Short answer
Midland Funding LLC buys defaulted credit card debt and Midland Credit Management collects it. Both are part of Encore Capital Group. The cheapest time to resolve one of these accounts is early, before it reaches a collection attorney, and acting early can keep the account off your credit reports altogether.
Key points on this page
- Midland Funding is the debt buying arm. Midland Credit Management (MCM) is the collection agency. Same owner, different jobs.
- Resolve the account soon after Midland buys it and they may not report it to the credit bureaus at all. This offer is real, and few other collectors make it.
- Midland removes its credit reporting once you pay or settle. Deletion has been seen to take up to 60 days.
- A “Pre-Legal Notification” letter is not an empty threat. It means your file has been selected for collection attorney placement, and you still have time to settle before that happens.
- Settling after a collection attorney has the account commonly costs 20 to 40 percent more than settling before it goes to court.
- Sending a debt validation letter is your right, but it is counterproductive when you already know the debt is yours and your goal is the lowest possible settlement.
I recently spoke with a woman who had just been sued by Midland Funding LLC for a debt they bought from Citi bank. The amount she is being sued for is a few thousand dollars. She is being sued by a debt collection attorney in her state after collection attempts were first made by Midland Credit Management (MCM). Both Midland Funding and MCM are part of Encore Capital Group, which is one of few publicly traded debt buying companies in America, and one of the largest in the world.
I want to share the facts of her situation because they may help if you are getting collection notices and phone calls from Midland Credit Management, or if you are being sued by Midland Funding. Many of you reading this can prevent escalated collections from Midland in the courts, and anyone already in the courts will want to know how best to navigate things from here.
There will be many a reader just looking for why Midland Funding is appearing on your credit reports. Once you know why Midland is on your credit, many of you will want to know some things you can do to improve your credit.
Be certain to read the updates regarding Midland Funding on your credit reports that I posted at the end of the article. They have set themselves apart from any other debt collection company in the country by developing a consumer friendly credit reporting policy.
Credit card bills that go unpaid are packaged up in large bundles and sold off to bad debt investors in the normal course of lending. A portfolio of debt being bought by companies like Midland Funding could include your account, and thousands of other unpaid credit card bills.
Having your credit card debt bought by a debt buyer like Midland Funding is not unusual. And depending on how the debt collection and debt buying landscape changes in the next year or three, it could become even more common than we see today.
Midland Funding LLC and Midland Credit Management are Different
While Midland Credit and Midland Funding LLC share the same ownership under Encore Capital, each company does something different, and those differences matter to you. Midland Funding is the debt purchasing arm, while MCM will be recognized as the active debt collection agency, similar to how you would view any other debt collector.
Midland Credit Management sent a debt collection letter to the woman I reference above. Receiving a debt collection letter from a collection company you don’t immediately recognize is a normal occurrence. Collection agency letters and phone calls are the 2 primary ways a debt buyer, or the debt collectors they hire, will try to get you to pay.
You have options for handling the collection efforts from Midland Credit. If you are in a position to work out a settlement for less than what is owed on the now purchased account, doing so after the first phone call or collection letter you receive, is something to consider.
Understand that making arrangements to pay a debt buyer the full amount for a debt they bought is not going to go to your original creditor. The debt buyer is not a lender, but an investor. They are risking money to buy up bad debt to turn a profit.
Midland Funding is willing to accept less than the face value of your debt through its debt collection arm Midland Credit Management. How much less will vary. You are welcome to call me at 800-939-8357, ext 2, in order to get help settling with them.
Midland Funding generally shows up on your credit reports. Once on them, you cannot pay Midland to delete the derogatory in the first 2 years they have your account. You can negotiate a lower payoff and Midland Funding will update your credit reports to show the account is resolved and a zero balance owed. This will help you get a home loan through, and benefit you in other ways too.
There is a delay between Midland Funding buying your debt, and them reporting to the credit bureaus. Midland Credit Management will often start off the collection process by sending you a collection notice, or make collection phone calls that you may pick up. In the letter or phone call Midland may offer you the opportunity to settle or set up payments on your account in order to prevent the credit reporting of the collection account from occurring at all. As of the most recent update to this article, you have three months from the date they get your account to take advantage of this offer. If you can afford the money to settle, or set up payments you are confident you can pay each month, there are immediate and long term benefits to doing this. It is not a trick, they actually do this, and may be the only debt collectors making this type of offer.
If you want to settle with Midland Credit Management for less than the balance owed; can afford 50%; and sometimes spread out over 24 months; click the get debt help tab at the top of this page and create your user profile.
You can get help settling with MCM and have a deal done within days (as long as MCM has not already sent your account to a collection law firm). The Network I helped build has many negotiators, and we all charge 15% of savings. No savings, no fee.
Debt Validation Request Letter Sent to Midland Credit Management
The woman I refer to in this article sent Midland Credit a validation request in response to a collection letter MCM sent her. Sending a debt validation letter to a debt collector is your right. If for any reason you question the nature of the debt being collected, requesting validation from a collection agency or debt buyer will accomplish a couple of things:
- Triggers an obligation under federal law on the part of the debt collector.
