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.
Hello Michael and Good Morning,
After having a “scare” of illegitimate online purchases/attempts made Tuesday evening on my husband’s debit card/bank account,..I decided to create an account (with Credit Karma), to get immediate visibility as to what is contained in his credit report.
In working through this with my husband last night, we found recent openings in the past year – on March 18, 2015 and September 15, 2015, respectively – of some old Citibank credit card debt that my husband believes he incurred many years ago. These are appearing under the “collections”category on his credit reports under agency “Midland Funding LLC”.
My husband remembers that the Citibank debt is VERY OLD,..In fact, so old that he cannot even remember what year that the credit card debt was from. Since I wanted to find out and research who “Midland Funding LLC” is, I came across a post that you made on behalf of a woman who was served with a lawsuit from Midland.
Please note that my husband has worked very hard to clean up his old credit cards, and has worked to settle with them over the past several years. Therefore, Midland Funding LLC came as a “surprise” when we found this information contained on his Credit Karma (TransUnion and Experian credit reports/information) yesterday evening.
Two items show up under “Collections” for agency Midland Funding LLC. The first item is a March 18, 2015 “open date” with agency Midland Funding LLC for $7,501; the original creditor is listed as Citibank, NA.. The second item showing up under Midland Funding LLC is a September 15, 2015 “open date” with Midland Funding LLC for $6,663; the original creditor is listed as Citibank South Dakota, N.A.
My husband and I live in New Jersey. I told him that he may want to (first) try to contact Citibank, NA and Citibank South Dakota, respectively. I assume that they both fall under the “Citibank” umbrella. This would be (should be(?) the beginning part of the “debt validation” process for my husband(?), We hope that Citibank would be able to have information available on this very old credit card debt that was (apparently) sold to Midland Funding LLC last year..
From reading other posts, however, I am concerned that my husband may not be able to retrieve information regarding old Citibank credit card/debt. He may get the same story that “we wrote off the debt and sold it to Midland Funding.”
Please note that no (formal) information such as mailed letters, notifications, etc. have been received from Midland Funding, LLC. I also let my husband know to “double check” the statute of limitations for the state of New Jersey. However, I think he (first) needs to be clear on how old this debt is.
From reading your story about the woman and your posts, you appear extremely knowledgeable and helpful. Therefore, I am going to give you my husband’s e-mail address.
In need of some good advice and where to go from here, we greatly appreciate it. Thank you very much.
Sincerely,
John and Donna
.
You can reach me live at 800-939-8357 ext 2. I can help you understand some methods for understanding the nature of the debt, and whether there are some action steps that will help you reach any goals you may have.
You will want to get to the bottom of when payments to Citibank stopped. You may be able to get Citibank to share that with you on the phone.
Hello Michael and Good Afternoon,
Thank you for the very prompt response to my post yesterday. My husband, John, left you a voice mail at your (800) 939-8357 (Ext. 2) yesterday afternoon, Thursday, 8-4-16.
Also, thank you for confirming that he should contact Citibank. Hopefully, we will be able to retrieve information from Citibank regarding the timeframe/timespan of this debt/type of debt that was incurred, and when payments to Citibank stopped.
I relayed to my husband that you very promptly responded to my (initial) post that I sent yesterday morning. It is greatly appreciated, and my husband will be placing another phone call to you today, Friday, 8-5-16..
Thank You Very Much – Again, It is Greatly Appreciated
Sincerely,
John and Donna
Hello (Again) Michael and Good Afternoon,
Since I did not know or have a telephone number to contact Citibank regarding this isssue, I looked up available phone number(s) online. Today, Friday, 8-5-16, I first tried to contact Citibank at their credit card support number, which is
1-800-950-5114.
When you call this number, it requests the social security number of the account holder. Since my husband’s social security number was not recognized any longer, I was able to get through to a “live” person, her name is Fatima. Fatima mentioned that she could see my husband’s history for his old account, but that (of course) he would need to call back since they will only speak to the original account holder. Totally understandable.
