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?
Dear Sir, I have been going through a long drawn out divorce, I just recently got my ex to settle, however I have had numerous bills that have gone unpaid during this time, some I knew about and some I did not. I just recently had a lady I know who is a Secretary tell me that my name was on the docket for small claims court on Monday 12/12/2016 at 9:00 a.m. I did not know this, the judge is the same judge who dealt with my divorce mess. It appears that Midland Financial LLC has the debt and is who is taking me to court, though I have not received any official conformation on the court date, what is your suggestion on how I should handle this, I live in a small rural area and really don’t want to go to court, I also see the light at the end of the tunnel in regards to the divorce so I should be able to pay this some time soon. What should I do?
Fill in the talk to Michael form in the right column Mark. When I see that I will email you to set up a time to talk over your situation on the phone.
Hello, I have two accounts from Midland Funding LLC, both from Capital One. The balances are $277 and the other is $309.
I only realized this today when I checked my credit score. There have been no phone calls or letters previously to inform me that I had anything in collections. I did call Midland today to confirm the information and they stated that the accounts have been active since July 2015.
The woman also stated I should receive a letter in the mail offering for me to pay off the $209 balance for $166. I told her that I would get back with her in a few days after I did my own research to verify these accounts. At the time, I also asked if I were to agree to pay the balances, if they could remove it from my score. After 20 Minutes of being transferred to various people, they agreed. I do know that when I call back, that I will need to request this in writing though.
After I finished the phone call, I called Capital one to verify the two delinquent accounts and discovered it was indeed an error on my part. Now I’m ready to call Midland back to negotiate. How much do you think I should offer to pay the accounts in full?
Settling with debt collectors like Midland Funding is often a case by case situation. Debt collectors have real time access to your credit reports and other information. They use all the information they gather to develop their view of how much to collect. Someone whose credit report only shows the one account later, but 9 others being kept current, will typically not be all that convincing when speaking of a financial hardship. On the flip side, someone with 9 collections on their credit report, where Midland Funding is just one of them, and only one account being kept current, is going to look more like someone who they would cut more of a break.
You do have low balance accounts, and that can often work against you when settling. If you are able to get 50% settlements out of Midland you will be doing well on these.
Just to be clear, Midland Funding usually does not do a pay for delete. They have made some credit reporting policy changes to not report on paid collections that are more than 2 years old. Based on what they came back and told you, I would assume that you last made a regularly scheduled minimum payment to Capital One more than 2 years ago.
Hello,
Midland Funding NCC-2 Corp mailed me an “information subpoena” to me, which asks me for my SS# Driver #, salary info, assets info, and a list of other judgments?
Are these questions normal?
The letter states a “judgement was entered on 9/24/01 for $1725.76 of which $3212.51 including interest remains unpaid”
It further states that “a false swearing or failure to comply with this subpoena is punishable as Contempt of Court”
Is this a real subpoena? Do subpoenas simply get mailed in the mail like this? Do I really have to answer the invasive questions they asked? I am in NY isn’t the statue of limitations up on whatever this is?
Thank you,
D
correction: judgment was entered 9/24/07, not ‘o1, and also they are giving me 7 days to reply.
Judgment debts have a totally different SOL, and they can often be renewed (sometimes indefinitely).
Yes, subpoenas can show in the mail. Yours sounds like a court ordered one, so you absolutely want to comply. And those asset discovery work sheets usually ask for the information you outlined, and more.
Given the circumstances, it is always advisable to talk over your situation with an experienced debt collection defense attorney in New York.
I had a judgement in 2011 against me to pay over $4,000 for what appeared to be a credit card from Home Depot. This was from an account my parents created to help my credit and they proceeded to ruin it by not paying it. Later down the line they are now trying to and I have talked to Midland and then the people to handle my account as it is their debt. They continue to try to pay but somehow things on there and keep getting lost in translation. They then call me months later saying they need me to handle the account with no record that I’ve ever even given them my parents permission despite having sent letters and receive confirmation faxes back from them this company seems completely incompetent. What do I do
Fill out the talk to Michael form in the right column Ryan. I can coach you up on getting this resolved.
Hello 1st of I recently found a summons for my mom who has Alzheimer’s on the table Monday Nov 28 when I got home from work at 9:15 am. Her court date was October 11, 2016, but she was in Mexico since August 16 (with her sister) and I just picked her to bring her back November 15. My brother said he has never seen those papers before and I surely hadn’t either until that day. I feel my mom was served recently barely on Monday and she put the summons paper work on the table for me to see thinking the paper work was for me or my brother. I panicked and called the only number on the summons paper work which was Midland funding phone number. I called told them I was calling in behalf of my mom and I told them I wanted to pay her bill and came to an agreement to pay on Friday a down payment and $108 every month for a year. But now I researched and people saying they are a scam. I don’t know what to do especially because it was suspicious that I just found her summons papers on Monday.. I need help knowing what to do for her
You are welcome to call in for a phone consult on Monday at 800-939-8357, ext 2, or fill in the talk to Michael form in the right column. I will see that and email you to set up a time to talk.
I need to dig into more details about the situation in order to offer actionable feedback.
Good afternoon,
I just applied for an apartment and it showed up in credit report a judgement from Midland Funding for $2,000 I don’t remember ever getting served for that and it has a date of 4-26-2010 on the credit report… Looking for information of what I can do to get off my report because of it got denied the apartment I’m from Massachusetts…
Is the judgment showing as entered on 4/26/10? If so, it will drop off your credit in a few months due to age.
Judgment debts can still be enforced even if it does not show on your credit, but you could have an easier time getting approved for the apartment.
Other than waiting, you are looking at having to settle the judgment (and should at some point anyway), or legally challenging the issue, which has its own costs with little reason to expect a good outcome.
Thank you for your time helping people.
I have a judgment from midland funding from a few years back local court for over $11,000.
Is there any way I can see if I can go back to court and dispute it?
I have been helping my mom out for years and she has been diagnosed with Alzheimer’s so my time has been helping her and not making enough to pay this debt.
I stopped paying my home depot account which this was from over summer 2009.
Thank you for your time.
How old is the judgment? What state are you in? What is the premise for trying to dispute it?
Hi Michael,
I came across this video and it was great info. I have Midland Funding on my credit report. I owe about $9,000 from a credit card back in 2009. I stopped paying it because I got laid off from work. I couldn’t afford the $180 a month credit card payments. I just stopped completely. I am also a college grad with over $150k worth of student loan debt. My credit score was in shambles for at least the past 9 years since I wasn’t paying on anything. Recently, it’s been going up. I owe about $120k from Sallie Mae and $40k from AES. I had a wage garnishment from AES and I am cooperating with them by doing an Income Base Repayment of $60 a month. They put the AES loans back in good standing. Sallie Mae gave up on me a long time ago and they vanished. It still reflects as a closed account on the report and it even fell off my credit report with Transuion since it’s been that long. I currently have 1 credit card for $300 credit limit and I’m buying little things and paying it off on-time. My credit went from a 450 to a 652 in a few years. I use Credit Karma and the only account in collections is from Midland Funding. They opened this in Aug 2013. I used to get phone calls like crazy from a ton of people. I pretty much screened every single phone call for years. If I didn’t know the number, it got ignored. I’m sure Midland tried to contact me but they had no luck. I haven’t received any letters from them or any phone calls from them. The past year the harassing calls have stopped a lot. I don’t get any more creditors calling me. I want Midland Funding off my report so I can move on. I have about $800 saved in a savings account. I’m willing to settle with them but not sure if I want to offer $800 if I can get it for anything lower. I care and don’t care about my credit report. I care about it in a way since if I ever needed to get a car, I can get one. Right now, I own a decent car that I do not plan on getting rid of anytime soon. I’m not buying a house or do not own a home. Just want to move on from this. Since it’s been 3+ years that they’ve received nothing from me, what would you suggest I ask for a settlement? Should I just ask if I can pay $400 and see what they say and go from there? Start low and go high? I’m curious. Anything would be appreciated. Thanks, Michael.
Best,
Chris
2 more things I’d like to add that I forgot to add. First, I live in PA. and since they opened this account in Aug 2013, we are moving onto 2017 very soon, how long will this stay on my report? Does this ever “fall off”. I literally had 0% communication with anybody except for AES. Since I had to play ball with them, I am working with them and they are happy with my low monthly payment. But it’s been on there since 2013, I don’t hear from them, it’s on my report, I am unsure how long with this be on there? I read about SOL but I am not too familiar with any of this. I’d like a little more insight. If this will stay on my report forever then I”ll call them. I read you said to someone that they’d settle for 50%. But I have a family of 3 and I don’t make a lot of money in my day job. I barely even afford my bills and putting food on the table as it is. I cannot afford any other monthly payments. I also read about an hardship. I may do that if you suggest that. I’d be curious to see what you’d have to say. Anything will help. I appreciate your time.
If you stopped paying the original account that Midland has in 2009, than it is about to come off your credit reports as it is. You are not trying to accomplish any major financing goal. And Midland Funding can only appear on your credit reports legitimately for up to 7 and one half years from when you stopped paying the original creditor. You may just want to wait it out. Getting Midland Funding to agree to settle a 9k debt for under 1k is not all that realistic.
I was reading up on SOL in PA, and just by talking to them admitting my debt can reset that clock. I may just wait it out as you said. According to this website I found from a Philadelphia Lawyer who write it, he stated a lot of different scenarios. Just by talking to them and admitting your debt can reset the clock. He also mentioned the clock of the SOL starts from the last payment made. The last payment I made to my credit card was back in 2009. Then Midland Funding took over Aug 8, 2013. So I wasn’t sure if the clock was still ticking from 2009 from the Bank of America credit card or from when Midland Funding took over? But I hope this falls off soon. I’ll just ride it out. I wanted it off but since they haven’t heard anything from me in all of these years, I figured they’d want to settle. Something is better than getting nothing. But you’re right. Thanks Michael. I appreciate the response. .
The SOL is from when you stopped paying in 2009, and not when Midland Funding picked up the account. This would appear to be passed the SOL too.
That is good to know. I will just ride it out until it falls off. If they do decide to come after me and I will use the Sol has my argument. Thanks man. I appreciate the insight.
If my husband owes Midland Credit collections $4100 what can we settle for? We’ve been paying $50 month and want to get it settled. Also with a settled amount do they really remove it from your credit? I’ve heard horrible things about them. Thanks
Is the Midland account one that reached the lawsuit stage for collection?
How long have you been paying the $50 per month?
How long ago was it that you last paid the original creditor?
Settling debts typically requires you to miss payments. If this is a judgment that you are paying on, stopping paying could trigger a myriad of things many of us would prefer to avoid.
If the account is 2 years old (it is more than 2 years since you stopped paying your original lender), than you would fall into Midland’s new credit reporting policy for paid or settled accounts to be taken off your credit reports.
Hi Michael…What would be the purpose for Midland’s attorney paying the docketing fee on a judgment after the court-ordered financial disclosure of assets I sent them showed that I have nothing.
I am not penniless but I live on Social Security in subsidized housing and eat with food stamps. I have no real property, no car, no savings,. They know this as it was all reported on the disclosure form.
Now they have filed the docketing fee; does that mean they will try to freeze my bank account even though there are no funds in it other than from Social Security? I do not understand why they keep incurring additional costs for this matter given they know I have nothing for them to take and that I am a senior citizen who will likely have nothing for them to take in the future.
What might be the attorney’s motivation for docketing a judgment that is for all intents and purposes, not collectable?
Probably just part of the collection law firms work flow. You may want to consider contacting Midland Funding about how you qualify for the hardship policy they publish. If you meet the outline in article 2 found at that link, they essentially stop collecting.
