Short answer
Midland Funding LLC buys defaulted credit card debt and Midland Credit Management collects it. Both are part of Encore Capital Group. The cheapest time to resolve one of these accounts is early, before it reaches a collection attorney, and acting early can keep the account off your credit reports altogether.
Key points on this page
- Midland Funding is the debt buying arm. Midland Credit Management (MCM) is the collection agency. Same owner, different jobs.
- Resolve the account soon after Midland buys it and they may not report it to the credit bureaus at all. This offer is real, and few other collectors make it.
- Midland removes its credit reporting once you pay or settle. Deletion has been seen to take up to 60 days.
- A “Pre-Legal Notification” letter is not an empty threat. It means your file has been selected for collection attorney placement, and you still have time to settle before that happens.
- Settling after a collection attorney has the account commonly costs 20 to 40 percent more than settling before it goes to court.
- Sending a debt validation letter is your right, but it is counterproductive when you already know the debt is yours and your goal is the lowest possible settlement.
I recently spoke with a woman who had just been sued by Midland Funding LLC for a debt they bought from Citi bank. The amount she is being sued for is a few thousand dollars. She is being sued by a debt collection attorney in her state after collection attempts were first made by Midland Credit Management (MCM). Both Midland Funding and MCM are part of Encore Capital Group, which is one of few publicly traded debt buying companies in America, and one of the largest in the world.
I want to share the facts of her situation because they may help if you are getting collection notices and phone calls from Midland Credit Management, or if you are being sued by Midland Funding. Many of you reading this can prevent escalated collections from Midland in the courts, and anyone already in the courts will want to know how best to navigate things from here.
There will be many a reader just looking for why Midland Funding is appearing on your credit reports. Once you know why Midland is on your credit, many of you will want to know some things you can do to improve your credit.
Be certain to read the updates regarding Midland Funding on your credit reports that I posted at the end of the article. They have set themselves apart from any other debt collection company in the country by developing a consumer friendly credit reporting policy.
Credit card bills that go unpaid are packaged up in large bundles and sold off to bad debt investors in the normal course of lending. A portfolio of debt being bought by companies like Midland Funding could include your account, and thousands of other unpaid credit card bills.
Having your credit card debt bought by a debt buyer like Midland Funding is not unusual. And depending on how the debt collection and debt buying landscape changes in the next year or three, it could become even more common than we see today.
Midland Funding LLC and Midland Credit Management are Different
While Midland Credit and Midland Funding LLC share the same ownership under Encore Capital, each company does something different, and those differences matter to you. Midland Funding is the debt purchasing arm, while MCM will be recognized as the active debt collection agency, similar to how you would view any other debt collector.
Midland Credit Management sent a debt collection letter to the woman I reference above. Receiving a debt collection letter from a collection company you don’t immediately recognize is a normal occurrence. Collection agency letters and phone calls are the 2 primary ways a debt buyer, or the debt collectors they hire, will try to get you to pay.
You have options for handling the collection efforts from Midland Credit. If you are in a position to work out a settlement for less than what is owed on the now purchased account, doing so after the first phone call or collection letter you receive, is something to consider.
Understand that making arrangements to pay a debt buyer the full amount for a debt they bought is not going to go to your original creditor. The debt buyer is not a lender, but an investor. They are risking money to buy up bad debt to turn a profit.
Midland Funding is willing to accept less than the face value of your debt through its debt collection arm Midland Credit Management. How much less will vary. You are welcome to call me at 800-939-8357, ext 2, in order to get help settling with them.
Midland Funding generally shows up on your credit reports. Once on them, you cannot pay Midland to delete the derogatory in the first 2 years they have your account. You can negotiate a lower payoff and Midland Funding will update your credit reports to show the account is resolved and a zero balance owed. This will help you get a home loan through, and benefit you in other ways too.
There is a delay between Midland Funding buying your debt, and them reporting to the credit bureaus. Midland Credit Management will often start off the collection process by sending you a collection notice, or make collection phone calls that you may pick up. In the letter or phone call Midland may offer you the opportunity to settle or set up payments on your account in order to prevent the credit reporting of the collection account from occurring at all. As of the most recent update to this article, you have three months from the date they get your account to take advantage of this offer. If you can afford the money to settle, or set up payments you are confident you can pay each month, there are immediate and long term benefits to doing this. It is not a trick, they actually do this, and may be the only debt collectors making this type of offer.
If you want to settle with Midland Credit Management for less than the balance owed; can afford 50%; and sometimes spread out over 24 months; click the get debt help tab at the top of this page and create your user profile.
You can get help settling with MCM and have a deal done within days (as long as MCM has not already sent your account to a collection law firm). The Network I helped build has many negotiators, and we all charge 15% of savings. No savings, no fee.
Debt Validation Request Letter Sent to Midland Credit Management
The woman I refer to in this article sent Midland Credit a validation request in response to a collection letter MCM sent her. Sending a debt validation letter to a debt collector is your right. If for any reason you question the nature of the debt being collected, requesting validation from a collection agency or debt buyer will accomplish a couple of things:
- Triggers an obligation under federal law on the part of the debt collector.
- A written response from the debt buyer should include the original creditor, the amount owed, and these days, we are seeing some form of documentation to back up their claim (not simply a reference to their own spread sheet of debts they purchased).
