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 I own $237.23 to mcm I been calling them like every week to make a settlement to pay them $100.00 but they keep on telling me no! people there are just to hard to talk to I don’t have a job to pay in full so I don’t know what to do anymore.
NELY – Smaller balance accounts like yours do not generally settle for the best savings – no matter who is collecting on them. See this report for more details about this issue.
rec’d a call from midland but they didn’t leave a message. i’m assuming it’s about an old credit card debt from 2009. i’m not going to call them back but I know the SOL in my state is PA. Could they try to sue me even if they know, i’m sure, that it’s too late? thanks for any help.
lisa – They could sue, but if the SOL is expired, your response would be real short and to the point. You could pick up the phone and just let them know your intentions. It could help eliminate additional collection phone calls.
I have a situation with Midland that has been going on for almost 7 years. They started calling a relative’s home in 2007 about a supposed credit card debt. When the relative finally gave them my phone number, it became clear that this was not my debt! I had my identity stolen in 2002 and over a few years found out about accounts that were opened using my name. It took a while, but I thought I had resolved all of them…until 2007. Midland began sending me statements and when I requested documentation\n, I got a call from one of their agents telling me that there was none and that the only way they were going to stop calling and writing me was if I paid the debt. Everytime they got a letter from me requesting documentation, they added the account to my credit report, and each time I disputed it and it was removed. Well, it has been quite for two years until this week when once again, I received a statement in the mail from Midland for almost double what they wanted two years ago. This time, they acknowledged that the statute of limitations was up, but now they are offering me a settlement of $200 on a $2700 debt and have explicit language indicating that the rest will be reported to the IRS as income! As you can imagine, after almost 7 years of this I am just at wits end…I have contacted a local attorney who deals in collection agency violations, but can you tell me what options I have…can I sue them for emotional distress and harrasement at this point?
Debra – I am not sure what you would get out of the suit. I suspect little. Did the Midland account show back up on your credit reports?
If I had to guess, it appears your file in Midland’s system, at least at one point, was coded correctly as ID theft. But something was introduced to the system to spit out form letters to older accounts, and yours was included in that mailing. A simple phone call would likely get this corrected, but I understand if you do not want to pick up the phone on this. Sending a letter would be a good alternative.
What did the attorney suggest?
Hi, I received a letter from MCM today for a debt that they are trying to collect on for HSBC Card Services. Honestly, I don’t even remember having a card with HSBC and if I did, its been more than 10 years ago. The letter offered me a 90% discount on the debt, stating that it was a one time offer and only good through March 30th.
With that being said, there is a statement underneath the signature line that says “The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it, we will not report it to any credit reporting agency, and payment or non-payment of this debt will not affect your credit score.” The way I’m reading this statement is that, there will be no affect on credit score, if I pay this debt or not and that they have no legal right to pursue the debt collection. I pulled my credit report and nothing in regard to this debt was listed, other than “customer closed account”.
So, I don’t want to pay this, if I don’t have to, but will, if its going to cause my a headache in the long run. Any thoughts?
BB – Based on what you shared, and how debt collection on really old account like this work, there would be no headaches from not paying. And if there were head aches, any can be eased fairly simply.
At this point, whether you take the settlement offer from Midland Credit Management or not, it should be based on personal choice. All of the typical collection leverage is gone.
Hey Michael,
I just worked out an agreement with Midland. Wasn’t easy, but couldn’t have done it without you and the website. They reduced my so-called debt from $2100 to $1200 and I will make monthly payments of $100 for a year. Basically what I owed Credit One when I stopped paying 2 years ago. They are making money and i am fulfilling an obligation. I proposed it and he agreed to it. (After some heated conversation, I might add)
Thank you very much for giving me the courage to stand up and hopefully resolve a very painful issue.
Sincerely,
Robert
Congratulations Robert. Settling with Midland Credit is often a matter of a phone call or two. Be sure to get everything that was agreed to in writing too.
Was this the last debt you had to resolve, or were there more?
I have 2 more credit card debts for smaller balances that I am sure will surface at some point. Little bites, one at a time. Hopefully i will get squared up eventually. Thanks again for your help.