Fatima provided me a different phone number for my husband to call back,, which is 1-866-311-4975.My husband just called you and left you a voice mail late this afternoon, because when he tried calling this (second) number Fatima provided, he spoke to a man that asked my husband if he “wanted to make a payment.”
Of course, my husband said “no,” because we are trying to get the detailed information on the account history/last payment date, etc, As you likely expect to read in this post, the man told my husband that they “do not have any information,” as the debt was sold to Midland Funding.
My husband called me back to let me know the information he received. I told him to try to call the first number (one more time), and see if he could speak to Fatima. Of course, since Citibank is huge, this did not happen. My husband was given the same “do not have any information” response from another individual.
It is very interesting how Citibank was quick to ask my husband if he wanted to “make a payment,” yet they do not have any history or information to provide on the debt that they sold to Midland Funding, LLC. Thus, very frustrated.
Okay Michael, just wanted to give you an “update” on attempts to contact Citibank today. Again, my husband left you a voice mail at your telephone number this afternoon.
Thank You For Your Help and Assistance
Sincerely,
John and Donna
Thanks for the update Donna. I left John a message this morning with my direct office line. I will be away Sunday and Monday, and back in the office Tuesday.
Do you happen to have any billing statements from Citibank?
Hello Michael and Good Evening,
Thank you for letting us know that you left my husband a message this morning, Saturday, 8-6-16, and for informing us that you will be away Sunday and Monday. It is greatly appreciated.
My husband mentioned that he will try to see if he has any records of his old Citibank debt. However, he believes he no longer has any information or statements available, because it was so long ago.
Also, please note that I tried to contact Citibank (one more time), late yesterday afternoon, Friday, 8-5-16, This attempt was made after I sent you the last “update”/post on Friday. I will let you know where we left off.
I started from the beginning again, back at the first number where I initially reached Fatima the first time, (at the 1-800-950-5114 phone number). Of course, you are never able to get the same person.
This time, a man answered, and I relayed the same information to him that I originally received from Fatima, because she made it sound like they did have information available. The man who answered the phone late yesterday afternoon had to place me on hold for a couple of minutes. When he came back on the line, he said that he could not specifically access my husband’s Citibank records himself.
Instead, he mentioned that he would have to transfer me to a different phone number, but informed me that no one may answer, because it was late in the business day. He explained that the telephone number he was transferring me to is 1-800-846-8444, and informed me that this number is to reach “Account Specialists and Collections.” He said the people at this phone number would have more information on the debt that was written off before it was sold to Midland Funding.
When he transferred me to this phone number, no one was there to speak with by that time of the day. However, the telephone system provided some “automated” options.. Interestingly, in the automated options, the last four digits of each of the two individual account numbers were on the automated recording. When I attempted to press the automated option given to retrieve information on the first one one of the accounts, it had a recording that “no one is available” and to call back within normal business hours. Then, when I attempted to press the automated option given to retrieve the second account, I got the same message that “no one is available” and to call back within normal business hours.
Late yesterday evening, I mentioned to my husband that they must have some history available, because the automated recording provided the last four digits of each of two accounts. I gave my husband each of the last four digits of the two individual accounts in the automated recording. This way, if he is able to find any old documentation on his two Citibank accounts, he should find the last four digits to be a “match” with the automated system.
Okay Michael, this is the latest update to this point.
I think it will be very important for my husband to speak with you this coming week when you return to the office on Tuesday.
Have a Great Weekend and Very Much Appreciated
Sincerely,
John and Donna
Hello Michael and Good Evening,
I just want to reach out and say “thank you for all that you do” to help people in these situations. After you provided your advice to my husband, John, he was able to seek an attorney. The attorney helped him file an answer and a denial with the court..
You were very kind in spending as much time on the phone with my husband as you did, You even directed/explained to him that it was “easy enough” for him to file an answer (and a denial) on his own, directly at the courthouse.
Please note that I advised my husband against this, because I did not believe we are educated enough in handling these types of situations. I know that my husband mentioned that you recommended a couple of different attorneys in the state of New Jersey a couple of months ago. Eventually, my husband found one of his own.