- A written response from the debt buyer should include the original creditor, the amount owed, and these days, we are seeing some form of documentation to back up their claim (not simply a reference to their own spread sheet of debts they purchased).
- Debt buyers and debt collectors do not always respond to your request for validation, but the response is often sufficient to meet the standard that would allow them to continue to collect (the federal debt validation standard is low enough to trip over, your state law standard may be a little tougher).
- Debt buyers may never respond to a debt validation letter. The account may end up with a different collection agency, or sold off to a different debt buyer (Midland has not been much of a debt reseller of late).
Midland Credit Management did not respond to her validation request to her knowledge.
It is not uncommon for a debt buyer to ignore a validation request. The reason validation of debt requests are ignored by Midland Credit Management, and other debt collectors and debt buyers, is that sometimes no meaningful information was included when the debt was purchased. There are sometimes options to acquire detailed information from the original creditor at an additional cost, but that is not always the case. And you may not appear all that collectable to a debt collector, and they just may not bother if they see a low probability that you will pay anything.
When debt validation requests are ignored, Midland Funding may still send your account to a collection attorney.
Many years ago, I came to the conclusion that sending debt validation requests to a debt collector like Midland Funding, when you already recognize the debt as yours, and your goal is to resolve the debt by settling with the collector for the lowest amount possible, is counterproductive.
Midland Credit Management Sues in Order to Collect
The woman who inspired this post next received a collection letter from a well known and very active debt collection law firm in her state. She sent a new validation request to the attorney debt collector hired by Midland Funding. The collection attorney responded to the validation request with some basic information about the original account including monthly billing statements from Citibank. Shortly after receiving the debt validation response in the mail from the Midland Funding attorney she was served with a lawsuit.
Debt buyers will target accounts they buy for aggressive collection. Midland Funding is part of the largest debt buying collection brand in the nation. Lawsuits to collect can play a big part in how a debt buyer like Midland Funding will look to turn a profit on their investment in defaulted credit card debts.
The debtor, in this case, shared with me that she knew the sister of the process server that showed up at her door to serve the lawsuit. With that connection, a friendly enough conversation took place. The process server shared the fact that she had a list of Midland Funding lawsuits to serve… about two hundred of them. She lives in a county with a small population. Two hundred or so lawsuits on debts bought by Midland Funding is not unremarkable given the amount of people there are in the area.
Midland Credit Pre-Legal Notification Letter
Update February 2023: Like many creditors, Midland Credit will often send a letter telling you of their intent to escalate collections by taking you to court. These mailed notices will typically include the words “Pre-Legal Notification” in larger and bolder letters.
A Pre-Legal notice from Midland Credit should generally not be construed as an empty threat, or just a collection tactic. They are telling you that your file has been selected for collection attorney placement, which is the precursor to a lawsuit being filed to collect. And you can prevent this.
Always open your mail from Midland Credit. If you see a pre legal notice, you typically have time to negotiate a settlement with them for a much better savings than when it goes to the attorney. The main reason I am posting this 2023 update is that I am seeing Midland send out their first collection notice, that they then follow up by sending a pre-legal notice only a few weeks later. There is often more time between their first collection notice and the legal placement letter. But they are accelerating collections with many accounts. And because they give you a timeline to resolve the debt before they take that step, your next move is important if you intend to try to settle the account
Go here to schedule a call with me to talk about settling with Midland. I can often get these accounts settled for fifty percent of the balance or lower, and the settlements can often be paid over a couple years if you need time.
I can help you settle once the account goes legal too, but the deals after attorneys get your account, or an action has been filed in the courts, are not as good, and the process is much more formal.
What to Do About Midland Funding LLC Collecting Your Debt
If you are contacted by Midland funding LLC, or by Midland Credit Management, or some other Encore debt collection brand (Atlantic Credit and Finance, Asset Acceptance), consider the following:
- Are you able to come up with a plan to resolve the debt for half of what is owed? If you can afford to settle with MCM or Midland Funding you can contact them and work toward getting a deal negotiated, a written agreement on the collectors letter head outlining the terms, and pay it off. While it is recommended to negotiate and settle with MCM or Midland Funding in a single lump sum payment whenever possible, you can also look to set up monthly payments that you are confident you can afford and follow through with to completion. Midland Credit Management and Midland Funding both offer different methods to resolve debts they are collecting while giving you time to pay.
- If you are not familiar with the debt they allege you owe, request the debt be validated. Send your request in writing via certified mail. If you do not hear back from them do not assume they went away. I do not recommend this approach if you want to resolve a debt that you know to be yours.
- Be certain you are aware of how long it has been since you last paid on the account and compare that to the SOL (statute of limitations) for being sued on your type of debt in your state. You may learn that you cannot legitimately be sued for the debt as it has passed the SOL. That does not mean the debt can no longer be collected, or that you should ignore it. The account is likely showing up on your credit report. If you have a goal of buying a home, or refinancing an existing home, you may find you are forced to settle collection accounts in order to qualify for a loan later on. And settling later on may come at a higher price. Avoid applying for credit of any nature just prior to negotiating with Midland Credit and other debt collectors (it makes you look more collectable)
Depending on your current financial situation, looking for affordable settlements and paying off debts with Midland Credit Management and Midland Funding will set you up for less stress and the ability to achieve later financial goals.