Robert
Dear Mr. Bovee,
MCM is sueing me for a charged-off Credit One account that I stopped paying on in 2012. I had gone through an extended period of unemployment and in November 2011 I had to have my right carotid artery cleaned out due to a 99% blockage. In 2008, I had a triple heart bypass. The last credit card statement I received showed a balance of $1400.
MCM is sueing for $1900 and I was served in December of last year. I immediately filed an answer with the small Justice of Peace court here in Fort Bend County, Texas. A mediation hearing has been set for April 1o, 2014. Or a month from now.
Since December (after the suit was filed) I have been receiving 2 to 3 calls a day from Midland. I have ignored them, but kept a record of each call on my cell. This afternoon I finally decided to talk to the caller.
After I filed my answer back in December I e-mailed the attorney of record acknowledging the debt and saying I could pay 50 t0 $60 per month but wanted some type of concession on the amount. Never heard back from her. The balance has now grown to $2100. I was informed of this today.
My health is poor due to other blockages in my body and the doctor who did the carotid procedure said a couple more years will probably be it for me. We will see. I started drawing my social security retirement early at age 62. It started last August. $1525 per month and I have moved in with my son and his family.
The so called legal assistant on the phone today said they would accept $100 per month for 21 months. I refused and know they may have paid 10 cents on the dollar for my debt.
He is supposed to call me back tomorrow with some kind of offer.
At this point, I would just as soon take my chances with the JP as accept this deal. A huge company sueing a 62 year old in bad health. Doesn’t the over 250 phone calls from them since December seem excessive? Especially since the suit is in motion and a court date is already set.
Any help or advice is greatly appreciated.
Robert
Robert – It is strange to receive that many calls after litigation started. Is social security your only source of income?
Thanks Michael. I do have a part-time night job that pays me $1200 per month and I am limited to $15,420 annually by the social security administration. I will earn that this year.
Hello Michael:
Over three years ago Midland sued me over a card balance owed to Citibank. The papers during a rough period in our marriage and got ignored. Once they got a default judgment, I came to my senses and filed a motion to vacate. It got denied without even a hearing. I filed a motion to reconsider. It got denied without a hearing. They got a judgment for $14K. Its now costing me more for insurance, preventing me from refinancing, etc. I’m in a better place than I was three years ago and have about 5K saved up which I could use to settle this if they’d take it. What should I do? I need this off my credit report. I’m in NJ. Thanks for the help.
Joe – Settling judgment debt is pretty common with debt collectors like Midland Funding. I would realistically be prepared to pay more than what you have available (depending on how collectable you look on paper) – more on the order of 50%.
Check out this page, and the many comments, for more tips and things to consider when negotiating judgment debts:
Joe – You may also want to read up on some realities related to judgments on your credit report: https://consumerrecoverynetwork.com/question/judgment-collection-removed-from-credit-report-public-record/
Thanks Michael — I’ve read the threads you directed me to and they’re very informative. I have a couple more questions, though.
The lawyers who’ve obtained the judgment for Midland are Pressler & Pressler in Parsippany NJ. Should I try to negotiate a settlement with them or with Midland Financial directly. I see an address for them in NYC.
Second, I want to resolve this but I’m a little scared to stir the pot. I haven’t been hiding and I’m easy to find. I have a bank account in a bank 3 blocks from my home address that my paycheck gets direct deposited into and my house is in my name and my wife’s and has a mortgage in my name and my wife’s that’s current.
Midland has done nothing at all in 3 years to collect from me. If I suddenly “perk up” and can’t reach an agreement with them are they then inclined to garnish or levy on my account? Thanks again. You & this site are a fantastic resource.
I had a default judgment against me for roughly $1900.00 from a credit card debt incurred back in 2001. The judgment was issued in 2010 and there was a garnishment against my bank account by Asset Acceptance Corp in 2012. There was Satisfaction of Final Judgment filed acknowledging full payment dated 2-1-12. Midland has now contacted me to try and collect on this debt referencing the original creditor from back in 2001. What can I do to make them stop? Thank you in advance for your input.
