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.
Dear Sir, I have been going through a long drawn out divorce, I just recently got my ex to settle, however I have had numerous bills that have gone unpaid during this time, some I knew about and some I did not. I just recently had a lady I know who is a Secretary tell me that my name was on the docket for small claims court on Monday 12/12/2016 at 9:00 a.m. I did not know this, the judge is the same judge who dealt with my divorce mess. It appears that Midland Financial LLC has the debt and is who is taking me to court, though I have not received any official conformation on the court date, what is your suggestion on how I should handle this, I live in a small rural area and really don’t want to go to court, I also see the light at the end of the tunnel in regards to the divorce so I should be able to pay this some time soon. What should I do?
Fill in the talk to Michael form in the right column Mark. When I see that I will email you to set up a time to talk over your situation on the phone.
Hello, I have two accounts from Midland Funding LLC, both from Capital One. The balances are $277 and the other is $309.
I only realized this today when I checked my credit score. There have been no phone calls or letters previously to inform me that I had anything in collections. I did call Midland today to confirm the information and they stated that the accounts have been active since July 2015.
The woman also stated I should receive a letter in the mail offering for me to pay off the $209 balance for $166. I told her that I would get back with her in a few days after I did my own research to verify these accounts. At the time, I also asked if I were to agree to pay the balances, if they could remove it from my score. After 20 Minutes of being transferred to various people, they agreed. I do know that when I call back, that I will need to request this in writing though.
After I finished the phone call, I called Capital one to verify the two delinquent accounts and discovered it was indeed an error on my part. Now I’m ready to call Midland back to negotiate. How much do you think I should offer to pay the accounts in full?
Settling with debt collectors like Midland Funding is often a case by case situation. Debt collectors have real time access to your credit reports and other information. They use all the information they gather to develop their view of how much to collect. Someone whose credit report only shows the one account later, but 9 others being kept current, will typically not be all that convincing when speaking of a financial hardship. On the flip side, someone with 9 collections on their credit report, where Midland Funding is just one of them, and only one account being kept current, is going to look more like someone who they would cut more of a break.
You do have low balance accounts, and that can often work against you when settling. If you are able to get 50% settlements out of Midland you will be doing well on these.
Just to be clear, Midland Funding usually does not do a pay for delete. They have made some credit reporting policy changes to not report on paid collections that are more than 2 years old. Based on what they came back and told you, I would assume that you last made a regularly scheduled minimum payment to Capital One more than 2 years ago.
Hello,
Midland Funding NCC-2 Corp mailed me an “information subpoena” to me, which asks me for my SS# Driver #, salary info, assets info, and a list of other judgments?
Are these questions normal?
The letter states a “judgement was entered on 9/24/01 for $1725.76 of which $3212.51 including interest remains unpaid”
It further states that “a false swearing or failure to comply with this subpoena is punishable as Contempt of Court”
Is this a real subpoena? Do subpoenas simply get mailed in the mail like this? Do I really have to answer the invasive questions they asked? I am in NY isn’t the statue of limitations up on whatever this is?
Thank you,
D
correction: judgment was entered 9/24/07, not ‘o1, and also they are giving me 7 days to reply.
Judgment debts have a totally different SOL, and they can often be renewed (sometimes indefinitely).
Yes, subpoenas can show in the mail. Yours sounds like a court ordered one, so you absolutely want to comply. And those asset discovery work sheets usually ask for the information you outlined, and more.
Given the circumstances, it is always advisable to talk over your situation with an experienced debt collection defense attorney in New York.
I had a judgement in 2011 against me to pay over $4,000 for what appeared to be a credit card from Home Depot. This was from an account my parents created to help my credit and they proceeded to ruin it by not paying it. Later down the line they are now trying to and I have talked to Midland and then the people to handle my account as it is their debt. They continue to try to pay but somehow things on there and keep getting lost in translation. They then call me months later saying they need me to handle the account with no record that I’ve ever even given them my parents permission despite having sent letters and receive confirmation faxes back from them this company seems completely incompetent. What do I do
Fill out the talk to Michael form in the right column Ryan. I can coach you up on getting this resolved.
