Short answer
Midland Funding LLC buys defaulted credit card debt and Midland Credit Management collects it. Both are part of Encore Capital Group. The cheapest time to resolve one of these accounts is early, before it reaches a collection attorney, and acting early can keep the account off your credit reports altogether.
Key points on this page
- Midland Funding is the debt buying arm. Midland Credit Management (MCM) is the collection agency. Same owner, different jobs.
- Resolve the account soon after Midland buys it and they may not report it to the credit bureaus at all. This offer is real, and few other collectors make it.
- Midland removes its credit reporting once you pay or settle. Deletion has been seen to take up to 60 days.
- A “Pre-Legal Notification” letter is not an empty threat. It means your file has been selected for collection attorney placement, and you still have time to settle before that happens.
- Settling after a collection attorney has the account commonly costs 20 to 40 percent more than settling before it goes to court.
- Sending a debt validation letter is your right, but it is counterproductive when you already know the debt is yours and your goal is the lowest possible settlement.
I recently spoke with a woman who had just been sued by Midland Funding LLC for a debt they bought from Citi bank. The amount she is being sued for is a few thousand dollars. She is being sued by a debt collection attorney in her state after collection attempts were first made by Midland Credit Management (MCM). Both Midland Funding and MCM are part of Encore Capital Group, which is one of few publicly traded debt buying companies in America, and one of the largest in the world.
I want to share the facts of her situation because they may help if you are getting collection notices and phone calls from Midland Credit Management, or if you are being sued by Midland Funding. Many of you reading this can prevent escalated collections from Midland in the courts, and anyone already in the courts will want to know how best to navigate things from here.
There will be many a reader just looking for why Midland Funding is appearing on your credit reports. Once you know why Midland is on your credit, many of you will want to know some things you can do to improve your credit.
Be certain to read the updates regarding Midland Funding on your credit reports that I posted at the end of the article. They have set themselves apart from any other debt collection company in the country by developing a consumer friendly credit reporting policy.
Credit card bills that go unpaid are packaged up in large bundles and sold off to bad debt investors in the normal course of lending. A portfolio of debt being bought by companies like Midland Funding could include your account, and thousands of other unpaid credit card bills.
Having your credit card debt bought by a debt buyer like Midland Funding is not unusual. And depending on how the debt collection and debt buying landscape changes in the next year or three, it could become even more common than we see today.
Midland Funding LLC and Midland Credit Management are Different
While Midland Credit and Midland Funding LLC share the same ownership under Encore Capital, each company does something different, and those differences matter to you. Midland Funding is the debt purchasing arm, while MCM will be recognized as the active debt collection agency, similar to how you would view any other debt collector.
Midland Credit Management sent a debt collection letter to the woman I reference above. Receiving a debt collection letter from a collection company you don’t immediately recognize is a normal occurrence. Collection agency letters and phone calls are the 2 primary ways a debt buyer, or the debt collectors they hire, will try to get you to pay.
You have options for handling the collection efforts from Midland Credit. If you are in a position to work out a settlement for less than what is owed on the now purchased account, doing so after the first phone call or collection letter you receive, is something to consider.
Understand that making arrangements to pay a debt buyer the full amount for a debt they bought is not going to go to your original creditor. The debt buyer is not a lender, but an investor. They are risking money to buy up bad debt to turn a profit.
Midland Funding is willing to accept less than the face value of your debt through its debt collection arm Midland Credit Management. How much less will vary. You are welcome to call me at 800-939-8357, ext 2, in order to get help settling with them.
Midland Funding generally shows up on your credit reports. Once on them, you cannot pay Midland to delete the derogatory in the first 2 years they have your account. You can negotiate a lower payoff and Midland Funding will update your credit reports to show the account is resolved and a zero balance owed. This will help you get a home loan through, and benefit you in other ways too.
There is a delay between Midland Funding buying your debt, and them reporting to the credit bureaus. Midland Credit Management will often start off the collection process by sending you a collection notice, or make collection phone calls that you may pick up. In the letter or phone call Midland may offer you the opportunity to settle or set up payments on your account in order to prevent the credit reporting of the collection account from occurring at all. As of the most recent update to this article, you have three months from the date they get your account to take advantage of this offer. If you can afford the money to settle, or set up payments you are confident you can pay each month, there are immediate and long term benefits to doing this. It is not a trick, they actually do this, and may be the only debt collectors making this type of offer.
If you want to settle with Midland Credit Management for less than the balance owed; can afford 50%; and sometimes spread out over 24 months; click the get debt help tab at the top of this page and create your user profile.
You can get help settling with MCM and have a deal done within days (as long as MCM has not already sent your account to a collection law firm). The Network I helped build has many negotiators, and we all charge 15% of savings. No savings, no fee.
Debt Validation Request Letter Sent to Midland Credit Management
The woman I refer to in this article sent Midland Credit a validation request in response to a collection letter MCM sent her. Sending a debt validation letter to a debt collector is your right. If for any reason you question the nature of the debt being collected, requesting validation from a collection agency or debt buyer will accomplish a couple of things:
- Triggers an obligation under federal law on the part of the debt collector.
- A written response from the debt buyer should include the original creditor, the amount owed, and these days, we are seeing some form of documentation to back up their claim (not simply a reference to their own spread sheet of debts they purchased).