~Jim
Jim – You could pull the summary from the court, or the satisfaction of judgment filing, and send that to Midland Credit Management along with a letter outlining the history of the account. Send any mail certified return receipt and keep a copy of all. If you want calls to stop about a debt you are certain you no longer owe, request they cease trying to communicate with you in the letter you send along with the account history. But I only recommend that you ask that phone calls and letters from Midland stop, if you are certain the debt is resolved.
Thanks Michael. I do have a copy of the satisfaction of judgment that was filed by the court. Is this proof enough if I send this to them along with the other information you suggest to put an end to any further action that may pursue? Is a copy sufficient or do I need to have something with raised seal? I appreciate your time.
~Jim
Jim – If it were me, I would only use a copy. They can look up the court record to authenticate. I would also call and open dialogue, and then send the documentation by mail.
I don’t know if anyone can help me, but I have been sued by Midland. I was served by a sheriff a couple weeks ago, being told that if I did not show up to court tomorrow, I could be arrested. Apparently, the court sent paperwork to a residence I have not lived at for over a year, in August 2013, for a court date for October 2013. Since I never got this paperwork, as it went to an old address, I left a forwarding address with the Post Office when I moved, however the court told me they do not forward court paperwork, I was found guilty and a judgement was made against me for $1,564.52. Now, I am going to court tomorrow, however, I have a 17 year old, a 13 year old, a 19 month old and a 4 month old, and I am on SS Disability. I am a single mom, I have NO idea what this debt is for, I’m stressed over this and scared!! I am doing my best to support my children on my own with no help. How am I ever going to pay this, and can they put me in jail if I cannot pay??? Any advice is greatly appreciated. Thank-You
Kristin – Show up at court tomorrow. Let the judge know this is all new to you, and why. From what you shared, you may be uncollectable, but lets get more into that after you get back from court. It is important you show, as that is how situations like this lead to big problems. It is the not showing up when compelled by the court part of this that leads to jail, not the fact that you owe this type of debt, and cannot pay.
The court is not scary in these situations. The process is about as exciting as contesting a traffic ticket. But being nervous is normal. Post an update when you get back with what happened.
Because of what you are dealing with, I should point out that it would be a good idea to run all of this by your own attorney. You may qualify for low income legal aid assistance, so look for an office near you, and call in the morning if you have time.
Michael-
TY for replying. I don’t have an attorney, I had previously called around, but no one would take me without me paying. I will post an update after court. Ty again, I have never had anything like this happen to me. I just plan on pleading my case in front of the judge and going from there.
Michael – So I went to court yesterday and met with the lawyer in the little room, there was no judge. I brought my supporting financial documentation, and he dropped it due to inability to pay, he was definitely not happy! I just want to add a couple things in case it might help anyone. At the court, I looked closer at the old address where the original court paperwork to appear last year went to. It went to an address that I have not lived at for 6 years! When I asked the gentleman what this was for, he said it was for an old debt to Credit Management! Once he said this, I knew exactly what it was! It was a starter credit card I had 13 years ago with a limit of $300. Somehow, Midland bought it out, got a default on me and raised what I owed to $1,564.63. Other than knowing the name of the original creditor, the guy knew nothing about that debt, or me! However, because I have a good memory, I remembered! Please understand, I realize people need to pay their debts, but circumstances sometimes come along that we are unable to control, and the debts go unpaid, sometimes food is more important. My heart broke as there were about 15 other people there with me for the same reason, most of them elderly. Morally, I have a hard time understanding how a company can legally go around acquiring minuscule debts, more than tripling them, and coming back on a consumer, years later to take monies that never belonged to them in the first place. Unfortunately, I was put in a position where court paperwork was sent to an address, whereupon I never would have gotten it in the first place, therefore, never knowing there was a court date, I couldn’t state my case, ask for supporting documentation from them on what I owed, to whom, and why, so I was defaulted on! If I had been able to, and given the amount of time that had lapsed, I believe I could have stated my case back then and won against them, being on disability or not, knowing what I know now. Morally and ethically, I think these people are wrong for doing what they do, but that is my own opinion. My advice to anyone in this situation would be to do your homework, investigate the original debt, get as much info as possible and ask for original documentation on the original debt and empowered with all the information you can get, stand up to them. 9 times out of 10, they won’t have all the information you require, and you might possibly win your case. Again, this is only my personal observation and opinion. Thank-You again for your time and attention.
