Short answer
Midland Funding LLC buys defaulted credit card debt and Midland Credit Management collects it. Both are part of Encore Capital Group. The cheapest time to resolve one of these accounts is early, before it reaches a collection attorney, and acting early can keep the account off your credit reports altogether.
Key points on this page
- Midland Funding is the debt buying arm. Midland Credit Management (MCM) is the collection agency. Same owner, different jobs.
- Resolve the account soon after Midland buys it and they may not report it to the credit bureaus at all. This offer is real, and few other collectors make it.
- Midland removes its credit reporting once you pay or settle. Deletion has been seen to take up to 60 days.
- A “Pre-Legal Notification” letter is not an empty threat. It means your file has been selected for collection attorney placement, and you still have time to settle before that happens.
- Settling after a collection attorney has the account commonly costs 20 to 40 percent more than settling before it goes to court.
- Sending a debt validation letter is your right, but it is counterproductive when you already know the debt is yours and your goal is the lowest possible settlement.
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 Michael,
Apparently, I am being sued by Midland Funding LLC in the amount of $2,012. I found this out by receiving several letters (five) from attorneys who want to assist me in the case. Court date is scheduled for May 31st. To be honest, I am really not sure of my options. Should I contact one of the lawyers? At this time, I do not have the funds to pay off a large amount or lawyer fees as I am a grad student and teacher.
Seeking any help you can provide,
Michelle
At this stage of collection, and given the relatively small size of the balance owed, if the debt is legitimately yours, settling for a lower lump sum amount can often make the most sense.
Can you pull together half of the balance? If not immediately, how long would it take?
Thank you so much for your response! I could pull together the amount in the next three months. Not at the moment though because I am paying for my last semester of grad school. Can I settle for a lower amount at this point? If so, would that be something that happens on the court date, before the court date by an attorney, or by me.
Michelle
Give me a call to go over some strategy Michelle. If you cannot be quick about settling, there are some ways to get yourself the time you need and still avoid a judgment. You can reach me at 800-939-8357, option 2.
Thank you for the very informative website. I received a letter from Pressler and Pressler LLP in behalf of Midland Funding LLC. Asking for my mailing address. I called them to verify what was the legal process for. They told me it was for a Dell account I owe in the amount of $1325.00. From what I remembered I paid that off. I don’t have proofs anymore since I moved from NJ to CA in January 2012. That Dell account was from 2006 and I believe i settled it in 2008. The representative told me that the last payment I made was June 18th, 2012. Of which I replied that I am in CA that time and didn’t make a payment in 2012. I requested for validation and he told me he would request and and I need to have all proof of payment. Then he hung up on me. What should I do? I don’t believe I owe this much to Dell and it was back in 2008. The person insisted I made a payment in 2012, which was a lie. Please help.
Give me a call to go over some options Andi. You can reach me at 800-939-8357, option 2 connects to me.
Great answers, great info videos. Michael I have a citi account purchased by midland funding and a Synchony account being collected by MCM, Do you think is convenient to try and settle both at the same time, What would be the best approach?
Regards.
It is often a good idea to lump all accounts into your negotiations from the start. I would approach Midland through their main contact number on their site. Identify yourself and the multiple accounts, and start with a low offer. You have a realistic opportunity to settle for less than half.
How long has it been since you paid the original creditors?
Is your state SOL passed?
Hello, I appreciate all the information you have here. My fiance and I will be dealing with Midland Funding regarding an hold debt of his in the amount of $ 845.00. He was served a notice that they intend to garnish his wages within 30 days if we do not respond. We want to negotiate this debt as it is valid and within the statute of limitations in the state of Georgia. I am just concerned about negotiating a lower amount to satisfy the debt. I have read a lot about doing so but I know they can be very aggressive. Any tips for dealing with them?
If there is a garnishment at issue than it indicates the account has already been in the courts. If this is the case, than you will likely have to deal with the debt collection law firm that has the account. And that changes my feedback.
Post who the collection law firm is and I can offer better feedback from there.
MIchael,
I am currently in the process of trying to purchase a home. I was pre-qualified and am now in the process of writing my letter of explanation for the underwriter on a midland funding debt. Originally the debt was sold from Capital One. As you could imagine it nearly doubled by the time all fees were added. Midland sued me and my case went to court back in 2013. I have not heard anything from them since. They continued to report it on my credit file. Recently I began receiving offers to settle for a lesser amount after many years of no contact. It has been so long. I was very young when I went through being sued, I did not keep paperwork and did not go to court. But I typed in my case number and it says: dismissed, purged. Does this mean they can not go after me again? This is also the last year they can collect.
