages etc. Once the account is resolved, and updates as such on your credit report, your credit score can make rapid or incremental jumps in 3, 6, 9 months depending on what else is good and bad on the report.
I do not want to make this sound complicated, it’s not. It is just different from one persons set of circumstances to the next. Let me put it this way:
If there are 7 good things reporting on your credit, and only one bad item from Midland Funding, paying it off or settling with them will help your credit report more rapidly in my experience.
If you have only 2 items on your credit report, one of them good, and the Midland collection being the other, settling or paying it will typically result in a longer time frame needed to bring up your credit again.
Feel free to ask questions in the comment section of any posts you read. That is what the site is here for.
One of the debts is a judgment, so how will that be handled differently?
I called the Law Firm and they told me that they would only issue a letter once payment is received stating that the debt has been settled, so I can’t obtain documentation prior to the releasing of funds. I don’t see that I have any options left…or do I?
Claudia – Paid or settled judgments with the attorney for Midland Funding will mean the judgement should be updated as satisfied with the court. You should look for any written agreement to settle or pay the judgment debt they are collecting, contain the fact that THEY will notify the court the judgment has been satisfied.
You can get the court record updated yourself with the proper documentation and proof of payment, but getting them to do it is far better.
If you are paying the judgment debt for less than the balance owed on it, I would suggest getting that outlined in writing before paying. Even if you are paying it off in full, I would recommend getting something in writing before paying. Midland Funding attorney may have been referring to that fact that they are not going to file anything with the court until your payment is received. That is normal. If they are agreeing to accept less than the full judgment amount to satisfy it, paying them first means an attorney can drag its feet on updating the court record, and they may not follow through. I have seen enough of this lately with judgment debt situations where it is just smart to get the docs in hand before making the lower pay off to settle it.
I would not suggest paying anything on the non judgment Midland Funding account until you have that agreement documented. That document and proof of payment can later be used to update your credit reports if Midland misses that step, and will also come in handy if some mistake happens later on.
Documenting settlement and payments is pretty standard stuff. What is the name of the law firm?
I have received a summons over a credit card account from Midland. They attached to the summons what I believe is “validation” that the debt is mine from a Legal Specialist for MCM. The document clearly states account charged off 4-10-2006 and the last payment to the account was 2-28-2007. The Tennessee statute of limitations is 6 years and this falls withing the time frame for the SOL. My court date is May 2013 and if you have any advise on how I should address this on my court date I would appreciate it.
Joyce – Ideally you will want to consult with your own attorney when sued. If the debt is indeed outside of the SOL for credit card debts in Tennessee, your answer and defense is going to be pretty basic – as in – the debt is time barred.
If you did make a payment in Feb of 07, counting forward 6 years means they missed the mark. But the suit may have been filed with the court in time, just not served to you immediately if you were not able to be easily found. I really would suggest running all this by an experienced collection defense attorney.
Hi Michael, thank you.
I will try to settle.
I have another question before I settle with midland.
I had another judgment last year with also midland funding, and they filed it correctly where I reside currently, NJ. I paid this off and credit report shows as payment satisfied.
I just discovered, that the judgment was only for $664, and I had paid last year for total of $1097.85 with the lawfirm that filed for midland funding, Pressler & Pressler. All the case # and account matches, while the debt was not.
I overpaid for almost double the amount. What should I do? is this legal?
m k – Is this legal questions should always be directed to an attorney in your state. I can tell you that it is common for a judgment debt to increase with interest set by the court. It is pretty common to see a judgment amount listed along side “plus attorney fees and court costs”. This could be what occurred in your situation.
To get a clearer understanding of what to make of the Midland Funding judgment you could:
Request information from Pressler and Pressler – Speak with Midland Funding directly – Consult with your own attorney – Ask the court clerk how much judgment interest was assessed and how much of what was paid was for court costs etc.