~Kristin
Hello, MC and their attorney at the time Steven Spechman won a bank garishment, against. And was oder to pay remaining balance, court fees,attorney fees and interest. It was paid. Now I receiving another letter from a different attorney representing themselves asking for interest on the same judgment that was paid. How do I go about handling this?
Audrey – If you have not called the attorney or Midland Credit to ask what is going on with this new collection effort on an amount you know to be paid, call them, or the new attorney. Post what you learn and lets go from there.
Is the judgment showed as satisfied in the court record?
Th judment occured in october 2013, well over 4 years after my settlement withWashington Mutual..however the paperwork was finalized and give to my bank on February 25th….
David – What happened with the lawsuit last year? You were served the summons, then what? Please offer a chronology of what you did from there, as it will help me better offer feedback that is more than just generalized.
Hi Michael,
I have a judgment on my credit report in favor of Midland funding. I am not sure who the original creditor was because it is not listed. The date filed was 01/2008 for $3223.00. My concern is that I was never served by a process server or anyone for this law suit. I also never received any court notices or court appearances in the mail. How should I handle this?
Nelson – It is really rare to get a judgment from 6 years ago backed out. But if that is the goal you want to accomplish, you should talk to an experienced consumer law attorney about your options. Get a copy of the court record and be prepared.
Do you have some other credit goal right now, or other reason to resolve the account?
I had a Washington Mutual Credit card line of 1000.00 after a year or so I settled with them for 650.00 in March of 2009. In April 2010 about a year later I get a phone call from Midland Funding stating that I owe about 1,500.00 in and account from Chase. I never had and account with Chase I later found out that sometime in 2009, shortly after I settled with Washington Mutual, Chase had taken over.
I explained to Midland Funding that I had paid a settlement with Washington Mutual and on my credit card report it stated that my credit card regarding this incident case was closed. They proceeded to tell me that they had no paperwork of any such transactions, and that I needed to make a payment. I told them that I would not pay any more money in a credit card which was already settled. Washington Mutual did send me a letter stating the case was closed however with time a accidently misplaced the letter.
I recall writing out a check for 650.00 and give or take a dollar to Washington Mutual for the settlement. All of the sudden Chase took over and now there is no paper trail of my payment.
And now more than 5 years have passed and today 2-24-2014, I was contacted by my bank and they advised me that Midland Funding had placed a Levi (hold) on my bank account. They once again would like for me to make a payment on an account that I settled for back in march of 2009.
And to make matter worse they want 3000.00 this time. I don’t know what to do. This company has made no attempt to contact me in the last year or so, and all of the sudden my account is frozen. I settled with Washington Mutual it reflects on my credit report and a check made out to them in march of 2009. Why is my funds frozen I feel like I am pressured to pay for something that I do not owe. The fact that Chase took over and has no paperwork of this is not my fault. And here I write this desperate as my account has been frozen and I do not have access to one single penny. As a father of four I am worried, bills need to be paid and rent is due along with all everything else, food gas for work etc. I don’t know what to do
please help
David – You mentioned settling a case with WAMU, and Midland has levied your bank account. In order to levy the account there would have been a judgment. Was the judgment from 2009, or is there a judgment after that. My feedback will be different depending on the answer.
Michael,
I called Midland Funding and when I gave them my social security number they told me that they do not have anything with my name or social on their records. When I told them that there’s a judgement on my credit report they didn’t know why… I’m having a difficult time finding an attorney that is willing to work with a judgment that is 6 years old.
My goal for resolving this issue is to purchase a home. My wife and I were approved for an owner financed home and we were not able to close on the house when this judgment was discovered.
What I would also like to know is that when a judgment becomes 7 years old and it no longer reports onto your credit report, are you able to purchase a home or does it still come up?