Hello 1st of I recently found a summons for my mom who has Alzheimer’s on the table Monday Nov 28 when I got home from work at 9:15 am. Her court date was October 11, 2016, but she was in Mexico since August 16 (with her sister) and I just picked her to bring her back November 15. My brother said he has never seen those papers before and I surely hadn’t either until that day. I feel my mom was served recently barely on Monday and she put the summons paper work on the table for me to see thinking the paper work was for me or my brother. I panicked and called the only number on the summons paper work which was Midland funding phone number. I called told them I was calling in behalf of my mom and I told them I wanted to pay her bill and came to an agreement to pay on Friday a down payment and $108 every month for a year. But now I researched and people saying they are a scam. I don’t know what to do especially because it was suspicious that I just found her summons papers on Monday.. I need help knowing what to do for her
You are welcome to call in for a phone consult on Monday at 800-939-8357, ext 2, or fill in the talk to Michael form in the right column. I will see that and email you to set up a time to talk.
I need to dig into more details about the situation in order to offer actionable feedback.
Good afternoon,
I just applied for an apartment and it showed up in credit report a judgement from Midland Funding for $2,000 I don’t remember ever getting served for that and it has a date of 4-26-2010 on the credit report… Looking for information of what I can do to get off my report because of it got denied the apartment I’m from Massachusetts…
Is the judgment showing as entered on 4/26/10? If so, it will drop off your credit in a few months due to age.
Judgment debts can still be enforced even if it does not show on your credit, but you could have an easier time getting approved for the apartment.
Other than waiting, you are looking at having to settle the judgment (and should at some point anyway), or legally challenging the issue, which has its own costs with little reason to expect a good outcome.
Thank you for your time helping people.
I have a judgment from midland funding from a few years back local court for over $11,000.
Is there any way I can see if I can go back to court and dispute it?
I have been helping my mom out for years and she has been diagnosed with Alzheimer’s so my time has been helping her and not making enough to pay this debt.
I stopped paying my home depot account which this was from over summer 2009.
Thank you for your time.
How old is the judgment? What state are you in? What is the premise for trying to dispute it?
Hi Michael,
I came across this video and it was great info. I have Midland Funding on my credit report. I owe about $9,000 from a credit card back in 2009. I stopped paying it because I got laid off from work. I couldn’t afford the $180 a month credit card payments. I just stopped completely. I am also a college grad with over $150k worth of student loan debt. My credit score was in shambles for at least the past 9 years since I wasn’t paying on anything. Recently, it’s been going up. I owe about $120k from Sallie Mae and $40k from AES. I had a wage garnishment from AES and I am cooperating with them by doing an Income Base Repayment of $60 a month. They put the AES loans back in good standing. Sallie Mae gave up on me a long time ago and they vanished. It still reflects as a closed account on the report and it even fell off my credit report with Transuion since it’s been that long. I currently have 1 credit card for $300 credit limit and I’m buying little things and paying it off on-time. My credit went from a 450 to a 652 in a few years. I use Credit Karma and the only account in collections is from Midland Funding. They opened this in Aug 2013. I used to get phone calls like crazy from a ton of people. I pretty much screened every single phone call for years. If I didn’t know the number, it got ignored. I’m sure Midland tried to contact me but they had no luck. I haven’t received any letters from them or any phone calls from them. The past year the harassing calls have stopped a lot. I don’t get any more creditors calling me. I want Midland Funding off my report so I can move on. I have about $800 saved in a savings account. I’m willing to settle with them but not sure if I want to offer $800 if I can get it for anything lower. I care and don’t care about my credit report. I care about it in a way since if I ever needed to get a car, I can get one. Right now, I own a decent car that I do not plan on getting rid of anytime soon. I’m not buying a house or do not own a home. Just want to move on from this. Since it’s been 3+ years that they’ve received nothing from me, what would you suggest I ask for a settlement? Should I just ask if I can pay $400 and see what they say and go from there? Start low and go high? I’m curious. Anything would be appreciated. Thanks, Michael.
