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.
Midland bought two accounts back in October 2015. When they called I was put on a payment plan giving them X amount each month, auto-drafted from my bank account. Now all of a sudden since February 2016 both accounts are listed on my Credit Report (which they weren’t before). When I tried calling to discuss this with them, they said they always report and that I was wrong. You can clearly see when they purchased the accounts vs the first date they reported it. I asked if they could remove it as I would continue to make the monthly payments that were auto-drafted from my bank account. They said no and now I am in no rush to pay it back, but was wondering if I should bother calling them again to see if they will reconsider this so I can get this removed from my Credit Report? They keep sending me letters as well if I wish to settle the debt.
When was it that you stopped paying the original creditors that Midland bought these accounts from?
Also, they HAVE been calling me, but I haven’t answered to speak to anyone yet.
Hi,
I received a letter from Atlantic Credit & Finance, stating “PLEASE ALLOW THIS LETTER TO SERVE AS INTRODUCTION TO MID. MID HAS PURCHASED OR WAS OTHERWISE ASSIGNED THE ACCOUNT AND IT HAS BEEN PLACED WITH ATLANTIC CREDIT & FINANCE FOR COLLECTION”. . I have read to always first request a Validation Letter on a debt, when its from a Debt Buyer. I did get a letter from my Original creditor Citi stating that it was sold to Midland Credit Management. I am Disabled and receive Disability Social Security. , I am unable to pay this amount and tried working it out with a previous collection agency assigned by Citi,, but a agreed amount couldn’t be made. Now it’s been sold. The letter came within a couple months of me last talking to Citi’s collection agency they assigned. I am wondering how I should go about this.. Should I still request a Validation Letter? I’m assuming MID is Midland Credit and they sent it out to Atlantic Credit to collect FOR them. I really don’t want to get Sued or have my only Asset which is my car being taken away., but I don’t have the funds with me being on a Fixed Income to pay the amount, since I don’t get that much .and I need my car for my Doctor Visits and Infusions I have to do monthly. Should I have them prove its mine or can they? Can they freeze my checking account or any account my Social Security number is on? Can they take my car? I’m wondering if I should send a Validation letter request or call them and explain my situation before anything worse happens. I don’t want to open up a can of worms by contacting them if its not the right way to approach it with my situation. What would happen if I didn’t even reply to letter, does Midland Credit Sue right away or is there a change I might get a Settlement letter of other than the Full amount if I didn’t replay to letter. I would appreciate any help you can give on this. Thanks
If you have no real assets and are on a fixed income I would first want to call Midland and show them how you meet the criteria they publish on their website as being in enough hardship for them to leave you alone… forever. Read through Midland’s page about being designated as a hardship.
I recently got a letter from an attorney soliciting busiest due to a recent filing at the courts involving myself and a past creditor with whom I had already responded to and made a payment and arrangements with to clear the debt, before I got the letters in the mail. I am confused as who I should pay as I have not been served any thing nor to my knowledge gotten mail from midland.
What kind of payment arrangement did you work out with Midland?
None. I haven’t spoken with anyone with midland. Just the original creditor. I’m not even certain what debt midland is suing me over as I have to my knowledge not received anything from them. Just the notices from attorneys which are solicitations for business.
I read your first comment to mean you had already called and made payment arrangements for the debt before you got the solicitations from bankruptcy attorneys offering to help. But now it sounds like you set up payments with the creditor. Who is the creditor and what are the payment arrangements?
I assumed it was citibank. In which I have or had made a payment to and arranged to pay off the debt by the end of April provided I have my income tax to do so. They agreed. Now I am not sure the debt w midland is for them howevery I am unaware of any other debt I may have. I am not disputing any as I may just not be aware. How would I get in touch with midland or would you advise that just yet?
If it were me, I would call Citibank and confirm they sold the debt to Midland Funding. It sounds like that is what happened. You called Citibank and told them when you would be in the best shape to resolve the debt, but did not make those arrangements formal, or remit payment. Your account was then bundled up and sold to Midland Funding before you could make good on what you told to Citi.