Thanks for your advice
Nelson – A title company and other types of credit checks can turn up matters of public record too. The tendency is to rely on the credit reports, but it is still possible for the judgment to get in the way. And judgments to not go away like other debts. They can grow over time, and be renewed for a very long shelf life in most states.
Do you have a copy of the judgment?
Hi,
Right before Thanksgiving my boyfriend was served a summons by midland. Apparently he had three outstanding credit card debts that were bought. They never sent a demand for payment just a summons. At the summons, the attorney gave three options, file an answer, pay $40/month for 5 years (which is still the total amount), or do nothing and get a default judgement. The attorney would not give him any other options so he filed an answer. Right before Christmas he received a letter demanding payment on another account for $422. We have made every attempt to contact legal aid services and consulted with several attorneys. Neither of us can afford an attorney but my boyfriend cannot represent himself. We aren’t making much progress in finding representation but I feel he will lose the case if he has to defend himself. He called a debt management company we found online and the woman he spoke to told him to try and settle the smaller debt. He called midland funding and agreed to pay off the two smaller accounts after the debt was discounted down. As for the big debt, they have a pre-trial and trial dates set and mandatory mediation. He called the plaintiffs lawyer directly to set it up. She asked if he was given options by the collector who answered the phone to settle or pay off his debt (which would stop the legal action) and he said no. So she transferred him back to the collector who said they wanted $465 in payments to stop the legal action. My boyfriend told him, his paychecks were barely at $250 each week plus rent, food, gas, bills, and child support. I pay some of it but I won’t get my paycheck till Feb 14th. We live paycheck to paycheck right now and we can’t afford a lawyer or to settle. It’s like being backed into a corner. He made an attempt to prevent further legal action and it failed. They were not willing to work with his income. I’m not sure if there is anything else we can do?
Julie
Denver, CO
I forgot to mention a few things! The account he is sued for was through Washington Mutual. He was making payments when Chase bought it out and raised the interest rate to 31.99% He said he was paying more than minimum amount and not putting a dent in it. He got overwhelmed and couldn’t catch up. He requested discovery from the plaintiffs and we got a packet full of crap! The credit card agreement was a copy of a sample agreement with *insert name here* at the top. The chain of sale only shows that Chase bought Washington mutual and Midland bought some charged off accounts but there were no account numbers or names on them. A poorly copied affidavit, and a bunch of statements addressed to Steve. There wasn’t much there to show they actually owned his account.
On a side note: He received a letter about a class action lawsuit against Midland Funding that settled. It was giving him the chance to opt in for getting part of the settlement. He qualifies because they found his info in Midlands computer systems and he is currently being sued. Do you think he should opt in?
Julie – I had not seen this additional comment before replying to the other. The packet of discovery docs may/may not meet his requests, and can contain many points of contention in situations like this. It is up to him to learn and follow local and state court rules in order to poke holes in Midland Funding’s lawsuit. But you indicated he is not prepared to do that. Why do you say that? Your comment shows at least some awareness of the issues.
I am happy with the way class action lawsuits regarding consumer-centric issues can often lead to major shifts and changes in how consumers are treated more fairly. I am not a fan of class action when looked at through the lens of the individual consumer, who rarely receive anything meaningful by way of recompense, when the action is resolved. I personally would see no reason to join the class.
Julie – Where does the current lawsuit stand? Are there any discovery items/requests pending? What is the total amount of the debt being sued for?
Hi Michael,
I posted a question earlier but it seems to have disappeared. I currently took out a credit card from best buy of which I have been paying onetime since i received it. However on my credit report it says that I am in good standing with such credit card BUT it was “purchased by another lender” which I think is MCM since they have been calling me everyday. I have not answered their calls. Furthermore, on that credit account it says it was closed in september, two months after i opened the account. How could this happen? What can I do?
Paui – Something went haywire and Home Depot treated your account as a loss; and Midland Funding picked it up (bought it), now Midland Credit is collecting. All of that is normal stuff for accounts that go delinquent. It is not normal for accounts that are opened and then paid on time. I would contact both Midland Credit and customer service with Home Depot credit cards and find out what happened. Post an update with what you learn.