The woman who inspired this article was someone I worked with a few years ago. She was laid off from work and struggled to find a new job. She could no longer afford to make payments on her credit card debts and was referred to me by her accountant. I worked with her and her husband to develop a plan to settle her unpaid debts, rather than file bankruptcy (they had filed in the 90’s and did not want to go through that again). She was able to knock down her largest 6 credit card balances by settling with her original creditors using money she was able to borrow from a family member. Her husband’s hours were then cut back at his job, and it became impossible for her to follow through with the plan, leaving a couple of her smaller balance accounts unresolved, the Citibank account Midland Credit Management began collecting was one of them.
She did not reach back out to me for feedback on dealing with the Midland Credit Management collection letter she received. Instead, she went to the internet and found what she said was the consistent advice to send a debt validation letter to MCM. She thought the collection account was behind her when she did not hear back from MCM. When she received the attorney collection notice in the mail for the same debt, she simply repeated her debt validation request again. She did not know how, or what, to respond to the collection attorney with, once they mailed back evidence of a debt she already knew she owed. She only contacted me again after she was sued by Midland Funding.
Settling with Midland Funding LLC When Sued
I suggested she connect with a local consumer attorney about her options to handle the lawsuit. After that consultation, she decided to settle the lawsuit from Midland Funding. We got a good deal, to be sure, but she was settling on a total balance that had increased due to attorney costs. We could have settled directly with Midland Credit Management early on, and for a much better savings, and less stress.
There is, often enough, also going to be a difference between the amount you can negotiate and get approved to settle for, when you are dealing with a debt collection attorney. It is not uncommon to see a 20 to 40 percent premium to settle a Midland Funding debt once sued for collection, compared to negotiating before the account lands in court.
If you are just not in any shape financially to follow through with any strategy to resolve the debt with Midland, you may end up with a judgment against you. Judgments can be settled for less down the road, so keep that in mind. But you may want to consider defending against any collection lawsuit too. There are good resources that can help you, but you will want to assess the costs and time involved in any effort to defend collection lawsuits.
What You Can Do to Resolve Debt with Midland
You may be reading this and in a situation where you cannot possibly think of how you can resolve a debt being collected by MCM or Midland Funding LLC. I understand that. The situation is what it is, and sometimes all you can do is wait for things to improve before tackling old debts. However, you may want to at least learn about the options available to you to tackle debts Midland is collecting. You may be surprised by some of the flexibility that is available. You may even be able to avoid being sued later, by taking action today.
If you have received collection notices from an attorney for Midland Funding, or have been sued by an attorney for collection, you will want to contact the attorney directly. You should also consider speaking with an experienced collection defense attorney of your own.
If you are trying to resolve an existing judgment from Midland Funding, you have options for that as well.
There will be additional pressures on Midland Funding, Midland Credit Management, Encore Capital Group, and many other collectors and debt buyers, as a result of new federal regulatory supervision. The CFPB has already had a huge impact on Midland Funding. I will keep the article updated as things develop.
Midland Funding LLC on Your Credit Reports
I am updating this article as of 1/10/17 to include information about Midland Funding credit reporting policy changes that are way ahead of the curve when it comes to providing you the ability to meet your current and future personal credit goals. Be sure to click through and learn more about how Midland Funding will handle credit reporting when it comes to accounts you have with them.
- Midland Funding will not show on your credit reports if you are able to make payment arrangement, or settle with them for less, in the first 180 days after they purchase your account. This is obviously ideal when you can commit to resolving accounts with Midland Funding early on.
- Midland Funding will remove all credit reporting if you pay or settle a debt with them. This is an obvious benefit to those of us who had financial setbacks that lingered longer, and who could not take advantage of the opportunity to keep Midland off our credit reports from the beginning, when they sent their first collection notice.
- I have seen it take up to 60 days for the Midland Credit account to be deleted from your credit reports.
There are many examples of people in the comments below, and who I have spoken with on the phone, who are taking advantage of Midland’s credit reporting policy.
Midland Funding is leading by example with this credit reporting policy.
Updated 2/20/20 – Three additional debt buyers have since followed the example Midland set for credit reporting.
If you would prefer to get help settling your Midland Credit Management debts, let us know by scheduling a phone call using the box below, or the help tab up top. We can help you and typically for a fraction of what most companies charge.
Hi Michael I was sued by Midland a few months ago the judge dismissed the case here in mesquite tx now I just found out that they are after me again trying to serve me with papers. They also put the debt on my credit originally it was on my husband. I lost my job yesterday & now have no income coming in at all I applied for unemployment & food stamps in order to put food on the table. How is this possible?
If the suit was dismissed due to some deficiency the court found, or was dismissed without prejudice, it can be refiled.
What is the amount of the debt?
$5300
Okay. Because of the deterioration in your finances due to job loss, you may be able to put together a repayment scenario that could work. I have seen cases like this get settled for a good reduction with time to pay longer than a year.
The alternative will be to engage in the court process which also has its risks and rewards.
What is your goal with this account?
I can’t do nothing I have nothing. Thanks to midland I’m going through dispersion and thoughts of suicide
Debt is just math. Stay focused on the realities of the numbers. You can either afford to do something today, over a period of time, or later on when you bounce back financially.