Are you going to be in shape to settle with a tax refund still? Are you motivated in that direction?
Yes I actually spoke to citibank the day before I got the solicitation from the attorney and made a payment and confirmed amount owed and that I would pay balance in full by april. And the lady never mentioned anything about midland or I need to talk.to someone else! Just took my payment and repeated my agreement in paying by April.
Weird, as that suggests they took payment after they sold it. Normally someone at Citi would just tell you they sold it and give you contact details for who has it now. I would call Citibank and double check what happened then (with the payment you made), and that they indeed sold it.
I definitely will.
If I find out it wasn’t them, how exactly do I proceed with midland? As I stated I do not recall getting any letters from them about owing anything. So I don’t want to call and just provide my personal information at will but the attorney solicitations suggest there is a pending court action against me.
If you confirm with Citibank that they sold your account to Midland Funding, and your goal is to resolve the debt, you would look at negotiating a settlement. You may not be able to do that directly with Midland now that a collection law firm has it. But you can negotiate with the collection law firm and settle out of court.
Hi Michael – I was served a document today from an law firm for Midland Funding ordering me to appear before a court commissioner at the said law firms office. This is regarding a judgment against me in 2010. The SOL is within 6 months from now. What does this mean? Is this a common tactic?
Thanks
Judgments usually have a different SOL than on accounts that have not been sued on. What state are you in?
The document sounds like a court order to appear for asset discovery. It is basically having you show up to answer questions under oath about your income and property. It is done in an effort to try to get paid. If you are uncollectable you will be showing that with your answers.
Talk to an experienced debt collection defense attorney in your state about this, but you do not want to miss appearing for anything the court orders you to do.
My husband got a letter in the mail from an attorney representing Midland funding llc which they are representing for chase bank. Sending my husband to court for a debt of $3493.62. Which we settled with someone else in 2015 with the amount of 900.89 with Northland group and his account was closed in may 2, 2016. We have an encloses letter from that debt collection stating that this was settled and the with chase bank was officially closed and paid as settled. I have all documents. Can they come after my husband? We already settled this account with northland group. Even in his credit pull up it says chase bank closed. Please answer asap!!
I would send a copy of all that and proof of payment to the attorney for Midland. Send it certified mail. Let me know what happens as a result.
Hi,
I read your article and see that Midland does not resell debt. It shows on my husbands credit report as CHG OFF, which I found means that they essentially gave up on trying to collect the debt. The debt is scheduled to fall off in June of this year due to SOL. What are the chances that Midland will reopen this and start to request payment again, or possibly sue since SOL here in CA is 10 years for requesting a judgement?
Also, they have a current judgement on him. They originally filed it in 2011 and the courts denied it, so they refiled it in 2013 and won. They didn’t though send him another notice for the one in 2013. He spoke with Midland several times and they agreed on a 20% discount. What are the chances of getting that even lower by talking to the filing attorney?
The judgment is still collectable even when it is not on your credit reports, and that is the main concern, and motivation for settling in most of these situations.
You can negotiate the same outcome usually. My experience is dealing with Midland directly tends to result in the better outcome. How much is the balance owed on the judgment today?
Thank you for responding. Can you explain the CHG OFF to me as well? (I read your article and see that Midland does not resell debt. It shows on my husbands credit report as CHG OFF, which I found means that they essentially gave up on trying to collect the debt. The debt is scheduled to fall off in June of this year due to SOL. What are the chances that Midland will reopen this and start to request payment again, or possibly sue since SOL here in CA is 10 years for requesting a judgment?)
The current judgment shows at $5800 or so I believe, so they agreed on $4600. The original amount is for $4100. We obtained a copy of the case file today to review it, and it shows the attorney that filed the claim indicated on there to waive all interest and to not charge interest on the balance due, so it shows it back to the $4100 when it was filed. So we are going to try to get the 20% off of the $4100.
Let me first restate what I understand you to have going on.
You were sued by Midland and they got a judgment in 2013.