Hi Michael,
I have been in correspondence with MCM for proof of debt, etc via mail. I now have responded via fax that I want to discuss payment arrangement, and had offered an amount to settle with possible 2 dates for payments. The lady I spoke on the phone mentioned, once I faxed, please wait 10 days then call again to discuss.
I received a numerous “unknown” calls and never received any messages, and finally picked up their phone calls on a sunday. The person was very rude, and have an accusation that i was hard to reach, and we have to make payment arrangement. I requested to speak to someone else since he was very condescending and rude, and he wasn’t aware that I have been in touch with MCM. He said that I will have to stuck and deal with him, and there would be no way I could have someone else take care of my account.. him and I will just have to find a way to communicate he said. He calls on Sunday by the way. and several also on saturday.
I told him that he should not be calling on a sunday and would really appreciate if I can call back monday. His response was that sunday also his working days, and since i cannot be reach at all during the week, which was a false statement, that we should just figure it out now.(the previous week I picked up their calls twice, and once i picked up, i was put on hold with automated system, then hung up on me)
On monday, I contacted his supervisor twice, and never received any calls back.
I want to settle this , and I proposed to settle half of my balance to be paid this friday 6/28. But yet it seems that the supervisor does not even bother to call me back.
What should I do..?
mia – You may want to call the main number for Midland Credit Management: 800-265-8825 and start your conversation with something like “I am trying to resolve my debt, but am having difficulty communicating with others I have been connected with at MCM. Can you please connect me with a manager or supervisor so that a payment can be arranged….”
I did not get from your comment that you have already reached an agreement to settle with MCM for the amount you suggested you could pay. If that agreement is not yet in place, be prepared to participate with them in the normal way they handle this type of call. Try not to get too hung up on the demeanor of anyone collecting a debt from you. Just maintain your focus on the result you can afford and do it with a professional tone.
Hi,
Its been useful to read the comments posted on this site. I have three debts. One that is in current settlement(I negotiated a settlement amount and is currently making installment payments). After reading several posts I should have created a different bank account for this. I have it linked to my regular checking account now. The question I have on that one is what will happen to the forgiveness amount? Will this be forwarded to the IRS. The amount forgiven will be about $10K. Also, once I pay in full do I contact them or the original creditor to make sure it shows PAID FULL reflecting on my credit report.
My other question pertain to my second debt with Midland. I have been on the phone with them back and forth negotiating a settlement amount. Original creditor is Wells Fargo. Amount is $16K. I negotiated a settlement amount of $2900, however they won’t take a payment plan option? I can’t give them the full amount right now. I told them I can give them $1K and give the rest in payments over the next 4/5 months. They wouldn’t take it. They stated that they spoke to management and that in order to take the great deal they were offering it would have to be the full amount paid by the end of this month. I’m not working right now. I can’t borrow the money from anyone. I could withdraw from my IRA, but I’ll have to deal with the tax and penalties. How can I convince them of a payment plan? I don’t want to be sued.
My third debt is with the IRS($6K). I’m trying to do an offer of compromise but I don’t think I qualify based on my IRA amount. I’m currently making installment payments on this debt as well. I was told to just transfer my assets to a family member to show I have nothing. True?
Ro
Ro – Once you are finished paying the settlement on the first account referenced, you would typically get a 1099c the following January showing the forgiven debt amount etc. Whether or not you owe taxes on that will depend on whether or not you are solvent/insolvent. See this post for more info: https://consumerrecoverynetwork.com/debt-forgiveness-taxes-settled-credit-card – Sometimes you do not get the 1099c. It is best to still account for what you know was forgiven debt in the prior year.
When settling a debt, most often you wait 30 to 60 days to check your credit reports to be sure the creditor/buyer/collector updated their reporting to show a zero balance due. If you find a problem in the way the now settled account is reported, you can use the settlement letter and proof of payment in a dispute with the credit report agencies and copy the provider of that info too.