The emotional part of debts in collection are just what each of us assign to the process. Most of that emotion, at least from my experience working with people, is due to:
1. Fear of the unknown. What happens if type stuff.
2. Frustration over the whole financial situation, not a specific debt.
I cannot fix your personal finances when you are temporarily stalled out, but I can guide you through the unknown.
Depression over debt and finances are very real. I understand that. But owing a debt that you cannot deal with immediately does not mean someone can steal your birthday.
You live in a state with great consumer protection laws. You also may be noncollectable. Even if a judgment was entered, you can navigate that, and resolve it later.
Are there other unpaid debts out there than this one? If so, list the amounts and when last paid. Also list any unsecured debts you may be current in paying.
Hello Michael,
Midland funding sued me for a debt in march of 2011 and in May of 2011 they were unable to provide any proof of ownership of debt. Judge dismissed in May of ’11. But Midland has continued to report with CRA and to make matters worse they have reaged the debt to continue to report. They are way out of SOL. And I also thought if they could not provide proof they can no longer continue to report to CRA. Very frustrating.
Thank you
Danielle – Credit reporting and unsuccessfully being sued for a debt are two different things. I would need to understand a good deal more details to offer anything other than general feedback. Have you already disputed the entries with the credit reporting agencies, copying Midland Funding as well? If you have already done that, is that what you mean by proof, or are you referring to proof related to the court action? When you say they have reaged the account, is the date of last payment for the Midland entry different than that of the original creditor? Does the credit report contain a date for the Midland entry to fall off your report that is later than that of the original creditor?
Hi Michael,
To answer to your response. Let me make it a little clearer, sorry. Yes the original creditor fell off approximately 9 months ago. And the date that midland gave on the court documents does match the date from original creditor of last payment made. But, the date Midland has on the credit report is like 11 months later from the original creditor.
Okay. It sounds like the original creditor reporting aged off of your credit report. Any additional collection entry should age off of the credit report at the same time. The exception would be a judgment in the court for the same account (it gets a new 7 year shelf life). You did not get a judgment. You should send a dispute letter to all credit reporting agencies that have the entry and point to it being related to an account that has passed the SOL for credit reporting. Copy Midland on the letter. Send all communication certified mail return receipt. Post a comment update to this string with the result of that and lets go from there.
AF – Glad this all got resolved and thank you for posting the updates. This site is about people helping people. Your experiences and warnings about being diligent on following up will help others.
I do not think this was anything shady. If I took a guess at what happened it would be the attorney that had your file first did not do a thorough job and the records just were not complete. Due to the CFPB’s hyper attention to the debt collection industry right now, any debt collector, and especially a large one like Midland Funding, is making adjustments to new regulatory and supervision realities. Now would be the wrong time to purposefully use collection tricks. Resolving debts like this will also get a bit more streamlined in California with the new Fair Debt Buyers Practices Act set to go into effect January 2014.
Congratulations and best of success!
I received a notice in the mail from a Superior Court (Special Civil Part) in a county over an hour away from where I live. I have been living in my current apartment for 15 years and in town for 17 years. The notice is for a judgement of $523.93 that was made in 8/27/2008 however I NEVER received a summons or any notice stating I was being sued. They sued me twice before (again, I never received notice of the lawsuit) and my wages were garnished. It just so happens I am currently unemployed and now they are looking for more money. I check my credit reports and I see anything other than my federal student loans as my existing debt (payments deferred). I tried to contact the court but I get no answers other than being told I should have showed up for the court hearing. How can I show up for a court hearing I knew nothing about?? Does anyone have any advise on how to handle this? I live in the State of New Jersey. It does not seem to matter how much they take from me they will keep coming at me regardless if I owe something or not. Somthing is too fishy about Midland Funding.
Jules – I am not sure I understand what you have going on. You have been sued and garnished multiple times, but have questions about whether you owe the debt or not? This most recent collection stems from a judgment you are only now learning exists from 2008?
Is the total amount that is due today 524.00?
Are you able to pool together resources to resolve the debt, or is it that you believe the debt is not even yours?
Who was the original creditor listed as in the judgment?
Hi, Michael.
I posted a few days ago with some background on my account at Midland.
To refresh your memory here it is again.
The balance is approximately $500. Opened in 2006, last payment $25-5/26/010, charged off 12/31/2010. It was originally a WAMU account, then Chase, Hilco bought it in 2011 then it was sold to Midland in 5/2012
I live in Missouri.
I spoke to Midlands by phone for the first time 7/28/2013, but I believe they have been trying to contact me for some time but did not have my current address. I requested a debt verification letter at that time but have not received it yet. From reading this board Midland seems quick to file suit and I’m worried they may file before I can offer a settlement. The Verification letter request served to buy some time to raise funds for a settlement offer and I’d rather negotiate with Midland than an attorney. Does Midlands ever file immediately without providing any verification at all?
Here is my information and background:
I am collecting Social Security Disability and have no other source of income. There is a home mortgage on my credit reports because my name is on the loan, but I have no interest in the property since the terms of the divorce required me to sign a quit claim deed. I do not even have a car at this time and I think most of my accounts on my credit report show delinquent.