Your advice is fantastic. Let me just say that for all of those people out there reading these posts, it is best not to let these situations end up in court, and try to mediate/settle BEFORE it ends up in a formal court proceeding.
Thank goodness for people like you, that point others in stressful situations and(or) that face serious hardship, in the right direction. For too many, this comes as a “surprise,” and it is very scary.
Michael, thank you again. I just wanted to follow up.
Sincerely,
Donna and John
Will it affect you if you do not have a social security and need it for Midland Funding?
DO you mean for identification purposes? You can use a few different methods to match up in a debt collectors system. Is there another reason you are worried about your lack of an SSN and Midland Funding?
Oh I have my social security, but I was just wondering if a person could get in trouble for not having one!c:
Also, I called Midland Funding and they asked for my social security identification. I gave it to them by phone and they recorded the call. Is it possible for people to steal my identity, because I am worried!
Identity theft is a huge issue and something to be vigilant about. But Midland Funding already had access to all this information. They are asking for your social security number to match it in their system and identify they are talking to the right person.
Hello,
I currently have two open accounts with Midland Funding totaling less that $1,000. I am trying to repair my credit score in order to purchase a house,
They have offered to settle for less than the debt that I owe. In your experience, does it look better to “pay in full” or to agree to a settlement? I was told that “settling” for a smaller amount looks almost as bad as still having the account in collections but I am unsure if that is true. I’d obviously like to pay less money back if that is an option but I don;t want that to affect my credit report in a negative way.
Also, once I pay the debt off, will they automatically notify the credit bureau or do I need something in writing beforehand to prove this? Thanks for your time!
Whenever accounts have been unpaid long enough to be with Midland Funding, the credit damage is done. Whether you pay in full or pay the debts off for less, the same thing will happen to your credit reports. They will be updated to show a resolved collection account. You could not offer to pay Midland 3 times what you owe and get a better outcome for your credit.
You can get your home loan through with resolved collections, so not a big deal at all.
Midland Funding will update the credit bureaus, so you do not have to. But get your settlement agreement in writing before you pay. You can use that letter and proof from your bank account that you paid on time, and get the credit bureaus to update if Midland somehow doesn’t.
Hi Michael,
Found your post and it was very informative. Wish I found it sooner.
I’m being sued by Midland Funding for $10,000 and they have agreed to settle for $1,800 with prejudice. I have hired a consumer attorney and have asked if changes to the settlement agreement can be changed. They informed me that it is not possible and that agreements are reviewed by an attorney prior to sending , so all the wording is approved beforehand.
The items I wanted to add were the following:
1. Include that they will not sell off the remaining balance of unpaid debt
2. I do not admit liability for the debt but willing to settle to close this case.
Is this reasonable to be added to settlement agreement? Or should I just settle? I have the amount cash on hand.
I have also asked to have a NDA (Non-Disclosure) in place that related to the following:
To not disclose the settlement of dispute to any person or entity, the amount of payment, or any other information that refers or relates to the dispute.
Is this reasonable? Should I even ask for NDA? The response from attorney was this:
NDA’s aren’t usually included in civil cases but the agreement does state that it is confidential.
Thank you so much for your time .
Midland Funding cannot resell debt via a consent order with the CFPB. There is no reason to get hung up on this as it cannot happen.
What is your concern behind the liability reference? Why do you think that is going to benefit you?
I would not add NDA language at all if it were me.
Hi Michael,,
Thank you so much for responding back so quickly. The liability reference was because Mid;and Funding has not produced any type of document that the debt owe is mine. They just agreed to settle before going to court. and so I figure I would add that to the agreement.
Your settling, so none of that would matter if it were me.
Got phone number just need help fast to get it off my credit report cause they nobody want let me borrow money my two kids needs clothes to go back to school next month so I need to move fast it was all paid off today and sent over night to them. If you can possible help me please and god bless.
It takes banks and debt collectors a few weeks to update credit reports normally. If you send a payment to Midland via overnight courier that will speed things up. But this is still going to take some patience.
