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 recently received a summons from Midland Credit on an acct that I disputed on my credit report and it was updated to show paid in full. I am planning on responding with the updated credit report and also with 2 letters that I sent to Midland to have them validate the acct and did not hear anything back. Is there anything else that I should do?
Thank you
selena – I did not see this post until after responding to the prior one.
Can you tell me more about the underlying debt that Midland is suing for, and what it is you are disputing?
I had a purchase that I made last year and had a debt from Midland Credit on my credit report. I disputed the debt and the update was that it was paid in full. Yesterday I received a summons from Midland Credit for the same debt. Can you tell me if by disputing the acct if I can still be sued?
Thank you
Selena – I would need to know more to offer any feedback.
You had a purchase of what? And how did that result in Midland Credit showing on your credit reports?
Who did you dispute the debt with?
I purchase a home and the debt for Midland Credit was on my credit report. I sent in a dispute through Equifax and it came back as paid in full.
Date payment first stopped and the DOFD are the not the same thing, but DOFD is after, correct? Actually I would belive since your delinquent, the DOFD is actually after the first payment stopped, about 30 days, the latter of the two. Isn’t this correct?
Thanks again, Michael!
I failed to say we live in maryland. I checked and see the SOL in maryland is 3 years.
Hi,
I am recently married and found out about an account my wife had with citibank, It was closed in early 2011 for non-payment. The DOFD is 3/2011, so I am assuming the SOL starts then and expired last month. She did say she may have made one last payment after 3/2011, but isn’t sure. Citi wont return her calls, not surprising. Midland Funding bought this account 11/2013.
Question – If she made a payment after the DOFD, would the SOL still be from 3/2011? The credit report we ran only has the DOFD. Would this DOFD on the credit report be valid for her, could Midland have that last payment date, if there was one?
Thanks!
jm – The SOL typically runs from the date payments first stopped. If a payment was made to Citibank, or to a debt collector they had the account with, and before Midland Funding picked it up, it could have reset the SOL clock. Will Midland Funding know the past payment date? Yes, they should.
What is your goal with this account?
Thanks for the info, Micheal!
I am not sure about the goal. She toys with waiting until after the SOL has passed, and just accept the bad credit for another 4 years. I’ve told her to try and talk with Midland and come to an agreement, but she is hesistant and doesn’t have the funds. The account owed is around 6K, but originally triple that from Citibank. I am thinking she can’t print her bank statements from 3 years ago to verify if another payment was made. It would have been made to Citibank, no collection agency.
jm – That would mean the SOL has less than 6 months to expiration, if not expired already. Settling with Midland can be done without the added stress.
What are your credit goals together in the next 4 years?
Hey, I am here to let you know how my settlement went. I was going to Negotiate a slightly lower offer than the 1200 of the 2200 that i owed. But i decided against it because then i’d have to get a new agreement in writing and i did not want them to counter with a higher offer while waiting for the new written agreement. So i took their offer even tho i am sure they bought my debt on fraction of the cost of the original amount. All in all, 1200$ is almost what i would of ended up paying through interests on payments had i done that a while back. I understand that i will probably have to pay a percentage of the Money i saved due to the IRS seeing as income. But i feel that is ok with me. I just wanted to get it overwith and pay it. Thank you for your tips and advice Michael.
Tom – I am asked from time to time by people curious about the work I do – “what is a good settlement amount”? My answer is most often “one you can pay”. And that is what you did. Congrats!