- Debt buyers and debt collectors do not always respond to your request for validation, but the response is often sufficient to meet the standard that would allow them to continue to collect (the federal debt validation standard is low enough to trip over, your state law standard may be a little tougher).
- Debt buyers may never respond to a debt validation letter. The account may end up with a different collection agency, or sold off to a different debt buyer (Midland has not been much of a debt reseller of late).
Midland Credit Management did not respond to her validation request to her knowledge.
It is not uncommon for a debt buyer to ignore a validation request. The reason validation of debt requests are ignored by Midland Credit Management, and other debt collectors and debt buyers, is that sometimes no meaningful information was included when the debt was purchased. There are sometimes options to acquire detailed information from the original creditor at an additional cost, but that is not always the case. And you may not appear all that collectable to a debt collector, and they just may not bother if they see a low probability that you will pay anything.
When debt validation requests are ignored, Midland Funding may still send your account to a collection attorney.
Many years ago, I came to the conclusion that sending debt validation requests to a debt collector like Midland Funding, when you already recognize the debt as yours, and your goal is to resolve the debt by settling with the collector for the lowest amount possible, is counterproductive.
Midland Credit Management Sues in Order to Collect
The woman who inspired this post next received a collection letter from a well known and very active debt collection law firm in her state. She sent a new validation request to the attorney debt collector hired by Midland Funding. The collection attorney responded to the validation request with some basic information about the original account including monthly billing statements from Citibank. Shortly after receiving the debt validation response in the mail from the Midland Funding attorney she was served with a lawsuit.
Debt buyers will target accounts they buy for aggressive collection. Midland Funding is part of the largest debt buying collection brand in the nation. Lawsuits to collect can play a big part in how a debt buyer like Midland Funding will look to turn a profit on their investment in defaulted credit card debts.
The debtor, in this case, shared with me that she knew the sister of the process server that showed up at her door to serve the lawsuit. With that connection, a friendly enough conversation took place. The process server shared the fact that she had a list of Midland Funding lawsuits to serve… about two hundred of them. She lives in a county with a small population. Two hundred or so lawsuits on debts bought by Midland Funding is not unremarkable given the amount of people there are in the area.
Midland Credit Pre-Legal Notification Letter
Update February 2023: Like many creditors, Midland Credit will often send a letter telling you of their intent to escalate collections by taking you to court. These mailed notices will typically include the words “Pre-Legal Notification” in larger and bolder letters.
A Pre-Legal notice from Midland Credit should generally not be construed as an empty threat, or just a collection tactic. They are telling you that your file has been selected for collection attorney placement, which is the precursor to a lawsuit being filed to collect. And you can prevent this.
Always open your mail from Midland Credit. If you see a pre legal notice, you typically have time to negotiate a settlement with them for a much better savings than when it goes to the attorney. The main reason I am posting this 2023 update is that I am seeing Midland send out their first collection notice, that they then follow up by sending a pre-legal notice only a few weeks later. There is often more time between their first collection notice and the legal placement letter. But they are accelerating collections with many accounts. And because they give you a timeline to resolve the debt before they take that step, your next move is important if you intend to try to settle the account
Go here to schedule a call with me to talk about settling with Midland. I can often get these accounts settled for fifty percent of the balance or lower, and the settlements can often be paid over a couple years if you need time.
I can help you settle once the account goes legal too, but the deals after attorneys get your account, or an action has been filed in the courts, are not as good, and the process is much more formal.
What to Do About Midland Funding LLC Collecting Your Debt
If you are contacted by Midland funding LLC, or by Midland Credit Management, or some other Encore debt collection brand (Atlantic Credit and Finance, Asset Acceptance), consider the following:
- Are you able to come up with a plan to resolve the debt for half of what is owed? If you can afford to settle with MCM or Midland Funding you can contact them and work toward getting a deal negotiated, a written agreement on the collectors letter head outlining the terms, and pay it off. While it is recommended to negotiate and settle with MCM or Midland Funding in a single lump sum payment whenever possible, you can also look to set up monthly payments that you are confident you can afford and follow through with to completion. Midland Credit Management and Midland Funding both offer different methods to resolve debts they are collecting while giving you time to pay.
- If you are not familiar with the debt they allege you owe, request the debt be validated. Send your request in writing via certified mail. If you do not hear back from them do not assume they went away. I do not recommend this approach if you want to resolve a debt that you know to be yours.
- Be certain you are aware of how long it has been since you last paid on the account and compare that to the SOL (statute of limitations) for being sued on your type of debt in your state. You may learn that you cannot legitimately be sued for the debt as it has passed the SOL. That does not mean the debt can no longer be collected, or that you should ignore it. The account is likely showing up on your credit report. If you have a goal of buying a home, or refinancing an existing home, you may find you are forced to settle collection accounts in order to qualify for a loan later on. And settling later on may come at a higher price. Avoid applying for credit of any nature just prior to negotiating with Midland Credit and other debt collectors (it makes you look more collectable)
Depending on your current financial situation, looking for affordable settlements and paying off debts with Midland Credit Management and Midland Funding will set you up for less stress and the ability to achieve later financial goals.
The woman who inspired this article was someone I worked with a few years ago. She was laid off from work and struggled to find a new job. She could no longer afford to make payments on her credit card debts and was referred to me by her accountant. I worked with her and her husband to develop a plan to settle her unpaid debts, rather than file bankruptcy (they had filed in the 90’s and did not want to go through that again). She was able to knock down her largest 6 credit card balances by settling with her original creditors using money she was able to borrow from a family member. Her husband’s hours were then cut back at his job, and it became impossible for her to follow through with the plan, leaving a couple of her smaller balance accounts unresolved, the Citibank account Midland Credit Management began collecting was one of them.