I have Midland Funding on my credit report from an account that was purchased from a credit card I owed. but haven’t received any mail from Midland, I have attained an attorney for bankruptcy filing but I cannot find Midlands address online anywhere. Can anyone help me with Midlands Funding address so I can contact them in writing. I have there phone number but, I want to be assured they will be giving me the right address if I have to call them for it after the validity of the account.
Midland Funding and Midland Credit Management address to mail something is: P.O. Box 939069, San Diego, California 92193
I have a copy of Midland’s SEC filing and know the exact percentage (i.e., the average purchase price) Midland paid for my debt the year it acquired my account. Now being sued by Midland, can I use my knowledge of this percentage in court or in pre-trial phone negotiations with a Midland representative? Can I offer in court “to make Midland whole” by paying it the average purchase price for that year’s accounts? Will a judge even consider that request, or will I be required to pay Midland everything?
What Midland pays to purchase the legal rights to collect usually has no obvious bearing on what they will accept as a settlement. In other words, knowing what Midland paid for debts in the past will be of little use to you (in or out of court).
If you would like my impression of your situation, what to aim for, and when to negotiate for the best outcome, fill in the Talk to Michael form in the right column on this page. I will email you back to set up a time that works for you to connect on the phone.
I’ve spoken twice this week with a Midland representative. I now owe $6,500. He said Midland will only settle for $5,000, and he is not budging at all. Yet, I’ve heard stories of Midland settling for 30% of the amount owed. He said that now that we are in litigation, he won’t take a dollar less than $5K. If Midland were true to its word of “accommodating” the consumer, 30%, including amount already paid, would be do-able. I honestly cannot afford a higher lump sum. Should I still fill in the “Talk to Michael” form on the right to discuss this with you a bit further?
Yes, please do submit the form. I am traveling, but will be back in the office Monday.
Settling an account with Midland Funding is one thing, settling that same account when it has been sent to an attorney who has filed a lawsuit to collect is another. You may have a shot at settling for 50%. But you want to take some of the leverage away that the attorney thinks they have right now. I can talk with you more about it next week.
If you submit the consult form be sure to include if you are available on Sunday. I have a full day of driving, and will be making calls during that time.
I was informed that Midland was planning to file a suit against me, so I contacted Midland by phone, acknowledged the debt, and tried unsuccessfully to work out a lump settlement/payment arrangement. Was Midland supposed to send me a letter of some kind five days after my initial phone call with said DB? After that first phone cal, was I supposed to be advised of my right to dispute the debt? If it was supposed to and didn’t, is that grounds for a lawsuit being dismissed with prejudice? In short, should Midland have sent me any letter within five days of my initial phone contact with the DB? If so, I never received any such letter?
If you are being sued already there is not the same requirement. Everything will be much more formal and through the court.
What is the balance owed?
What amount are you trying to settle for?
I’ve already paid $500 in $50/mo. payments on a $7K debt. I now owe $6,500. Midland, without picking up the phone and working with me, went ahead and sued me because I was not making its required $100/mo. minimum payment. (And here I was thinking I was making good-faith payments/operating in good faith.) However, I never signed any contract with Midland or the original creditor stating I would pay a minimum of $100/mo. Midland, in its court filing, states that it only sues people when they refuse to pay. But that is not true, as I had been paying for 10 months when I unexpectedly got served; I was not avoiding the DB, as it states in writing is when it considers taking legal action. Midland also states it has “innovative” payment plans that “accommodate” the consumer. But that is not true: Midland will sue if consumers are not paying at least $100/mo., no ifs, ands, or buts about it. I am hoping the judge will dismiss the case with prejudice, since Midland’s “Statement of the Case” is predicated on lies. Do you think a judge might be empathetic to this line of reasoning?
You have to get an agreement to pay the amount you were sending each month for it help your situation. Check out my video about making good faith payments to debt collectors.
Midland does offer some decent ways to pay or settle debts. I have seen payment plans extend well beyond a year, but $50 a month on a balance this size is not a realistic plan for most debt collectors to accept. This is made even more so if you are trying to work this out with an attorney the account was sent to.