Thank you for your reply, Michael. It is interesting to read their hardship policy as it describes my situation perfectly.
What is so interesting about that is Midland knew all this about me way back when they began trying to collect. I wrote to Midland stating my financial situation but they sent it on for legal action anyway and after they were granted a judgment I filled out the financial disclosure form I was sent by the court. It stated once again my financial situation and clearly shows I am exempt from further collection efforts.
Considering this debt collector that is supposedly “fair” and “smart” I cannot help but question the wisdom of Midland taking this as far as they did. The law will not allow them to go further unless my situation changes which, at my age, it probably won’t. I can’t help but wonder why they bothered going after me, unless it was solely to harass.
I think it was an error unless they thought they saw an asset, like a home, to go after once a judgment was in place.
I was wondering if I could get some answers. I was recently sued by Midland for a past due cc account. I hired an attorney to go to court for me as he had a better chance of winning. A week before the hearing I got a letter in the mail that Midland withdrew their complaint so no court happened. My question is will and can they sue me again for this debt? How can I get Midland off my credit report?
Unless the case was dismissed with prejudice, it could be filed again.
Settling with Midland will end up removing them from your credit report if the account is more than 2 years old (since you stopped paying the original creditor). How old is your account?
Hi, Michael –
Do you know how common it is for Midland to give up and re-sell debt to someone else and what reasons their firm might commonly care to do so?
Also I too am curious about what I read here and elsewhere about Midland using an out of state assignee law firm and one that from what I am reading here and online may not answer validation requests and then just send another letter noting handing back the account to Midland and noting a suggestion to use an in-state firm. Do you know their history in this area of activities? Why not use an in-state firm to begin with?
Lastly, from what I have read here it’s made me wonder what obligations Midland would have to meet, if I sent them a validation letter. I am in California.
I am curious about these topics I am seeing on this page about Midland, because I have a new collections remark on my credit report from Midland for an semi-old (2013) credit card for a little bit under $1000 from my ex-husband, but I was a joint account holder and not just an authorized user. No letters yet. No calls yet. I am not just going to settle without first learning some more about Midland and these various processes. I owe it to myself and my family to get educated before I make decisions.
Midland does not resell debt at all. They are precluded from doing so.
I do not really understand your second question.
Midland has the FDCPA to comply with on debt validation requests, and also must comply with the California Fair Debt Buying Practices Act.
Hi Michael,
I finally got the first letter from MCM regarding my old Credit One account and the one for my spouse. They are each for a little under 1300. They have a clause that if we pay or arrange monthly payments by February 10th it will stay off our credit reports. We want to take advantage of this and I have been trying to contact someone therw, but I work 12 hours from 7 am to 7 pm and my commute alone is a bit under 2 hours. No one picks up by the time I get home. We only have one phone per budget cut.
Should I try to see it my boss would allow me to call from our work phone? (Likely not).
Do MCM normally respond to settlement letters? Also, how likely is it that they will take 450-500 for about 1280? And 1210?
Do not send a letter. Get with them on the phone. Call their main number during your lunch or break. What you can settle a debt for with Midland Funding is going to vary from one person to the next. Not all of us look as collection worth as the next person, and that is often whet debt collectors will base their decision on. Watch this video about how debt collectors see you for more.
If you struggle to get those targets you can afford let me know.
Hello:
I discovered a surprise collections account pop up on my credit report for a Credit Card from 2013/2014 that wasn’t mine. It was sold to Midland. Later on I received a letter from a law firm saying Midland was their “client” and that they are an “assignee” and demanding less than $1000 and wanting me to settle. I placed a fraud alert; I don’t wish to settle an account that was not mine.
The law firm is in MA. I am in CA.
My attorney sent them a validation letter and denied it was truly my account. They responded to my attorney by saying they’re going to send the account back to Midland and “recommend” that they use a law firm in my state.
That was the middle of this summer and it’s now mid-November.
Midland quit reporting a status to the credit agencies not long after that letter from their assignee firm, but the collection status is still on my credit report.
Would you have any insights into parsing this timeline and sequence of events, so I have a little bit more information, before I call (If I even need to?) that attorney again that I used back then?
I would like this off of my credit report, but I am lazy; so, I don’t like opening cans of worms – even though this Card wasn’t mine.
Is this alleged debt perhaps now “sleeping,” or is it more likely “brewing”?
Thank you.
p.s.
there was also a medical bill that showed up around the same time and that collections agency was Bay Area Credit Srvcs. The same type of letter was sent to them by the same attorney – and Bay Area removed the collections account completely from my credit report. My scores jumped dramatically and quickly, so that’s why I am balancing “cans of worms,” versus doing nothing more right now – in regards to the Midland account.
If the account is not yours you should definitely not stand for it being on your credit reports. There is no can of worms here if you are a victim of fraud or identity theft. Check out this page for more on what to do about identity theft.
Is there something about your situation that suggest you handle this with kid gloves? Like a family member is to blame, or something like that?
Hi, Good point. That’s possible. Yikes! Now I really don’t know what to do.
Question: do you know if Midland is often unprepared to respond properly to validation letters? Maybe they don’t have enough anyway, perhaps? Or, do they usually have their “stuff together,” versus acting “fast and loose,” like some agencies?
I am especially wondering since haven’t reported in months, ever since their assignee firm sent their final letter as I described it to be…
They are one of the better collectors at responding appropriately. If the debt is something purchased far back enough, say 2013, and from another debt buyer (they did not buy directly from the original creditor) they may be delayed in responding, or unable to. If it is a new purchase, all of that is coming with the media needed to validate these days. That doesn’t just apply to Midland Funding. If the account was purchased by Midland directly from the lender, there will likely be no problem for Midland to meet debt validation requests.
Debt validation is not what many make it out to be. It is exceedingly simple for a debt collector to meet its obligation to validate.
I am not sure how any of that applies to an account that is not yours. I have the sense that there is more to your story than the average ID theft or fraud charges. You are welcome to call in and discuss privately if you like. I am option 2 on the hotline you see at the top of the page, or you can fill in the talk to Michael form in the right column to reach me if you like.
I am just trying to find out what’s going on and why coming after me. If they can’t validate as me, which they can’t, maybe they can see in their records some information that has the correct person.
If it turns out to be a family member, well – I decided too bad. I’ll press charges.
I don’t have time for nonsense.
(I am particularly interested in why: I received a letter from a law firm saying Midland was their “client” and that they are an “assignee” and then after one letter respond by saying they’re going to send the account back to Midland and “recommend” that they use a law firm in my state)
Why might that happen? Is that typical and why?
The entire thing has me confused.
That is odd.
I was served Saturday, Oct. 29th and have to “file an answer” with the court by the end of the day Monday, Nov. 14th. The debt is $3966.74 of a medical expense. (I’ve been dealing with personal illness and my parents’ illnesses, too.) Anyway, am I allowed to contact the lawyer listed for Midland Funding? I actually want to pay my bills and put that awful rough patch behind me. I can give them $1000 come payday at the end of the month and another $1000 at the end of December, but that’s it until the end of February of next year. I’m a part time teacher, so I don’t get a paycheck in January. Please tell me the best course of action so I can take it and be done with this!
If it were me I would file a general denial and buy time to save up the money over a couple months to settle for a lump sum and get the case dropped.
If the situation is right you can sometimes settle with Midland Funding outside of court for 50-ish percent.
What state are you in?
Is this a Care Credit account that Midland is collecting on?
I’m in Texas and, yes, it was a Care Credit thing.
Okay, thanks. You can probably get yourself to February after filing an answer to defend in Texas. I would try to settle this for 50% before then though, if it were me.
So, is this the point where I contact the lawyer listed and directly offer 50% before I file the answer with our local court? Or do I just trot this answer up to the courthouse and leave Midland’s lawyer out of it? I’m not clear on the proper sequence of events. That’s the thing scaring me the worst – screwing this up while I’m trying to fix it!
If it is me, I file the answer first, but you can reach out to try and negotiate a settlement first. But if the deal is not agreed to and documented quickly DO NOT miss your deadline to file your answer with the court.
Okay, got it. Thanks!
Hi Michael. I recently got a letter in the mail from MCM stating it was a Pre-Legal Notification. It said to call them to see how to qualify for discounts and affordable payment plans. I recently settled another debt they had that I was being sued for, which I’m thinking is what triggered this letter. The debt is in the amount of $8,959.47 and is not past the SOL here in NJ. When I called them lastnight to explain my financial situation (I’ve been unemployed, husband just retired 21 years military and doesn’t start new job till dec 1, I just used my mortgage money this month to settle other debt with them, etc.) they of course had zero empathy and said they could settle for a one time payment of 7,900.00. That’s only 1,000 off the balance. I’ve never experienced this where they will not negotiate down to at least 50% off. I’m aware that legally they do not have to negotiate but still. I met with a bankruptcy lawyer in sept and would only have to pay him 1100 more to file a bankruptcy claim but I don’t want to really go that route. How can I get them to settle for around $4,000 or $4,500? I’m hoping to have some money next month once my husband starts bringing in money with his new job. This is such a stressful time and am so confused as to which avenue to go down regarding this. Any suggestions would be greatly appreciated.
*when I say I’d only have to pay the bankruptcy lawyer 1100 more, what I mean is that I already paid him 350.00 and he charges $1450.00. I have several other high debts so bankruptcy is always in the back of my mind as an option although I really don’t want to go that route.
Fill in the talk to Michael form in the right column. I will get that and email you to set up a time to go over your situation on the phone. I am concerned that settling with Midland is the right thing to do if you have so many other debts. I will go over all of the accounts and help you assess your collection risks on the other ones too. If settling makes sense I will help you get Midland done.
Thank you for writing this and responding to all the comments. I think just reading all this is a big help to me.
Hi Michael, is there anyway to settle without going to court? My paperwork said I having a hearing date November 18,2016. Will I be settle for the $653.61 or is there some way to negotiate a better price than what it’s saying on the document? I feel like the debt maybe a little older, but unsure..
It was good to talk with you on the phone yesterday. I think you posted and sent the consult request. Let me know how it goes.
Hi Michael. I recently received a call from MCM for a store credit card debt of about $500. Its almost 8 years old and from when I was a teenager and tried credit cards for the first time. I’m currently about to graduate college with absolutely no extra money. Should I try to settle this is asap by borrowing more money or wait until I can actually pay it? I just do not want to be at risk of being sued and paying courts costs, attorney fees, etc.
What state do you live in? When did you last make a payment on this account?
I live in Louisiana, and I haven’t made a payment in 6 or 7 years. When the account became inactive, I just stopped making payments altogether.
You would not be at risk of a lawsuit after this long in Louisiana. You do not have that kind of pressure.
Hello Michael: My name is Rachel and I am being sued by Midland Funding LLC, who is the current owner of my account. I watched your video today and was impressed by the way you are able to simplify different case situations. I live in Maine, not far from the Portland Offices of Howard Lee Schiff, P.C. who is servicing Credit One Bank, the original creditor. The current balance is $724.35. Because of the complexities of credit law. I am convinced that I need an attorney. Can you refer me to an attorney who specializes in collection law or has experience with debt collection in the Portland, Maine area. My cell is [edit]. I can be reached at work by calling [edit].between 7:30am and 4:30pm EST. My email is [edit]. Thank you and I look forward to hearing from you.
I edited out the phone numbers and email address to protect your privacy. Check your email you used to post the comment. I sent contact details to those I know of in Main, or with a Main law license, that can assist you.