- Debt buyers and debt collectors do not always respond to your request for validation, but the response is often sufficient to meet the standard that would allow them to continue to collect (the federal debt validation standard is low enough to trip over, your state law standard may be a little tougher).
- Debt buyers may never respond to a debt validation letter. The account may end up with a different collection agency, or sold off to a different debt buyer (Midland has not been much of a debt reseller of late).
Midland Credit Management did not respond to her validation request to her knowledge.
It is not uncommon for a debt buyer to ignore a validation request. The reason validation of debt requests are ignored by Midland Credit Management, and other debt collectors and debt buyers, is that sometimes no meaningful information was included when the debt was purchased. There are sometimes options to acquire detailed information from the original creditor at an additional cost, but that is not always the case. And you may not appear all that collectable to a debt collector, and they just may not bother if they see a low probability that you will pay anything.
When debt validation requests are ignored, Midland Funding may still send your account to a collection attorney.
Many years ago, I came to the conclusion that sending debt validation requests to a debt collector like Midland Funding, when you already recognize the debt as yours, and your goal is to resolve the debt by settling with the collector for the lowest amount possible, is counterproductive.
Midland Credit Management Sues in Order to Collect
The woman who inspired this post next received a collection letter from a well known and very active debt collection law firm in her state. She sent a new validation request to the attorney debt collector hired by Midland Funding. The collection attorney responded to the validation request with some basic information about the original account including monthly billing statements from Citibank. Shortly after receiving the debt validation response in the mail from the Midland Funding attorney she was served with a lawsuit.
Debt buyers will target accounts they buy for aggressive collection. Midland Funding is part of the largest debt buying collection brand in the nation. Lawsuits to collect can play a big part in how a debt buyer like Midland Funding will look to turn a profit on their investment in defaulted credit card debts.
The debtor, in this case, shared with me that she knew the sister of the process server that showed up at her door to serve the lawsuit. With that connection, a friendly enough conversation took place. The process server shared the fact that she had a list of Midland Funding lawsuits to serve… about two hundred of them. She lives in a county with a small population. Two hundred or so lawsuits on debts bought by Midland Funding is not unremarkable given the amount of people there are in the area.
Midland Credit Pre-Legal Notification Letter
Update February 2023: Like many creditors, Midland Credit will often send a letter telling you of their intent to escalate collections by taking you to court. These mailed notices will typically include the words “Pre-Legal Notification” in larger and bolder letters.
A Pre-Legal notice from Midland Credit should generally not be construed as an empty threat, or just a collection tactic. They are telling you that your file has been selected for collection attorney placement, which is the precursor to a lawsuit being filed to collect. And you can prevent this.
Always open your mail from Midland Credit. If you see a pre legal notice, you typically have time to negotiate a settlement with them for a much better savings than when it goes to the attorney. The main reason I am posting this 2023 update is that I am seeing Midland send out their first collection notice, that they then follow up by sending a pre-legal notice only a few weeks later. There is often more time between their first collection notice and the legal placement letter. But they are accelerating collections with many accounts. And because they give you a timeline to resolve the debt before they take that step, your next move is important if you intend to try to settle the account
Go here to schedule a call with me to talk about settling with Midland. I can often get these accounts settled for fifty percent of the balance or lower, and the settlements can often be paid over a couple years if you need time.
I can help you settle once the account goes legal too, but the deals after attorneys get your account, or an action has been filed in the courts, are not as good, and the process is much more formal.
What to Do About Midland Funding LLC Collecting Your Debt
If you are contacted by Midland funding LLC, or by Midland Credit Management, or some other Encore debt collection brand (Atlantic Credit and Finance, Asset Acceptance), consider the following:
- Are you able to come up with a plan to resolve the debt for half of what is owed? If you can afford to settle with MCM or Midland Funding you can contact them and work toward getting a deal negotiated, a written agreement on the collectors letter head outlining the terms, and pay it off. While it is recommended to negotiate and settle with MCM or Midland Funding in a single lump sum payment whenever possible, you can also look to set up monthly payments that you are confident you can afford and follow through with to completion. Midland Credit Management and Midland Funding both offer different methods to resolve debts they are collecting while giving you time to pay.
- If you are not familiar with the debt they allege you owe, request the debt be validated. Send your request in writing via certified mail. If you do not hear back from them do not assume they went away. I do not recommend this approach if you want to resolve a debt that you know to be yours.
- Be certain you are aware of how long it has been since you last paid on the account and compare that to the SOL (statute of limitations) for being sued on your type of debt in your state. You may learn that you cannot legitimately be sued for the debt as it has passed the SOL. That does not mean the debt can no longer be collected, or that you should ignore it. The account is likely showing up on your credit report. If you have a goal of buying a home, or refinancing an existing home, you may find you are forced to settle collection accounts in order to qualify for a loan later on. And settling later on may come at a higher price. Avoid applying for credit of any nature just prior to negotiating with Midland Credit and other debt collectors (it makes you look more collectable)
Depending on your current financial situation, looking for affordable settlements and paying off debts with Midland Credit Management and Midland Funding will set you up for less stress and the ability to achieve later financial goals.