Given the number of times this debt has changed hands Midland probably has flimsy evidence to prove chain of custody in court, my income is limited and cannot be garnished and I have no assets.
Using this information here is my initial settlement offer.
-My offer of settlement in no way means I admit ownership or responsibility for this debt or that Midland has the right to collect it.
-50%-$250. At an assumed .03 on the dollar Midland paid around $15 for this debt.
-Pay to delete the account on my credit reports.
-A letter releasing me from the debt
This is only a starting point. If I’m lucky here is what I would accept and be happy with.
-$300-2 payments of $150. I know payments will weaken my negotiating position but my income requires it.
-“”Paid in Full” on my credit reports. I do not want “settled” at all.
-A letter releasing me from the debt.
I’d like to hear your thoughts. Thank you for your help.
William – Thanks for the additional follow up detail and how you laid out your plan. Based on that, you have a high likelihood of achieving your goal. But maybe not exactly how your thinking this will play out. I think you have an impression that this is more complicated than it is.
1. You can call and set up a settlement and payment today. Even if the first payment is not set for a few weeks, it is better to be proactive and let them know you are willing and able to pay what you can afford. Doing so early on actually can, in my experience, prevent the account getting placed with an attorney.
2. You cannot pay to delete with this type of thing. The term pay for delete gets thrown around the internet like its normal. It isn’t. Utility bills, maybe. Some one off cases with medical debt, sometimes. With credit card debts owned by your creditor, or a debt buyer, rarely. As in Yeti sightings rare.
3. Paid in full vs settled does not really have a significance at this point. The account is resolved and a zero balance owed updated to your credit report is what matters.
4. A letter from Midland Funding releasing you from the debt is going to be a simple settlement letter. It is a common type of template letter, and definitely a common occurrence to receive from Midland when you resolve the account. I am pointing this out so that you do not have some expectation that the letter says something that it won’t. But the verbiage of the settlement letter will contain the elements you need to protect yourself later if needed.
I had a Wells Fargo charge off 2 years ago and was contacted by mcm to pay them. I sent a debt validation letter and 6 months later got very little info back. Now my credit report is just stating account closed and has 0 deragatory marks. What does this mean?
Thank you!
Not sure if you saw my answer to your comment from yesterday on the question and answer page, if you can follow up on my suggestions in that comment, and have additional questions afterward, post them and let’s go from there.
I was contacted by Midland Credit Management 7/9/2013.
I requested a debt validation letter and have not received it yet.The account is a WAMU/Chase credit card-balance- approx. $500.00. My last payment was $25 5/26/10 and charged off 12/2013.
I’m prepared to settle. I have no assets-my interest in a house was lost in a divorce and I’m currently on SS disability
I live in Missouri. Do you have any advice for settlement terms to negotiate?
Thanks
Bill – Settling with Midland Credit Mgmt will be targeted at different rates for different situations. Given your limited income and no assets, you will not look as collectible. I would start off by offering something reasonable, but less than 50%. If you are prepared to settle for as much as 50% you should succeed.
You can get payments along with the less than full balance agreement. But that is only something I suggest when you cannot swing the lump sum settlement. Signing on to a monthly payment can mean settling for a higher amount, and there is always the issue of a payment not being made, which wipes out the deal. But there are times where settling and making the monthly payments will be necessary.
The letters for settlement Midland will send out after you negotiate are pretty standard.
Michael , I am currently in the process of cleaning up a mess from a fail small contruction buisness . I have 2 judgments from Midland 2200.00 originally 700.00 and 18,000.00 originally 13,000.00 . Under the Judgment they come up one letter off in my name instead of David its Dave and a r instead of a n on my last name . Any way they are my debts and I have a good job now and I am looking to clear them up. Should i hire a consultant or call them directly ? At the time I can pay the smaller one but will need time on the bigger one unless they will negotiate down. I have a few smaller others out there and will pay them accordingly. But dealing with these is the hardest . Looking for direction TY
Dave – I do not necessarily think you need to pay someone to settle these for you, but I do think you should talk with a pro about the situation. There are reasons to wait to settle them both at once, and reasons to jump in now and lock something in. You can reach a specialist with CRN (people I know and work with) at 800-939-8357 ext. 3.
I can help you through making your “whats next” decision process too. Post a follow up comment and let me know how long it would take to pool together about half of the judgment amounts.
Hi. I am being sued my an Atlanta law firm on behalf on Midland Funding for a credit card debt. I live in Fulton County GA and the complaint was filed on June 27th however I have not been served as of yet. I no longer reside at the residence that Midland has on file (my brother does). I haven’t lived there in 3 years. I found out about the lawsuit on July 17th when various law sent advertisements. The last payment I made was 04/2008. I went to the Magistrate Court to get a copy. Attached is an affidavit from a legal specialist in MN, 4 pages of transaction history (has my name at the top left and a visa acct # in the top right), and 2 assignment of accounts (one from Compucredit to Jefferson Capital and the other from Jefferson Capital to Midland Funding). The balance allegedly owed is $1,016.31 plus $76.50 in filing fees. The “transaction history” does list my last payment on 04/2008 however I sent a letter to the original creditor on March 25, 2008 asking them to close my account. They did not close my account, they proceeded to charge an annual fee plus 8 months of over the limit, late fees and account maintenance fees that amount to $727.00. I have never received any correspondence from Midland, Jefferson or any collection agency in regards to this debt (no verbal – no written). Question: Do I have to wait until I am served before I provide an answer to the court? Also, I have called a few of the law firms and they all tell me that they charge $750.00 (not affordable for me right now). I am willing to settle for $400.00 (I don’t feel the additional charges after I asked to close account were warrantied). Should I go away and contact Midlands attorney with this settlement offer or wait for the court process and hopefully introduce settlement offer then?