Charge off means nothing to you in this situation. And there really is no SOL to be concerned about. Based on the systems used today, a judgment is on your credit for 7 years from date entered in the court record. That goes for whether you pay it or not.
Judgments in California are good for 10 years, and can be renewed again. That is 20 years.
You are settling this from what it sounds like, so not much to be concerned with other than when this will drop off your credit.
Any credit reporting Midland Funding is doing that is separate from the court record (or what is seen as a public record item on your credit) will be removed based on their new credit reporting policy.
On top of that, judgments are set to be removed from credit bureau reporting by September of 2017 as a result of the 31 attorney general settlement a few years ago. I hear rumors there is a data company looking to fill that void once the bureaus stop showing judgments, but that has not happened yet.
Hi,
Thank you for your response. There are two different claims from Midland. One is the one showing as CHG OFF and the other is the judgment which we are trying to get them to adjust since they are charging interest and the court documents indicate no interest to be charged.
I’m just curious now about the second one on the report that shows as CHG OFF.
It is normal for there to be a general collection account entry, and then an additional one in the public record section of your credit reports if there is a judgment.
Hello, I just found out that Midland Funding just filed a lawsuit against me. I found out only by other attorneys trying to earn my business. I looked on public records and it shows that it was just filed about a week ago. So there is no court date yet. The debt is for about $3500 and I vaguely know who the creditor is. Can I contact the attorney of record directly to try to resolve before actually going to court? If they win a judgement, do they immediately try to freeze accounts to collect money or can we still negoitiate after judgement.
You typically have to work through the attorney Midland sent your account to. And you can resolve this out of court by settling. If you are going for a payment plan you have to be ready for them to require you sign a consent or stipulation to judgment. Review that link for more about that.
You can settle once a judgment is entered. Read that article for tips and cautions too.
Check out this video about avoiding bank account levy or wage garnishment.
Hi Mike,
Earlier this evening I recieved a call from Midland regarding my account that they bought from Synchrony in 2013. I had a CareCredit card that was bought by Synchrony who then took over my +$500 debt which did go unpaid for several months due to financial hardships. However, before I moved in 2014 I paid Synchrony in full. I remember this to be true because my final statement arrived for $0.46 (YES, I wrote a check for less than a dollar!) and I never used that card again. Cut it up and never heard about it again. Now it is 2017 and I am being called so I explained all of that to Victor (the phone rep) who then passed me on to his suoervisor. I asked for more information because none of it made sense, including why they have waited 4 years since they bought the account to contact me. He then stated that this has been on my credit report being reported 1-2 times per month!! He then stated that the original debt of 533 was bought in 2013, a settlement letter was mailed 12/15/15 and my last payment was $53 in January of 2015. The address they stated the settlement was sent to, I have not lived at since July of 2014 so obviously I have never received any correspondence. He then rattled off my next address, which I have not lived at since 2015. My phone number though has never changed and he insisted that I have been contacted numerous times but no message was left so this is why it has taken so long to contact me. I told him again, none of that was logical and that this date was paid years ago so I am having trouble understanding. He then asked if that was the case, then why are we calling you? I said that is what I am asking you. He could provide no other information than what I have stated here. He said he believed what I was saying to be true and he understands it is my hard earned money. He said it could be investigated which would take time and if I could be helpful to provide legal documents and he started talking in cirlces OR i could pay a settlement amount but they need my current address. I explained that I wasnt comfortable giving any information considering they’re calling 4 years later about a debt that was already paid. He said it has already been reported so he needs the information. I gave him my current address. He then offered the settlement option again. I said “So basically you’re asking me to pay for a debt that was already paid at a lesser amount to avoid an investigation?” He tried to walk around the question but the answer is yes. I then told him that I am not comfortable making that decision without looking into it further and I will call back by the end of the week with my decision. He stated he will not put the account in dispute but they will continue to report the debt on my credit report. At this point, I’m not sure how to proceed and I am still trying to recover my already horrible credit score which went from a 700 to 500 over this account. I’m not working so the unexpected expense will be hard to do but I dont want to hurt my credit any further and although I know the debt was paid, Im not sure if I have all of the paperwork to prove it. Being that it has been 4 years – theres a 50/50 chance that I have it filed away. I’m in Michigan and Im not sure of the rules or how I should proceed. Any help or advice would be greatly appreciated.