The woman who inspired this article was someone I worked with a few years ago. She was laid off from work and struggled to find a new job. She could no longer afford to make payments on her credit card debts and was referred to me by her accountant. I worked with her and her husband to develop a plan to settle her unpaid debts, rather than file bankruptcy (they had filed in the 90’s and did not want to go through that again). She was able to knock down her largest 6 credit card balances by settling with her original creditors using money she was able to borrow from a family member. Her husband’s hours were then cut back at his job, and it became impossible for her to follow through with the plan, leaving a couple of her smaller balance accounts unresolved, the Citibank account Midland Credit Management began collecting was one of them.
She did not reach back out to me for feedback on dealing with the Midland Credit Management collection letter she received. Instead, she went to the internet and found what she said was the consistent advice to send a debt validation letter to MCM. She thought the collection account was behind her when she did not hear back from MCM. When she received the attorney collection notice in the mail for the same debt, she simply repeated her debt validation request again. She did not know how, or what, to respond to the collection attorney with, once they mailed back evidence of a debt she already knew she owed. She only contacted me again after she was sued by Midland Funding.
Settling with Midland Funding LLC When Sued
I suggested she connect with a local consumer attorney about her options to handle the lawsuit. After that consultation, she decided to settle the lawsuit from Midland Funding. We got a good deal, to be sure, but she was settling on a total balance that had increased due to attorney costs. We could have settled directly with Midland Credit Management early on, and for a much better savings, and less stress.
There is, often enough, also going to be a difference between the amount you can negotiate and get approved to settle for, when you are dealing with a debt collection attorney. It is not uncommon to see a 20 to 40 percent premium to settle a Midland Funding debt once sued for collection, compared to negotiating before the account lands in court.
If you are just not in any shape financially to follow through with any strategy to resolve the debt with Midland, you may end up with a judgment against you. Judgments can be settled for less down the road, so keep that in mind. But you may want to consider defending against any collection lawsuit too. There are good resources that can help you, but you will want to assess the costs and time involved in any effort to defend collection lawsuits.
What You Can Do to Resolve Debt with Midland
You may be reading this and in a situation where you cannot possibly think of how you can resolve a debt being collected by MCM or Midland Funding LLC. I understand that. The situation is what it is, and sometimes all you can do is wait for things to improve before tackling old debts. However, you may want to at least learn about the options available to you to tackle debts Midland is collecting. You may be surprised by some of the flexibility that is available. You may even be able to avoid being sued later, by taking action today.
If you have received collection notices from an attorney for Midland Funding, or have been sued by an attorney for collection, you will want to contact the attorney directly. You should also consider speaking with an experienced collection defense attorney of your own.
If you are trying to resolve an existing judgment from Midland Funding, you have options for that as well.
There will be additional pressures on Midland Funding, Midland Credit Management, Encore Capital Group, and many other collectors and debt buyers, as a result of new federal regulatory supervision. The CFPB has already had a huge impact on Midland Funding. I will keep the article updated as things develop.
Midland Funding LLC on Your Credit Reports
I am updating this article as of 1/10/17 to include information about Midland Funding credit reporting policy changes that are way ahead of the curve when it comes to providing you the ability to meet your current and future personal credit goals. Be sure to click through and learn more about how Midland Funding will handle credit reporting when it comes to accounts you have with them.
- Midland Funding will not show on your credit reports if you are able to make payment arrangement, or settle with them for less, in the first 180 days after they purchase your account. This is obviously ideal when you can commit to resolving accounts with Midland Funding early on.
- Midland Funding will remove all credit reporting if you pay or settle a debt with them. This is an obvious benefit to those of us who had financial setbacks that lingered longer, and who could not take advantage of the opportunity to keep Midland off our credit reports from the beginning, when they sent their first collection notice.
- I have seen it take up to 60 days for the Midland Credit account to be deleted from your credit reports.
There are many examples of people in the comments below, and who I have spoken with on the phone, who are taking advantage of Midland’s credit reporting policy.
Midland Funding is leading by example with this credit reporting policy.
Updated 2/20/20 – Three additional debt buyers have since followed the example Midland set for credit reporting.
If you would prefer to get help settling your Midland Credit Management debts, let us know by scheduling a phone call using the box below, or the help tab up top. We can help you and typically for a fraction of what most companies charge.
Thank you again. I called and spoke with a gentleman who asked if I had called in prior because my account says it is in dispute status. I told him I sent a Dv letter but hasn’t heard back and he told me that was why. He said they are glad I want to work something out however they need me to fax a letter saying I am not disputing and would like to work with them. Then he said they will be able to look at my options. Does this sound correct?
Thank you.
Laurie – Yes. Sending debt validation letters to debt collectors like Midland Credit (and many others) will trigger certain behavior on their part. You just need to send them something that takes your file out of whatever category your letter put you in. Then follow up.
Ok, I hope so. Do you suggest I just state right away that I am interested in coming to a settlement agreement, however need some time to prepare a lump sum or would have to start payments when possible? And then go into my situation?
I would lead with:
I want to come up with a workable solution to this.
The situation, and why I am not in good position to commit to a solution to put this behind me today, but am confident I can in the near future.
I am calling to find out what my options look like.
Listen, thank them for their time, and that you will follow up with them.
Debt collectors are trained to establish a commitment on every call. Unless you hear something that you are confident you can do (very possible), I would not commit. Get anything you do negotiate in writing.