I do not think the judge is going to empathize one bit. I think you will end up with a judgment if your only argument is what you stated. That is because there was no agreement.
Can you raise money to settle for a single lump sum?
I was sued by Midland back in 2013 and a judgement was issued I didn’t know I had the judgement till last year… Filed by Midland… what are my options now that Ive been sued,
Check out this post about dealing with judgment debt.
Hello, is Midland credit management closed? I call every phone they have in their internet site and nothing.
Try calling Midland Credit Management at 800-265-8825. If the lines are down it is probably a system problem, so just try a couple hours later.
Michael,
Thank You so much for motivating me to pay off all my collections today. it really felt great. Also using your ideas you have posted in here I was able to negotiate about 50% on the dollar so that really was key. My question to you is now that I have eliminated all my collections and a public record (Which they said will be removed once the court is notified) will I see any sizable bump in my credit score or ? Again thank you so so much and really appreciate your thoughts and advice.
Nice work getting your debt settled Larry. Check out this post about what to expect with your credit score after settling collections.
Without my consent, my wife called Midland to inquire about a debt that I acquired with my ex-wife. They gave her every bit of information she asked for including the original debt, date of the original debt, my account number and so on. We live in Texas and I have read that under the Texas Fair Debt Collection Statute, Midland was not allowed to speak to my wife without my consent. Is there any legal action I can take against them? I have also heard/read that if your information is given out without your consent, the debt will be removed. To your knowledge, is this true?
You will want to talk with an experienced consumer law attorney in Texas about whether that was an improper disclosure, and if so, what that means to you.
There is no law anywhere that I am aware of that says Midland Funding is removed from your credit reports over something like what you described.
Is your goal to get this off your credit?
When did you stop paying the original debt?
How much is it for?
Midland credit is telling me the statute of limitations in Nebraska is five years. I have researched and everything I have found shows it is a four-year statute of limitations. If they have it in fact contacted us outside of that time period, what sort of recourse is there, if any?
Being contacted by a debt collector after the SOL to sue, or even to report on your credit has expired, is normal. Generally speaking, there is no recourse to be had for Midland calling or writing to you passed the 4 year SOL to sue in court in Nebraska. Your debt does not legally go away unless you file and complete bankruptcy.
It does appear that the 5 year SOL to sue on written contracts is 5 years in Nebraska.
What kind of debt is it that Midland is trying to collect on?
Hello and thank you for an expedient reply! It is a Citi account of $ 863.28 from 2012. They are offering only 20% off the balance and no more. I inferred 50% settlement and they won’t budge. Any suggestions, Michael?
Kindly,
Deb
Is it Midland Credit Management that you are negotiating your settlement with, or an attorney collecting?
While it is a harder to get the best reduction on small balances with all debt collectors, it is possible. You should not expect to get it done in one phone call. You might try calling often and a few days or weeks apart. Fifty percent is a realistic target with MCM, but sometimes not with an attorney collecting.
Hello and thanks again for getting back to me. I am dealing directly with MCM. They sent a notice that says pre-legal notification. It states it may be referred to an attorney in my state if I don’t reach out. (Reader’s Digest version). I am good with 50%. I certainly don’t want it to go to litigation. Maybe they are holding out because they are planning on referring it? What say you, Michael?
I say go for the 50% if you can fund it. Try a couple times over the course of a few calls in a weeks time. If you cannot get it done call me.
Midland financial contacted me over the last year or so and requested a settlement on an old credit card. California SOL is 4 years and this would fall in the time frame. I found out through a third party advertisement that they are suing me. I have 20 days to respond and 12 of those days are gone because I have not been served. I moved last July but updated all my drivers license, mail, etc and I know they have my current address because multiple pieces of correspondence have been sent here from them. Can they sue me and deliberately send notification to the wrong address so I don’t get served or have time to consult an attorney?
The time to file your response with the court when sued begins when you are served. They have not served you yet, so no time limits have started ticking.