The lawyer for midland has filed with the courts on Oct 27th. Is there a chance I can call the lawyer and settle without going to court?
All day long. Who is the collection law firm handling it, and what is the balance owed.
I have received a summons for county Magistrates Court. Midland Funding LLC is suing me for an unpaid credit card debt that is now $1125.40 from Credit One Bank, it’s written as Midland Funding llc assignee of Credit One Bank, NA. In the instructions for Defendant it states that I can contact the plaintiff and make an out of court settlement. Would you still advise contacting their attorney first? This all came about due to an unexpected divorce which I’m still recovering from financially, Do you currently know how Midland is with negotiating monthly payments? Thank you!!
You will have to deal with the collection attorney Midland sent this too at this point. I would not do payments if you can avoid it. I would want to settle for a lump sum out of court so I do not have to deal with any consent or stipulation to judgment.
If all you can do is monthly payments, it is not complicated to call the law firm and set up.
I just saw that I had an cołllection account with midland funding for $364. . When I went to their website to search for information it comes up that there is no information and my account is burnt handled by Hammer Suttel. I don’t know who or what that is. Can I just call Midland and have them tell me what it’s for and if it can get settled or is it too late
You can call Midland Funding and find out what the debt is for, but to resolve the account, since it has already been sent to Suttel and Hammer, you will be directed to that law firm to resolve the balance.
Midland Funding &Pressler & Pressler have a judgement and wage garnishment against me, BUT do not tell me what it is for. I have been identity theft victim, credit reporting agencies have my records so screwed up it isn’t even funny. I can’t take much more of this!!
Look up the court record and see who they got the debt from. You should be able to recognize it from that. If this collection is the result of identity theft use the tips on this site: http://www.idtheft.gov
Hello.
I was sent to Midland and was served back in 2013. I contacted them and arranged payments monthly. I was just about paid off (starting from close to $3k, down to under $500), when my husband was hospitalized and diagnosed with diabetes. I defaulted and never paid the final Balance.
Today is 10/20/16, I received “copy” of what looks to be scary court papers and I’m having a hard time understanding what they mean.
The papers say “Application And Order To Vacate Stay Of Execution And To Issue Writ Of Execution”.
There are sections that acknowledge how much I paid as well as Declaration Of Accrued Interest. However, the total of all post judgement cost equal zero.
What does this mean?
Are they now going to garnish me?
I really appreciate your time…the attorney is closed, so I’m searching for answers online.
Thank you
Fill in the talk to Michael form in the right column of this page. Once I get that I will email you to set up a time to go over your situation with you on the phone.
Hello
Wrote u before- Midland
This charge off happen due to me failing to make my montly payment to Credit One
Honestly my 88 year old mother cecame ill (bed ridden)
My prioritys went to my mom.
She passed the same day I recieved Credit One letter of selling to Midland.
They said I owe 1900 (I believe they charged membership plus late fee)
What is a good price to offer Midland (so I can live stress free)
Trying hard to avoid credit reporting
Please help
What you can settle with Midland Funding for is often going to be impacted by how much of a collection target they see you as. I regularly settle with them for below 50%, but there are instances where they will hold out for more.
My biggest question is once you go thru the courts and Midland’s lawyer starts the garnishment process is there a way to settle or still set up a new payment arrangements. Because it seems like you will never get out of this situation to improve your credit ratings.
It is possible to settle for a little less than the balance owed even though they are garnishing your paycheck. If you get them to go for it, the savings is not going to be great at all. They know they will get paid in full as long as you have that job.
You will likely have to work this all out with the attorney Midland Funding hired.
What happens if you file for bankruptcy??
Filing stops ALL collection activity. If you file chapter 7 you would likely wipe out this, and all other unsecured debts.
Hello & 2 things: First thank you for writing this article, I found it EXTREMELY informative & helpful. I have a judgement with a balance that is close but not exactly $3,000 and 12% interest. I’m thinking about writing to Midland and asking to settle for 50 – 60% of the amount price but also wanted to see if there was a way to add that any negative comments posted to the 3 credit bureaus are removed. Do you believe that is a good course of action? I’m in the state of Mass if that helps.
How old is the debt? When did the judgment get entered in the court record?
Debt is from 2012, so it’s 4 years old and judgement was entered and payment agreement was to start June 16, 2014.
Midland has plans available to help people resolve debts with an eye on credit reporting. Call and talk to them about it, and let me know what they say. Sending a letter is not the route to take.
You are still going to be dealing with a public record entry on your credit reports. But shortly after your settlement payment goes through, you can expect the court record to reflect a satisfied judgment.
I was served today Oct 8. by Midland Funding llc. I defaulted on a One Main Financial loan originally taken out on 5/11/2012 5316 the last payment I made was on June 2014. And the account was closed in February 2015. The balance is $3700.59. I have been attempting to pay off my debts and reestablish my credit since the beginning of the year. They were at the bottom of my list because the amount owed them is the largest. Unfortunately they served me before I could get started on the final stretch of my debt rehab. Now my hand is forced. Is negotiating even as option. I don’t have that money on hand or even a lump sum to offer and I’m okay with payment for the total of said amount. After being served is that even possible. I live in TX.
How long would it take you to save up half the amount Midland Funding is suing for?
Probably about 3 months
You are looking at needing to file an answer or general denial to the lawsuit in order to buy the time to raise the money.
Have a collection of $1214 with MF LLC,
I am able to pay the amount but soul it be smarter to see if they would settle for less and if so who would I contact to start the process?
Thank you Michael!
You can call Midland Funding or Midland Credit Management directly. Work out your reduced pay off and get it in writing from them before you pay.
I had a limit on my card of $400. My balance with Midland is now $841 which is clearly late fees and compounded interest. I offered them $400 since that is what I received in goods and they are telling me no. They’re not interested in settling because they just acquired my account in September and aren’t offering a settlement at this time. I am at work until 5pm Pac time and I can’t be tied up on the phone with them.
Not all debts will settle for half off. It is harder to settle smaller balances for the best results on a percentage basis. I have an article up that explains the complications with settling low balances. The same principle applies when dealing with debt collectors as it does with original creditors.
I would encourage you to settle with them before they have had the account for 90 days, as Midland has a policy of keeping it off your credit reports if you do that.
Thank you for your advice! I appreciate the information.
Hi Michael,
I was served a summons by midland last week for a debt that I thought i had worked out, The suit is for a little over $2600 and most attorneys want 1500-2500 to take the case, I don’t know what to do at this point, I can’t afford attorney fees not the 2600. I don’t qualify for low income. I am in California. I tried going to the court web sights but the paper work seems kind of confusing and a little scary. Can you help me or direct me in the right direction fast. Thank you
If your goal is to settle with Midland, how much money can you raise to settle this in the next 2 weeks?
i was hoping for monthly payments of $100 for maybe 10-12 months
In 2 weeks maybe 500-700. I just want the issue to be over.
You can probably get the monthly payments, but would likely have to consent or stipulate to a judgment. And when you look at that type of monthly payment, you are often looking at paying the full amount.
If you want to settle, the floor (best case scenario) when sued is often 50%, and that is no gimme.
You may want to defend the suit in order to buy time to save up more money to do a lump sum settlement.
I received a subpoena in the mail today from MCM. The court date is tomorrow. First of all, is this legal to mails subpeona (not even certified mail)? Secondly, I cannot possibly go to court tomorrow. Can I call and settle with them prior to court?
What state are you in?
What is the heading of the document you received?
It may be that you were served the original lawsuit, and that it took quite a while to locate you. Call the court and ask the clerk if there is a real hearing scheduled. My guess is no.
You can settle out of court. How much are they suing for?
Hi Michael, Chris here, I have a debt that is through Midland Funding and has been sent to an attorney. Ive been served at my residence a court summons. I called the Law firm and the gentleman I talked to stated that he could not negotiate a lower payment with me. I just want to pay them so I don’t have to go to court but don’t think I should have to pay all of it I was hoping they would take half. Is this possible in your experience? Also what happens if I dont go to court?
If you do not respond to the lawsuit, or show up for small claims, you end up with a default judgment against you. You want to avoid this.
You can settle with the attorney for Midland. It may not be for half, depending on the situation.
What is the balance owed?
What state are you in?
When did you last pay the original creditor?
Hi Michael. What if I already have a judgement and they have already taken the money out from my checking account? Is there anything that I can do to settle for less than it is owed? Is there any way to recuperate the money they took since it was my ex-husband’s checking account but I still had my name in the account but the money was his?
They took about $1500 but that does not pay the whole debt off. There is still more that is owed and now I am afraid that they will be able to also take my tax return this following year. Can they tap into that too? What is your advice?
They cannot intercept your federal tax refund. And only some states would allow that, like Michigan. Where do you live?
I just found out today that Midland Funding garnished my bank account for $845…my bank is sending me all the paperwork. I had no idea I owed them anything….can they just take money out of my bank account without my knowledge? I thought at least I would have to go to court or something before they could take any money out of my account. Am I wrong?
You do have to be sued and a judgment entered in court before you can have your bank account levied.
Look up your name in your county court and see what you find there. Have you move recently? Is the address of where the court record says you were served one you ever had?
I found out Midland funding was suing me when I checked my mail and found lawyers letters asking me to hiring them before my court date of Oct 6. I had no clue. I also found a letter from a Mediator. He didn’t know who the original debtor was. I’m supposed to call him back tomorrow. I know I had received some previous mail from Midland funding, but I’m a single 60 yr old who lost her full time job, got rear ended in a car accident, can barely walk or work, has no savings!. I’m fighting eviction right now, and I cant even afford to pay my health insurance this month. What to do??? I know that my credit card bill never went over $1100. I wonder how much more they added. Do I need a lawyer? Please help !
It sounds like you might fit the hardship description Midland gives on their website, where they will stop all collection in certain situations. Check out that section on their site here: https://www.midlandcreditonline.com/who-is-mcm/our-pledge/?_ga=1.8133938.1211792466.1463435377
You can call them at 877.240.2377 to discuss your hardship further. This is a real policy for Midland.
Let me know how it goes.
I got a letter in the mail from my job saying my wages are being garnished! I know for a fact that I paid Midland Credit off with a settlement offer, however I can’t remember when I paid it (I know it was within the last three years). They called a few months later from a 248 number asking me to pay and when I told them that I paid and gave them my information they said ok, it was there error. I have no idea what’s going on, but I am livid. Midland Credit Management, Midland funding…they’re asking me to pay something that I already know for sure that I paid off. I will call them tomorrow, today is Labor Day. But after googling midland credit and Midland funding I find all of this to be very troubling.
I had to go back in my bank statement and phone records to pin down the dates.
Have all that payment information at the ready when you call Midland today. Let me know how it goes.
Hi,
I called Mary Jane Elliot and Midland today. Midland gave me an account number, but when I tried to register to look at this account I was unable to. In addition, they gave an address and credit card I called my mother who is named after me and she confirmed that it was her credit card and an address that she stayed at. I was excited maybe they got us mixed up, when i called the customer service rep with this information she shot down my theory. I said if they got the address and credit card information mixed up what makes you think they didn’t get our social security mixed up. Without saying let me investigate or anything she was very condescending. I remember paying Midland a while ago, but like I said I have to find the information, but for my mom to confirm the address and the credit card company I am baffled, why would they not look further into this? I even checked my credit report and told her, there is nothing from this company. What should I do next?
Give me a call to go over some additional details. You can reach me at 800-939-8357, ext 2, or fill in the talk to Michael form in the right column on this page so we can email each other to confirm a time we can connect on the phone.
Dear Sir:
I am 68 years old and have a 2 year old citibank card account for about 5000 dollars that has just been purchased by Midland. All of my debt is medical related. Lost my job because of it.