If you want to take a little time to document your assets vs liabilities at the time you make you settlement in full payments with Midland, or the final installment in a payment plan, you can be better prepared to know if you will owe tax on forgiven debt. Look over this report for some details: https://consumerrecoverynetwork.com/debt-forgiveness-taxes-settled-credit-card/
I have a credit card that was sent to collections a few months ago. On January 30th, 2014, it was sold to Midland Credit Management, Inc. The current balance is $2,567.26. This is approximately what I originally owed on the card. I used the card to help pay for my college tuition, and it got the best of me. On 3-12, I received a letter of new ownership and pre-legal review stating that I have till 4-26-2014 to respond to them or they will consider forwarding the account to an attorney. Unfortunately, it was sent to my old home address and I didn’t receive it till a few weeks ago. I have been reading up for weeks on how to approach this. I called today, 4-23, to attempt to settle for a lower amount. I have a tax return coming in the next two weeks with a substantial amount, where, if necessary, I could afford to pay the full amount. But ideally, I would be more than happy to pay less. After spending a few hours on the phone, being put on hold, twisted around, forwarded from department to department, I finally was able to put up my offer. I was able to get it down to 2,053.36 and was given an extension of the deadline till the end of the month. I know this could mean nothing since I did not get it in writing from them. I tried to hold my ground and appear to be persistent and emotionless through it, but I ended with telling them I will call them back with my response. With my move a few months ago, I lost my final statement papers from GE Capital and have not been able to have them send me a copy. I have all my papers from Midland Credit Management. I just really want to settle this and put it behind me and start fresh. I entered college with wonderful credit, and some financial sense that seemed to slip away.. Any little bit of advice would be appreciated. I am grateful that I already was able to possibly get 500 off, but the more, the better. I do have some knowledge on this matter but would definitely appreciate and love some professional advice. Also, this is a newer debt, only a year old so I know I don’t have too much leeway room. Thank you so much in advance if there is anything you can do.
Sonya – I think you have room to negotiate a better deal with Midland Credit Management on this account. But I am not sure what you discussed about your personal financial situation with the Midland reps, or if you have a credit profile that suggest you are more collectable. I target between 40% and 60% when negotiating with, or coaching others to settle Midland debts not in the courts (with some exceptions).
Are you scheduled to call Midland Credit on a certain day, like when you think you will have the money to pay?
Thanks so much for the advice!
I received my check today and have the money to pay. I am scheduled to call them 4/30/2014. What can I say to maybe lower the settlement? Whenever I tried anything, I was immediately shut down and said that I can pay that amount now and then pay the rest in installments. I just want to pay it all at once and put it behind me.
Any advice on what to say when I call?
Thanks again!!
Sonya – You need to set the expectation that the only money you have, or are willing to throw at this, is what you have pooled together. In other words, stick to your guns. When your source of money is from friends or family, sometimes that person may be alert enough to tell you that they are willing to help, but only if the help they have to give resolves the bill, not as a quick stop gap that only sees you struggling with collections later.
First, AWESOME site – thank you so much for helping those of us that cannot afford, or in my case is more expensive than the suit itself with your time and expertise!
Anyway,
So, I ve been served by Midland here in AZ.
I get the basics – first I will ANSWER the complaint to buy some time at a minimum.
First, they are suing me AND my “Jane Doe” wife – Im not married and no one else was ever listed on this debt. I ve read this is a scare tactic lately used by Midland – but Im not scared by it. LOL
According to Midland’s filing (which all seems about right) – Debt was originally WEBBANK (this was a Fingerhut card that WEBBANK financed although Midland does not list Fingerhut at all)
DOFD 2/2013
CHARGED OFF 8/13
Balance Due – 928.00
Suing for that amount plus court costs.
Again, all sounds about right except of course there is some extra interest in there – but even that is only about 100 bucks more than I thought I owed on this.
So, the only evidence I owe the debt in the filing is the Midland “technician” certifying they bought the debt from WEBBANK and they only list THEIR (Midland’s) account # – no WEBBANK or Fingerhut account # listed anywhere.
As I said – I will ANSWER the complaint and deny as applicable or say Im not sure since there is not enough evidence provided this is actually MY CORRECT debt.
Here are a couple of slight kinks where Midland COULD have a better case than usual.
1. – Obviously this is well within SOL so that doesn’t apply here.