She did not reach back out to me for feedback on dealing with the Midland Credit Management collection letter she received. Instead, she went to the internet and found what she said was the consistent advice to send a debt validation letter to MCM. She thought the collection account was behind her when she did not hear back from MCM. When she received the attorney collection notice in the mail for the same debt, she simply repeated her debt validation request again. She did not know how, or what, to respond to the collection attorney with, once they mailed back evidence of a debt she already knew she owed. She only contacted me again after she was sued by Midland Funding.
Settling with Midland Funding LLC When Sued
I suggested she connect with a local consumer attorney about her options to handle the lawsuit. After that consultation, she decided to settle the lawsuit from Midland Funding. We got a good deal, to be sure, but she was settling on a total balance that had increased due to attorney costs. We could have settled directly with Midland Credit Management early on, and for a much better savings, and less stress.
There is, often enough, also going to be a difference between the amount you can negotiate and get approved to settle for, when you are dealing with a debt collection attorney. It is not uncommon to see a 20 to 40 percent premium to settle a Midland Funding debt once sued for collection, compared to negotiating before the account lands in court.
If you are just not in any shape financially to follow through with any strategy to resolve the debt with Midland, you may end up with a judgment against you. Judgments can be settled for less down the road, so keep that in mind. But you may want to consider defending against any collection lawsuit too. There are good resources that can help you, but you will want to assess the costs and time involved in any effort to defend collection lawsuits.
What You Can Do to Resolve Debt with Midland
You may be reading this and in a situation where you cannot possibly think of how you can resolve a debt being collected by MCM or Midland Funding LLC. I understand that. The situation is what it is, and sometimes all you can do is wait for things to improve before tackling old debts. However, you may want to at least learn about the options available to you to tackle debts Midland is collecting. You may be surprised by some of the flexibility that is available. You may even be able to avoid being sued later, by taking action today.
If you have received collection notices from an attorney for Midland Funding, or have been sued by an attorney for collection, you will want to contact the attorney directly. You should also consider speaking with an experienced collection defense attorney of your own.
If you are trying to resolve an existing judgment from Midland Funding, you have options for that as well.
There will be additional pressures on Midland Funding, Midland Credit Management, Encore Capital Group, and many other collectors and debt buyers, as a result of new federal regulatory supervision. The CFPB has already had a huge impact on Midland Funding. I will keep the article updated as things develop.
Midland Funding LLC on Your Credit Reports
I am updating this article as of 1/10/17 to include information about Midland Funding credit reporting policy changes that are way ahead of the curve when it comes to providing you the ability to meet your current and future personal credit goals. Be sure to click through and learn more about how Midland Funding will handle credit reporting when it comes to accounts you have with them.
- Midland Funding will not show on your credit reports if you are able to make payment arrangement, or settle with them for less, in the first 180 days after they purchase your account. This is obviously ideal when you can commit to resolving accounts with Midland Funding early on.
- Midland Funding will remove all credit reporting if you pay or settle a debt with them. This is an obvious benefit to those of us who had financial setbacks that lingered longer, and who could not take advantage of the opportunity to keep Midland off our credit reports from the beginning, when they sent their first collection notice.
- I have seen it take up to 60 days for the Midland Credit account to be deleted from your credit reports.
There are many examples of people in the comments below, and who I have spoken with on the phone, who are taking advantage of Midland’s credit reporting policy.
Midland Funding is leading by example with this credit reporting policy.
Updated 2/20/20 – Three additional debt buyers have since followed the example Midland set for credit reporting.
If you would prefer to get help settling your Midland Credit Management debts, let us know by scheduling a phone call using the box below, or the help tab up top. We can help you and typically for a fraction of what most companies charge.
Hi. Asset sold my debt, do i still owr a wage.garnishment? Thks eileen
Asset Acceptance, the whole company and not just a portfolio of collection accounts, was purchased by Midland. A wage garnishment is made possible by a court judgment, so yes, you still owe it, but Asset Acceptance did not change their name or anything like that, so you should still be able to call AA directly if you have questions or want find out how you can resolve the garnishment.
Asset accep won a wage garnishment on me. I just got a letter Midland bought them, do i still owe a wage garnishment? They said i need to call should i call? 🙁 thks,
eileen – Asset Acceptance was purchased by the Encore/Midland brand. Wage garnishment is the result of a court judgment. The judgment is not going anywhere, so yes, I would call them.
Michael,
I just wanted to share my personal experience with midland credit management for everyone. 2010 I stopped paying on a debt with HSBC. $7500 was charged off and sold to Asset acceptance. They sent me offers and everything for years until about 4 months ago it went from asset to Midland credit. By the time they got it the debt was around $10,300. They sent me an offer letter for 70% off to settle for $3100. I was skeptical at first but wanted this done and over with so I payed them the offered amount. When I called them the account handler informed me I had another debt with them from citi around $1,200 and said they would settle that one for $600. It was indeed my debt but they did also tell me that because of the age of the account that they could no longer sue me in the state of Texas. They sent that offer letter as well and even stated on the offer letter that they could not sue me. I went ahead and paid that one off too. I checked my credit report this month and they held true to their word and the accounts show as being paid in full. My credit score then went from a 609 to a 657. So anyone saying that paying off collections does not raise your credit score is extremely misinformed. They really weren’t that bad to deal with and I finally have the mess behind me. Just want everyone to know there is light at the end of the tunnel.