That really helps. Thank you very much. The last letter I received from them was dated oct 8th. it was about sending my account to internal legal to possibly initiate legal proceedings but says they would have offers to help accommodate if we’re contacted. I plan on calling them tomorrow to start this. Do you think I am too late?
No, I do not think tomorrow would be too late.
I replied to the wrong link apparently. What do you think of my response in regard to starting by calling them and negotiating ? Will this stop the legal process from at least starting? I would like to come up with an agreement and the later it has to start with a payment the better.
Thank you so much.
Thanks for keeping the discussion on the site Laurie. As you can tell from the above article, if avoiding a lawsuit is the goal, starting the discussion with MCM early is better. I have seen people able to avoid accounts being placed for legal collection by remitting small payments, or by being upfront that there is no money available to start to put together a plan, until the following month etc. Professionals in my industry are often able to successfully communicate with Midland Credit Management, or Midland Funding, to defer aggressive collection efforts. But people should realize they can do the same by communicating their hardship themselves.
You do have to be prepared for the fact that most debt collectors have real time access to credit report information. If things do not look like you are at the edge financially there, you should be prepared to share why that is not an accurate reflection of what is going on now. The fact that you may have had to borrow money to stay afloat; that having led to marital discord; leading to a pending divorce; that means surviving on one income with most of the same bills that were a stretch on two incomes – while rightfully viewed as private and personal, will often play to your favor in collection situations. Put another way – the stuff that sucks for you financially is the same stuff that can help you out of a jam like this.
Hello-
I sent mcm a DV letter certified. I then received from them a letter stating they were sending my account to their internal attorney to possibly initiate litigation. I’ve heard it is best to correspond by mail with them, however in doing so will they ignore anything sent and end up suing me by mail? What do you suggest I do? I have no money to put down but suppose I could do payments until I get some saved up. Do i call and start this over the phone? Please advise!
Thank you.
Laurie – There is no shortage of places on line that support the idea that corresponding with debt collectors of all flavors should only be done through the mail. That is terrible advice for those who want to resolve their debt. Depending on the contents of a letter you send, you could indeed increase the likelihood of being sued, or complicate your efforts to settle or set up payment arrangements. This concern is not limited to MCM.
Calling Midland Credit Management is how you settle a debt, or get set up with payments you can afford. Is this the only debt you have to contend with?
Yes it is my only debt that went to charge off. It is for $8100. Would trying for a 40% settlement sound reasonable? My husband and I are separated and will end up filing for divorce it seems, so I would only be able to do payments with my income. This is not in his name so I know I am responsible. Do you think they will work with me? I really appreciate your time and help.
Laurie – Midland Credit will work with you. How they settle with people is often dependent on how collectable you look to them in their system. Their system is not going to know you are getting divorced and will have to survive on a single income where there was once two. Use that as part of your hardship explanation.
Settling at 40% is possible in the right situation, but you need to be ready with the funds. If you need affordable monthly payments that will last a while (more than a few months) – 40% will often not be as realistic. Call them and see where you can get to. But do not agree to anything if you know you cannot afford to follow through.
Hi Michael–I’m currently being sued by Midland Funding. I responded to the claim back in September (as a method to avoid a default judgment) and we were ordered for mediation by the court. My full intent is to settle and avoid having this continue to trial, but my question is this: is there anything to stop me from calling Midland’s lawyer and starting the settlement process now? The court said that we would have to split the cost of the mediator and our meeting is scheduled for later this month, but if possible, I’d like to just try and hammer this out with the lawyer so that I can avoid the additional cost of mediation sessions. Would speaking directly with Midland’s lawyer be a sound strategy to coming to terms with a reasonable settlement offer? Thank you!
Adam – Nothing should prevent you from negotiating a deal with the attorney Midland Funding placed the account with. Your goal is to settle with them from the outset, so that conversation was going to be had regardless. Just be careful to come off as wanting to resolve this as a matter of convenience, and not because you are concerned with continuing in the court. In other words – keep a good posture.
Michael;
I received a verification of debt could you email me so I can ask you my question. I don’t know how to put in this comments. Thank you
Claudia
Claudia – Any email you send in reply to the comment notices you receive from this site can be replied to. All of those emails come direct to me only.
I was served a summons from Midland recently. The amount is around $3000. I immediately called and offered a lump sum of $1500. The lady told me that the person who is in charge of my case would contact me the next day. I actually ended up calling them back. The lady who is in charge of my case was unavailable, so the one who answered my call told me that there was information stating they would settle for $1800. I asked to leave a voicemail for my caseworker. In my message, I mentioned the $1800 settlement. When she returned my call, she said that there was no $1800 settlement and that she was sorry for the misinformation. The lowest settlement she said they could offer was $2400. The caseworker was extremely unprofessional and seemed flustered throughout our conversation. I told her that I was going to contact my attorney and get back with them the following week. I am curious about the “misinformation” I was given. It seems to me that there was information in the system that I was not supposed to be privy to and was given to me prematurely. I am unsure what to do at this point and welcome any advice. Should I ask for proof that they even own this debt? Should I attempt to get the $1800 settlement?
dander – You can seek proof of the debt through the court process now that you have been sued. You would need to file an answer to the lawsuit and get the proof in the discovery process. This approach is best handled by an experienced debt collection defense attorney. There are good ones out there that can help you, but they do charge a fee and cannot guarantee success. You would probably settle with Midland for what it would cost to defend the case. I would recommend you keep at it and target the 1800. I have seen Midland Funding settle collection lawsuits for this type of reduction.