Best,
Chris
2 more things I’d like to add that I forgot to add. First, I live in PA. and since they opened this account in Aug 2013, we are moving onto 2017 very soon, how long will this stay on my report? Does this ever “fall off”. I literally had 0% communication with anybody except for AES. Since I had to play ball with them, I am working with them and they are happy with my low monthly payment. But it’s been on there since 2013, I don’t hear from them, it’s on my report, I am unsure how long with this be on there? I read about SOL but I am not too familiar with any of this. I’d like a little more insight. If this will stay on my report forever then I”ll call them. I read you said to someone that they’d settle for 50%. But I have a family of 3 and I don’t make a lot of money in my day job. I barely even afford my bills and putting food on the table as it is. I cannot afford any other monthly payments. I also read about an hardship. I may do that if you suggest that. I’d be curious to see what you’d have to say. Anything will help. I appreciate your time.
If you stopped paying the original account that Midland has in 2009, than it is about to come off your credit reports as it is. You are not trying to accomplish any major financing goal. And Midland Funding can only appear on your credit reports legitimately for up to 7 and one half years from when you stopped paying the original creditor. You may just want to wait it out. Getting Midland Funding to agree to settle a 9k debt for under 1k is not all that realistic.
I was reading up on SOL in PA, and just by talking to them admitting my debt can reset that clock. I may just wait it out as you said. According to this website I found from a Philadelphia Lawyer who write it, he stated a lot of different scenarios. Just by talking to them and admitting your debt can reset the clock. He also mentioned the clock of the SOL starts from the last payment made. The last payment I made to my credit card was back in 2009. Then Midland Funding took over Aug 8, 2013. So I wasn’t sure if the clock was still ticking from 2009 from the Bank of America credit card or from when Midland Funding took over? But I hope this falls off soon. I’ll just ride it out. I wanted it off but since they haven’t heard anything from me in all of these years, I figured they’d want to settle. Something is better than getting nothing. But you’re right. Thanks Michael. I appreciate the response. .
The SOL is from when you stopped paying in 2009, and not when Midland Funding picked up the account. This would appear to be passed the SOL too.
That is good to know. I will just ride it out until it falls off. If they do decide to come after me and I will use the Sol has my argument. Thanks man. I appreciate the insight.
If my husband owes Midland Credit collections $4100 what can we settle for? We’ve been paying $50 month and want to get it settled. Also with a settled amount do they really remove it from your credit? I’ve heard horrible things about them. Thanks
Is the Midland account one that reached the lawsuit stage for collection?
How long have you been paying the $50 per month?
How long ago was it that you last paid the original creditor?
Settling debts typically requires you to miss payments. If this is a judgment that you are paying on, stopping paying could trigger a myriad of things many of us would prefer to avoid.
If the account is 2 years old (it is more than 2 years since you stopped paying your original lender), than you would fall into Midland’s new credit reporting policy for paid or settled accounts to be taken off your credit reports.
Hi Michael…What would be the purpose for Midland’s attorney paying the docketing fee on a judgment after the court-ordered financial disclosure of assets I sent them showed that I have nothing.
I am not penniless but I live on Social Security in subsidized housing and eat with food stamps. I have no real property, no car, no savings,. They know this as it was all reported on the disclosure form.
Now they have filed the docketing fee; does that mean they will try to freeze my bank account even though there are no funds in it other than from Social Security? I do not understand why they keep incurring additional costs for this matter given they know I have nothing for them to take and that I am a senior citizen who will likely have nothing for them to take in the future.
What might be the attorney’s motivation for docketing a judgment that is for all intents and purposes, not collectable?