I do not have a job and exist on 750 month social security and family charity. I have no assets Midland can get a judgment on.
It seems to me the thing to do is just share this with them when they contact me and let them know I am judgment proof.
If they pursue the matter just go to court and defend myself. Thoughts?
It should be a little easier than that Tom. Check out this page about how Midland will cease all collection if you qualify for a hardship. That is their site, so call the number on the screen. It sounds to me like you will qualify for them to stop all collection activity.
Let me know how it goes.
I’ve have 3 collections being reported to cra’s with mcm. 2 paid in full and 1 paying as agreed to be paid in full. Mcm is still reporting after the charge offs have fallen off at 7.5 years. They insist they are reporting accurate DOFD/charge off dates but do not have original documentation. One account manager said I could start an investigation and they can acquire the original docs from original creditors at their request at anytime, midland has owned these accounts for several years and does not currently have original docs. Can they do this? Can I dispute (will I win a dispute)? should I send validation later? Thank you.
I want to be sure what you have going on. You are paying, or have fully paid Midland Credit Management, but the issue is the accounts should have organically aged off your credit reports, but haven’t. You have spoken with a rep at MCM who said their reporting is correct.
I can help you. You can reach me at 800-939-8357 ext 2. You can also fill out the talk to Michael form in the right rail of this page so I can call or email you in order to set up a time that works for us to speak.
Hello Michael and Good Morning,
After having a “scare” of illegitimate online purchases/attempts made Tuesday evening on my husband’s debit card/bank account,..I decided to create an account (with Credit Karma), to get immediate visibility as to what is contained in his credit report.
In working through this with my husband last night, we found recent openings in the past year – on March 18, 2015 and September 15, 2015, respectively – of some old Citibank credit card debt that my husband believes he incurred many years ago. These are appearing under the “collections”category on his credit reports under agency “Midland Funding LLC”.
My husband remembers that the Citibank debt is VERY OLD,..In fact, so old that he cannot even remember what year that the credit card debt was from. Since I wanted to find out and research who “Midland Funding LLC” is, I came across a post that you made on behalf of a woman who was served with a lawsuit from Midland.
Please note that my husband has worked very hard to clean up his old credit cards, and has worked to settle with them over the past several years. Therefore, Midland Funding LLC came as a “surprise” when we found this information contained on his Credit Karma (TransUnion and Experian credit reports/information) yesterday evening.
Two items show up under “Collections” for agency Midland Funding LLC. The first item is a March 18, 2015 “open date” with agency Midland Funding LLC for $7,501; the original creditor is listed as Citibank, NA.. The second item showing up under Midland Funding LLC is a September 15, 2015 “open date” with Midland Funding LLC for $6,663; the original creditor is listed as Citibank South Dakota, N.A.
My husband and I live in New Jersey. I told him that he may want to (first) try to contact Citibank, NA and Citibank South Dakota, respectively. I assume that they both fall under the “Citibank” umbrella. This would be (should be(?) the beginning part of the “debt validation” process for my husband(?), We hope that Citibank would be able to have information available on this very old credit card debt that was (apparently) sold to Midland Funding LLC last year..
From reading other posts, however, I am concerned that my husband may not be able to retrieve information regarding old Citibank credit card/debt. He may get the same story that “we wrote off the debt and sold it to Midland Funding.”
Please note that no (formal) information such as mailed letters, notifications, etc. have been received from Midland Funding, LLC. I also let my husband know to “double check” the statute of limitations for the state of New Jersey. However, I think he (first) needs to be clear on how old this debt is.
From reading your story about the woman and your posts, you appear extremely knowledgeable and helpful. Therefore, I am going to give you my husband’s e-mail address.
In need of some good advice and where to go from here, we greatly appreciate it. Thank you very much.
Sincerely,
John and Donna
.
You can reach me live at 800-939-8357 ext 2. I can help you understand some methods for understanding the nature of the debt, and whether there are some action steps that will help you reach any goals you may have.
You will want to get to the bottom of when payments to Citibank stopped. You may be able to get Citibank to share that with you on the phone.
Hello Michael and Good Afternoon,
Thank you for the very prompt response to my post yesterday. My husband, John, left you a voice mail at your (800) 939-8357 (Ext. 2) yesterday afternoon, Thursday, 8-4-16.
Also, thank you for confirming that he should contact Citibank. Hopefully, we will be able to retrieve information from Citibank regarding the timeframe/timespan of this debt/type of debt that was incurred, and when payments to Citibank stopped.
I relayed to my husband that you very promptly responded to my (initial) post that I sent yesterday morning. It is greatly appreciated, and my husband will be placing another phone call to you today, Friday, 8-5-16..
Thank You Very Much – Again, It is Greatly Appreciated
Sincerely,
John and Donna
Hello (Again) Michael and Good Afternoon,
Since I did not know or have a telephone number to contact Citibank regarding this isssue, I looked up available phone number(s) online. Today, Friday, 8-5-16, I first tried to contact Citibank at their credit card support number, which is
1-800-950-5114.
When you call this number, it requests the social security number of the account holder. Since my husband’s social security number was not recognized any longer, I was able to get through to a “live” person, her name is Fatima. Fatima mentioned that she could see my husband’s history for his old account, but that (of course) he would need to call back since they will only speak to the original account holder. Totally understandable.
Fatima provided me a different phone number for my husband to call back,, which is 1-866-311-4975.My husband just called you and left you a voice mail late this afternoon, because when he tried calling this (second) number Fatima provided, he spoke to a man that asked my husband if he “wanted to make a payment.”
Of course, my husband said “no,” because we are trying to get the detailed information on the account history/last payment date, etc, As you likely expect to read in this post, the man told my husband that they “do not have any information,” as the debt was sold to Midland Funding.
My husband called me back to let me know the information he received. I told him to try to call the first number (one more time), and see if he could speak to Fatima. Of course, since Citibank is huge, this did not happen. My husband was given the same “do not have any information” response from another individual.
It is very interesting how Citibank was quick to ask my husband if he wanted to “make a payment,” yet they do not have any history or information to provide on the debt that they sold to Midland Funding, LLC. Thus, very frustrated.
Okay Michael, just wanted to give you an “update” on attempts to contact Citibank today. Again, my husband left you a voice mail at your telephone number this afternoon.
Thank You For Your Help and Assistance
Sincerely,
John and Donna
Thanks for the update Donna. I left John a message this morning with my direct office line. I will be away Sunday and Monday, and back in the office Tuesday.
Do you happen to have any billing statements from Citibank?
Hello Michael and Good Evening,
Thank you for letting us know that you left my husband a message this morning, Saturday, 8-6-16, and for informing us that you will be away Sunday and Monday. It is greatly appreciated.
My husband mentioned that he will try to see if he has any records of his old Citibank debt. However, he believes he no longer has any information or statements available, because it was so long ago.
Also, please note that I tried to contact Citibank (one more time), late yesterday afternoon, Friday, 8-5-16, This attempt was made after I sent you the last “update”/post on Friday. I will let you know where we left off.
I started from the beginning again, back at the first number where I initially reached Fatima the first time, (at the 1-800-950-5114 phone number). Of course, you are never able to get the same person.
This time, a man answered, and I relayed the same information to him that I originally received from Fatima, because she made it sound like they did have information available. The man who answered the phone late yesterday afternoon had to place me on hold for a couple of minutes. When he came back on the line, he said that he could not specifically access my husband’s Citibank records himself.
Instead, he mentioned that he would have to transfer me to a different phone number, but informed me that no one may answer, because it was late in the business day. He explained that the telephone number he was transferring me to is 1-800-846-8444, and informed me that this number is to reach “Account Specialists and Collections.” He said the people at this phone number would have more information on the debt that was written off before it was sold to Midland Funding.
When he transferred me to this phone number, no one was there to speak with by that time of the day. However, the telephone system provided some “automated” options.. Interestingly, in the automated options, the last four digits of each of the two individual account numbers were on the automated recording. When I attempted to press the automated option given to retrieve information on the first one one of the accounts, it had a recording that “no one is available” and to call back within normal business hours. Then, when I attempted to press the automated option given to retrieve the second account, I got the same message that “no one is available” and to call back within normal business hours.
Late yesterday evening, I mentioned to my husband that they must have some history available, because the automated recording provided the last four digits of each of two accounts. I gave my husband each of the last four digits of the two individual accounts in the automated recording. This way, if he is able to find any old documentation on his two Citibank accounts, he should find the last four digits to be a “match” with the automated system.
Okay Michael, this is the latest update to this point.
I think it will be very important for my husband to speak with you this coming week when you return to the office on Tuesday.
Have a Great Weekend and Very Much Appreciated
Sincerely,
John and Donna
Hello Michael and Good Evening,
I just want to reach out and say “thank you for all that you do” to help people in these situations. After you provided your advice to my husband, John, he was able to seek an attorney. The attorney helped him file an answer and a denial with the court..
You were very kind in spending as much time on the phone with my husband as you did, You even directed/explained to him that it was “easy enough” for him to file an answer (and a denial) on his own, directly at the courthouse.
Please note that I advised my husband against this, because I did not believe we are educated enough in handling these types of situations. I know that my husband mentioned that you recommended a couple of different attorneys in the state of New Jersey a couple of months ago. Eventually, my husband found one of his own.
Your advice is fantastic. Let me just say that for all of those people out there reading these posts, it is best not to let these situations end up in court, and try to mediate/settle BEFORE it ends up in a formal court proceeding.
Thank goodness for people like you, that point others in stressful situations and(or) that face serious hardship, in the right direction. For too many, this comes as a “surprise,” and it is very scary.
Michael, thank you again. I just wanted to follow up.
Sincerely,
Donna and John
Will it affect you if you do not have a social security and need it for Midland Funding?
DO you mean for identification purposes? You can use a few different methods to match up in a debt collectors system. Is there another reason you are worried about your lack of an SSN and Midland Funding?
Oh I have my social security, but I was just wondering if a person could get in trouble for not having one!c:
Also, I called Midland Funding and they asked for my social security identification. I gave it to them by phone and they recorded the call. Is it possible for people to steal my identity, because I am worried!
Identity theft is a huge issue and something to be vigilant about. But Midland Funding already had access to all this information. They are asking for your social security number to match it in their system and identify they are talking to the right person.
Hello,
I currently have two open accounts with Midland Funding totaling less that $1,000. I am trying to repair my credit score in order to purchase a house,
They have offered to settle for less than the debt that I owe. In your experience, does it look better to “pay in full” or to agree to a settlement? I was told that “settling” for a smaller amount looks almost as bad as still having the account in collections but I am unsure if that is true. I’d obviously like to pay less money back if that is an option but I don;t want that to affect my credit report in a negative way.
Also, once I pay the debt off, will they automatically notify the credit bureau or do I need something in writing beforehand to prove this? Thanks for your time!
Whenever accounts have been unpaid long enough to be with Midland Funding, the credit damage is done. Whether you pay in full or pay the debts off for less, the same thing will happen to your credit reports. They will be updated to show a resolved collection account. You could not offer to pay Midland 3 times what you owe and get a better outcome for your credit.
You can get your home loan through with resolved collections, so not a big deal at all.
Midland Funding will update the credit bureaus, so you do not have to. But get your settlement agreement in writing before you pay. You can use that letter and proof from your bank account that you paid on time, and get the credit bureaus to update if Midland somehow doesn’t.
Hi Michael,
Found your post and it was very informative. Wish I found it sooner.