That is a bit odd. I would call, or go to the court and ask the clerk to help you look and see if there were multiple cases filed against you, and whether there is still a legitimate judgment on record for Midland Funding.
Judgment debts do not go away, or become noncollectable, in the same way that non judgment debts do. Why are you thinking this is the last year they can collect from you?
Hi, Michael.
I recently got a letter from Midland Credit Management, Inc. and was told that there is a Well Fargo account that is defaulted for about $2 but I were offered a 40% discount if everything was paid up front by the 28th of Feb (a one month period). This debt doesn’t sound familiar and speaking with the bank, they have zero record of it and I was told they had sold the records to MCM and didn’t even have record of the account number.
The letter from MCM says that due to the age of the debt, they will not be suing for the collection but if the discounted amount is not paid 10 days from now, the full amount of $2,000 is owed. I called to speak with a rep and they said the debt is from an account opened in 2008, the last payment was made in the middle of 2009. To the best of my knowledge, this is the first time I have been contacted about any outstanding debt on a Well Fargo account (almost 7 years later from the last date of payment).
I did mail a certified letter requesting validation and calculations on the debt but am almost certain it will take longer than the 10 days I have left to pay the discounted amount offered by MCM. So I guess my question is, which do you think is the best course of action? Wait for the validation of the debt and risk losing the 40% discount offer, or just pay it in full to possibly save money down the line?
I’m in Texas and have read that companies can only report bad credit up to seven years from the date of defaulted payment (Which would have been in June of 2009, according to the MCM rep I spoke to). I’m just worried about this popping up later and having to deal with another company if they sell the debt to another collection agency. Any advice? Thank for your time.
Midland does not resell any debts so you do not have to worry about that.
Taking advantage of the settlement, if it were me this late in the collection stage, would be because I have a credit goal I want to accomplish before January 2017 (7.5 years from when I last paid on the account).
Dear Michael:
I am currently being sued by MIDLAND FUNDING LLC ASO WEBBANK/FINGERHUT CREDIT.
Case ID: 1786551 – MIDLAND FUNDING LLC V JACQUELINE
Filing Date: Wednesday, February 03rd, 2016
Type: 14 – CIVIL WARRANT- OTHER
The information is from Creditor’s system:
JACQUELINE
Account Number: -9582
Current Balance: $1,105.83 Minimum Amount Due: $1,105.83
Last payment $25.00 made on 12/24/2015
I want to settle this case and pay monthly if possible.
How do I go about this?
The local attorney is FINKELSTEIN, KERN, STEINBERG & CUNNINGHAM P O BOX 1 Knoxville TN 37901.
You help is appreciated!
Jacqueline of Memphis TN
——————————————————————–
Shelby County Tennessee
General Session Court Civil
General Sessions Court Clerks Office
Civil Division Payment Address
P.O. Box 3824
Memphis, TN 38173
Ph: 901-222-3400
Fx: 901-222-3413
Contact the attorney for Midland Funding and ask about what amount of money you can pay each month. Be sure whatever you agree to is something you can afford. Because you will likely be asked to sign a consent or stipulation to judgment now that you are in the courts, I prefer negotiating a lower one time pay off amount to avoid that.
Hi Michael,
I’m currently being sued by Midland Funding for a credit card debt that I do acknowledge & that I do wish to settle, but for a reduced amount. I would have to make payments if I’m forced to pay the full amount they are seeking. I was just served last week, & haven’t yet filed my answer. Is it best to try to negotiate with the attorney’s office & ask for dismissal of the case (if agreement is made), or go ahead & answer with admission to the debt & negotiate in court? I’m not sure at which point I have a better chance at negotiating for a reduced amount.
My experience is that you will have a better opportunity to settle for less either now, before answering the complaint, or after your answer is filed, but not with an admission to the debt. Admitting to the debt is more consistent to falling on your sword and trying to set up affordable monthly payments, not a reduced lump sum settlement.
Can you pull together half of the balance owed quickly?
I could afford to pay half March 4th. Do you think that’s too far out for negotiation? How do I need to word myself carefully to ask if they will accept this reduced amount & consider the debt resolved?