Why did one rep for Midland say they could accept a settlement for lower than what is being offered? It was either an error on the first persons part, or there is something in their files that suggests you are more collectable. Are you keeping current on other loans (credit cards, car, home)?
Hi,
I had been an ex-employee of Mid-land i know how it works so maybe i could advice you on this situation. The reason your offer was not accepted is because you called yourself with 50% settlement offer now they know that you want to settle. So they would try to collect the maximum amount they can . if you would have called with $2400 again they would have denied that and ask you to pay more. So you give an offer $1500 tell them if they would accept it or they can talk to your attorney and wait . If any questions you can ask me anytime.
Thanks
Gagan,
I saw your recent post and would appreciate any advice you have regarding dealings with mcm. I have a charge off with Wells Fargo for what now is $8000. Long story short, I sent a certified letter to them saying I wanted DV after receiving a letter from them saying I had 30 days to respond or they would send to an attorney. Today I got a letter from them saying they were sending my account to their internal legal dept for possible initiation of legal proceedings against me. How should I respond? I haven’t gotten anything back in response to my DV letter. How serious are they now about legal proceedings and what are my chances for settling for a much lower amount in payments most likely? I won’t have a larger amount to put down for a few months at the least or even until tax refund time. I really need to stall for as long as possible until I am more prepared with $1000 or so to start. I really appreciate any insight you have into these situations.
Thank you.
My friend’s wife died of cancer and the cancer treatment center “wrote off” the remaining debt, I suspect as treatments not covered by the insurance as necessary or standard of care. Now he is being harassed by a third party collecting agency. Can a medical provider “write off” debt receiving tax breaks/and or considerations and then sell the debt to a third party so that it can be collected legally?
suzanne – Debts are indeed legitimately sold off in the normal course of debt collection. How the seller accounts for, or receives tax breaks, is something they must contend with on their end. It is not a safe assumption that the seller receives a full tax benefit.
Is your question about Midland Funding buying this debt?
Also, your friend may not be liable for the debt of his wife now that she has passed on.
They call my job everyday, anywhere from 10-20 times per day (actually have record of it). They never leave a message except the one time my co-worker answered the phone. Not sure what they are calling about as they’ve never sent any type of correspondence.
What would you suggest to have them stop calling my employer in the manner they do?
Thanks
Janice – You should contact them and find out what debt they area calling about, and at the same time let them know that calls to your employer are not allowed and those need to stop.
Post more details about the debt when you learn more and lets go from there.
Hello Michael,
I was served a summons yesterday. I am being sued by a law office here in Illinois on behalf of Midland Funding LLC for the amount of $1883.42 + costs. It’s for an old Chase cc account. I have a return date on the summons of 10-10-13 and today is 9-17-13. Do you think it’s still possible to work on a settlement before I would be required to appear in court to answer to the complaint? The problem is-I DON’T HAVE ANY MONEY! I have several part time jobs, but I have no savings and no real assets besides my car. I don’t want to miss a scheduled day of work( of course my court date is one of the few days I’m actually working), and even paying the “FEE TO FILE FOR APPEARANCE” would be a burden($186.00). Not sure what to do. I’ve heard that here in Illinois you can be thrown in jail if you default on court ordered payments. What would you suggest? Thank you.
Orlando – You can indeed work out a payment arrangement with Midland, even at this late stage of collection. You would likely have to sign a stipulation to judgment in order to get affordable monthly payments. This usually means you are not settling for less, but agreeing to payments.
The issue here is money. If you cannot afford to file an answer, how much can you agree to pay monthly? Is there anyway you can tap a friendly resource to settle this quickly?
You cannot be thrown in jail for a debt like this. You could be found in contempt of court if you failed to show up for an asset discovery hearing the court ordered, or something similar. But you would be able to rest this concern better by talking about it with an attorney.
So in the last year I have had two letters, one just came a few days ago and the other was a year ago, come from Midland about collecting for a T Mobile account I had over three years ago that I closed because the couldn’t provide service for the job I was doing. Whole different story for that one. Anyway, those two letters are the only contact I have gotten from Midland, and they are your basic collection letters, saying if you pay us $270 out of the $350 that is owed, we will call your debt paid. Now, seeing as this was the only contact I have had from them, I have been searching around online, seeing if they are a legitimate company, which they seem to be, but I have also been reading from numerous sources that they are terrible to deal with and even some cases where if you pay off the account, they will send you letters from a different office claiming you still owe. I would like to get it paid off, and seeing as I don’t agree with why T Mobile charged me in the first place, I would like to do it for as cheaply as possible. Is there a good way going about this? Should I even try and call to negotiate even lower than the letters then sent me, or just send the check and hopefully be done with it? I also discovered a lawsuit by the Minnesota Attorney General that was settled in December 2012 that states:
To address the problem that people who don’t owe the money are improperly subjected to collection requests, Midland must verify the identity and address of an individual claimed to owe money at the outset, before any collection effort is made.
Would that be something that could help me, seeing as the have not verified anything with me? Thanks for any input you have!
You can write to or call Midland and verify anything you need to over the phone. But it sounds like you are already aware the debt is yours. I am not sure where you read about Midland settling a debt, only to later try and collect again, but that is just not common. Even if that occurs, the offer letter you have, and proof that you paid it by the date outlined, would put a stop to any other collections. If something like that were to happen, post an update to this comment thread and I can offer more feedback.