Thanks for sharing your story with Midland Credit Billy.
I have no problem telling people Midland Credit and Midland Funding are pretty easy to work with. I generally find they stick to the Consumer Bill of Rights on their website.
Michael,
My ex wife was served by a lawyer for Midland Funding. She is currently in CO with a 6 year SOL. The debt is for a CC for a Nevada Bank and the SOL in NV is 4 Years. Is it ok to use the state of residence instead of the state of the contract, just to enlarge the SOL? I wrote her answer for her and used all potential affirmative defenses, including they were not the proper part to sue, SOL, and no evidence of any contract written or stated was presented with the complaint. The court has set a hearing on the motion to dismiss I prepared for 13 Jan. My question is what proof do the need to show they bought the debt and they are the real party in interest to sue? Also what do they need to show that colorado is the correct venue not NV? Since it would state on the original documents what the correct method of dealing with default is, should they have to provide the signed original documents?
Michael – It is most common for collection lawsuits to be brought in consideration of the SOL in the state where the debtor resides. There are some arguments, when made correctly, that have successfully used the creditors incorporation state as the SOL measurement. I do not think that is a common occurrence though. To be sure this question, and all of your legal questions, are answered thoroughly and accurately, you really should be speaking with an experienced attorney in your state of Colorado.
I am currently being sued by Midland Funding in New Hampshire for an account with Dell that my ex-wife has opened without my knowledge. I requested Debt Validation and got in return copies of “bill of sale” multiple pages none of which have my name or signature (Nothing they sent has my signature since I never signed anything nor opened any account). Also copies of previous mailed bills to address I haven’t lived at since my separation (divorce) in 2011. All in all, no page from what they sent to me has my signature owning up to any relationship with said debt. Lastly, just received second packet (same as first) with front letter asking to resolve (settle) issue without going to court, does this mean they have no proof and trying to intimidate me into settled without going to trial ?
Also like to add that only the copies of mailed bills to old address have my name, since that is what my ex used to open account, and I believe one other page. There must be about 15 – 20 pages total, again none have a signature.
Thanks so much for any information and/or advice!
I would not get too hung up on the signature thing, unless you want to approach this a little differently.
Your ex appears to have screwed you on this. What if any discussion have you had with her about this?
Joseph – Some debt buyers have a tendency to offer to negotiate a settlement at different stages of a collection suit. I would say Midland Funding is one of the easier buyers to deal with at this stage of collection. If your goal is to settle, sounds like now is a good time to see what that would look like.
Nothing you shared suggests to me they do not have proof, or access to what is needed. But that is not always the driver to settling – nor is ready access to proving a debt a reason to back off from any position you have.
How much is the debt? What is the offer?
Micheal,
Thanks for the reply. They have not addressed any settlement amount yet, I have only just received my appearance date in Small Claims (Feb 2014). They first sent the packet of copies of their “proof” and another of the same copies yet with this packet is attached a cover letter stating ” Now that you have this, would you please advise if we can resolve this matter ? It is our hope that we can do so without the need for legal involvement. If not, however, and a trial is necessary, this is to advise that we intend to seek introduction of these documents”.
As for my comment not showing they have no proof, they provided no signed contract of obligation to said debt nor signature of mine of which isn’t anywhere within the copies they sent to me because I never signed nor opened any account with Dell, my ex-wife had without my consent.
Thanks I appreciate your time,
J. Thibault
You can bring up the subject of settling, and target a realistic offer in your negotiations with Midland, at any time.
Unsecured credit contracts may be instigated on line, and through electronic signatures/agreements, more than on sight and mailed applications are sent in at this point. That is partially why getting hung up on their having a wet ink signature is not the most productive thing to focus on.
Here is the thing – Your ex screwed you on this. What if any responsibility is she willing to take for this? If none, are you willing to throw her under the bus? If not, what is your goal to resolve this?
Hi Michael,
I got a letter from midland saying that I owe 500 and some dollars from a citibank credit card that I closed in 2007, so I went to a citibank branch and ask. they said I don’t owe them anything, and they didn’t put me on collections. Back in 2010 I got a call from a collection company i don’t remember if it was midland or someone else and I payed 300 at that time. what Should I do please help. Thank you
ah – What state do you live in? Also, any chance you have a letter or any other form of documentation about the account you paid pack in 2010?
i have a past debt with tmobile and mcm have sent me a letter saying that they are willing to reduce the amount i owe and resolve my account with them. i am in the process of trying to rebuild my credit since i am a fresh college graduate trying to get a start in life. i want to pay it at the reduced rate they have offered me but i am not sure it that will drop my credit score or not since i am not sure how they will report to the credit reporting agencies. does showing paid look better than settled on my report? so if they do report to it as being paid then should i pay the reduced amount? the debt has been on my report since 2011. or should i just leave it alone because i dont want to pay money to have my score dropped even lower.
Indy – Whether Midland Credit shows up on your credit report as paid, or settled, the impact to your credit report is going to likely be the same. The goal in this will be having the account show as a zero balance owed.