I also find it interesting when “googling” the representative law firm, that they’ve been successfully sued by the Consumer Financial Protection Bureau for $3.1 million to pay back to consumers in the class action suit. This was just ordered in December 2015.
You must be talking about Frederick J Hanna and Associates. That was a big deal indeed. But do not let that cloud your focus on resolving your debt and reaching your goals. None of that applies to you, except perhaps the expectation that they have their ducks in a row and will be handling your file properly.
Depending on how much of a collection target you appear to be, it is possible to settle active lawsuits for half. I tend to see a better chance of that when you file an answer or general denial first.
You are welcome to call me for a consult to get a grip on how debt collectors view you based on data they can see about you from your credit reports (and other sources). Call 800-939-8357, option 2 rings to me.
Thanks Michael. I’m going to proceed in filing my answer, denying the claims & taking my chances at court!
or rather answer “lack knowledge”.
Please post an update with how things develop. I suspect things to go much cleaner with collection lawsuits that both Midland Funding and Hanna Associates are involved in.
Hi Michael,
So when I was served, it lists Frederick J Hanna and Associates as the representing attorney’s office. I also received a confirmation letter from them indicating they received a copy of my answer. Then I received a follow up letter asking to call to resolve this matter without having to go to court. I’ve been unresponsive.
Then yesterday, I receive a letter from a NEW attorney’s office – “Cooling & Winter” which is just a copy of their letter to the magistrate court requesting to be put on the calendar for the next non-jury trial date opening. They reference the correct Case No.
How is this now with a different law office??
It is not all that uncommon to have a change in attorneys during the course of a case. There are rules that allow for that. Same thing can happen if you had counsel and needed to make a change.
How do you respond to the lawsuit? It says I have 28 days but, what do I respond with and to who?
Are you being sued by Midland Funding? What is your goal when responding to the lawsuit? My feedback is often going to be different depending on the result you are looking to achieve.
Generally speaking you would respond to a summons and complaint with an answer. How that answer is crafted can vary, but a general denial is common. You typically file the answer with the court and serve notice on the plaintiff’s attorney. For legal assistance, and to better understand the process, you really want to consult with an experienced attorney in your state.
Hello – thank you for writing that article, it was very informative. Back in 2012 I was sued by Midland for unpaid credit card debt with Chase, I fought against them and got a lawyer, my lawyer requested proof of the debt in which Midland didn’t produce, The case was then dismissed but without prejudice. I have not heard from midland since then but obviously it’s still on my credit report. What should I do? I know I’d like to buy in a house in the next year or two but I also know the statue of limitation is approaching. Thank you for any advice you can provide.
What state do you live in? When was it you stopped paying Chase?
CA and sometime around 2009
The SOL for Midland to legitimately sue you in order to collect is 4 years in California. And depending on the month you stopped paying the account in 2009, the account should drop off your credit sometime this year or beginning of next.
If you were looking to get a home loan before Midland falls off your credit you would likely want to negotiate a settlement before you get your credit pulled by a potential lender. If you are good with waiting until this drops from your credit, and your goal is a year or two out, that looks good.
Be sure Midland Funding falls off at the same time as the original creditor.
I am a lender helping a client with a new home loan. He has an outstanding judgment from Midland Funding LLC from 8/2012. He contacted Midland to pay the full amount, and asked for satisfaction of judgement. However, Midland is stating they can not accept payment, due to the file being turned over to a third party for review and settlement agreement. He asked for the contact information for the third party, but was told they did not have that information, and that he would receive a letter in the mail from the third party. I also called, after being given consent, and was told the same thing. I asked if the individual I was speaking to was here in the U.S. and they said, no, that they were in India. I asked for the supervisor, and I was transferred, where it literally rang a 100 times before I hung up.
What can my client do? He is a veteran, and will be losing the opportunity to purchase this home. I don’t understand why they 1. won’t take his money, or 2. tell him who the third party is on the transaction. Thanks!
Give me a call tomorrow Renee. I will help you get where you are going. I am at 800-939-8357, option 2 rings to me. If you get my voice mail be sure to leave a message so I know to return your call. I am on the phone a lot.