Tina – If payments were not made on time after you closed the account (even if they did not close it in a way you would recognize, but you stopped using the card),the balance will grow from late fees, default interest rates, and potentially over limit fees from the other fees. You certainly do have the option to question fees, and whether they can be justified. A simple letter or phone call is often all that is needed to get clarity. But when the account is placed with an attorney to collect, and they sue, that process is going to be something that gets accomplished through the court.
It is possible to work out a settlement at this stage. It is also possible to do during the court process. I am partial to heading this stuff off whenever possible, so would encourage the proactive approach of reaching out to them now. Just realize that you may not get the 400.00 settlement you feel is the right amount (not that you shouldn’t try). If you are motivated to avoid the court process and settle early, a couple hundred more than you are targeting for your settlement would be more realistic.
Thanks for your insight Michael. I will file an answer to the complaint immediately then contact plaintiff to offer a settlement.
Hi. I was sued by Midland for over $5,000. This was for a Charged Off Credit Card Debt. I went to court and ended up settling out of court in June of 2011, by setting up a payment plan before going in front of the judge. I only made a few payment at that time as my circumstances changed shortly after, and I had to move. The issue I am running into now is that I did not know at the time I consented to the payment plan, but Midland actually obtained this Charge Off over 3 years after my last payment, which in MD has a 3 year SOL. Besides charging interest for a time at which they did not owe this debt (due to the time frame they indicate is not the actual time frame they bought this) as well as having an invalid Affidavit filed in which I was part of a Class Action Law Suit for, I went back to court today to dispute the SOL. My garnishment actually started in Jan. of this year. The judge told me today there was nothing I can do because it is past the filing point where I am able to dispute this charge. Is this true? How can they unfairly get a Judgement against me when they knew this was past the SOL, and then when I dispute it two years after the original court date, but while I am still being impacted as my wages are still currently garnished, now I am unable to dispute any wrong doing because I waited to long? It doesn’t seem fair that they can get away with this and I have no voice. I obviously was unaware of these types of laws and limitations or I would have disputed this much sooner. But I get faulted because I can’t afford legal counsil? Any advise? Thanks in advance.
HeatherRay – There are indeed timelines for setting aside a judgment, which is what you describe the judge referring to. The assumption is likely that you agreed to the debt at the time because you set up the payments and gave consent. How much is still owed on the debt?
I am so glad I found this site. I gotten letters from MCM, I do owe from an old Verizon bill 2008 that I have never been financially able to pay back but I am ready to get this off my back. The current balance is $671 and a payment of $269 according to their letter will be consider PAID in FULL and that the three major credit agencies would be updated accordingly, I have to paid by July 19, 2013.
Is still legit? I am scared that if I get a certified check and mail to a PO Box that a few months or years from now they will claim they never got payment.
I would like to send it certified mail but I cannot do return receipt (signed) if it is sent to a PO.
Do they truly considered it settled?
I plan on scanning the front and back notice/payment coupon, the certified check and if I can only send it certified mail without a required signature, I will scan whatever the post office gives me.
Thanks a millions…
isogurl – That is a pre-approved settlement offer that is pretty standard with MCM, so yes, they will consider it settled. Their receiving and depositing the funds will also be proof they got it. If you are going to send a certified check, get one issued to you from your bank, and drawn from your account. That will give you easy access to the proof of payment if you ever needed that later.
MCM is fairly good about updating your credit report that zero is now owed within a month, two at the most.
My mother has had both mailed statements and phone calls on a credit card debt, at least 10 years old, listed in a bankruptcy settlement. This card was solely in my father’s name. He is in the final stages of dementia, in a nursing home. The total claimed due is less than $1500, though on my mother’s fixed income this is a great deal. Also, to reiterate, this account was settled as part of a bankruptcy case. The Midland rep is harassing, rude, and nasty when he calls. is she at all liable for this if her name was never even on this credit card account?
Was the bankruptcy a chapter 7? What year was the discharge? Can you see the account listed in the bankruptcy schedule? How does it appear on your fathers credit report?
Well, Mom and Dad were never great about keeping things long enough, so I’ll have to see if she still has the documents regarding the bankruptcy. I’ve looked at the $1 version of Dad’s credit report and there is nothing there that shouldn’t be. –No mention of this long unpaid bill and the Credit and Retail Card Debt amount reflects the one card Mom does continue to use, not this nearly $1500 that Midland is claiming is owed.
I’ll do some research and find the answers I can to your questions. Thanks!