**Also, there was no mention of legal action from Midland at this point but I would like to hear thoughts before it gets to that point.
I would dig up the records to show you paid and then use that to get Midland Funding to go away and to also get this off your credit. If you cannot find the record yourself you can often ask your bank for older statements and records. Many banks will charge a few dollars for old records they still have.
Let me know what you find and we can go from there.
i recieved a civil notice from midland funding through the courts with a notice at bottom stating a time fixed for hearing . and have contacted midland funding several times to let them no i have no way of paying this i am n dissability. i only draw 43.00 a month. not much i can pay with this
Check out this published consumer bill of rights from Midland. If you have only exempt income and no assets Midland Funding will stop collections.
Hi Michael,
I am being sued my Midland Funding for a credit card bill from Barclay’s. If the last time a payment was made on this account was from May of 2013, is it pass the SOL or time barred at this time. And what happens it you state you had an old account but disrupt the balance and dates, does that in any way have an affect on the SOL.
What do you think? Please help. Thanks.
I’m in South Carolina
Thanks. The SOL for credit card debts in South Carolina is 3 years. They have to file the case (not serve you) prior to the SOL expiration. It appears that you have a solid SOL defense if May on 2013 was when you stopped paying. That is, unless they filed the lawsuit that long ago and just got around to serving you.
What state are you in?
What is the date the suit was filed in your court (not date they served you)?
Talk to an experienced consumer law attorney in your state, but to my knowledge, sending a dispute or debt validation request does nothing to the SOL in any state.
Hi Michael:
I need help. Being sued by Midland Funding with an upcoming court date. This stemmed from an account I had with a store that Sychrony Bank bought out. Payment arrangements were initially made between the store and me but due to job loss, caring for two terminally ill parents for months affected my ability to pay this debt.
I contacted all of my creditors by mail, explaining the situation. I do not recall hearing or receiving any correspondence from Synchrony for over a year. I did not receive any correspondence from Midland either until court papers showed up. I am currently unemployed and am working towards obtaining some funds to help with this debt and other debts.
After checking my credit report today, I discovered that there are 3 additional accounts in collections with Midland that were previously owned by Synchrony Bank. Concerned that it is possible that I could be called back into court additional times. I attempted to contact the attorney and left a message but did not receive a return call.
Just trying to sort out things and the best approach. If I contact a consumer attorney, I am unsure if it is expensive and if I obtain funds, would it be best to just go to court and try to work out something then..
Plead advise.
Fill out the talk to Michael form in the right column. When I see that I will email you to set up a time to talk on the phone. I want to cover the totality of your situation in order to offer the best feedback.
Hey i hve a question i was summoned to court vs midlandfunding llc and ended up winning my case for a little under 5k i check my reports and seebi have 4bmore with Midlands name on it since i won my 1st lawsuit vs them should the be all removed of my credit reports???
Getting your collection case dismissed does not mean deletion from your credit reports.
How much longer do the accounts have to go until they fall off from age?
I just got served court documents to appear in court. Midland is suing for $1900 from a citicard account. Can I still settle and with the law firm or Midland?
You typically have to call and negotiate with the collection law firm at this point. Be sure to get everything in writing from the law firm before you pay.
I owe Midland Credit Management $2,207.26. They bought my debt from Citibank, N.A. It was for Tires and wheels that I purchased on a Sears card 2 years back. I lost my job shortly thereafter and could not pay. I have $1200 saved up now.
What are the chances of getting them to settle and remove remark from my credit report for $1200.00
If the account is more than 2 years late (since you last paid Citibank) Midland will stop reporting to the credit bureaus after you resolve it with them. If you are prepared to pay $1,200 I think you will get this done with no problems.
Be sure to get everything in writing from Midland before you pay.