When it comes to calling Midland and negotiating a better deal than what is in the offer they mailed you – you certainly can. But with smaller balance debts like this it is not likely going to result in much more of a reduction. Be prepared to answer some questions about your financials and any hardship you may have in order to get the best reduction if you do call. And if calling Midland to negotiate a better reduction results in a better outcome, be sure to get a new written agreement from them before paying.
Hi Michael, I just got out of court and all went well as for now. The attorney representing Midland took me in a small room before going in front of the judge. He ask if there is something we can workout. Well I explained to him that I never received any notices or letters claiming that I owe them and that if I do indeed owe them that I need something showing this information. He then proceeded to ask if I ever had an acct with household and I told him that I did but there wasn’t a balance and this was so long ago.
Well he begin looking in his file and said that well they didn’t send me any other information so I am going to dismiss your case. And that they may re-file later after sending me some information or you might just get lucky. Well I did get this dismissed but it is without prejudice. My question is, if they re-file what would be the statue of limitation date considered to be? If it shows a last report date or activity date of Sept. 2009 and they indeed file after this time would this be a Sol issue?
If they decide not to pursue this again can I get all activities from them removed from my credit report?
Again thanks for your help.
Tammi – The SOL date would not change from the date you started missing your payments to the original creditor. There are some scenarios where the SOL can restart, but it does not sound like you are dealing with anything like that.
I am not sure what you described what you are seeing on your credit report, but the SOL is generally going go by the first missed payment, and where no other additional payments were applied thereafter. SOL to sue does not really go by what is on your credit report, though there is an SOL for reporting negatives which is typically going to 7.5 years from the first delinquency.
How you get this removed from your credit report is a different story. I am working on article about that. You may want to subscribe to the RSS on this site to get alerts about new debt and credit guides that are coming out.
Hi Michael, I just noticed that my credit report has now changed to “Account in dispute – Reported by subscriber (FCBA)” & and “No condition/status”.
It is no longer showing a balance.
Do you have any idea on what this means? Should I try to get this removed or will it just stay on my credit report?
Please note as mentioned before my case was dismissed without prejudice. The Sol date from the original creditor (miss payment) 08/2009. Not to mention all of the discrepancies on this acct.
Did you send a dispute notice to anyone at any time on this account? If so, who to and when?
No, I have not sent any dispute to Midland. I have sent a dispute long time ago to the original creditor. They removed it but It seem that they reported it as a different acct no. Hsbc has 2 different balance. below is what my current report states:
05/2006 05/2006 No information reported
Account Number 51559900
Account Status Charge-Off Unpaid balance reported as a loss by credit grantor
Ownership I I
Monthly Payment
Balance Amount $0.00
Balance Date 03/2010 02/28/2010
High Balance / Credit Limit $590.00
Prior Delinquency 200912 201001
TransUnion
Date Open No information reported No information reported 05/29/2006
Account Number 51559900
Account Status Paid or paying as agreed
Ownership I
Monthly Payment
Balance Amount $0.00
Balance Date 10/31/2008
High Balance / Credit Limit $766.00
Prior Delinquency
Past Due Amount $0.00
Comment Closed – Account information disputed by consumer
TransUnion
Date Open No information reported No information reported 05/29/2006
Account Number 51559900
Account Status Charged off as bad debt
Ownership I
Monthly Payment
Balance Amount $0.00
Balance Date 02/28/2010
High Balance / Credit Limit $1,004.00
Prior Delinquency
Past Due Amount $0.00
Experian
TransUnion
Date Open No information reported 02/2010 No information reported
Account Number 85337190
Account Status No condition/status
Ownership I
Monthly Payment
Balance Amount
Balance Date 08/19/2013
High Balance / Credit Limit
Prior Delinquency
Past Due Amount
Comment Account in dispute – Reported by subscriber (FCBA)
Comment Purchased by another lender
tammi – I do have a credit reporting section guide that will be up shortly. One of the pieces speaks to your situation. I cannot link you to it now, so here is what I would encourage:
Dispute the accounts you know that are not yours as “not mine” with the bureaus. Sent a copy of your disputes to anyone furnishing the information (Midland/HSBC). Send certified mail return receipt. Keep a copy of all correspondence and the return receipts. Allow 30 days to hear back from all recipients after you get the green cards back from USPS. Your next steps will depend on the responses you get.
michael — so today i tried calling MCM and spk w/ zach who was foreign as heck from the debt dept. He read my notes and seen where they are sending a hardship package for their atty to reveiw. I told him i could send, but i refuse to send them all my personal info along w/ my bank acct. I dont feel comfortable and I dont want them to have access to everything of mine. So he told me that my bal was now a little over 3500.00 and that he could offer me a settlemnt for 2650 in full, or pay 100 a month. I told him that was impossible that i was trying my best to get this resolved which is why i was calling. SO i explained that they mailed me the letter offering the 40% discount in sept 2012 where my current bal was 3471.54 and it offered the 2082 in full settlment or 50 a month. I explained what if i were to come up with that option. I can possible borrow money to pay the 2082 . and they denied me, told me obviously i didn’t read and that offer has expired and they refuse. if i want this taken care of to pay them the 2650 and they will only take a minimum of 100.00. I am doin the best i can and i dont understand what is the different and why they wont even accept the offer. I understand it was a yr ago, but if im willing to come up with that amt why would they refuse and still continue to take me to court when again i dont have anything. Ive called 2 times within the week. Do you think they will eventually accept the offer given to me from last yr or what should i do.
christina – debt collectors will often use a scoring model to determine what they will settle for. You may look more collectable to them than you really are. There is also an element of what debts can be settled for once the account reaches legal collections often being a higher amount than when you can tackle it prior to that happening.