Your Wells Fargo account now with Midland: Ro – If there is ANY way for you to take them up on the offer and pay in one sum – do it. That is a fantastic offer. I know you said that you cannot think of a way to come up with the money. If you have to arrange payments, the amount you will pay will be higher. That is standard with Midland Credit Management and Midland Funding both (and many other debt collectors for that matter). With payments you get the convenience of monthly affordability, but often lose some of the overall savings advantage.
I am not sure who advised you to transfer assets to a family member as it relates to your IRS debt, but it would be looked at as a ploy. I just do not think something like that is going to go over very well with the IRS. You are already managing the situation as best you can. When push comes to shove, the IRS will come first over your unsecured debts.
Don’t get hung up too much on making payments on the settlement you have going through your regular bank account. It is what it is. It only matters if there is an error in payment drafts, which are not all that common, just hard to deal with if they occur. It can also matter if you cannot follow through on a scheduled payment (may overdraft you causing shortage on bills etc).
Thanks for the reference in regards to the debt forgiveness. I definitely have more debt than assets which might result in an “insolvent” status.
My major concern(once I became delinquent with my debts) was whether or not to do a settlement with each debt or file a BK. I have a total debt amount of $30K. As I said previously I’m currently making payments on one of them. Would you suggest I continue to settle or file for a BK? I’m trying to do the best I can to eliminate debts and re-establish my credit.
About Midland, yes I agree it surely is a great offer. I’m trying to do the best I can to figure a way to give them a lump sum. I was just hoping they would accept a partial payment now and then make an arrangement for the payments later. They gave me two days to think about it. *Sigh* If I comply, I’ll request for the settlement letter before I provide payments.
With regards to the IRS debt, I’ve read about an Offer of Compromise(alternative to settle IRS debt). Since I’m not working and have limited assets, there is a chance I might qualify. However, with the possible “asset name change” I’m sure they’ll have their suspicions and paper trail it. I wasn’t sure how else to handle this debt. If you have suggestion on this, I would appreciate it:)
Truly grateful for your advice,
Ro
Ro – If you can qualify for a chapter 7 where your unsecured debts, like the credit card settlement you are paying now and the debt with Midland Funding llc will be discharged, it can often be the least costly path to eliminate debt. IRS debt can be discharged in a chapter 7 when it meets certain criteria, but my hunch would be you would still be left to pay that debt. It absolutely makes sense to speak with a bankruptcy attorney. Most offer free initial consults, so the price is right….
Given the little info I have from our comment exchange, if you can settle all of your debts within the next 12 months (including the IRS debt paid off if it is a lien showing on your credit), you would recover credit wise rapidly after that, and possibly quicker than after filing a chapter 7.
In the final analysis it does boil down to affordability first, then consider which direction helps you accomplish your future goals the fastest.
I do not have much to offer as feedback for your IRS debt. If you are getting help from a tax pro on your OIC, than stick with that unless you opt for the chapter 7.
I’m sure I can qualify for a Chapter 7 BK. It’s the cost that concerns me to hire an attorney in order to do so. With that cost, I can settle the Midland account. I’m trying to avoid a BK.
It appears that the main issue is that I can’t pay the full $2900 right now to Midland. I might have no other choice but to try and negotiate partial payments even if its means settling at a higher amount. My goal is to pay all of this debt in 6 months. I’m trying to buy a new car and re-establish credit within 1 year if possible.
My first debt is already being paid in installments, Midland is in negotiations, and although I have IRS debt I’m selling a vehicle that might take care of that in the next 30 days. I hear it takes years to establish credit after a BK. I don’t have time for that. Do you know of what type of withdrawals and penalties I’ll incur if I withdraw from my Traditional IRA. I might take that option? I’m not receiving advice in regards to the OIC. I read about it on their website and thought this might be an options for me as well.
Ro – Each situation with early withdrawal from an IRA can be different. If you can find a way to get through this whole situation without touching it, that would be better. But I understand that there are situations where the math supports the decision to make an early withdrawal.