There are instances where a collection account getting resolved, and updated as no longer owed on your credit, will temporarily drop your credit score. But if you are actively makes strides to improve your credit, it is short lived, and often a much more effective approach than leaving the debt unresolved, and waiting roughly 7 years for it to fall off on its own.
I am in Pennsylvania. Midland Credit is trying to collect on an old T-Mobile debt at the amount of $825. They “hired” a company called Diversified Consultants to collect on their behalf of which had been calling my job and home repeatedly every day for two weeks straight prior to me eventually answering the phone on November 13 and talking to one of their representatives. The woman told me that their records show that the last payment I made to T-Mobile was in 2007. The account was paid off but I think they are trying to collect the full balance left on the phone because I did not complete the new 2-year contract and an early termination fee. Anyhow, the woman did not give me an exact date that this payment was made and I do not remember quite remember myself. Two days later I wrote a letter to Diversified & Midland repeating what the rep told me and letting them know that the debt was SOL under Federal (2 years for cell phone bills) from what I have been told (for Pennsyvlvania SOL is 4-years from last payment made). Midland then sent me a copy of a electronic T-Mobile customer account information record showing that the last billing date was 2/1/11. It shows a debt of $727.03. (Actual debt $470.59 + late payment fee of $4.43 + a one time unspecified charge of $257.03). Althought it does not show the payment that was made in 2007, the date of this record still puts their efforts at collecting this debt beyond the SOL.
This debt shows up on my credit report under Midland Funding on my credit report however, it does not show accurate information. It shows Placed for Collection 10/31/11; Updated 6/26/13 and the amount of $825.
By the way, Pennsylvania’s SOL is 4 years from the last payment made on the account.
Should I try to bargain with them? Wait until they sue me? Which they are not supposed to do on an SOL debt anyway. What should I do?
Lisa – If you are confident the last payment ever made to the cell phone bill with TMobile was 2007, if sued you could defend against it fairly simple using the time barred in PA SOL angle.
By bargain with them, I assume you mean settle. You can certainly negotiate with Midland Credit. What is your goal?
Hello:
I am being sued by an attorney working for Midland for a Washington Mutal account for $ 4,640 that I had opened in 2004. The last time it was active was in 07/2008. The claim states that account is from Chase. I already aswered my summons and stated that I had never herd from them that they had no proof that this debt was mine and to provide proof that this debt was mine, and we are now scheduled for a pre-trial conference. What should I write as a disclosure statement? They have not provided me with any documentation such as Application /contract for this credit card, no payment history, no bill of sale for this debt to them, plaintiff affidavit, nothing signed by me. The only thing they will present as evidence is a billing statement from WaMu from 2008 that they got through cardmember services. Is this enough to prove this account is mine? What should I write on my disclosure statement? Should I ask for more proof that this debt is mine? Do you think we will go to trial? I am a single mom of 3 kids and make $890 a month. I cannot afford to hire an attorney so I am doing everything on my own 🙁
Bianca – What state are you in?
Arizona
Mi pretrial conference is set for 1/7/2014.
Bianca – While only anecdotal, and every case is different, the stuff I have seen out of Arizona this year suggests negotiating some form of settlement to be the better path to take for many people. I am not suggesting you cave your defense, but I have seen collection suits in Arizona result in judgments even when people are represented by experienced consumer law attorneys.
You could stick to your guns and potentially get this dismissed prior to trial; show for pretrial conference and find some middle ground for settling or affordable payments; or indeed find yourself having to prepare for trial. In any of these events, it would be best to have some form of experienced legal support. Have you connected with any low income legal aid offices in your area?
Could this get dimissed prior to the pretrial conference or would it happens, if it does, after the pretrial conference?
Bianca – Lawsuits can be dismissed for a myriad of reasons, and at different times. The best resource for your concerns would be boots on the ground (attorneys) dealing with your local courts, or that have already worked opposite of the attorneys suing you.
Hi, Michael.
I am dealing with Midland for a debt with Citibank (for Home Depot) for $4500. I have been served papers and have until Monday Dec. 8th to file an answer.
I talked with Midland today and am going to try and settle this. They say it is now a$5300 and they will accept $4300 lump sum to settle. I told them I would call back today and see what I can come up with. I can come up with around $2800.
My 2 questions: Do I need to file a response with the court by Monday, even tho I’m talking with Midland now? And what are the chances they will accept my $2800? It is all I can get. I cannot afford any monthly payments as I cannot afford the monthly payments I have now…it’s why I’m in this mess to begin with. lol.
Thanks for any help.
Steve
Steve – I was jammed up on some deadlines Friday, so missed answering your post.
If you were able to agree to a settlement with the attorney for Midland Funding in a single lump sum payment, filing an answer to their complaint may not have been necessary. If you got an agreement in writing outlining the settlement terms (which you should always do), what did it say?
Settling debts when sued is a moving target as far as what you can get them to agree to. You are targeting roughly 50%, and if your hardship scenario warrants it, they may go for it.
I am in a very poor situation with Midland. I have a court date for December 10 2103. I owe about 25K I have phoned Midland several times to attempt to make a payment plan. I can only pay around $ 350-400 a month. To make a payment plan with them to do this I need a down payment of 3K. I have not got this, and cannot borrow it, or get it any way. I am single mother of two children 6 and 8. I have no financial support from my ex. My life is a very serious financial struggle. I am willing to pay this money back, but I cannot seem to stop this freight train from rolling on top of me. Do you have any advice?