2. – Prior to them filing suit I never did deal with them for DV or anything – I ll eat my stupid pie on that one.
3. – Adding to the stupid pie, I received a letter from Midland’s attorneys in Feb 2014 and in an effort to make this go away tried to settle this at 50% with payments over 6 months. I followed up and their “call center” said they could not see that letter – BUT – if they DO have that letter somewhere my thinking is it could be used as an admission that the debt is in fact mine, so at discovery they could pull that out of a hat.
4. – My understanding is that AZ passed HB2664 in 2012 saying electronic copies of “final billing” is sufficient evidence and all that is needed in court – not full validation as many would say is adequate.
SO my questions deal with my options at this point….
A. – Should I just answer to cover myself and then re-contact Midland’s attorney and try to settle again in a lump sum? I can come up with the money if really needed – even in full if I had to…
B. – If I DO just settle it now – how do I confirm the suit is dropped as I will definitely NOT agree to a stipulated judgement since I ll be paying the settlement in a lump sum, not payments.
C. – Do I just answer, wait for discovery process and see what they come up with? Will my percentages for settlement get higher and higher as we move further into the lawsuit process?
Basically, Im not denying (and wont lie in court) that I owed “A” debt to Fingerhut/WEBBANK, but is it worth it for me to make them prove THIS suit involves THAT debt?
My concerns are that here in AZ these cases are heard by “justices of the peace”, often not lawyers, and our local JP is NOT a lawyer…add the VERY generous HB2664 to the mix and Im thinking I may be better off just trying to get out of this for $700.00 or so if I can…..
Thoughts?
John – You really do not need any helpings of stupid pie. You simply outlined some of the typical collection process used by Midland Credit and other debt collectors. You are a straight up guy, like most folks I interact with on the site, and just want a simple and cost effective solution. I do not like your chances of winning against Midland Funding in court as a pro per defendant. And working with an experienced attorney of your own, who can at least increase your odds of success, will cost more than the debt at issue. Add to that the fact that Arizona is just a rough state for debt collection… settling your debt with Midland Credit is the simpler and more cost effective approach.
Answering the complaint with affirmative defenses followed by negotiations over the phone is an approach I typically see result in a slightly better settlement percentage. But given the debt size being this low, there may not be much dollar/time benefit to that. There is also an element that lower balance accounts do not often settle for the best savings no matter the file attributes. I would certainly start with a lower amount in negotiations, but would be prepared to pay the 700 you reference in the end.
Follow the outline I give in this debt settlement report for getting everything documented. You should expect/demand dismissal as a condition.
Micheal,
Thanks so much – settling is where I was leaning – but just wanted to throw it out a couple places for input. I appreciate your time and expertise very much. I think I will answer, as the cost to answer only 14.00 or so plus mail costs to send to Midland’s attys. I say this because the chances of me getting this all settled AND receive confirmation in writing within the 16 days I have left before default judgment seems to be cutting it a little close. By answering I will at least get me some time to complete the negotiations correctly without the judgment being entered. I do have some defenses to start with – since they didn’t include any of the original debt documentation, just the affidavit that it exists somewhere sort of. So, I ll defend as conclusory for now and then settle it out. Seem about right?
I just really worry by trying to settle BEFORE answering that it wont all get done in time. Plus, maybe I can scare them “a little” that I may defend against their action and they ll come down a bit on settlement percentage rather than have to go through discovery process etc.
Thanks again for your help.
John
That’s the way I would go about it if my goal was settling. Not for the timing concern though, as I would wrap negotiations with Midland Funding up in between a day and five. But more for the end result being a better savings. Some people are going to be intimidated with crafting an on point response that follows their local court rules. Based on your comments I reread, that is likely not the case here.