I’m being sued by Midland Funding for $10,000 and they have agreed to settle for $1,800 with prejudice. I have hired a consumer attorney and have asked if changes to the settlement agreement can be changed. They informed me that it is not possible and that agreements are reviewed by an attorney prior to sending , so all the wording is approved beforehand.
The items I wanted to add were the following:
1. Include that they will not sell off the remaining balance of unpaid debt
2. I do not admit liability for the debt but willing to settle to close this case.
Is this reasonable to be added to settlement agreement? Or should I just settle? I have the amount cash on hand.
I have also asked to have a NDA (Non-Disclosure) in place that related to the following:
To not disclose the settlement of dispute to any person or entity, the amount of payment, or any other information that refers or relates to the dispute.
Is this reasonable? Should I even ask for NDA? The response from attorney was this:
NDA’s aren’t usually included in civil cases but the agreement does state that it is confidential.
Thank you so much for your time .
Midland Funding cannot resell debt via a consent order with the CFPB. There is no reason to get hung up on this as it cannot happen.
What is your concern behind the liability reference? Why do you think that is going to benefit you?
I would not add NDA language at all if it were me.
Hi Michael,,
Thank you so much for responding back so quickly. The liability reference was because Mid;and Funding has not produced any type of document that the debt owe is mine. They just agreed to settle before going to court. and so I figure I would add that to the agreement.
Your settling, so none of that would matter if it were me.
Got phone number just need help fast to get it off my credit report cause they nobody want let me borrow money my two kids needs clothes to go back to school next month so I need to move fast it was all paid off today and sent over night to them. If you can possible help me please and god bless.
It takes banks and debt collectors a few weeks to update credit reports normally. If you send a payment to Midland via overnight courier that will speed things up. But this is still going to take some patience.
I have Midland Funding on my credit report from an account that was purchased from a credit card I owed. but haven’t received any mail from Midland, I have attained an attorney for bankruptcy filing but I cannot find Midlands address online anywhere. Can anyone help me with Midlands Funding address so I can contact them in writing. I have there phone number but, I want to be assured they will be giving me the right address if I have to call them for it after the validity of the account.
Midland Funding and Midland Credit Management address to mail something is: P.O. Box 939069, San Diego, California 92193
I have a copy of Midland’s SEC filing and know the exact percentage (i.e., the average purchase price) Midland paid for my debt the year it acquired my account. Now being sued by Midland, can I use my knowledge of this percentage in court or in pre-trial phone negotiations with a Midland representative? Can I offer in court “to make Midland whole” by paying it the average purchase price for that year’s accounts? Will a judge even consider that request, or will I be required to pay Midland everything?
What Midland pays to purchase the legal rights to collect usually has no obvious bearing on what they will accept as a settlement. In other words, knowing what Midland paid for debts in the past will be of little use to you (in or out of court).
If you would like my impression of your situation, what to aim for, and when to negotiate for the best outcome, fill in the Talk to Michael form in the right column on this page. I will email you back to set up a time that works for you to connect on the phone.
I’ve spoken twice this week with a Midland representative. I now owe $6,500. He said Midland will only settle for $5,000, and he is not budging at all. Yet, I’ve heard stories of Midland settling for 30% of the amount owed. He said that now that we are in litigation, he won’t take a dollar less than $5K. If Midland were true to its word of “accommodating” the consumer, 30%, including amount already paid, would be do-able. I honestly cannot afford a higher lump sum. Should I still fill in the “Talk to Michael” form on the right to discuss this with you a bit further?
Yes, please do submit the form. I am traveling, but will be back in the office Monday.
Settling an account with Midland Funding is one thing, settling that same account when it has been sent to an attorney who has filed a lawsuit to collect is another. You may have a shot at settling for 50%. But you want to take some of the leverage away that the attorney thinks they have right now. I can talk with you more about it next week.
If you submit the consult form be sure to include if you are available on Sunday. I have a full day of driving, and will be making calls during that time.
I was informed that Midland was planning to file a suit against me, so I contacted Midland by phone, acknowledged the debt, and tried unsuccessfully to work out a lump settlement/payment arrangement. Was Midland supposed to send me a letter of some kind five days after my initial phone call with said DB? After that first phone cal, was I supposed to be advised of my right to dispute the debt? If it was supposed to and didn’t, is that grounds for a lawsuit being dismissed with prejudice? In short, should Midland have sent me any letter within five days of my initial phone contact with the DB? If so, I never received any such letter?
If you are being sued already there is not the same requirement. Everything will be much more formal and through the court.
What is the balance owed?
What amount are you trying to settle for?
I’ve already paid $500 in $50/mo. payments on a $7K debt. I now owe $6,500. Midland, without picking up the phone and working with me, went ahead and sued me because I was not making its required $100/mo. minimum payment. (And here I was thinking I was making good-faith payments/operating in good faith.) However, I never signed any contract with Midland or the original creditor stating I would pay a minimum of $100/mo. Midland, in its court filing, states that it only sues people when they refuse to pay. But that is not true, as I had been paying for 10 months when I unexpectedly got served; I was not avoiding the DB, as it states in writing is when it considers taking legal action. Midland also states it has “innovative” payment plans that “accommodate” the consumer. But that is not true: Midland will sue if consumers are not paying at least $100/mo., no ifs, ands, or buts about it. I am hoping the judge will dismiss the case with prejudice, since Midland’s “Statement of the Case” is predicated on lies. Do you think a judge might be empathetic to this line of reasoning?
You have to get an agreement to pay the amount you were sending each month for it help your situation. Check out my video about making good faith payments to debt collectors.
Midland does offer some decent ways to pay or settle debts. I have seen payment plans extend well beyond a year, but $50 a month on a balance this size is not a realistic plan for most debt collectors to accept. This is made even more so if you are trying to work this out with an attorney the account was sent to.
I do not think the judge is going to empathize one bit. I think you will end up with a judgment if your only argument is what you stated. That is because there was no agreement.
Can you raise money to settle for a single lump sum?
I was sued by Midland back in 2013 and a judgement was issued I didn’t know I had the judgement till last year… Filed by Midland… what are my options now that Ive been sued,
Check out this post about dealing with judgment debt.
Hello, is Midland credit management closed? I call every phone they have in their internet site and nothing.
Try calling Midland Credit Management at 800-265-8825. If the lines are down it is probably a system problem, so just try a couple hours later.
Michael,
Thank You so much for motivating me to pay off all my collections today. it really felt great. Also using your ideas you have posted in here I was able to negotiate about 50% on the dollar so that really was key. My question to you is now that I have eliminated all my collections and a public record (Which they said will be removed once the court is notified) will I see any sizable bump in my credit score or ? Again thank you so so much and really appreciate your thoughts and advice.
Nice work getting your debt settled Larry. Check out this post about what to expect with your credit score after settling collections.
Without my consent, my wife called Midland to inquire about a debt that I acquired with my ex-wife. They gave her every bit of information she asked for including the original debt, date of the original debt, my account number and so on. We live in Texas and I have read that under the Texas Fair Debt Collection Statute, Midland was not allowed to speak to my wife without my consent. Is there any legal action I can take against them? I have also heard/read that if your information is given out without your consent, the debt will be removed. To your knowledge, is this true?
You will want to talk with an experienced consumer law attorney in Texas about whether that was an improper disclosure, and if so, what that means to you.
There is no law anywhere that I am aware of that says Midland Funding is removed from your credit reports over something like what you described.
Is your goal to get this off your credit?
When did you stop paying the original debt?
How much is it for?
Midland credit is telling me the statute of limitations in Nebraska is five years. I have researched and everything I have found shows it is a four-year statute of limitations. If they have it in fact contacted us outside of that time period, what sort of recourse is there, if any?
Being contacted by a debt collector after the SOL to sue, or even to report on your credit has expired, is normal. Generally speaking, there is no recourse to be had for Midland calling or writing to you passed the 4 year SOL to sue in court in Nebraska. Your debt does not legally go away unless you file and complete bankruptcy.
It does appear that the 5 year SOL to sue on written contracts is 5 years in Nebraska.
What kind of debt is it that Midland is trying to collect on?
Hello and thank you for an expedient reply! It is a Citi account of $ 863.28 from 2012. They are offering only 20% off the balance and no more. I inferred 50% settlement and they won’t budge. Any suggestions, Michael?
Kindly,
Deb
Is it Midland Credit Management that you are negotiating your settlement with, or an attorney collecting?
While it is a harder to get the best reduction on small balances with all debt collectors, it is possible. You should not expect to get it done in one phone call. You might try calling often and a few days or weeks apart. Fifty percent is a realistic target with MCM, but sometimes not with an attorney collecting.
Hello and thanks again for getting back to me. I am dealing directly with MCM. They sent a notice that says pre-legal notification. It states it may be referred to an attorney in my state if I don’t reach out. (Reader’s Digest version). I am good with 50%. I certainly don’t want it to go to litigation. Maybe they are holding out because they are planning on referring it? What say you, Michael?
I say go for the 50% if you can fund it. Try a couple times over the course of a few calls in a weeks time. If you cannot get it done call me.
Midland financial contacted me over the last year or so and requested a settlement on an old credit card. California SOL is 4 years and this would fall in the time frame. I found out through a third party advertisement that they are suing me. I have 20 days to respond and 12 of those days are gone because I have not been served. I moved last July but updated all my drivers license, mail, etc and I know they have my current address because multiple pieces of correspondence have been sent here from them. Can they sue me and deliberately send notification to the wrong address so I don’t get served or have time to consult an attorney?
The time to file your response with the court when sued begins when you are served. They have not served you yet, so no time limits have started ticking.
Look up the court record and see if service has been file with the court as having been perfected. It likely has not. If it has, let me know and lets go from there.
What is your goal with this debt?
Hi, my son just recently informed me that the debt he owes was sold to Midland Credit. He does not live with me but due to the fact that he travels a lot and almost never home, most of his credit cards, car lease, driver license is registered under my address, and even the important things that he orders come to my place, which I am ok to receive and keep for him while he is gone and he usually drops in and picks up his mail once a month or so.
He informed me yesterday that in case someone comes to my place to sue him by delivering summons, to go ahead and give the server his real address and he said “he will deal with them himself”
He said he is unable to changed to address on the aforementioned debt anymore since it has been sold so my concern is, if a sheriff appears at my doorstep, can I refuse to take the summons and instead tell them that my son does not live with me and give them his real address? Or once the door is open I have no right to NOT accept the summons.
He keeps saying that if I explain that I do not accept important legal documents on his behalf they should be ok if I just give them his apartment address and send them off.
Does this even make sense? He really does not live with me and my son put me in this situation where I do not want to deal with this headache and I don’t want to take any papers from anyone, so is i possible to turn the server away by letting them know what the situation is by providing them with his real address?
And I don’t want to hide or not open the door because we have lots of guests coming, etc. Any advice. We live in North Carolina if that helps.
I did look at some legal forms online for NC, and one of the ways to serve is
“by leaving a copy of the summons and complaint at the dwelling house or usual place of abode of the defendant named above with a person of suitable age and discretion then residing therein.”
So it seems like my son can get served if they deliver papers to me, but, again, I am just wanting to know if I can REFUSE to be served since i am not the defendants.
sorry for repeating this over and over but he got me really concerned
thanks
Maria
That is pretty normal… to let them know the person they are trying to serve legal papers does not live there. No need to hide, and it sounds like your son is not hiding either. He is giving his address (through you).
You should have nothing to worry about. Just tell relay the information.
hi
i have not been sued yet, but i have received a dunning letter from an attorney representing Midland …the verbiage was something like if I did not pay, then they would review my credit report and make a decision how to pursue this debt. I did send a dispute letter, i received back a form letter saying that they have reviewed the paper work of their client and they are indeed owed. They finish by saying that by my request they will not contact me anymore. i did not tell them not to communicate to me about this debt. The letter said to not communicate to me until they are able to validate the debt.