Probably just part of the collection law firms work flow. You may want to consider contacting Midland Funding about how you qualify for the hardship policy they publish. If you meet the outline in article 2 found at that link, they essentially stop collecting.
Thank you for your reply, Michael. It is interesting to read their hardship policy as it describes my situation perfectly.
What is so interesting about that is Midland knew all this about me way back when they began trying to collect. I wrote to Midland stating my financial situation but they sent it on for legal action anyway and after they were granted a judgment I filled out the financial disclosure form I was sent by the court. It stated once again my financial situation and clearly shows I am exempt from further collection efforts.
Considering this debt collector that is supposedly “fair” and “smart” I cannot help but question the wisdom of Midland taking this as far as they did. The law will not allow them to go further unless my situation changes which, at my age, it probably won’t. I can’t help but wonder why they bothered going after me, unless it was solely to harass.
I think it was an error unless they thought they saw an asset, like a home, to go after once a judgment was in place.
I was wondering if I could get some answers. I was recently sued by Midland for a past due cc account. I hired an attorney to go to court for me as he had a better chance of winning. A week before the hearing I got a letter in the mail that Midland withdrew their complaint so no court happened. My question is will and can they sue me again for this debt? How can I get Midland off my credit report?
Unless the case was dismissed with prejudice, it could be filed again.
Settling with Midland will end up removing them from your credit report if the account is more than 2 years old (since you stopped paying the original creditor). How old is your account?
Hi, Michael –
Do you know how common it is for Midland to give up and re-sell debt to someone else and what reasons their firm might commonly care to do so?
Also I too am curious about what I read here and elsewhere about Midland using an out of state assignee law firm and one that from what I am reading here and online may not answer validation requests and then just send another letter noting handing back the account to Midland and noting a suggestion to use an in-state firm. Do you know their history in this area of activities? Why not use an in-state firm to begin with?
Lastly, from what I have read here it’s made me wonder what obligations Midland would have to meet, if I sent them a validation letter. I am in California.
I am curious about these topics I am seeing on this page about Midland, because I have a new collections remark on my credit report from Midland for an semi-old (2013) credit card for a little bit under $1000 from my ex-husband, but I was a joint account holder and not just an authorized user. No letters yet. No calls yet. I am not just going to settle without first learning some more about Midland and these various processes. I owe it to myself and my family to get educated before I make decisions.
Midland does not resell debt at all. They are precluded from doing so.
I do not really understand your second question.
Midland has the FDCPA to comply with on debt validation requests, and also must comply with the California Fair Debt Buying Practices Act.
Hi Michael,
I finally got the first letter from MCM regarding my old Credit One account and the one for my spouse. They are each for a little under 1300. They have a clause that if we pay or arrange monthly payments by February 10th it will stay off our credit reports. We want to take advantage of this and I have been trying to contact someone therw, but I work 12 hours from 7 am to 7 pm and my commute alone is a bit under 2 hours. No one picks up by the time I get home. We only have one phone per budget cut.
Should I try to see it my boss would allow me to call from our work phone? (Likely not).
Do MCM normally respond to settlement letters? Also, how likely is it that they will take 450-500 for about 1280? And 1210?
Do not send a letter. Get with them on the phone. Call their main number during your lunch or break. What you can settle a debt for with Midland Funding is going to vary from one person to the next. Not all of us look as collection worth as the next person, and that is often whet debt collectors will base their decision on. Watch this video about how debt collectors see you for more.
If you struggle to get those targets you can afford let me know.
Hello:
I discovered a surprise collections account pop up on my credit report for a Credit Card from 2013/2014 that wasn’t mine. It was sold to Midland. Later on I received a letter from a law firm saying Midland was their “client” and that they are an “assignee” and demanding less than $1000 and wanting me to settle. I placed a fraud alert; I don’t wish to settle an account that was not mine.
The law firm is in MA. I am in CA.
My attorney sent them a validation letter and denied it was truly my account. They responded to my attorney by saying they’re going to send the account back to Midland and “recommend” that they use a law firm in my state.