I owed 19 dollars to Old Navy – Visa card due. The person who opened the account for me in the store typed in the wrong address and I never got any bills/statements or my card. Now 11 months later, this card is in collections. Midland called me telling me that I owed 51 dollars and asking for the payment over the phone. I was very skeptical, so I pulled up my annual credit report. And discovered the situation. Now I just want to pay off the amount owed, but am worried about giving them my credit card information or anything until I have something in writing stating how much I owe. What is the best way to go about paying off this small amount? You mentioned getting something in writing ahead of time from them before paying. What are the contents of this letter? What kind of letter should I ask for them to provide before I make a payment?
You are fine paying over the phone these days.
I would explain the situation and that you would just like something in writing first, before paying. They typically send what is called a dunning notice within 5 days of speaking with you, so verify they sent that, wait for it to arrive, and then follow through with payment if that is what you want to do.
If you caught this within the first 90 days Midland Funding bought your account, you can keep it off your credit reports.
Hello. I am being sued (haven’t been served yet) by Midland Funding (represented by Gamache & Myers in St. Louis, MO. The total is $1,260.11, I offered $750.00 and they asked why so low? I told them that was all I had to offer. She put me on hold and said “they” countered to $945.08 (which is what they offered me in a letter dated October 2016). She said they would accept the $750 right away and I would need to come up with the remainder in 30 days. I watched your videos last night where you say you can get them to agree to 30-40% of the balance and I’m freaking out that I offered that much! I’m borrowing that money from a friend. Can you help me with what I should do? Should I go to court and hope for the best? Looking forward to hearing from you. – Heather
That type of settlement outcome with Midland Funding is typically never an option once you are sued, only if you act before the account is sent to an attorney. See this post for more about settling when sued.
I talked them down to $800 … not sure that’s great but it’s settled.
All things considered (being sued), you did great!
Hi Michael,
Thank you for this article. I had an account opened with Synchrony Bank back in 2013 for $5k ( I lived in California at the time and currently living in Colorado) I have multiple credit cards, student loans, and a car loan but I managed to keep up with payments on all this for a good while, but towards the end of 2015 had some financial issues and ended up keeping up with payments on everything except for Synchrony Bank. I called them and asked for lower Payment arrangements or a couple months off from making payments, and was only told to pay what I can pay even tho much it doesn’t satisfy the monthly minimum payment (which was $150). So I paid $75 monthly to them for a few months. And it wasn’t really helping since I was getting charged late fees regardless. In August I received a letter from Midland stating my account was sold to them, and to either mail a check for full balance or to contact them to make payment arrangements. I never contacted them, but they been calling my cell phone, at least 2x a week and never left any messages or sent any other letters. However, they stopped calling about a month ago. And it never showed on my credit report til yesterday morning. I would like to know, should I continue ignoring this? I’ve been told by other people that if you leave an account in collections, it will only affect your credit report and chances of them suing you are very unlikely. I want to ignore this but I’m worried they’ll try to take me to court and garnish my wages. Please advise! Thanks
Midland regularly sues to collect, and the chances are quite a bit higher than you heard. You are more of a target for that in my experience because you are showing an ability to pay other accounts. You can settle with Midland Funding for a significant savings, and often with monthly terms. That would prevent being sued.
I would not ignore this if you are concerned about it escalating.
My husband has reached a verbal agreement to settle a debt with Midland. However, they are refusing to send us the agreement in writing until we give out our bank information and send the initial lump sum payment. The deal is a large lump sum, then 30 monthly payments. I am adamant about receiving a written agreement, and they are adamant about not sending one. Advice on how to proceed?
That is not normal for Midland Funding. They regularly send out agreement letters. I would call and ask for a supervisor. Post an update and lets go from there.
Hi, interesting article you have provided. I am in a situation with Midland Funding LLC. I have received papers in the mail and now have a process server knocking on my door…2 times already..I haven’t been home. Any input as to what I should be doing to get this monkey off my back?
Typically you are looking at defending the lawsuit, settling with the attorney for Midland Funding, or setting up payments. What is your goal?