What they sent me was not enough to see if i actually owe them. This card was reported as lost/stolen, during a hospital stay in April 2014 to Credit one. i dont remember using it to make any purchases, since i was recovering from emergency surgery and complications from it. My caretaker paid my bills. when i got back on my feet , in July, I called them and told them that the charges on the account were not made by me. after going back and forth with Credit one, they agreed to put the balance at zero and closed the account. i had followed up back then and saw that this was so online. i never heard anything else from credit one.
I also never received a dunning letter from Midland. This is the first time I am hearing about this debt being in collections. i sent a validation letter by certified mail asking for information to prove that I am the one that owes the debt due to the circumstances listed above. My question is, wasn’t i supposed to receive a dunning letter from Midland, before having it sent to their attorney?
You do not necessarily get a collection letter from Midland Credit before tha account goes to an attorney for collection. The collection notice is something that is supposed to follow a collection phone call by 5 days. Did you get a collection phone call from Midland Credit?
Were you a victim of ID theft or fraud? That can make this easier to put behind you than the typical dispute letter.
Michael,
I have an account that MCM purchased a little over a year ago. I know that it is in my best interest to attempt to settle the debt before it becomes a legal issue so that’s what I have been doing for a year now. I have sent them 4 settlement letters in total over the past year…each one being a small percentage higher in my settlement offer. The original debt was for $1250.00 and my last offer was for 40% of that. They have already verified the debt (I knew that it was mine and I was only wanting to settle in any case).
MCM responded to all my attempts but only with the same collection letter as the first, with the same $1250.00 being owed. None of their response letters even seemed to acknowledge my offer…whether a denial or agreement…only kept sending the same original letter. Do you know why that would be???
I just received the latest response from MCM after my last settlement letter of 40% and I’m not sure that I understand what they may be trying to accomplish. Here is what it said:
“The purpose of this letter is to advise you pursuant to the Texas Finance Code that we need more time to investigate your dispute of the credit reporting of the above-referenced account. Accordingly, until we are able to respond to your dispute, we are requesting that the three major credit bureaus delete the credit reporting of the above referenced account and ceasing collection efforts. We will update you upon completion of our investigation and may resume credit reporting of the above account upon completion of our investigation.”
I have been actively attempting to settle this account so I’m not sure what game they may possibly be playing regarding this “investigation”. I am obviously uneducated about all of the “loopholes” within the “credit/collection games” so I was wondering if you had any opinions and/or advice for me? Where do I go from here????
Thanks so much!!!
D in Texas
Most banks and debt collectors do not respond the way we want if we are trying to negotiate through the mail. That is likely why you are getting the responses you are. Your offers also may contain verbiage that they are treating differently. This is pretty common.
Can you post a reply with what exactly your letters you are sending have said? I would be better able to offer feedback about that.
If you are serious about negotiating the debt you would want to call and get the amount negotiated with MCM, and then not send them any money until you see the deal you reached verbally over the phone, in writing that they send you by fax or mail.
Hello, I have a current account in collections by midland funding. My original balance shown on both original account and collection account is $506 but midland is showing I owe over $700. Can I dispute this or does midland have the right to charge me more than the original debt? Thank you for your help!
There are contractual elements that can cause a balance to continue to grow after payments stop. But I cannot say if that is in play with your account.
What is your goal for resolving the debt Midland Funding now has? How long have they had it?
Thank you for responding. I am trying to resolve debt to purchase a home. They have had my debt for around three years. I have dealt with MCM and have a judgement on my record due to them suing me (which I paid ). I’m trying to avoid that again but I am not sure about the amount not being original to the debt.
If it were me, and I know the debt to be mine, but it is off by a little bit based on my memory, I am still calling to negotiate a settlement for the best savings. I am not letting this small amount of money (if it is only this account that is holding up my home purchase), keep me from my goal.
Hello, I have been sued by Midland for $2200 (via Dell). There is no court date, but states I have until the 14th (of May) to Answer. I would like to settle. What is the best way to do this? I would like everything in writing. Should I email the attorney on file? Do I have to provide my financial institution information, I’d rather now? I’d like to pay in 2-3 payments. I’d like to offer $1000 (the best I can do). How does this usually work (settlement)? Thank you for all of your help! – Lisa
Now that Midland has sued you will be dealing with the attorney they have the account with. You will typically want to negotiate the deal over the phone, and then get the settlement in writing.
Getting your settlement to 50% and a few months to pay is not a gimme. Here is a page dedicated to settling once sued: https://consumerrecoverynetwork.com/question/can-you-negotiate-and-settle-a-credit-card-debt-if-you-are-being-sued/
You want to be aware of what I cover on that page about how negotiating at this point can often work.
Hi Michael ,
My name is Sergio Vazquez, I have a question about some debt I have originally had with Chase Credit Cards and now with Midland funding. I owed 14K to Chase in CC debt back in 2011. At the time, we went over what we could afford and were unable to keep up with payments shortly after that I lost my job and everything went down the drain, My question is this, what will be the best way to eliminate this debt from my credit report? I am working on repairing my credit report and trying to fix some old debt I had from back in the days but I don’t have 14K sitting on the bank to satisfy this debt but I just don’t know where to start with this one. If I can reach a settlement with Midland funding what happens to my original debt with Chase? Do I still have to pay chase? any advice will be greatly appreciated.
Thanks
I forgot to mention that I live in the state of Texas and my goal is to sell my current home and buy a bigger one due to family expansion. I defaulted on my home or car, it was just CC’s 3 to be exact. would this make any difference?
Your goals, and the timing of them, will make a huge difference. Give me a call for a quick consult about some options at 800-939-8357, option 2 rings to me, or fill out the talk to Michael form in the right rail and I will contact you.
Hi Michael,
Apparently, I am being sued by Midland Funding LLC in the amount of $2,012. I found this out by receiving several letters (five) from attorneys who want to assist me in the case. Court date is scheduled for May 31st. To be honest, I am really not sure of my options. Should I contact one of the lawyers? At this time, I do not have the funds to pay off a large amount or lawyer fees as I am a grad student and teacher.
Seeking any help you can provide,
Michelle
At this stage of collection, and given the relatively small size of the balance owed, if the debt is legitimately yours, settling for a lower lump sum amount can often make the most sense.
Can you pull together half of the balance? If not immediately, how long would it take?
Thank you so much for your response! I could pull together the amount in the next three months. Not at the moment though because I am paying for my last semester of grad school. Can I settle for a lower amount at this point? If so, would that be something that happens on the court date, before the court date by an attorney, or by me.
Michelle
Give me a call to go over some strategy Michelle. If you cannot be quick about settling, there are some ways to get yourself the time you need and still avoid a judgment. You can reach me at 800-939-8357, option 2.
Thank you for the very informative website. I received a letter from Pressler and Pressler LLP in behalf of Midland Funding LLC. Asking for my mailing address. I called them to verify what was the legal process for. They told me it was for a Dell account I owe in the amount of $1325.00. From what I remembered I paid that off. I don’t have proofs anymore since I moved from NJ to CA in January 2012. That Dell account was from 2006 and I believe i settled it in 2008. The representative told me that the last payment I made was June 18th, 2012. Of which I replied that I am in CA that time and didn’t make a payment in 2012. I requested for validation and he told me he would request and and I need to have all proof of payment. Then he hung up on me. What should I do? I don’t believe I owe this much to Dell and it was back in 2008. The person insisted I made a payment in 2012, which was a lie. Please help.
Give me a call to go over some options Andi. You can reach me at 800-939-8357, option 2 connects to me.
Great answers, great info videos. Michael I have a citi account purchased by midland funding and a Synchony account being collected by MCM, Do you think is convenient to try and settle both at the same time, What would be the best approach?
Regards.
It is often a good idea to lump all accounts into your negotiations from the start. I would approach Midland through their main contact number on their site. Identify yourself and the multiple accounts, and start with a low offer. You have a realistic opportunity to settle for less than half.
How long has it been since you paid the original creditors?
Is your state SOL passed?
Hello, I appreciate all the information you have here. My fiance and I will be dealing with Midland Funding regarding an hold debt of his in the amount of $ 845.00. He was served a notice that they intend to garnish his wages within 30 days if we do not respond. We want to negotiate this debt as it is valid and within the statute of limitations in the state of Georgia. I am just concerned about negotiating a lower amount to satisfy the debt. I have read a lot about doing so but I know they can be very aggressive. Any tips for dealing with them?
If there is a garnishment at issue than it indicates the account has already been in the courts. If this is the case, than you will likely have to deal with the debt collection law firm that has the account. And that changes my feedback.
Post who the collection law firm is and I can offer better feedback from there.
MIchael,
I am currently in the process of trying to purchase a home. I was pre-qualified and am now in the process of writing my letter of explanation for the underwriter on a midland funding debt. Originally the debt was sold from Capital One. As you could imagine it nearly doubled by the time all fees were added. Midland sued me and my case went to court back in 2013. I have not heard anything from them since. They continued to report it on my credit file. Recently I began receiving offers to settle for a lesser amount after many years of no contact. It has been so long. I was very young when I went through being sued, I did not keep paperwork and did not go to court. But I typed in my case number and it says: dismissed, purged. Does this mean they can not go after me again? This is also the last year they can collect.
That is a bit odd. I would call, or go to the court and ask the clerk to help you look and see if there were multiple cases filed against you, and whether there is still a legitimate judgment on record for Midland Funding.
Judgment debts do not go away, or become noncollectable, in the same way that non judgment debts do. Why are you thinking this is the last year they can collect from you?
Hi, Michael.
I recently got a letter from Midland Credit Management, Inc. and was told that there is a Well Fargo account that is defaulted for about $2 but I were offered a 40% discount if everything was paid up front by the 28th of Feb (a one month period). This debt doesn’t sound familiar and speaking with the bank, they have zero record of it and I was told they had sold the records to MCM and didn’t even have record of the account number.
The letter from MCM says that due to the age of the debt, they will not be suing for the collection but if the discounted amount is not paid 10 days from now, the full amount of $2,000 is owed. I called to speak with a rep and they said the debt is from an account opened in 2008, the last payment was made in the middle of 2009. To the best of my knowledge, this is the first time I have been contacted about any outstanding debt on a Well Fargo account (almost 7 years later from the last date of payment).
I did mail a certified letter requesting validation and calculations on the debt but am almost certain it will take longer than the 10 days I have left to pay the discounted amount offered by MCM. So I guess my question is, which do you think is the best course of action? Wait for the validation of the debt and risk losing the 40% discount offer, or just pay it in full to possibly save money down the line?
I’m in Texas and have read that companies can only report bad credit up to seven years from the date of defaulted payment (Which would have been in June of 2009, according to the MCM rep I spoke to). I’m just worried about this popping up later and having to deal with another company if they sell the debt to another collection agency. Any advice? Thank for your time.
Midland does not resell any debts so you do not have to worry about that.
Taking advantage of the settlement, if it were me this late in the collection stage, would be because I have a credit goal I want to accomplish before January 2017 (7.5 years from when I last paid on the account).
Dear Michael:
I am currently being sued by MIDLAND FUNDING LLC ASO WEBBANK/FINGERHUT CREDIT.