That was the middle of this summer and it’s now mid-November.
Midland quit reporting a status to the credit agencies not long after that letter from their assignee firm, but the collection status is still on my credit report.
Would you have any insights into parsing this timeline and sequence of events, so I have a little bit more information, before I call (If I even need to?) that attorney again that I used back then?
I would like this off of my credit report, but I am lazy; so, I don’t like opening cans of worms – even though this Card wasn’t mine.
Is this alleged debt perhaps now “sleeping,” or is it more likely “brewing”?
Thank you.
p.s.
there was also a medical bill that showed up around the same time and that collections agency was Bay Area Credit Srvcs. The same type of letter was sent to them by the same attorney – and Bay Area removed the collections account completely from my credit report. My scores jumped dramatically and quickly, so that’s why I am balancing “cans of worms,” versus doing nothing more right now – in regards to the Midland account.
If the account is not yours you should definitely not stand for it being on your credit reports. There is no can of worms here if you are a victim of fraud or identity theft. Check out this page for more on what to do about identity theft.
Is there something about your situation that suggest you handle this with kid gloves? Like a family member is to blame, or something like that?
Hi, Good point. That’s possible. Yikes! Now I really don’t know what to do.
Question: do you know if Midland is often unprepared to respond properly to validation letters? Maybe they don’t have enough anyway, perhaps? Or, do they usually have their “stuff together,” versus acting “fast and loose,” like some agencies?
I am especially wondering since haven’t reported in months, ever since their assignee firm sent their final letter as I described it to be…
They are one of the better collectors at responding appropriately. If the debt is something purchased far back enough, say 2013, and from another debt buyer (they did not buy directly from the original creditor) they may be delayed in responding, or unable to. If it is a new purchase, all of that is coming with the media needed to validate these days. That doesn’t just apply to Midland Funding. If the account was purchased by Midland directly from the lender, there will likely be no problem for Midland to meet debt validation requests.
Debt validation is not what many make it out to be. It is exceedingly simple for a debt collector to meet its obligation to validate.
I am not sure how any of that applies to an account that is not yours. I have the sense that there is more to your story than the average ID theft or fraud charges. You are welcome to call in and discuss privately if you like. I am option 2 on the hotline you see at the top of the page, or you can fill in the talk to Michael form in the right column to reach me if you like.
I am just trying to find out what’s going on and why coming after me. If they can’t validate as me, which they can’t, maybe they can see in their records some information that has the correct person.
If it turns out to be a family member, well – I decided too bad. I’ll press charges.
I don’t have time for nonsense.
(I am particularly interested in why: I received a letter from a law firm saying Midland was their “client” and that they are an “assignee” and then after one letter respond by saying they’re going to send the account back to Midland and “recommend” that they use a law firm in my state)
Why might that happen? Is that typical and why?
The entire thing has me confused.
That is odd.
I was served Saturday, Oct. 29th and have to “file an answer” with the court by the end of the day Monday, Nov. 14th. The debt is $3966.74 of a medical expense. (I’ve been dealing with personal illness and my parents’ illnesses, too.) Anyway, am I allowed to contact the lawyer listed for Midland Funding? I actually want to pay my bills and put that awful rough patch behind me. I can give them $1000 come payday at the end of the month and another $1000 at the end of December, but that’s it until the end of February of next year. I’m a part time teacher, so I don’t get a paycheck in January. Please tell me the best course of action so I can take it and be done with this!
If it were me I would file a general denial and buy time to save up the money over a couple months to settle for a lump sum and get the case dropped.
If the situation is right you can sometimes settle with Midland Funding outside of court for 50-ish percent.
What state are you in?
Is this a Care Credit account that Midland is collecting on?
I’m in Texas and, yes, it was a Care Credit thing.
Okay, thanks. You can probably get yourself to February after filing an answer to defend in Texas. I would try to settle this for 50% before then though, if it were me.