If you would be filing bankruptcy over the Midland Credit Management account only, I am with you, it would not be much less of a cost when you compare the national average cost of chapter 7 of roughly 1800.00 with the settlement offer from Midland. When considering only the Midland collection account, you would be filing bankruptcy over roughly one thousand dollars….
Hi Michael,
I’ve settled all of my accounts and checked my credit report. All delinquent accounts verify a status of “paid, closed, settled, etc”. I would like to re-establish my credit. How long do I have to wait for this? I tried to apply for a credit card recently and was denied. My last debt that was settled was completed 9/13. I have no open tradelines or debts.
Please advise…
Thanks,
Ro
Ro – Congratulations with resolving your old debts. Rebuilding credit is a process, and it takes time. Depending on the individual situation, credit can be rebuilt in a matter of months – to three years after settlement. If you have no positive accounts on your credit report now, the rebuild will be on the longer side of that. Here are 2 resources to help get you started:
https://blog.credit.com/2012/11/11-credit-repair-tips-to-fix-your-credit/
https://blog.credit.com/2013/02/how-fast-can-you-rebuild-your-credit/
Thanks for the advice! I will look into it! Hopefully I can fix this in months vs. years.
Hi , midland funding was suing me for 1332$ , i called to,make payment arrangements and the best they coud do is 100$ month i no i wont be able to keep up with that what will happen if i default ?
Midland Funding will have extra ordinary collection options if they have a judgment against you. Those options are governed by state law. Where do you live?
Im in new jersey , they woudnt even take a offer of 500 outright to pay it off
In NJ your wages are protected up to 90% in many instances.
Personal property is only protected up to 1k (NJ is one of the worst states for this). That has to cover your household goods, and can often leave little to no protection for money in your bank account. This means your car and home are at risk with little protection.
It is not all that common to settle debt that is actively being collected in the courts for less than 50%. If you look like a good collection target it can be difficult to get a deal for half off.
I rent , and dont own my car so thats a plus i guess , we will see what happens when i default on a payment to them it will eventually happen
Hi my name is Kristy [edit] I just received a summons from Bonner County court house in Sandpoint Idaho! Reference # [edit] I’m not sure what this is!! I only have 20 day’s to respond as I’m not in my state! Can you please guide me in the correct direction!! Thank you Kristy [phone edit]. Here’s the court houses number 208-265-1432.. Thank you for your understanding!!
Is the original creditor not referenced in the summons paperwork? If not, let me know. If they are identified, do you recognize the debt? How much is Midland suing you for?
What is your goal for resolving the issue?
How long will you be out of town?
I edited out personal information from your comment.
Hi there, I paid a collection from midland that has a judgement. My mortgage company told me I need the judgement off my record. How can get mcm to file a statisfied judgement like tomorrow?!? Escrow closes next week and I need help!
Getting things moving quickly when settling with a judgment debt is not consistent with the formality of court processes.
When did you pay Midland or the attorney collecting?
Where do you live?
Do you have anything in writing prior to making the pay off?
I have a $5,500 debt with citi that was handed over to Midland. I was not aware of this. I tried to bring my account up to date with citi and they can’t work with me because it is now Midland. I called Midland to see what my options are and told them i could settle but can’t pay them the full $5,500. Told them i could do $2,500. He told me he couldn’t give me answer or work with me because they just got the debt and i would have to call back in a week. I was surprised they weren’t willing to take my money. Have you ever heard of them asking someone to call them back? What are they doing? When i call what should i expect? What should my game plan be?
It is normal to have to wait to resolve a debt recently purchased by a debt buyer. There is an “onboarding” process that can take several weeks. I recently waited 6 or so weeks for Comenity accounts to be set up in order to settle with Midland.
When you call Midland to negotiate your game plan is typically to relay your financial hardship and inability to pay. You have to convince them that what you are offering is all there is. Watch this video because you also need to know that Midland collectors can be looking at your credit reports.
It is important to be realistic with what you can expect to settle a newly purchased account for. If you struggle with the process let me know.