Hi Michael,
I just found out a little bit more on my credit report. One of my credit cards was sold to a lender, of which I believe is MCM. But as I said in my earlier post I have been paying this card and my report says it is still in good standing, but it also says “date closed” in september. what does this mean?
Hi Michael,
I have been receiving calls from MCM since last month. I have not answered a single call. I owe no debt and I currently checked my credit report and it is in good standing. I make my monthly bank and retail store payments. I am a current college student with government loans but I do not have to pay until 2017. Why could they be calling me? I am afraid to answer the phone in fear of it escalating. I read that if I do not answer their calls, it can impact my credit score? What can I do? Thank you.
Hello, I have a question about settling an old debt with Midland. I was actually sued by Midland in my county court back in 2010 for roughly $10,000.00. I was able to find legal aid to help with this matter. Midland was unable to prove the debt and withdrew the claim with prejudice. I received a letter from legal aid after this happened saying the suit had been dropped. I thought this meant this was over and off of my credit. I recently started looking into buying a house and find out this is still on my credit report. I contacted legal aid and was told that since this was withdrawn with prejudice that they can come back to sue me at any time. I of course can not get a home loan until this is taken off of my credit report. I am unsure of how to deal with this now. It shows as a debt of over $12,000.00, I am assuming interest? I am not sure if I can call Midland myself to negotiate this to a lower amount. I am scared to call and make things worse. I have not been contacted by this company in years. Should I contact an attorney to help me negotiate this down? My loan officer said he could get this off my credit report if I could pay this off and get it in writing. Thanks for any advise you may have!
Cassie – When was it you first missed a payment on this debt to the original creditor? What state do you live in? You can call and negotiate a lower payoff with Midland Funding. Depending on how collectable you look, and how old this debt is, you can probably negotiate a good savings. Having said that, maybe it makes more sense to wait until Midland is dropped from your credit report.
You qualified for low income legal aid back in 2010, but it sounds like things have turned around well, so asking the legal aid attorney for help may not work. You certainly can connect with an attorney of your own to help you negotiate a settlement, but could likely do just as well yourself, and save money that way.
My first missed payment was somewhere around 2009-2010. I of course do not have any of the original paper work because I thought this was reolved. I live in Pennsylvania. How long does it take for this to drop from a credit report. My husband and I want to buy a house but I can’t do anything with this debt showing on my report. Otherwise, my credit is good and I have no other outstanding debts. I have been able to put together a small lump some to offer as a payoff. Will I have to contact the lawyer who represented Midland in the suit or can I call Midland directly?
Hello, I have question. MCM had bank funds garished for few days and also took me to court back in April of 2013. In which the judge send,I was order to pay the debt. They collected debt which inlcuded attorney,court and interest fees,driectly from my bank account. I just recently received a letter again from them requesting that, I pay an unpaid interest. I would like to know what are my rights and how to handle this. IF, I already paid them the total amount they took me o court for. I the SOL on debt is expired,but was entacted back in 2008. when I agreed. Since, I paid this account. Can they continue send pay request for this debt I paid completely. PLease help what are my options.
Audrey – The best resource to ask about your legal rights is an attorney, and with this type of thing, one whose practice focuses on consumer law. You can also call or write a letter to Midland Credit asking for an accounting. They may respond with what you are looking for.
SOL to be sued for collection is different than the SOL to enforce a judgment.
Hi Michael,
I’m speaking in behalf of my mother who received a letter from Midland Credit Management two days
ago. She never finished high school and English is her second language. I can best explain her issue with MCM.
The letter stated, on 11-21-2013, her Washington Mutual bank account was sold to Midland Funding LLC, and Midland Credit Management, Inc. according to MCM, debt owe by mom is $19,699.52 and offered three types of payment plan options. Also stated in the letter, Because of the age of your debt, we will not sue you for it. If you do not pay the debt , we will report it to the credit reporting agencies”
and so on… I’m trying to find the best way to handle this with MCM or maybe seek legal advice.