Kim – What is the December 10 date about?
Debt collectors, including Midland Funding, rarely accept payment plans that extend as long as you are asking for. At $400 a month, it would take more than 5 years to pay this off. But there are instances where the court can be part of an affordable payment solution.
I do have some additional feedback, but have some questions first.
Do you have any other debts unpaid? If so, what are the balances?
Do you have other unsecured debts you are paying on? What are those balances?
Hello Michael,
I was sued by Midland and a judgement was entered against me. I did not try to contact them to validate before this and quite honestly, I was going through difficult financial stress and it all became overwhelming. I was in the process of losing my home with Bank of America and it took me two and a half years to finally work out loan modification with them. This all took place during my negotiations with BOA. Not to make excuses, I just couldn’t handle another negotiation and was financially strapped and did not have ability to make any payment arrangements. Moving forward, I was sued, judgement entered against me. Writ of execution was filed and they were able to freeze my bank account. I had money saved and borrowed for my mortgage/modification. This is the money that they were able to take. My debt is about 2400.00 and they froze 2800. I contacted both Midland and their lawyers. They refused to work with me. I explained my situation and they said they could not help me. I then filed an exemption. I was granted this exemption. Now they have sent letters to other banks to freeze accounts. I do not have accounts at these other banks. My question is first, will they be able to take my vehicle that I have a loan on at this point? The writ says for property, but does not specify property other than bank accounts at the banks listed, one of which I do have auto loan. Second question, how do I resolve if they refuse to offer payment plan at this point and just keep filing writ of execution to seize any/all property? Any advice or help you can offer would be greatly appreciated. Thank you for taking the time to help people like me and alleviate some of the stress.
Marinia – You are still paying the finance company for the auto loan, so they have title. Your car is not likely at any risk.
You should be able to get set up on a payment plan by working with the attorney for Midland Credit. What efforts have you made to do that so far (calling/writing letters)? What amount can you budget for monthly?
Hello Michael,
Thank you very much for your reply. I tried to contact Midland when I received the writ of execution. They told me it was in the hands of the attorney and I would need to contact them. I contacted their attorney and was advised there was not anything they could do to help me unless I had the money to pay the judgement. I went back to Midland, a second gentlemen told me he would see what he could do and get back to me, but in the meantime have the bank fax over their answer to the writ of execution. He did not get back to me. When I went to the hearing for the exemption I had a meeting in the hallway with their attorney and explained my situation and asked if they could work something out with me that I needed to have these funds released for my loan modification. He said he didn’t really see any reason to release the funds and I given opportunity before this point to pay the debt. He said the only option was to speak to the judge. I believe they felt the judge would agree with them and deny my exemption. However, she sided with me and they were not happy when they left the court room. I remained in the courtroom to sign final documents and to get copy of the decree. I once again contacted Midland, this time the original woman who handled my case and she advised basically the same thing as the attorney I was given ample notice to pay or make arrangements. There was not anything they could do at this point unless I was willing to settle the claim in full. She said I was more than welcome to contact the attorney. Left a message, honestly I did not hound them because I thought since they lost in court they would be more willing to make arrangement because there was no other way for them to receive funds. I don’t know, but it seems as if they are going to contact every bank in the city assuming I am hiding money until they are able to seize a bank account. Will it be at that point they will make a payment arrangement? I am not sure how to get them to make arrangement or what my options are at this point. I do not have a lot in my budget at this time. Hopefully that will change within the next month. I just interviewed for another part time position starting in January, and in another month I will have two other credit cards paid off. That will give me $60.00, yes they were low. I received bad news yesterday and told my modification will now increase by $50.00 a month due to taxes/insurance and that will be permanent. I am sorry to go into such great detail, but wanted to give you full story. Thank you again for your time and help.
No apologies for the details. The more information, the better ability to offer feedback.
They were unable to retain the funds from the bank levy (and you now know to keep little funds in any account until this is resolved); there is little or nothing to seize as non exempt property; and no wage garnishment because you live in a state that prevents that, or would be considered partially/fully exempt; puts you in a unique position.
You can work to save up the funds to settle the judgment with the attorney for Midland. This would take some time based on what you shared about your ability to budget each month, and you will be looking over your shoulder the whole while. And the balance of the judgment is likely increasing from interest allowed by the court. Can you think of any resources you can pool money from other than your monthly income?
You can set up a meaningful payment plan. I am at somewhat of a loss as to why a payment arrangement has been difficult to obtain at this point. With no other immediate term collection angle, some form of payment is better than none. What law firm are you dealing with? What state are you in?
I am in Pennsylvania, I know that they are not allowed to garnish wages. The law firm is Weltman, Weinberg and Reis. I am going to try and contact them again. I can only make guess as to why the refusal for payment plan. It seems they are going to try to levy and make sure that there are no other funds before they agree to payment. As stated, they did have levy on my account and there was money to cover judgement. This was money I saved over time to cover mortgage. I am trying to increase $$ /budget. Selling on Ebay and flea markets and other resources. Maybe now, that they are finding out that I do not have no other bank accounts they would be willing to make arrangements. Would it be best to contact attorney again or go to Midland directly? I would think the attorney since they are filing for levy and notified that there are no accounts at these banks. What is your experience with the bank levy? Do they continue issuing until all financial institutions are covered, e.g. credit unions, banks?