Look up the court record and see if service has been file with the court as having been perfected. It likely has not. If it has, let me know and lets go from there.
What is your goal with this debt?
Hi, my son just recently informed me that the debt he owes was sold to Midland Credit. He does not live with me but due to the fact that he travels a lot and almost never home, most of his credit cards, car lease, driver license is registered under my address, and even the important things that he orders come to my place, which I am ok to receive and keep for him while he is gone and he usually drops in and picks up his mail once a month or so.
He informed me yesterday that in case someone comes to my place to sue him by delivering summons, to go ahead and give the server his real address and he said “he will deal with them himself”
He said he is unable to changed to address on the aforementioned debt anymore since it has been sold so my concern is, if a sheriff appears at my doorstep, can I refuse to take the summons and instead tell them that my son does not live with me and give them his real address? Or once the door is open I have no right to NOT accept the summons.
He keeps saying that if I explain that I do not accept important legal documents on his behalf they should be ok if I just give them his apartment address and send them off.
Does this even make sense? He really does not live with me and my son put me in this situation where I do not want to deal with this headache and I don’t want to take any papers from anyone, so is i possible to turn the server away by letting them know what the situation is by providing them with his real address?
And I don’t want to hide or not open the door because we have lots of guests coming, etc. Any advice. We live in North Carolina if that helps.
I did look at some legal forms online for NC, and one of the ways to serve is
“by leaving a copy of the summons and complaint at the dwelling house or usual place of abode of the defendant named above with a person of suitable age and discretion then residing therein.”
So it seems like my son can get served if they deliver papers to me, but, again, I am just wanting to know if I can REFUSE to be served since i am not the defendants.
sorry for repeating this over and over but he got me really concerned
thanks
Maria
That is pretty normal… to let them know the person they are trying to serve legal papers does not live there. No need to hide, and it sounds like your son is not hiding either. He is giving his address (through you).
You should have nothing to worry about. Just tell relay the information.
hi
i have not been sued yet, but i have received a dunning letter from an attorney representing Midland …the verbiage was something like if I did not pay, then they would review my credit report and make a decision how to pursue this debt. I did send a dispute letter, i received back a form letter saying that they have reviewed the paper work of their client and they are indeed owed. They finish by saying that by my request they will not contact me anymore. i did not tell them not to communicate to me about this debt. The letter said to not communicate to me until they are able to validate the debt.
What they sent me was not enough to see if i actually owe them. This card was reported as lost/stolen, during a hospital stay in April 2014 to Credit one. i dont remember using it to make any purchases, since i was recovering from emergency surgery and complications from it. My caretaker paid my bills. when i got back on my feet , in July, I called them and told them that the charges on the account were not made by me. after going back and forth with Credit one, they agreed to put the balance at zero and closed the account. i had followed up back then and saw that this was so online. i never heard anything else from credit one.
I also never received a dunning letter from Midland. This is the first time I am hearing about this debt being in collections. i sent a validation letter by certified mail asking for information to prove that I am the one that owes the debt due to the circumstances listed above. My question is, wasn’t i supposed to receive a dunning letter from Midland, before having it sent to their attorney?
You do not necessarily get a collection letter from Midland Credit before tha account goes to an attorney for collection. The collection notice is something that is supposed to follow a collection phone call by 5 days. Did you get a collection phone call from Midland Credit?
Were you a victim of ID theft or fraud? That can make this easier to put behind you than the typical dispute letter.
Michael,
I have an account that MCM purchased a little over a year ago. I know that it is in my best interest to attempt to settle the debt before it becomes a legal issue so that’s what I have been doing for a year now. I have sent them 4 settlement letters in total over the past year…each one being a small percentage higher in my settlement offer. The original debt was for $1250.00 and my last offer was for 40% of that. They have already verified the debt (I knew that it was mine and I was only wanting to settle in any case).
MCM responded to all my attempts but only with the same collection letter as the first, with the same $1250.00 being owed. None of their response letters even seemed to acknowledge my offer…whether a denial or agreement…only kept sending the same original letter. Do you know why that would be???