Hi Michael,
I am inquiring on behalf of my daughter. She received a Writ of Garnishment from the state of NM for a MCM Debt, less than $4k. She has never received any written notification from MCM and is doesn’t know where this debt originated from or that it was in collections. She has not lived in NM for close to 3 years. She is working part time supporting a child (without child support) and living with a relative as she cannot afford to pay rent. She will inform the state of NM and will also contact MCM on the address listed in the Writ stating she doesn’t know what the debt is for and requesting documentation. What should she do? Thank you. Lisa
Lisa – What state is your daughter living in now? Are you in New Mexico? Can someone pull the court records for the case and answer some questions?
My husband has been receiving phone calls from Midland Credit Management daily for a few weeks, normally 2-4 times a day. Last week we finally received a letter in the mail from them stating that they had my husbands debt and they were collecting. The amount owed is a little over $1800 and they offered a payment plan of $300 down and the rest spread out in payments. I am not going to ask for debt verification, I know that it is ours. They also stated that if we don’t respond by 5/20/2014 that they MAY forward the account to an attorney to start the process of suing. Obviously this is the last thing that we want to happen.
We stopped making payments on our credit cards around a year and half ago due to my husband having his hours cut back at work severely. It was during the time the company he works for was going through bankruptcy. So the first thing we stopped paying was our credit cards because you have to keep the roof over your head and food on your table. And we were also dealing with medical issues from our son being born prematurely.
But now I am trying to figure out the best way to deal with this company. I have done some research online about them and so far what I have read has not been too reassuring. They have a notorious reputation of working out settlements and then going back on their word once people have finished paying off their settlement. How do I settle with this company and not have them back out on the deal? I know they would have to send a document stating the agreed terms of the deal, but what other items have to be on this document for it to hold up in court if they decide they want the remainder of the balance? I have thought about contacting a lawyer but I don’t really want to add the extra expense if I don’t have to. We live in GA and I thought about contacting James Feagle in Decatur.
Around the end of April we are able to offer them $800-900 in a lump sum payment, do you think they would accept that? We probably do look more collectible to them since we do have 2 car loans we pay on and my husband’s mother pays 2 of his credit cards for in emergency situations for us. Any advice that you can offer I would greatly appreciate it. I just want to pay our debt and do it without them screwing us.
Jennifer – You will generally not find much flattery for debt collectors online. And the shoe often fits. But not for the reason you are concerned about with MCM.
Once you negotiate a deal to settle or pay Midland Credit Management, get it all documented following the outline in this report. If you meet the terms of the agreement, Midland Credit will not go back on the deal. If they have a history of that, and I have been working in this field for 20-ish years and I do not think they do, that kind of business practice cannot survive in today’s collection environment. Not with the CFPB being the primary regulator of a debt collector the size of Midland Credit Management.
I would personally not use an attorney in this situation, and for the same reason you posted. It is an unnecessary cost.
When you call to negotiate the pay off, focus on your hardships, lack of income, medical bills from a complicated birth, and that some of your bills are being met because of your mother in laws assistance. I like your chances for a 50% settlement. Post an update here with your progress, or additional questions and concerns.
I received a law suit from Midland Fundings lawyer in SC , thats where I live. The papers I got are dated 3/11/14 I looked at the court records and this is shown Name Description Type Begin Date
Midland Funding Llc ADR/Alternative Dispute Resolution (Workflow) Action 10/07/2014
Midland Funding Llc Service/Affidavit Of Service Filing 03/24/2014
Midland Funding Llc Verification/Verified Filing 03/12/2014
Midland Funding Llc Summons & Complaint Filing 03/11/2014
They bought old CC in the amount of 3240 from Citi its showing on CR as Charge-Off /Transfer/Sold. last payment was made by CR 3/2011, dont have records back that far . now its showing as new acct under Midland opened 7/2012.
I was wanting know if I should call their atty and see if I could work out paying lower amount . I have come up with 1500. The acct is in my wifes name and shes not working and Im on disabilty. I want to get this off her record as well as mine .
Do I need to get a debit settlement letter from the atty as (I have a fax they can send it too so it wont take so long) or have I waited to late . I would like to know what to do as I have never been in this condiction before , Should I get something in writing before I send them any money.