Michael, I reside in the State of GA and a few weeks ago I was served by a local law firm representing Midland Funding for a debt written off by Citibank and given 30 days to file a response at the local county courts. I have resided at my current address for over three years and have not received communication from Citibank nor Midland Funding as it relates to this debt. I applied for credit in October 2015 and as a result of denial, requested a copy of my credit report. After a thorough read through, I tackled each outstanding debt and challenged the status of many which have since been resolved. Midland Funding nor Citibank were listed on my credit report as a collector in October 2015. There were invalid addresses and phone numbers associated with my credit history so an update of my contact details were reported to the credit bureaus. After being served in December, 2015, I checked my online credit status and Midland Funding appeared in collection as of mid-November 2015. My intentions are to challenge Midland Funding, its attorneys or Citibank and came across this website after researching Midland Funding. Reading through the comments in an attempt to find some type of resolution, I’m asking your assistance in guiding me to determine the most effective and efficient approach to this situation as I have to submit a response to the courts within five days of this post. The law firm on behalf of Midland Funding are attempting to garnish my salary and/or bank account to collect this debt. Many of the local collections attorney’s I have spoken with have advised me to file bankruptcy to avoid a garnishment and further legal ramifications. I am currently working on rebuilding my credit and do not feel it would be in my best interest to file bankruptcy for an “allegedly” $8,000 debt Midland Funding purchased and is now suing. I am an independent contractor (1099) with a fluctuating salary based on productivity and although not pertinent to “the powers that be”, I am battling health issues and scheduled for surgery in ten days and looking at a 6-8 week recovery period. I’m trying to avoid stress as much as possible and time to allow for recovery to have a more stable mind to challenge this in court. Filing a response within the next few days then receiving a request to appear in court could possibly transpire around the time of my surgery and/or my recovery period in which I would be bedridden for a few weeks at minimum. My questions are: what should I include and/or request in my response to the courts of being served by Midland Funding’s local attorney? Should I contact the attorney office or Midland Funding prior to my 30-day filing or wait to appear before a judge? If a court date is requested during the time of my recovery and I am unable to attend, what steps can I take to avoid further ruling until I am able to appear before a judge? Any advice, direction or suggestions you may have are highly appreciated. Thank you in advance for your assistance.
I would encourage you to speak with an experience debt defense attorney before doing anything else at this point. You have a few days before the answer needs to be filed.
Is your ultimate goal your credit reports and scores improving, or is it fighting Midland Funding in order to get a dismissal?
Thank you for your prompt response. I would say it’s a combination of both. My credit scores has improved over the past couple of months however, this collection/judgement has had a huge impact on my credit status. My goal is to continue to improve my overall credit. however, my immediate goal is to avoid garnishment of salary and/or bank account and have the knowledge to address Midland Funding to prove the amount of charge-off debt owed to Citibank and what rights I have as a consumer to dispute these charges or at best resolve this without going forward with a garnishment.
Give me a call to go over some options that will best help you achieve your goals. You can reach me at 800-939-8357, option 2 rings to my desk. I am on the phone a lot, so if you get my voicemail be sure to leave a message so I know to return the call.
Hello,
I have been fighting with Midland Funding on an old “ZOMBIE” debt that is 12 years old.
I believe that the SOL has been far past (6 years in South Dakota) in my case and they
just don’t want to go away. It has been close to 2 years going back and forth and if I knew better at the time I would have filed “Motion for order compelling discovery” but, this was long ago and I knew nothing at the time. I would say took them about 6 months to finally send me a piece of paper just stating that this was a credit card debt from Bank Of America that was breached and had a balance that I needed to pay of $10,000 / keep in mind there was NO ORIGINAL CONTRACT, NOTHING SAYING THAT THEY LEGALLY OWN THE DEBT WITH RIGHTS TO THE DEBT AND EXCHANGING OF OWNERSHIP HANDS, NO CALCULATIONS OF HOW THE DEBT AND INTREST /PURCHASES OCCURED, NO COPIES OF CHECKS OR RECIPETS, only stating there was a last payment made of 2009 which is past the “SOL” (6 YEARS IN SOUTH DAKOTA) I am almost certain these people did not expect me to fight for my rights and thought that they could just roll over me and try and get a default judgment which will not happen. I have answered and asked for information and I would say about 3 months ago they finally sent me a packet of papers that had a print off of an old BANK OF AMERICA statement that did have my name on it with a balance but no signature signed contract just a print off of a Statement that anyone can obtain off line from Bank Of America, So where I need help is now. I had a Firm in my town that was handling this case that I believe forwards the information I give them to midland