I just received the latest response from MCM after my last settlement letter of 40% and I’m not sure that I understand what they may be trying to accomplish. Here is what it said:
“The purpose of this letter is to advise you pursuant to the Texas Finance Code that we need more time to investigate your dispute of the credit reporting of the above-referenced account. Accordingly, until we are able to respond to your dispute, we are requesting that the three major credit bureaus delete the credit reporting of the above referenced account and ceasing collection efforts. We will update you upon completion of our investigation and may resume credit reporting of the above account upon completion of our investigation.”
I have been actively attempting to settle this account so I’m not sure what game they may possibly be playing regarding this “investigation”. I am obviously uneducated about all of the “loopholes” within the “credit/collection games” so I was wondering if you had any opinions and/or advice for me? Where do I go from here????
Thanks so much!!!
D in Texas
Most banks and debt collectors do not respond the way we want if we are trying to negotiate through the mail. That is likely why you are getting the responses you are. Your offers also may contain verbiage that they are treating differently. This is pretty common.
Can you post a reply with what exactly your letters you are sending have said? I would be better able to offer feedback about that.
If you are serious about negotiating the debt you would want to call and get the amount negotiated with MCM, and then not send them any money until you see the deal you reached verbally over the phone, in writing that they send you by fax or mail.
Hello, I have a current account in collections by midland funding. My original balance shown on both original account and collection account is $506 but midland is showing I owe over $700. Can I dispute this or does midland have the right to charge me more than the original debt? Thank you for your help!
There are contractual elements that can cause a balance to continue to grow after payments stop. But I cannot say if that is in play with your account.
What is your goal for resolving the debt Midland Funding now has? How long have they had it?
Thank you for responding. I am trying to resolve debt to purchase a home. They have had my debt for around three years. I have dealt with MCM and have a judgement on my record due to them suing me (which I paid ). I’m trying to avoid that again but I am not sure about the amount not being original to the debt.
If it were me, and I know the debt to be mine, but it is off by a little bit based on my memory, I am still calling to negotiate a settlement for the best savings. I am not letting this small amount of money (if it is only this account that is holding up my home purchase), keep me from my goal.
Hello, I have been sued by Midland for $2200 (via Dell). There is no court date, but states I have until the 14th (of May) to Answer. I would like to settle. What is the best way to do this? I would like everything in writing. Should I email the attorney on file? Do I have to provide my financial institution information, I’d rather now? I’d like to pay in 2-3 payments. I’d like to offer $1000 (the best I can do). How does this usually work (settlement)? Thank you for all of your help! – Lisa
Now that Midland has sued you will be dealing with the attorney they have the account with. You will typically want to negotiate the deal over the phone, and then get the settlement in writing.
Getting your settlement to 50% and a few months to pay is not a gimme. Here is a page dedicated to settling once sued: https://consumerrecoverynetwork.com/question/can-you-negotiate-and-settle-a-credit-card-debt-if-you-are-being-sued/
You want to be aware of what I cover on that page about how negotiating at this point can often work.
Hi Michael ,
My name is Sergio Vazquez, I have a question about some debt I have originally had with Chase Credit Cards and now with Midland funding. I owed 14K to Chase in CC debt back in 2011. At the time, we went over what we could afford and were unable to keep up with payments shortly after that I lost my job and everything went down the drain, My question is this, what will be the best way to eliminate this debt from my credit report? I am working on repairing my credit report and trying to fix some old debt I had from back in the days but I don’t have 14K sitting on the bank to satisfy this debt but I just don’t know where to start with this one. If I can reach a settlement with Midland funding what happens to my original debt with Chase? Do I still have to pay chase? any advice will be greatly appreciated.
Thanks
I forgot to mention that I live in the state of Texas and my goal is to sell my current home and buy a bigger one due to family expansion. I defaulted on my home or car, it was just CC’s 3 to be exact. would this make any difference?
Your goals, and the timing of them, will make a huge difference. Give me a call for a quick consult about some options at 800-939-8357, option 2 rings to me, or fill out the talk to Michael form in the right rail and I will contact you.