I will contact them again today and let you know of outcome. Thank you again for your help.
Marinia – Over the last decade I consider Weltman Weinberg and Reis to be one of the easier firms to work with to resolve debts (whether a pro is negotiating or the consumer themselves). That experience reflects about 90% of files that are settling with a lump sum, so not completely relevant to your situation, but payment plans are rarely problematic to set up when caught early. There are files that hit roadblocks for predictable reasons, and it could be that yours is one of them. Paying other creditors on time is an example of why a collection file may be viewed differently.
Calling Weltman is how to make progress from here.
As far as bank levies go, yes, a collection attorney is often going to extend every effort to collect. In states like PA and NC, where wages are protected, that limitation can make repeated attempts to levy more of a normal practice.
I have another situation to run-by-you. I was sued by American Express and have been paying on the judgement for 13 months through a wage assignment to the tune of about $8000.. Now I have received a letter from NCO Financial demanding payment for $2640. When I contacted the lawfirm, they informed me that the debt was recalled and that they were having the wage assignment discontinued and that I now need to deal with NCO Financial. I don’t understand all of this! I only owed another 4 months to satisfy the entire debt. Now I’m getting calls up to 6 times a day from NCO and when I call back, I only get voicemails! How do I know they hav the correct amount since I know the letter they sent me was before the last wage garnishment?
Kim – That is really odd! You can reach out to AMEX directly and inquire about the amounts they show as owing. If there is a discrepancy in their records I would want to get to the bottom of that first. You can also request NCO provide that detail.
Can you confirm that your payments through garnishment were being processed through the court? If so, can you get a copy of that accounting?
What is the name of the attorney firm this was going through?
Michael:
Thank you for your prompt response. The law firm is:
Gordon and Wong Law Group
510 Myrtle Ave. Suite 102
South San Francisco, CA 94080
All I know is that the $625 on my pay stub reads “Riverside Sheriff Wage Assignment.”
Where, at the courthouse would I go to get the accounting on the wage assign. amount?
I guess I should send a certified letter to NCO Financial and request an accounting showing all the wage assign. payments.
What do you think?
Kim – Contact the sheriffs office or the court clerk about how you can obtain an accounting. And yes, if it were me, I would both write to NCO, and call American Express.
Michael:
After being bombarded with phone calls from an Alice Marie Hughes of NCO Financial three to four times a day, I quickly made a concerted effort to contact this woman at the number she gave me. I called at different hours of the day and left messages on her voicemail with the proper acct. number. I even gave her a several good times to reach me. Finally I just mailed (via registered mail with a signed receipt) the payment amount of $2640.62 in a cashiers check. I received notice that it was received and the calls have since ceased. My question is where do I go from here? I’ve been reading horror stories here of yet other collection agencies demanding payment for debts paid off! How do I know that the judgement has been satisfied? Since NCO “recalled” the debt and I have paid what they asked, what happens with the court judgement? And how do I know it won’t come back on me? The attorneys for American Express won’t discuss it with me since NCO recalled the debt. I’m retiring in June and I need this put to rest before then. Should I send another registered letter to NCO requesting a letter from them that the debt has been satisfied? I had a judgement with another credit card co. who dismissed the lawsuit and I received a letter to that effect. Please advise.
Kim
Kim – Getting this all documented more clearly would have been ideal, before sending off payment. Because this is a judgment debt, remitting payment through the court may have been a better course, if the judgment creditor, or their assignee NCO, were unresponsive.
When was it that they received and processed your payment?
Michael:
They received the cashiers check on February 12, 2014. When it was processed, I don’t know. NCO Financial hasn’t called me since they received it.
Kim
Kim – I have done settlements on judgment debts that took a few months to update in the court record. You also have the option of moving the court to update the judgment as satisfied. Do you have proof of all payments?
Michael:
My proof of payment is the wage garnishment except for the last payment to NCO Financial (the $2640. that I sent in a cashiers check via registered mail).
Kim
You could light a fire under NCO’s butt by calling AMEX direct, and if not a satisfactory experience, file a complaint with the CFPB. If it were me, and I did not have a credit goal in the next 60 days, I would give it another 30 days, but I do appreciate any apprehension you may have with waiting.
Hello. I just recently received a letter from MCM demanding payment on a debt that has run the statute of limitations (which in CA is 4 yrs.). I haven’t even heard from the original creditor for 2 years until recently when they notified me that I would be contacted by MCM. In the communication from MCM, they even stated that they cannot sue due to the statute of limitations. As a result, I have no intentions of paying the debt (which is for @ $7000). How do you suggest I proceed in dealing with all the harassing phone calls and letters?
Kim – If you are certain the debt is passed the SOL you can send them a cease communication letter to stop those calls and letters. Just be certain the SOL is expired, as once you send a request that all communications cease, the only door left open for communication is the one entering the court house.
The date of the debt is August of 2008 and I’ve had no communication since then. So the SOL has passed. I might just wait-it-out. Shouldn’t it fall off my credit report after 7 years?
I can always try blocking the annoying calls.
Both the original creditors charge off entry, and a debt collectors negative reporting, should fall off the credit report after no later than 7.5 years from the date you last made a payment in 2008. So you have a ways to go before that happens.