funding. .. SO HERE IS WHERE ITS WEIRD .. I have requested through various letters to remove the debt from my credit report and have disputed this time and time again in which no response was ever made on doing so but recently noticed the debt from my Report has been charged off from MIDLAND FUNDING LLC which I thought YES!!! SUCCESS!! but then I received a letter from the Firm in town stating they are no longer handling this case and are passing it off to another Firm in a different State to Handle?? and all information should be directed to them?? a few weeks ago I received a letter from THE NEW FIRM asking for “INTERRAGOTORIES” in which I have already done this with the old except these are a bit different asking me where I lived 12 years ago, phone, numbers, if I’m going to have witnesses and state there names ect.. This letter they are trying very hard to have me incriminate myself for I think they know they have nothing and will get nothing!! I have just been representing myself on this but, wonder if I should look into getting an Attorney or if I can file to “COMPEL” . ..Oh yes forgot I have called the court house they said a case was filled but was like 2 years ago and said was never addressed since to take action and were somewhat surprised by that. Any Help Would Be Great 🙂
I would suggest you consult with at least one experienced debt collection defense attorney about your next steps. South Dakota, much like my own state, is not an easy place to find an attorney with the experience you need. I will email you what I did find. Distance does not have to be an issue in these cases, but if it is, ask for a referral to anyone James may know nearer you.
Who was the law firm handling this for Midland Funding, and who is it you are dealing with now?
I was dealing with BREIT LAW OFFICE P.C.
they sent a SUBSTITUTION OF COUNSEL letter
so now I am dealing with MESSERLI & KRAMER.
I’ve read through a lot of the comments on this page and found them very helpful, thanks! I thought I’d run my situation by you and make sure I’m doing the prudent thing:
We’re in VA. My husband has been getting a lot of calls from a “legal department” that says he owes a debt when we are not behind on any bills. He answered once they asked him if [random four digits] were the last numbers of his social security number and they were incorrect, but he sarcastically said “sure” (not wanting to give them any clues) and I think they are continuing the phone calls because of that. We chalked it up to a scam and we just don’t answer the phone now unless we recognize the number. I’m not sure if all of that is related to my question but figured I’d include it just in case.
My question: Today he received a letter from Midland Credit Management saying that they are the debt collection agency servicing his account, and he can pay 40% less than he owes if he does it within the next 15 days… but the account is a Webbank/Fingerhut account, and he’s never had an account with them. Additionally, the name on the letter is not his full legal name, but a nickname, which he wouldn’t have signed up for an account with. It’s not his account.
So I’m thinking the smart thing to do would be to send a certified letter explaining that it’s not his account and requesting verification of the debt, but after reading through the comments here I’m not sure if he should also call to explain the situation, or if it’d be better to keep everything in writing.
Any advice you could give would be appreciated — thanks!
If it were me I would call Midland first, and depending on how that goes, then send a certified letter (just for good measure).
Check your husbands credit reports and your own. This could be the result of identity theft, and possibly not the only issue, just the first one you are hearing about. You can access one free report a year from each of the three credit bureaus at http://www.annualcreditreport.com.
Post an update with what you learn.
Hello, I have a question in regards to a judgment that was filed against me in 2013 by Midland Funding LLC. I recently found out about this judgment by looking at my credit report and don’t remember being served court papers (but I have lived in a few places in the last couple of years and have not kept up on my mail like I should have).
The other day I called Midland Funding to negotiate and settle the judgment (the judgement is for $2,300) and the woman who I spoke to informed me that Midland is not accepting payments on this account at this time and that I will receive a letter in the mail outlining this situation. She also said something about “ceasing payment on this account.” It was very confusing to understand her and even asking more questions I was still very confused by this information. She told me she doesn’t have the ability to specifically speak about my account and does not the information I am looking for, to just wait for the letter to come.
While waiting for this letter I have so many questions…is my account proceeding even further through the process after a judgment is filed and there has been no activity in 2 years? Are there going to be more monetary consequences for me because of no activity? Is Midland Funding going through legal turmoil in the state of NY and that is why I am not allowed to settled this judgment?
Have you ever dealt with a situation like this or do you know what Midland could possibly doing right now??
Thank you in advance for your expertise.
Based on what you shared it sounds like your account is either part of an agreement Midland reached with New York state or federal regulators, or was flagged as part of some internal review. The situation speaks to your account being flagged as noncollectable, and not more so… good news.