There are times where your persistence will pay off to settle. Just not always.
michael = i have recently rcv’d a certified letter from MCM to take me to court b/c of a debt that had w/ chase bank. i stopped paying on the credit card about 2 years ago b/c i wasn’t financially stable. I had to move out on my own again, then my job laid off over 300 employees and I was one of the ones still left but my income went down dramatically b/c it was based on commission. I work as a debt collector so i understand where everyone comes from and believe me I know how hard it is to pay your bills. I for one only may 550 every 2 wks = and with my rent , utilities, car insurance, paying on my school loan and the one credit card agreement i made with their atty. I just cant do it…Grant it , its my fault , i allowed myself to get into the debt that i did b/c i wasn’t makeing what i use to and put everything on credit cards. where i live its oil heat and i can’t even afford oil which is why i chrged on the credit card that i cant pay to this day. MCM has called me unknown for many many months. Chase put on my credit bur as a charge off and forward my info to MCM and said they are now handling my acct. I called them on 8/16 and told them with what i make and what i pay out to, i was only able to afford 25 a month. the women i spk w/ at MCM told me that wasnt acceptable b/c it had to be paid off within a 12mo period. i cant’ come up with a settlment amt b/c i have nothing. They sent me a letter back in 9-21-2012 and offered me a lump sum settlemnt of 2082.92 if i paid by 10/21/2012– or gave me option 2 to pay 462.84 in 6monthly pymnts..the current balance was showing 3471.54. Again i was financially not able to do so b/c of me being on my own and paying all my bills myself as im still doing. Im frustated, im nervous, i just dont know what to do. I dont have any assets, i own nothing. my vehicle is all that i own and its last life with all the constant problems Im having with it which scares me b/c thats my transportation to and from work. I have rcv’d 2 notices from the magistrate for them requesting court b/c of this debt but haven’t rcv’d letter b/c of me not being home at the time this is issued. I thought when you offer to pay something they have to accept it. i agreed on 25 but apparently that wasn’t good enough and i just dont know what to do. She said she would send me a hardship package from their atty and i have to send them all info, including my bank statmnts for the past several months, my pay stubs, all the bills i pay and then they will review and see what they feel im able to pay. I had asked the atty that represents our company if that was a good idea and he immediately said to not send them any personal info of mine b/c that gives them full access to my personal info and for them to tell me what they expect me to pay or to tack onto my bank acct. He said To try call them again and see what they would offer me and what im able to afford. But like i said i can do 25, possible 35 a month. i see a lot of bad reviews on MCM, how its a scam, and how they offer you a settlment and paymnt arrangmtns but months later they screw you and say they never offered you anything and you have to start over. I just dont know what to do. Please give me the best advice and help me figure out the best solution b/c i really dont want to deal with anymore bad luck. The last credit card company tried to do the same thing with me but it was through capital one. they didnt transfer my info to a collection company. they tried to send me the same ceritified infront of magistrate to sue me. i owe them 3500.00. they said they wouldn’t accetp anything less but then agreed to 40 a month without chrging me anymore fees. so why wont MCM accept the 25 monthly pymnts and not chrge me any additional fees.
Please help me! since i missed the 2 notices for the certified it said the next one i will apparently get is 8/30 and the women is sending this hardship package, (whatever thats suppose to be). another thing is when i get this certified presented to me in person since i missed the first 2 – should i appear, what do i say, what do i do. or should i try call again and offer 35 or see what they can do for me..
christina – Thank you for all of the details. One thing to be clear about – creditors and collectors of unsecured credit card debt are not required to accept any payment you offer – just because you offer it. There needs to be an agreement between you both, and it is best that it be done in writing. About the only place you will see that occur is through the court. And that leads to your current situation. If you cannot get Midland Credit to agree to the monthly payment you can afford right now, you may find you can reach that arrangement through the court. You absolutely will need to be a participant in the process. At 25.00 a month it would take over 10 years to pay that off. That type of payment agreement would be pretty unusual.
Then what are my options! What would be the best advice for me to do. It’s my debt , so I can’t and won’t deny that! 🙁
I am being sued by Midland Financial and is due in court tomorrow. They are seeking 1071 but I don’t agree with the amount and dont trust to talk to them over the phone. I have a few copies of my credit report that list this account 2 times with different amounts. My 2012 report list Household bank high limit @ $570 (charged off or sold..closed) and as $1004 and Midland @ reports high credit $1004 (opened in collections.. ). My 2013 credit reports shows that household now reports 1003 (charged off or sold closed) and Midland reports high credit 1004 with 1071 being due (closed, charged off). I know I didnt have a credit limit of 1000 and dont see how this same acct number balance is changing after it was considered charged off. When going to court can I ask for them to provide All orginal documents showing how they came up with this figure including any bills that lead them to a much higher amount? Please note that I am in Ga.