Case ID: 1786551 – MIDLAND FUNDING LLC V JACQUELINE
Filing Date: Wednesday, February 03rd, 2016
Type: 14 – CIVIL WARRANT- OTHER
The information is from Creditor’s system:
JACQUELINE
Account Number: -9582
Current Balance: $1,105.83 Minimum Amount Due: $1,105.83
Last payment $25.00 made on 12/24/2015
I want to settle this case and pay monthly if possible.
How do I go about this?
The local attorney is FINKELSTEIN, KERN, STEINBERG & CUNNINGHAM P O BOX 1 Knoxville TN 37901.
You help is appreciated!
Jacqueline of Memphis TN
——————————————————————–
Shelby County Tennessee
General Session Court Civil
General Sessions Court Clerks Office
Civil Division Payment Address
P.O. Box 3824
Memphis, TN 38173
Ph: 901-222-3400
Fx: 901-222-3413
Contact the attorney for Midland Funding and ask about what amount of money you can pay each month. Be sure whatever you agree to is something you can afford. Because you will likely be asked to sign a consent or stipulation to judgment now that you are in the courts, I prefer negotiating a lower one time pay off amount to avoid that.
Hi Michael,
I’m currently being sued by Midland Funding for a credit card debt that I do acknowledge & that I do wish to settle, but for a reduced amount. I would have to make payments if I’m forced to pay the full amount they are seeking. I was just served last week, & haven’t yet filed my answer. Is it best to try to negotiate with the attorney’s office & ask for dismissal of the case (if agreement is made), or go ahead & answer with admission to the debt & negotiate in court? I’m not sure at which point I have a better chance at negotiating for a reduced amount.
My experience is that you will have a better opportunity to settle for less either now, before answering the complaint, or after your answer is filed, but not with an admission to the debt. Admitting to the debt is more consistent to falling on your sword and trying to set up affordable monthly payments, not a reduced lump sum settlement.
Can you pull together half of the balance owed quickly?
I could afford to pay half March 4th. Do you think that’s too far out for negotiation? How do I need to word myself carefully to ask if they will accept this reduced amount & consider the debt resolved?
I also find it interesting when “googling” the representative law firm, that they’ve been successfully sued by the Consumer Financial Protection Bureau for $3.1 million to pay back to consumers in the class action suit. This was just ordered in December 2015.
You must be talking about Frederick J Hanna and Associates. That was a big deal indeed. But do not let that cloud your focus on resolving your debt and reaching your goals. None of that applies to you, except perhaps the expectation that they have their ducks in a row and will be handling your file properly.
Depending on how much of a collection target you appear to be, it is possible to settle active lawsuits for half. I tend to see a better chance of that when you file an answer or general denial first.
You are welcome to call me for a consult to get a grip on how debt collectors view you based on data they can see about you from your credit reports (and other sources). Call 800-939-8357, option 2 rings to me.
Thanks Michael. I’m going to proceed in filing my answer, denying the claims & taking my chances at court!
or rather answer “lack knowledge”.
Please post an update with how things develop. I suspect things to go much cleaner with collection lawsuits that both Midland Funding and Hanna Associates are involved in.
Hi Michael,
So when I was served, it lists Frederick J Hanna and Associates as the representing attorney’s office. I also received a confirmation letter from them indicating they received a copy of my answer. Then I received a follow up letter asking to call to resolve this matter without having to go to court. I’ve been unresponsive.
Then yesterday, I receive a letter from a NEW attorney’s office – “Cooling & Winter” which is just a copy of their letter to the magistrate court requesting to be put on the calendar for the next non-jury trial date opening. They reference the correct Case No.
How is this now with a different law office??
It is not all that uncommon to have a change in attorneys during the course of a case. There are rules that allow for that. Same thing can happen if you had counsel and needed to make a change.
How do you respond to the lawsuit? It says I have 28 days but, what do I respond with and to who?
Are you being sued by Midland Funding? What is your goal when responding to the lawsuit? My feedback is often going to be different depending on the result you are looking to achieve.
Generally speaking you would respond to a summons and complaint with an answer. How that answer is crafted can vary, but a general denial is common. You typically file the answer with the court and serve notice on the plaintiff’s attorney. For legal assistance, and to better understand the process, you really want to consult with an experienced attorney in your state.
Hello – thank you for writing that article, it was very informative. Back in 2012 I was sued by Midland for unpaid credit card debt with Chase, I fought against them and got a lawyer, my lawyer requested proof of the debt in which Midland didn’t produce, The case was then dismissed but without prejudice. I have not heard from midland since then but obviously it’s still on my credit report. What should I do? I know I’d like to buy in a house in the next year or two but I also know the statue of limitation is approaching. Thank you for any advice you can provide.
What state do you live in? When was it you stopped paying Chase?
CA and sometime around 2009
The SOL for Midland to legitimately sue you in order to collect is 4 years in California. And depending on the month you stopped paying the account in 2009, the account should drop off your credit sometime this year or beginning of next.
If you were looking to get a home loan before Midland falls off your credit you would likely want to negotiate a settlement before you get your credit pulled by a potential lender. If you are good with waiting until this drops from your credit, and your goal is a year or two out, that looks good.
Be sure Midland Funding falls off at the same time as the original creditor.
I am a lender helping a client with a new home loan. He has an outstanding judgment from Midland Funding LLC from 8/2012. He contacted Midland to pay the full amount, and asked for satisfaction of judgement. However, Midland is stating they can not accept payment, due to the file being turned over to a third party for review and settlement agreement. He asked for the contact information for the third party, but was told they did not have that information, and that he would receive a letter in the mail from the third party. I also called, after being given consent, and was told the same thing. I asked if the individual I was speaking to was here in the U.S. and they said, no, that they were in India. I asked for the supervisor, and I was transferred, where it literally rang a 100 times before I hung up.
What can my client do? He is a veteran, and will be losing the opportunity to purchase this home. I don’t understand why they 1. won’t take his money, or 2. tell him who the third party is on the transaction. Thanks!
Give me a call tomorrow Renee. I will help you get where you are going. I am at 800-939-8357, option 2 rings to me. If you get my voice mail be sure to leave a message so I know to return your call. I am on the phone a lot.
Michael, I reside in the State of GA and a few weeks ago I was served by a local law firm representing Midland Funding for a debt written off by Citibank and given 30 days to file a response at the local county courts. I have resided at my current address for over three years and have not received communication from Citibank nor Midland Funding as it relates to this debt. I applied for credit in October 2015 and as a result of denial, requested a copy of my credit report. After a thorough read through, I tackled each outstanding debt and challenged the status of many which have since been resolved. Midland Funding nor Citibank were listed on my credit report as a collector in October 2015. There were invalid addresses and phone numbers associated with my credit history so an update of my contact details were reported to the credit bureaus. After being served in December, 2015, I checked my online credit status and Midland Funding appeared in collection as of mid-November 2015. My intentions are to challenge Midland Funding, its attorneys or Citibank and came across this website after researching Midland Funding. Reading through the comments in an attempt to find some type of resolution, I’m asking your assistance in guiding me to determine the most effective and efficient approach to this situation as I have to submit a response to the courts within five days of this post. The law firm on behalf of Midland Funding are attempting to garnish my salary and/or bank account to collect this debt. Many of the local collections attorney’s I have spoken with have advised me to file bankruptcy to avoid a garnishment and further legal ramifications. I am currently working on rebuilding my credit and do not feel it would be in my best interest to file bankruptcy for an “allegedly” $8,000 debt Midland Funding purchased and is now suing. I am an independent contractor (1099) with a fluctuating salary based on productivity and although not pertinent to “the powers that be”, I am battling health issues and scheduled for surgery in ten days and looking at a 6-8 week recovery period. I’m trying to avoid stress as much as possible and time to allow for recovery to have a more stable mind to challenge this in court. Filing a response within the next few days then receiving a request to appear in court could possibly transpire around the time of my surgery and/or my recovery period in which I would be bedridden for a few weeks at minimum. My questions are: what should I include and/or request in my response to the courts of being served by Midland Funding’s local attorney? Should I contact the attorney office or Midland Funding prior to my 30-day filing or wait to appear before a judge? If a court date is requested during the time of my recovery and I am unable to attend, what steps can I take to avoid further ruling until I am able to appear before a judge? Any advice, direction or suggestions you may have are highly appreciated. Thank you in advance for your assistance.
I would encourage you to speak with an experience debt defense attorney before doing anything else at this point. You have a few days before the answer needs to be filed.
Is your ultimate goal your credit reports and scores improving, or is it fighting Midland Funding in order to get a dismissal?
Thank you for your prompt response. I would say it’s a combination of both. My credit scores has improved over the past couple of months however, this collection/judgement has had a huge impact on my credit status. My goal is to continue to improve my overall credit. however, my immediate goal is to avoid garnishment of salary and/or bank account and have the knowledge to address Midland Funding to prove the amount of charge-off debt owed to Citibank and what rights I have as a consumer to dispute these charges or at best resolve this without going forward with a garnishment.
Give me a call to go over some options that will best help you achieve your goals. You can reach me at 800-939-8357, option 2 rings to my desk. I am on the phone a lot, so if you get my voicemail be sure to leave a message so I know to return the call.
Hello,
I have been fighting with Midland Funding on an old “ZOMBIE” debt that is 12 years old.
I believe that the SOL has been far past (6 years in South Dakota) in my case and they
just don’t want to go away. It has been close to 2 years going back and forth and if I knew better at the time I would have filed “Motion for order compelling discovery” but, this was long ago and I knew nothing at the time. I would say took them about 6 months to finally send me a piece of paper just stating that this was a credit card debt from Bank Of America that was breached and had a balance that I needed to pay of $10,000 / keep in mind there was NO ORIGINAL CONTRACT, NOTHING SAYING THAT THEY LEGALLY OWN THE DEBT WITH RIGHTS TO THE DEBT AND EXCHANGING OF OWNERSHIP HANDS, NO CALCULATIONS OF HOW THE DEBT AND INTREST /PURCHASES OCCURED, NO COPIES OF CHECKS OR RECIPETS, only stating there was a last payment made of 2009 which is past the “SOL” (6 YEARS IN SOUTH DAKOTA) I am almost certain these people did not expect me to fight for my rights and thought that they could just roll over me and try and get a default judgment which will not happen. I have answered and asked for information and I would say about 3 months ago they finally sent me a packet of papers that had a print off of an old BANK OF AMERICA statement that did have my name on it with a balance but no signature signed contract just a print off of a Statement that anyone can obtain off line from Bank Of America, So where I need help is now. I had a Firm in my town that was handling this case that I believe forwards the information I give them to midland funding. .. SO HERE IS WHERE ITS WEIRD .. I have requested through various letters to remove the debt from my credit report and have disputed this time and time again in which no response was ever made on doing so but recently noticed the debt from my Report has been charged off from MIDLAND FUNDING LLC which I thought YES!!! SUCCESS!! but then I received a letter from the Firm in town stating they are no longer handling this case and are passing it off to another Firm in a different State to Handle?? and all information should be directed to them?? a few weeks ago I received a letter from THE NEW FIRM asking for “INTERRAGOTORIES” in which I have already done this with the old except these are a bit different asking me where I lived 12 years ago, phone, numbers, if I’m going to have witnesses and state there names ect.. This letter they are trying very hard to have me incriminate myself for I think they know they have nothing and will get nothing!! I have just been representing myself on this but, wonder if I should look into getting an Attorney or if I can file to “COMPEL” . ..Oh yes forgot I have called the court house they said a case was filled but was like 2 years ago and said was never addressed since to take action and were somewhat surprised by that. Any Help Would Be Great 🙂
I would suggest you consult with at least one experienced debt collection defense attorney about your next steps. South Dakota, much like my own state, is not an easy place to find an attorney with the experience you need. I will email you what I did find. Distance does not have to be an issue in these cases, but if it is, ask for a referral to anyone James may know nearer you.