I have a judgement for midland funding LLC on my credit report. So I also am assuming I missed the whole process and the sued me went to court the whole nine. I know in October someone levied my bank account for 539.13 but I am not sure who. I was given a law firm but I still dont have the number. Should I call the bank and find out and try to pay them. My judgement is for 840 dollars they have already taken 539. I vaguely but certain when I talked to the lady before she told me that I owed 1200 but my judgement is for 840. I am in no means trying to give them 1200 dollars but I am willing to give them 301 if they can take it off of my credit is that at all possible. Just looking for the best thing to do. I am almost certain it had to be them because thats the only judgement that is on my credit report I believe for a waaaaaay old capitol one credit card. Just want to do whats best for me and getting it off would surely be a win since they have already gotten more that half of there money from me. Any help would be greatly appreciated. I dont want to sign up for months with lexington law because I have done most of the work and raised my credit score more than 100 points in 2 months.
Thanks Nicole
Nicole – Good job raising your credit score!
Judgment debt can grow in size due to the interest rate set by the court.
Whether you pay the balance of the judgment off, or settle for a lower amount, the court record itself is the reason for it showing on your credit report. You would have to get the court to remove it from their record. Unless there is a good reason to challenge the entry, and you are ready to pay a skilled attorney to take a shot at getting the judgment vacated, the judgment is going to be on your credit report for 7 years from the date of entry.
Paying it off, or negotiating a settlement on the remaining balance owed, should include updating the court record so that the judgment is shown as satisfied.
Thank you appreciate your time
Hi Michael,
Thanks for responding. Yes, the SOL for Georgia is 6 years. I believe my last payment was around August or September 2007. When I received my last statement, my minimum payment was a little over $200, which was up from $45. When I called the org creditor to inquire about the increase, I was advised that Rooms To Go did not submit the information/agreement based on the terms of no interest/no payment for 1 year. Unfortunately, I have moved several times due to job loss and life style changes and have lost documents, but I am certain that the amount they are suing me for is not correct.
Hi,
I have been sued by Midland Funding LLC. for a debt owed to CitiFinancial. CitiFinancial charged off the account and I am assuming that Midland Funding LLC purchased the debt. The issue is the amount they say I owe, $3746.00, I am disputing. In May 2012 , I disputed this amount with Equifax, asking for validation of the debt owed. I wanted to know how the balance that I knew I had increased by appx $2000.00. I am assuming that they did not answer because the debt account was updated to “zero balance” and “paid in full” by the credit bur. However, it is now showing up again with a balance of $3746.00
Also, In reviewing my credit report, I noticed that my original creditor reported first day of delinquency at 9/2007. After doing some research, I noticed that Midland Funding LLC has re-aged my first day of delinquency to 7/2009. I know by doing so, increases the SOL for suit.
Also, in reviewing my credit report for 2013, I noticed that Midland Funding LLC reported my last payment in 2/2013. I have never agreed to pay them anything. I am also disputing this information with the credit bur. I also know by making a payment, restarts the 7 years. Based on my research
I also noticed that the original creditor has been deleted from my 2013 credit report. Because this is the same debt being pursued by a debt-buying agency, shouldn’t their debt be deleted as well?
And I also noticed that the account number listed on the summons isn’t my account number-as I still have the original card that was issued to me. The summons only list the last 4 digits but they do not match.
I am currently preparing my answer and will deliver it next week.
Any advice on my findings as I have included them in my answer
T – Can you confirm the date you last paid CitiFinancial with certainty? Do you know your states SOL? I have feedback, but would like to weave my response around your answers to those 2 questions.
Hi,
Just got a call from MCM regarding a Tmobile account from 2005 with the last payment in 2008. The only problem is, I have never had a Tmobile account so perhaps someone used my debit card without my knowing to set it up. They gave me the option of going to the police station and filing a complaint and sending them the complaint letter. The amount of money is not the issue as it is a relatively small sum, I just wonder what my options are since I don’t even know what they are talking about? Any suggestions would be much appreciated.
Kyle – They are suggesting you go on file with a complaint of identity theft, but this may just be a simple mistaken file merge on the part of TMobile. Have you checked your credit report for things you do not recognize, or other collection items?
This is the only item on my credit report that is suspicious. Is it worth contesting or would it be simpler and better for my credit to just pay MCM and be done with it?
If it were me, I would contest it, as it is not mine and does not belong there. Paying a nominal amount to get this out of the way is an option, and would be less of a hassle than contesting, but I would not go there just on principal alone.
Hello, I just received a letter from MCM and it states I can pay a lump sum of $983 at 40% discount from the original $1,690 or have payments of about $220 for 6 months. I kind of just wanna take on the payments for 6 months so it’s easier on me. However, I heard never to give these debt collectors your bank info or debit card info that I wish to pay with. Is this true? Should I not give them this info? Is it better to just mail them money grams monthly? Will they actually mark the debt as “paid in full” as the letter states? Please help.
Arthur – Midland Credit Management makes this type of offer in the normal course of business. They do update the debt on your credit reports once you make that final payment on the 6 month option.
When it comes to how you make your payments on the settlement agreement, I prefer people follow this guide: https://consumerrecoverynetwork.com/paying-your-credit-card-debt-settlements/.