Hang tight and wait for the letter and post an update with what happened if you don’t mind.
To add to my post, I checked my credit report at Credit Karma. My score is 714 and shows the Citibank card closed with a zero balance October 2007.. I don’t think that date is correct because I don’t think I got behind until 2009, but that is what the report shows. My bank statements show I made my last payment to Citibank in May 2010. The credit report also shows the Midland collections referencing Citibank opened May 2015 although I have had no communication from them until this December 2015 later. (I did move in October 2014, though).
We always had good credit, owned our home (with mortgage), etc. until we found ourselves in financial trouble during the great recession. Our income is from a small wholesale business and after putting our children though college (no loans, depleted our savings) our house burned down in a massive wildfire in 2007. Rebuilt with insurance in 2008 and moved back in the very month the stock market plunged in October of that year. Stayed above water, barely, as customer after customer went under, many owing us money we would never be able to collect. Finally, in 2010, we were no longer able to pay the minimum on our three credit cards we had been forced to run up to stay afloat. Hated that!
The following year, my husband received a small inheritance and we called all 3 cards (our only debts), two with B of A both with appox. $8,000 balance each, and the large one with Citibank for $22,000. We worked out a settlement with B of A for both of those debts and promptly paid them off. Citibank said they had already written off the debt and would take no payment. Huh? We went on with our lives and in August of 2014, we sold our house of 20 years in California and moved to Oregon.
When we went for a mortgage for our Oregon home, our credit report showed the Citibank debt and the mortgage company wanted it cleared before final approval. I called Citibank and they were able to find the old account in their system and stated once again the debt had been written off and they would not accept payment from me and gave me the name of a collection agency listed in the account. I called that agency (don’t remember the name) and the conversation seemed very shady, throwing all kinds of settlement numbers at me. I told them I was confused about whether they had bought this debt and as far as I was concerned I owed Citibank the money and not them. They kept saying they would “collect the debt on behalf of Citibank”.
After explaining all this to the mortgage company, they arranged a conference call with a company they use to arbitrate credit reports, myself, Citibank, and this debt collection agency. The Citibank rep reiterated they had written off the debt and the collection agency rep admitted they had NOT bought the debt. The arbitrator said she would adjust the balance owed to $0 on my credit report but it would still show I had defaulted for 7 years. After this call the mortgage company was satisfied and my mortgage sailed through.
Now it is December 2015 and I have received a letter addressed from a local attorney here in Oregon on behalf of Midland stating they are seeking payment for this debt. I lived in California at the time of the last payment (May 2010) and I understand the Statute of Limitations in California is 4 years which would, by my calculation, have run out in May 2014 while I was still a resident of California. As of October 2014 I became a resident of Oregon which has a 6 year SOL.
In this letter, Midland states that they have “bought” the debt, but I know that a year ago in the conference call, the debt had NOT been sold. Is Midland under an obligation to prove they HAVE bought a debt and if so, for how much? Can they even buy this debt now after the SOL in California has run out? Can they somehow reset the clock on a debt that had a last payment in May 2010? Does the fact I now live in a state with a 6 year SOL have any bearing if the debt was established in California and the SOL ran out while I still lived there?
Anyway, I am not sure what to do. I would still be willing to settle this debt with Citibank which I tried to do in 2011 and again in 2014 but have no interest in giving a creepy collection agency money with their scare tactics. I’d rather give it to charity!
I do not fully understand the arbitrator part about zeroing out the credit report, as that is not a common place description of events. Who was the arbitrator working for?
The rest of what you describe is common. Midland does buy Citibank accounts, and does have a national network of attorneys that pursue collections on them.
Midland Funding will be able to meet their obligation to validate your debt. They are not obligated to disclose what they paid for it. Debts are regularly bought and sold after an SOL expiration (though that is less and less likely moving forward – and Midland Funding will not be reselling your account).
Midland Funding cannot reset the clock for credit reporting. The SOL in Oregon likely applies now, but run that by an experienced debt defense attorney to make sure.
If you want to resolve the debt you cannot do that with Citibank any more. Resolving it with Midland Funding is no different, and can actually be easier than dealing with the original creditor.
If you are being contacted by an in state attorney about collection it often means your risk of being sued for collection have escalated considerably. Given this concern, what are your goals for resolving the debt?