Tammi – When an account goes unpaid it will grow from late fees, over limit fees, and default interest rates. With smaller balance accounts it is common for the balance to double very quickly.
Yes, you have the ability to request all the information they have that substantiates the amount they are trying to collect. But when you are being sued that is typically done prior to appearing in court. You can indeed raise your concerns in court tomorrow.
What is your ultimate goal with this account?
Thank you for your help, but I have a few more questions. Is it normal for the original creditor to list two different amounts for the same acct on the same report. If the additional amount was interest and charges why wouldn’t they just report this amount? Household listed 570 and 1004 on the same report (both being charged off, sold). One this same report Midland reports 1004 as the high credit plus about $71 in interest added this is on their complaint as well. What household did was reported the first few numbers of the acct. on one amount and the last few numbers of the acct. for the other. Is it possible to ask for the original, authentic documents that would support this and maybe request for them to bring a witness from Midland or HBC to confirm this info? If so, is there a special way to ask for this information? I previously called the original creditor to obtain and confirm the amount due. The only thing that they could provide is the two acct numbers that I have ever had with them. One of which was closed a long time ago (paid) and this one. The 1st time I called they said that they were going to send out the last bill but I never received it. The second time I called they stated that they don’t have any information in regards to the amount. Also, I was reading that most collectors pay is pennies on a dollar for these accts. If they purchase this acct for a lot less, can they sue for the full amount? If not, can I request this information as well?
I do not want a judgment on my report but nor do I want to pay more than what’s due. I don’t want to sound stupid in front of the judge but I really don’t want to be taken advantage of. Because of the things I have heard about this creditor, it is hard to trust what they say. They called me 2days ago but I don’t trust to talk to them over the phone at this point because I still have to go to court. And if they can prove this and we come to some type of agreement, I can get this all in writing at that time v/s a verbal agreement.
Again your help is gladly appreciated.
One more thing to report. I was under the assumption and please correct me if I am wrong. If a collection agency fails to validate whatsoever do they not have to stop any and all collection attempts? Isn’t this against consumers rights?
Generally speaking, yes. But in the context of your comments that are focused on credit reporting, that will not always be the case. Ideally you should run the scenario by a consumer law attorney.
So in other words Midland is allowed to absolutely destroy credit without any proof. Credit bureaus say verified etc… What is wrong with this picture. Midland sues in court fails to provide any type of documentation during discovery. Asks for a Dismissal without prejudice. Never refiles. Continue to report to CRA’s way beyond SOL and nobody helps. Credit bureaus verify a debt they never investigated. Midland re-ages accounts and consumers are just plain done for Credit scores in the dump.
Danielle – What you described does indeed happen. What is it you mean by “nobody helps”?
Also, this far along in the life cycle of a debt, the Midland reporting would not typically be the sole reason for a credit score being in the dumps. Do you have additional collections reporting on your credit? Have you taken steps to improve your credit profile in the last couple of years? Do you have positive trade lines that are being maintained? Once you remedy the credit reporting with Midland, what are your immediate and mid term credit goals?
Michael,
I have a question for you? If Midland never validates a debt or responds. They take you to court and during discoveries are unable to provide any documents what so ever how are they able to continue to report to CRA’s. Wouldn’t that be like hypothetical anyone could say “Judge I pinky swear Mr xx owes me money but I have no documentation what so ever” How are they allowed to continue to report to credit bureaus? Isn’t that continued collection attempts after failing to provide proof?
Danielle – Mixing what happened with the dismissed suit and credit reporting may lead to the wrong assumptions. I wish it were that straight forward.
The way I understand your situation from your comments above on 8/4 and 8/5:
You stopped paying a debt on a certain date more than 7 years ago. Midland Funding ended up with the debt. The original creditor trade line aged off of your credit report at either 7 or 7.5 years after your first missed payment. Midland is on your credit report but is set to fall off 11 months after the original creditor. If I use the timelines you shared, with the OC falling off 9 months ago, the Midland Funding credit report entry would fall off in 2 more months.
The Midland entry should have fallen off with the original creditor entry.
I suggested you file a dispute with the credit bureaus (copying Midland). Have you done that? What was the response?
I have a question. I am being sued by Midland Funding for a credit card debt in Oregon. However, when I look up Division of Finance and Corporate Securities (DFCS) in Oregon, they’re not a registered collection agency. Can I still win this case? Or do they have the right to still sue me?
Nikki – States have different requirements for who must be registered. Not all of them will require a debt buyer, which is basically an investor, to register. The debt collector that is working for the buyer may be who Oregon requires to be listed and current with the Division of Finance. You could call the department directly and ask whether Midland is required to be registered as a debt buyer.
Whether you can succeed in defending the case is a loaded question. You did not provide much detail. But if your core focus is the registration question, that may not help much.
Thank you Michael. So I am wondering if it’s too late to file for bankruptcy as I am tired of all this court things. I’m 7 months pregnant and it has been stressing me out. I just want all this to end. If I file for bankruptcy, will the JDB still get judgement (if I lose) and take away my money from my check? or will bankruptcy stop them from taking my money?
Nikki – Bankruptcy, once filed, will put an automatic stay on any collection activity. No collections will resume once debts are discharged in a chapter 7, whether in court or out of court.