I know sending in payments via check seems like it is more convenient and protects you, but these days there can be more snafus with mailed payments than when you follow the recommendations made in that linked report by setting up a different account for all things settlement. You can have the account set up in 30 minutes at the same bank you have now. And can better track all payments, have easily accessible proof of payments, and only put enough in there to cover each payment a couple days before the scheduled day each month.
So MCM isn’t just a scam? I’ve read reviews about them “scamming ” people one way or another? I will definitely be opening another account just for that purpose. But by hopping online and signing into my account with them and paying money, am I being protected that they’ll hold up their end of the deal and all collecting calls/letters will stop? Would they eventually sue me if I ignore the letters? I definitely do NOT want that. Thank you
Arthur – MCM is a debt collector. There are scam review posts about virtually all debt collectors on line. Some of the stuff I read about collections is more akin to an emotional reaction to being stuck with debts that cannot be afforded, but written as “don’t let (insert debt collector name) scam you”. There are also some things you read about debt collectors that raise legitimate concerns over business practices.
If you recognize the debt MCM is offering the settlement on, and you are in a position to resolve it and move on with your life, you are not being scammed by MCM.
If you agree to the settlement and pay it up front in one amount, or over 6 months, the collection calls on the debt will stop.
Midland can and does sue. Whether or not you will be sued I cannot say. If you read the original article above you will get the gist that settling a debt with MCM will often mean saving more than trying to deal with it later on if sued.
I went ahead and called MCM and worked out a payment plan that will save me money. I understand you recommend checking credit report 30-60 days after paid in full, correct? Then you say if it’s not updated to have proof of their promise to take action on my credit report. My question is, is the letter they sent out with the payment options and the statement “once you’ve paid all 3 major credit bureaus will be updated and your account will be marked with 0 balance/ paid in full” enough? Does that suffice to cover my butt if they don’t update my report? Or do you suggest something else?
Thank you!
Glad to hear you worked it out Arthur. Yes, for credit reporting purposes, the verbiage you quoted provides what you need. If MCM somehow does not update their credit entry, you can get what you need done on your own.
I came across this site because I too was served with a summons from Midland in December. I have NEVER received anything prior to being served stating they were collecting a debt. The amount is under $1200. I feel that at this point we must go to court because 1) I don’t have a job, because I am collecting SS for taking care of a spouse/children 2) I feel that if I try to make a deal with them I can’t live up to it because I don’t have income that I could use for payment and I really am so stressed I can’t remember if i had this debt. I really am at a loss and unsure what to do.
Originally when I responded to the summons (I had 30 days) I denied everything and ask for validation/proof of the debt (found the correct legal verbiage online). I have sent one reply, and about to send a second (all via registered mail) to see what they have any proof as I honestly don’t recall this debt. To this date I have no received any type of response. I think I am going to send another one, but I don’t even have the money for return receipt.
Today I found out that the court reassigned courthouses/judges. Court is at the end of June. I don’t know what to do.
Dee – Because you are not certain if the debt is yours, the path you are on to identify if the debt belongs to you is a good start. The papers Midland Funding’s attorney filed with the court would typically list who the credit originator was. Who was listed? Did you ever have an account with that creditor? If so, do you recall when you last made a payment? What state do you live in?
It is best to consult with an experienced attorney when ever you have been sued. With an income limited to social security you may be eligible for low income legal aid. It is worth looking into.
If your cash flow is so tight that you cannot afford postage, working out some form of payment (if you determine the debt as your own), sounds like it is out of reach. But you cannot know what type of arrangement can be made without engaging in the conversation with them.
You have gotten this far, but now express you are not sure what to do. What is it you want to do? What is your goal?
Hi Michael. I am being sued by Midland Funding through Johnson Mark their attorney and I don’t know what to do next. I need some help. I did hire lawyer to help me because I had no idea what to do, but then he told me that he had no experience with these type of cases. He has done so many mistakes in the paperwork he has submitted and therefore I don’t want to continue using his services so now I don’t know what to do.
Anyway, he first submitted a motion to dismiss because the last payment I made was more than 4 years ago and midland had not provided a signed agreement. They opposed to our motion to dismiss by saying that a signed agreement is not needed as montly statements can suffice and that we had not provided any evidence that the last payment was in 2008. My lawyer didn’t tell me that they had filed this opposition and that I only had 5 days to respond so we did not send a response. Now I received a document from the court saying that my motion to dismiss was denied. They are also ordering me to submit bank statements for 6 years and any other documents pertaining to the debt because midland said we failed to provide those documents and they wanted the court to order us to submit those papers.
I don’t have the money to pay them and I have no idea what to do next because I almost feel like I already lost because of all the mistakes that my attorney did. But at the same time I don’t want them them to get a judgement just because I failed to respond or failed to provide the documents they requested. Someone Please Help!
Loida – The first thing I want to key in on is the 4 year time frame mentioned. What state do you live in? Are you raising the 4 year issue because the debt may be passed the SOL for Midland Funding to legitimately file suit? What was the date of your last payment on this debt? Who was the original creditor? What is the balance you are being sued for?
this account under my name is identity fraud
Travis – I am not why you posted your comment with just a blunt statement like that. Is there something you are seeking assistance with, or questions you have?