I received notice that I am being sued by Midland for a debt they acquired from Citibank. However, this is the first I am hearing from Midland. Back in 2014 when I tried to make a payment to Citibank to keep the account from charging off, Citi told me they were no longer handling the account and couldn’t access any details. Apparently I missed the cut off by a few days and they closed the account. Since then I hadn’t received anything as to who was handling the account. In the legal paperwork, Midland claims they tried reaching me by phone and mail, but I never received any messages from them or did I receive anything in the mail over the past year, But now I receive the certified letter about suing me. Can they do this if I never received any contact from them? Before I contact the lawyer listed on the paperwork I wanted to see what you thought. Thanks for your help.
What you described is not all that uncommon.
What are your goals with this account?
Thanks for the reply. I don’t want to go to court and would like to pay it off — just can’t do it all at once. Now that I know who is handling it, hopefully that is possible. Should I contact their lawyer or the company itself? I just find it strange that if they were trying to call that they would not have left a message at some point. Some companies seem to hunt you down, even contacting anyone who they think might be you, but this goes to lawsuit without ever getting a message? Does it help my position at all if I make these claims about never being contacted.
No, it isn’t likely going to lead to anything productive.
Now that the account is in court, calling Midland is typically going to end up with being referred to the law firm.
You can settle with Midland Funding for less than what is owed, even when sued. You are welcome to call me for a consult at 800-939-8357, press option 2 to ring me. Leave a message if I do not pick up and let me know some times I can reach you back. You can also email me (my email address is the same one you get these comment notifications from).
My husband had an old debt from a Target credit card. The debt was eventually sold to Midland Credit Management. We’ve been trying to clean up the wreckage from our pasts and upon contacting MCM today they tell me they cannot let me pay off the debt because we will be contacted in the future by a 3rd party. I asked them for contact information of the 3rd party and they said they couldn’t provide this to me. He was reading off a script so the answers to my questions were always the same response.
I need this cleaned up quickly and feel that I’m at a stand-still while I wait for this 3rd party to contact us. Is there any way that I can push them for additional contact information?
If Midland is working with a third party collector on your account, and just sent it out, it could take a week or more to be contacted. It is a bit odd that they would not tell you who to contact. When was the last payment made on this account? What state are you in?
Dear Michael,
This is a wonderful resource you’re providing. Firstly, thank you.
My situation is this:
I apparently had a debt for an old Circuit City credit card issued by Chase bank a long time ago. I was pretty sure I paid it off (one of those 0% if paid off in full deals) before I moved to abroad in early 2000’s. The only thing I can think of that could have happened is that I didn’t pay it off totally (a few bucks, perhaps?) which ballooned into a big charge, I had no idea as I was out of the country. I would like to know what happened, of course, as now they’ve been saying for years that it’s $608.01.
I’ve read online that if I answer their offers now that it’s going to set off another string of calls to me and I can’t have that. I’m happy to pay but only if it gets deleted off my credit report. From what I’ve read online they don’t remove that and it could look even worse for me. I’m not sure what I should do.
They can’t sue me for this but on one of my CR’s it’s showing up and that’s bad for getting a mortgage and I’ve had problems trying to get a Chase credit card that I’d like to have–even though I bank with Chase and have not had any credit problems for years.
What should I do to get this resolved and removed? Again, I’m willing to pay but only if it won’t be detrimental (them calling and harassing, trying to get more money, etc–the horror stories I’ve read!!) and it gets deleted from my CRs.
Your advice is greatly appreciated as I know there’s a lot of misinformation out there. Thank you!!!
Also, the debt originated in NY but I’m in OH now. Not sure if that’ matters. Thanks!
Can you verify when you last recall remitting a payment on this account, such as the date you first left the country that you reference in your prior comment?
Hi Michael,
Do you mean to the original creditor–Circuit City/Chase Bank? Probably in 2003-ish. I have never initiated contacted Midland Credit Management. I did contact Chase years ago to see if I could verify the amount but they had sold it and had no record.
I would dispute the credit reporting entry by Midland as being too old to be there. If you last made a payment to the original creditor in the 2003 time frame, the original lender fell off your credit report around 2010 and any debt collector entry should have fallen off at that time too.
Send any credit reporting dispute in writing and use certified mail. Keep a copy of all you send for your records. Your dispute will be sent to the credit reporting agencies that are showing Midland Credit.