I went to court over a debt that wasn’t mine. The court sided with me and it was dismissed. I sent court documents to all three credit bureau’s and they refuse to take off the debt. So a court of law says that I am not responsible for a debt that isn’t mine but these credit bureau’s are allowed to ruin my credit by refusing to remove false information?
Barbara – I would need a whole lot more details to understand your situation. What specifically happened in court? Why did the judge determine the debt was not yours? Where did the debt originate from? Is that being reported along with any other collection trade line?
If I knew the answers to the above questions I could better offer meaningful feedback.
I was contacted by Midland today. I have seen them on my credit report. They purchased a debt of mine from 2005. They said last activity was 2007. He told me on the phone that I was sued and had a judgement filed against me and it is on my credit report. I monitor my report and there is nothing showing on my report in form of a judgement. I never received anything in the mail from them stating they were filing against me. I flipped out on the guy to and refused to take his number. 2014 will be the statue of limitations on this thing. I am nervous after now seeing on other sites that they garnish wages and bank accounts. I live in Pa and the company was from NJ. I don’t know if that makes a difference with the way the handle things or are allowed to.
Jamie – Have you lived at the same address since the debt was incurred? If so, check your local court record and verify whether a suit was filed. A judgment will not always appear on your credit reports. The easiest and quickest thing to do would be to call Midland and provide your information and ask what court a judgment exists in, and then you can pull the information together. Right now you are on a fact finding mission, so keep any conversation brief and business like. Post a follow up comment with what you learn and lets go from there.
Thank you for your last response. I was you going to write you with some questions on proceeding with trying for a settlement. My grandpa passed away and I just got back into time yesterday. It had been one thing after another. Like I had told you my contact at Midland told me to contact him by the 21st because he would be out for the holidays after that. I was just served papers tonight with the plaintiff being midland. I was to they were taking my account out of dispute (regarding my dv letter) after my fax was sent to them. Why is this now happening? I had told them I was going to work with them. I thought after I contacted them it would take out the possibility of going to court. Is this a mistake in documentation? What do I do know? I would like to call first thing in the am and see why this is.
Please advise. Thank you so much.
Laurie – I typically do not see that occurring when you are openly trying to work something out with Midland. Rather than speculate as to why that may have happened through comment exchanges, I am available to dig into this over the phone. I am signing off for tonight, but can be available most of tomorrow. You can reply to the email you get from me, or call the number in my signature line.
When he asked what I wanted to do I told him I would really to get it reduced to half ($4,000) and of course he didn’t act like that was possible. I would love to pay $250/mo for 6 months and pay $2000 after taxes. I do think that is feasible for me with my first pmt being in dec. I feel like they will keep wanting more however and not accept this. How do you suggest I go about getting them to agree to a deal such as this. He told me when I contact him with a plan he will let me know right away if it is reasonable or not.
Thanks again.
Laurie – You have to convey your hardship and inability to pay. Settlement with debt collectors works best when you have a lump sum to offer. When you start talking payments you are conveying room in your budget to pay for much longer. You have to work the numbers to show this is as good as it gets, and stick to your guns about the deal you would potentially agree to.
If your health insurance premium is going to go up as a result of the Affordable Care Act.
If you are going to have to ask for family support to get through paying something monthly until you get your tax refund.
If you have to make up the difference in helping a son or daughter who will need some financial support starting in January (college, grand baby on the way, lay off etc).
There are many reasons someone has to project their budget aside from meeting normal monthly expenses. You need to be able to convey what is happening in your life.
You can get some help and one on one coaching if you feel you need it. If you get stuck post an update and I can offer some further suggestions.
Hello again,
I was able to get a letter faxed to mcm and then the person I spoke to last week called me today. I briefly told him what you said and a bit about my situation. He right away put me on hold and came back with the amt of $6100 lump sum settlement. I told him that was not even close to possible. He asked me what I wanted to do. I told him I would like to lower it to 50% if possible and then start paying towards it and hopefully finish the balance with my tax return in time. I told him I wasn’t at a position where I could pay something today however. He said if I called him back in a week or two and had something I could put down he would then go to bat for me. I was kindof rushed off the phone at that point. I told him I didn’t want to make a small pmt of $300 or so if I didn’t know my end goal settlement amt. he was polite and just told me to call back. Sound right?
Thanks again very much.
Sounds about right Laurie. I would not want you to pay anything without a clear plan you can afford being outlined in a written agreement.
How would affordable payments look if you were able to get a 50% settlement with payments spread out over 12 months?
What if you made arrangements to pay the settlement over 6 months, with the final payment being the largest after you get your tax return? Could you swing 250.00 a month for 5 months with the final payment being a couple grand? Is your tax refund consistent, and estimable now?
Hello,
I received a collection letter from MCM regarding an old cell phone bill, about $200. I sent a debt validation letter to them. MCM responded with a some type of bill showing my name, the cell phone company name, account #, and the amount owed. They also sent out a settlement offer stating that if I paid they would report the account as paid in full. I sent a pay for delete offer, but have not heard back from them. It’s been almost 3 weeks. What should I do next?
Thanks,
Kiki – Pay for delete is just not a common occurrence with Midland Credit Management (or other collectors). Taking the offer and getting your credit report to show the account is paid is likely as good as it will get. Do you have other collection items showing on your credit report?
I have 2 others but they are paid. So should I contact them by phone or letter to try and settle the debt?
I would call the phone number on the collection notice MCM sent you and confirm the details and follow through that way.