Who was the law firm handling this for Midland Funding, and who is it you are dealing with now?
I was dealing with BREIT LAW OFFICE P.C.
they sent a SUBSTITUTION OF COUNSEL letter
so now I am dealing with MESSERLI & KRAMER.
I’ve read through a lot of the comments on this page and found them very helpful, thanks! I thought I’d run my situation by you and make sure I’m doing the prudent thing:
We’re in VA. My husband has been getting a lot of calls from a “legal department” that says he owes a debt when we are not behind on any bills. He answered once they asked him if [random four digits] were the last numbers of his social security number and they were incorrect, but he sarcastically said “sure” (not wanting to give them any clues) and I think they are continuing the phone calls because of that. We chalked it up to a scam and we just don’t answer the phone now unless we recognize the number. I’m not sure if all of that is related to my question but figured I’d include it just in case.
My question: Today he received a letter from Midland Credit Management saying that they are the debt collection agency servicing his account, and he can pay 40% less than he owes if he does it within the next 15 days… but the account is a Webbank/Fingerhut account, and he’s never had an account with them. Additionally, the name on the letter is not his full legal name, but a nickname, which he wouldn’t have signed up for an account with. It’s not his account.
So I’m thinking the smart thing to do would be to send a certified letter explaining that it’s not his account and requesting verification of the debt, but after reading through the comments here I’m not sure if he should also call to explain the situation, or if it’d be better to keep everything in writing.
Any advice you could give would be appreciated — thanks!
If it were me I would call Midland first, and depending on how that goes, then send a certified letter (just for good measure).
Check your husbands credit reports and your own. This could be the result of identity theft, and possibly not the only issue, just the first one you are hearing about. You can access one free report a year from each of the three credit bureaus at http://www.annualcreditreport.com.
Post an update with what you learn.
Hello, I have a question in regards to a judgment that was filed against me in 2013 by Midland Funding LLC. I recently found out about this judgment by looking at my credit report and don’t remember being served court papers (but I have lived in a few places in the last couple of years and have not kept up on my mail like I should have).
The other day I called Midland Funding to negotiate and settle the judgment (the judgement is for $2,300) and the woman who I spoke to informed me that Midland is not accepting payments on this account at this time and that I will receive a letter in the mail outlining this situation. She also said something about “ceasing payment on this account.” It was very confusing to understand her and even asking more questions I was still very confused by this information. She told me she doesn’t have the ability to specifically speak about my account and does not the information I am looking for, to just wait for the letter to come.
While waiting for this letter I have so many questions…is my account proceeding even further through the process after a judgment is filed and there has been no activity in 2 years? Are there going to be more monetary consequences for me because of no activity? Is Midland Funding going through legal turmoil in the state of NY and that is why I am not allowed to settled this judgment?
Have you ever dealt with a situation like this or do you know what Midland could possibly doing right now??
Thank you in advance for your expertise.
Based on what you shared it sounds like your account is either part of an agreement Midland reached with New York state or federal regulators, or was flagged as part of some internal review. The situation speaks to your account being flagged as noncollectable, and not more so… good news.
Hang tight and wait for the letter and post an update with what happened if you don’t mind.
To add to my post, I checked my credit report at Credit Karma. My score is 714 and shows the Citibank card closed with a zero balance October 2007.. I don’t think that date is correct because I don’t think I got behind until 2009, but that is what the report shows. My bank statements show I made my last payment to Citibank in May 2010. The credit report also shows the Midland collections referencing Citibank opened May 2015 although I have had no communication from them until this December 2015 later. (I did move in October 2014, though).
We always had good credit, owned our home (with mortgage), etc. until we found ourselves in financial trouble during the great recession. Our income is from a small wholesale business and after putting our children though college (no loans, depleted our savings) our house burned down in a massive wildfire in 2007. Rebuilt with insurance in 2008 and moved back in the very month the stock market plunged in October of that year. Stayed above water, barely, as customer after customer went under, many owing us money we would never be able to collect. Finally, in 2010, we were no longer able to pay the minimum on our three credit cards we had been forced to run up to stay afloat. Hated that!
The following year, my husband received a small inheritance and we called all 3 cards (our only debts), two with B of A both with appox. $8,000 balance each, and the large one with Citibank for $22,000. We worked out a settlement with B of A for both of those debts and promptly paid them off. Citibank said they had already written off the debt and would take no payment. Huh? We went on with our lives and in August of 2014, we sold our house of 20 years in California and moved to Oregon.
When we went for a mortgage for our Oregon home, our credit report showed the Citibank debt and the mortgage company wanted it cleared before final approval. I called Citibank and they were able to find the old account in their system and stated once again the debt had been written off and they would not accept payment from me and gave me the name of a collection agency listed in the account. I called that agency (don’t remember the name) and the conversation seemed very shady, throwing all kinds of settlement numbers at me. I told them I was confused about whether they had bought this debt and as far as I was concerned I owed Citibank the money and not them. They kept saying they would “collect the debt on behalf of Citibank”.
After explaining all this to the mortgage company, they arranged a conference call with a company they use to arbitrate credit reports, myself, Citibank, and this debt collection agency. The Citibank rep reiterated they had written off the debt and the collection agency rep admitted they had NOT bought the debt. The arbitrator said she would adjust the balance owed to $0 on my credit report but it would still show I had defaulted for 7 years. After this call the mortgage company was satisfied and my mortgage sailed through.
Now it is December 2015 and I have received a letter addressed from a local attorney here in Oregon on behalf of Midland stating they are seeking payment for this debt. I lived in California at the time of the last payment (May 2010) and I understand the Statute of Limitations in California is 4 years which would, by my calculation, have run out in May 2014 while I was still a resident of California. As of October 2014 I became a resident of Oregon which has a 6 year SOL.
In this letter, Midland states that they have “bought” the debt, but I know that a year ago in the conference call, the debt had NOT been sold. Is Midland under an obligation to prove they HAVE bought a debt and if so, for how much? Can they even buy this debt now after the SOL in California has run out? Can they somehow reset the clock on a debt that had a last payment in May 2010? Does the fact I now live in a state with a 6 year SOL have any bearing if the debt was established in California and the SOL ran out while I still lived there?
Anyway, I am not sure what to do. I would still be willing to settle this debt with Citibank which I tried to do in 2011 and again in 2014 but have no interest in giving a creepy collection agency money with their scare tactics. I’d rather give it to charity!
I do not fully understand the arbitrator part about zeroing out the credit report, as that is not a common place description of events. Who was the arbitrator working for?
The rest of what you describe is common. Midland does buy Citibank accounts, and does have a national network of attorneys that pursue collections on them.
Midland Funding will be able to meet their obligation to validate your debt. They are not obligated to disclose what they paid for it. Debts are regularly bought and sold after an SOL expiration (though that is less and less likely moving forward – and Midland Funding will not be reselling your account).
Midland Funding cannot reset the clock for credit reporting. The SOL in Oregon likely applies now, but run that by an experienced debt defense attorney to make sure.
If you want to resolve the debt you cannot do that with Citibank any more. Resolving it with Midland Funding is no different, and can actually be easier than dealing with the original creditor.
If you are being contacted by an in state attorney about collection it often means your risk of being sued for collection have escalated considerably. Given this concern, what are your goals for resolving the debt?
I received notice that I am being sued by Midland for a debt they acquired from Citibank. However, this is the first I am hearing from Midland. Back in 2014 when I tried to make a payment to Citibank to keep the account from charging off, Citi told me they were no longer handling the account and couldn’t access any details. Apparently I missed the cut off by a few days and they closed the account. Since then I hadn’t received anything as to who was handling the account. In the legal paperwork, Midland claims they tried reaching me by phone and mail, but I never received any messages from them or did I receive anything in the mail over the past year, But now I receive the certified letter about suing me. Can they do this if I never received any contact from them? Before I contact the lawyer listed on the paperwork I wanted to see what you thought. Thanks for your help.
What you described is not all that uncommon.
What are your goals with this account?
Thanks for the reply. I don’t want to go to court and would like to pay it off — just can’t do it all at once. Now that I know who is handling it, hopefully that is possible. Should I contact their lawyer or the company itself? I just find it strange that if they were trying to call that they would not have left a message at some point. Some companies seem to hunt you down, even contacting anyone who they think might be you, but this goes to lawsuit without ever getting a message? Does it help my position at all if I make these claims about never being contacted.
No, it isn’t likely going to lead to anything productive.
Now that the account is in court, calling Midland is typically going to end up with being referred to the law firm.
You can settle with Midland Funding for less than what is owed, even when sued. You are welcome to call me for a consult at 800-939-8357, press option 2 to ring me. Leave a message if I do not pick up and let me know some times I can reach you back. You can also email me (my email address is the same one you get these comment notifications from).
My husband had an old debt from a Target credit card. The debt was eventually sold to Midland Credit Management. We’ve been trying to clean up the wreckage from our pasts and upon contacting MCM today they tell me they cannot let me pay off the debt because we will be contacted in the future by a 3rd party. I asked them for contact information of the 3rd party and they said they couldn’t provide this to me. He was reading off a script so the answers to my questions were always the same response.
I need this cleaned up quickly and feel that I’m at a stand-still while I wait for this 3rd party to contact us. Is there any way that I can push them for additional contact information?
If Midland is working with a third party collector on your account, and just sent it out, it could take a week or more to be contacted. It is a bit odd that they would not tell you who to contact. When was the last payment made on this account? What state are you in?
Dear Michael,
This is a wonderful resource you’re providing. Firstly, thank you.
My situation is this:
I apparently had a debt for an old Circuit City credit card issued by Chase bank a long time ago. I was pretty sure I paid it off (one of those 0% if paid off in full deals) before I moved to abroad in early 2000’s. The only thing I can think of that could have happened is that I didn’t pay it off totally (a few bucks, perhaps?) which ballooned into a big charge, I had no idea as I was out of the country. I would like to know what happened, of course, as now they’ve been saying for years that it’s $608.01.
I’ve read online that if I answer their offers now that it’s going to set off another string of calls to me and I can’t have that. I’m happy to pay but only if it gets deleted off my credit report. From what I’ve read online they don’t remove that and it could look even worse for me. I’m not sure what I should do.
They can’t sue me for this but on one of my CR’s it’s showing up and that’s bad for getting a mortgage and I’ve had problems trying to get a Chase credit card that I’d like to have–even though I bank with Chase and have not had any credit problems for years.
What should I do to get this resolved and removed? Again, I’m willing to pay but only if it won’t be detrimental (them calling and harassing, trying to get more money, etc–the horror stories I’ve read!!) and it gets deleted from my CRs.
Your advice is greatly appreciated as I know there’s a lot of misinformation out there. Thank you!!!
Also, the debt originated in NY but I’m in OH now. Not sure if that’ matters. Thanks!
Can you verify when you last recall remitting a payment on this account, such as the date you first left the country that you reference in your prior comment?
Hi Michael,
Do you mean to the original creditor–Circuit City/Chase Bank? Probably in 2003-ish. I have never initiated contacted Midland Credit Management. I did contact Chase years ago to see if I could verify the amount but they had sold it and had no record.
I would dispute the credit reporting entry by Midland as being too old to be there. If you last made a payment to the original creditor in the 2003 time frame, the original lender fell off your credit report around 2010 and any debt collector entry should have fallen off at that time too.
Send any credit reporting dispute in writing and use certified mail. Keep a copy of all you send for your records. Your dispute will be sent to the credit reporting agencies that are showing Midland Credit.