So, is this the point where I contact the lawyer listed and directly offer 50% before I file the answer with our local court? Or do I just trot this answer up to the courthouse and leave Midland’s lawyer out of it? I’m not clear on the proper sequence of events. That’s the thing scaring me the worst – screwing this up while I’m trying to fix it!
If it is me, I file the answer first, but you can reach out to try and negotiate a settlement first. But if the deal is not agreed to and documented quickly DO NOT miss your deadline to file your answer with the court.
Okay, got it. Thanks!
Hi Michael. I recently got a letter in the mail from MCM stating it was a Pre-Legal Notification. It said to call them to see how to qualify for discounts and affordable payment plans. I recently settled another debt they had that I was being sued for, which I’m thinking is what triggered this letter. The debt is in the amount of $8,959.47 and is not past the SOL here in NJ. When I called them lastnight to explain my financial situation (I’ve been unemployed, husband just retired 21 years military and doesn’t start new job till dec 1, I just used my mortgage money this month to settle other debt with them, etc.) they of course had zero empathy and said they could settle for a one time payment of 7,900.00. That’s only 1,000 off the balance. I’ve never experienced this where they will not negotiate down to at least 50% off. I’m aware that legally they do not have to negotiate but still. I met with a bankruptcy lawyer in sept and would only have to pay him 1100 more to file a bankruptcy claim but I don’t want to really go that route. How can I get them to settle for around $4,000 or $4,500? I’m hoping to have some money next month once my husband starts bringing in money with his new job. This is such a stressful time and am so confused as to which avenue to go down regarding this. Any suggestions would be greatly appreciated.
*when I say I’d only have to pay the bankruptcy lawyer 1100 more, what I mean is that I already paid him 350.00 and he charges $1450.00. I have several other high debts so bankruptcy is always in the back of my mind as an option although I really don’t want to go that route.
Fill in the talk to Michael form in the right column. I will get that and email you to set up a time to go over your situation on the phone. I am concerned that settling with Midland is the right thing to do if you have so many other debts. I will go over all of the accounts and help you assess your collection risks on the other ones too. If settling makes sense I will help you get Midland done.
Thank you for writing this and responding to all the comments. I think just reading all this is a big help to me.
Hi Michael, is there anyway to settle without going to court? My paperwork said I having a hearing date November 18,2016. Will I be settle for the $653.61 or is there some way to negotiate a better price than what it’s saying on the document? I feel like the debt maybe a little older, but unsure..
It was good to talk with you on the phone yesterday. I think you posted and sent the consult request. Let me know how it goes.
Hi Michael. I recently received a call from MCM for a store credit card debt of about $500. Its almost 8 years old and from when I was a teenager and tried credit cards for the first time. I’m currently about to graduate college with absolutely no extra money. Should I try to settle this is asap by borrowing more money or wait until I can actually pay it? I just do not want to be at risk of being sued and paying courts costs, attorney fees, etc.
What state do you live in? When did you last make a payment on this account?
I live in Louisiana, and I haven’t made a payment in 6 or 7 years. When the account became inactive, I just stopped making payments altogether.
You would not be at risk of a lawsuit after this long in Louisiana. You do not have that kind of pressure.
Hello Michael: My name is Rachel and I am being sued by Midland Funding LLC, who is the current owner of my account. I watched your video today and was impressed by the way you are able to simplify different case situations. I live in Maine, not far from the Portland Offices of Howard Lee Schiff, P.C. who is servicing Credit One Bank, the original creditor. The current balance is $724.35. Because of the complexities of credit law. I am convinced that I need an attorney. Can you refer me to an attorney who specializes in collection law or has experience with debt collection in the Portland, Maine area. My cell is [edit]. I can be reached at work by calling [edit].between 7:30am and 4:30pm EST. My email is [edit]. Thank you and I look forward to hearing from you.
I edited out the phone numbers and email address to protect your privacy. Check your email you used to post the comment. I sent contact details to those I know of in Main, or with a Main law license, that can assist you.