I’ve been taking care of my mother since her husband (my stepfather) passed away 2005. I had to fly
to Arkansas (where they lived at that time), to bring her home with me. He died of cancer and I have
the death certificate.
We soon found out that my stepfather died leaving credit cards debts. Creditors started calling or writing and I explained to them that my mother knew nothing about this debt. The irony of it all
is that his profession was a debt collector. He also served in the Korean war. This was a big blow to
me and my mom. The calls and letters stopped until two days ago when I received the letter. I don’t even have the heart to show her the letter.
I’d appreciate any advice or comment.
Best
Margaret
Margaret – It sounds like the debt originally with WAMU (now with Midland Credit) is passed the SOL for filing a legitimate collection lawsuit. That would take pressure off. What is her goal with this account?
Michael,
Thank you for taking time and reading my letter.
My mom ‘s goal is to send MCM a Cease and Desist Letter. My stepfather never made her aware
of his debts. Some credit cards were opened under her name and she never even signed for them. Upon further investigation, I looked at her credit report and noticed that she never even resided in one of the addresses (residence) shown.
My mom is responsible with paying her own credit cards (2) that she currently have and If MCM reports her to the credit bureau agencies, it won’t matter because it’s been ruined after my stepfather’s death. My stepfather didn’t have any assets. My mom took care of him during his illness. She does not want to be harassed by creditors.
Hi Michael,
My situation seems a little different than other posts I’ve read on here. I pulled my credit report last night, and to my surprise Midland Funding has TWO accounts of mine that are negatively affecting my credit score. One of them was for Verizon (my last payment to Verizon was in 2006) and the other one, I’m not so sure what it’s from. I am not being sued by them (yet!), but what is bothering me is that when Midland bought these debt from the original creditors, they RE-AGED the debt! They bought the debts back in March of 2012, but the last payment to Verizon was in 2006 (Well passed the SOL in New York) and the other one I’m almost sure is from AAMCO, which the last payment is from 2007 (Also, passed the SOL). Are the allowed to re-age a debt after THEY buy it if I haven’t made a payment of acknowledged that this debt was valid?? Isn’t that illegal, and shouldn’t it have time-barred? Please help! I don’t know what step to take in order to get these to stop reporting negatively to my credit, considering they have been already for 7-8 years. *ALSO!* When I called Midland Funding last night to dispute this, they told me “last time you spoke with us, you told us you had an attorney handling this case so we are unable to talk to YOU about this account” unable to talk to ME?! It’s MY credit! And I’ve NEVER spoken to them, and certainly NEVER told them I had an attorney handling the case. I’ve never had an attorney in my whole life! Thank you!
Vicky – Debt collectors like Midland Funding are hyper aware of different obligations they have under state and federal laws. While I think telling someone – who is the subject of a collection account – that they cannot talk to them due to a prior limited power of attorney being sent in, is taking that too far, it is not my opinion that matters. Even though you never sent any such document, or made any prior reference, they have your account coded that way. If you want to work this out with them over the phone you will probably have to fax something in about removing any limited authorizations in order to proceed. But if it were me, I would probably send them a credit reporting dispute letter outlining the facts you shared in your comment, and any other relevant ones, sent certified mail return receipt. You could also send those disputes to the credit reporting agencies in the same manner.
Do Verizon and AAMCO still show on the credit reports at all?
Thank you for your response. I wasn’t sure if I should be sending the dispute letter straight to the collection agency, or skip that all together and send it to the credit bureau. Both Verizon and AAMCO sold the debt to midland, so they no longer show up on my credit report, just midland. But again, those original debts are from at least 7-8 years ago, so midland bought them in march of 2012, they re-aged the debt to that new date- not the original date. They should NO longer be reporting to my credit, yet they are. I’m at a loss at what to do. I read a lot that when you dispute a debt and the credit bureau ‘investigates’ they don’t go too far into it and when they contact the collection agency, of course the CA says it’s valid and that’s about the end of the investigation. How do I go about telling the CA that this debt is time-barred and the fact that they re-aged the debt is illegal. I need this debt to stop reporting negatively towards my credit.