Thanks Tommy
Tommy – Yes, you should get the details of what you negotiate with Midland Funding in writing. If your goal is to settle and remove any risk that a judgment shows on your credit report, you will probably need to raise a few hundred more than the 1500.00 you have now. Having said that, your wife being unemployed, while your receiving only disability income, fits a profile I have seen settle for great results. So… if you cannot raise any other money, I would run with what you have and stress the lack of income and assets in any discussions you have with the attorney collections office working for Midland Funding.
You can use the following report as a guide for what to look for in any written agreement: https://consumerrecoverynetwork.com/debt-settlement-letters-agreements/
Hi– I received a letter with a court date about a lawsuit filed against me by midland, but was never served with the original paperwork. What are MY options at this point? BTW- I am in California if that helps.
Shannon – Can you offer more details? What is the court date for (any type of hearing etc)? Please post more details about the original account, when last paid, amount sued for, how much money you would be able to raise, and how quickly if you chose settling with Midland as the path you take?
Do you have other unpaid debts out there other than this one with Midland Funding? If so, how many? Add them all up and what is the total?
Thanks Michael. The last payment was probably made some time around 2008. I know my state has a 6 year statute of limitations on bank credit, but i want to pay this. Their offer is not much higher than what the initial cost of the credit was ( around 800$ ) I probably only made a few payments of 50-100$.
I am going to contact them in attempt to go slightly lower, if not then i’ll give them a date on when i can pay their offer in full. I will update on how it goes, thanks for responding.
I am being sued by midland and have to appear in court may 16, 2014. I contacted legal aid in montgomery alabama. Since I do not work or have anything to my name they adviced me to go to court and fight it. Even if I lost the case they would not be able to collect anything from me since i am not working or have anything to my name. I know they are a third party according to my credit report and the card was closed in 2011. The legal aid said i could win since the debt might be to old and its a third party trying to collect is this true?
carla – It is true that people can successfully defend themselves against debt collectors like Midland Funding, but it is very hard for me to describe the amount of time and energy you would commit to fight a lawsuit on your own with the assistance of an attorney (which is how I read your comment… legal aid is telling YOU you can do it, not that they are able to help you).
It would be much simpler if the debt is passed the limit in Alabama to legitimately use the courts to collect by suing. But lets hone in on that date. Can you respond with certainty when it was you last made a payment on the account?
I also wanted to say that ther letter claims they will consider the entire debt payed in full if i am able to pay the asking price by the deadline and that they will notifiy the three major credit reporting agencies.
Is this a legitimate thing they do? I just want to know as much as possible. I don’t have time to contact them at the moment but i will do so in a few days. I just want some tips and any information you believe will be helpful to me before i speak to them, Thank you.
Tom – Midland Credit will update your credit reports as paid, so yes, a legitimate thing. Do you recall how long it has been since you made a payment to Citi bank on this account?
Hello, I received a letter from Midland Credit Management.
They report that they want to settle a 2,200$ Debt from CITI Bank that they are now owners of. They are asking for 1,200$ in a lump sum. I do remember owing this debt and i want to pay it, however i don’t remember how much of the original credit i payed off if any. Is it wise to request information on the debt and risk losing the 30 day window they have given me to pay?
Should i Negotiate a lower amount? I am not able to pay their asking price in full for about 15 days after their due date. I want to pay it, but i don’t know what move i should take next.
Negotiate lower price? Request information on the debt? Or just go ahead and pay it in full and request that they extend their due date?
Any information would help, Thank you.
Midland Credit Management stopped adding interest and fees to much of the debts they collect on, but you can call Citi bank direct and confirm the debt was sold and the balance at that time. This would eliminate your lost time concern if you sent Midland Credit a debt validation through the mail instead.
You can call MCM and negotiate a lower settlement than what you see in their offer letter. Just be sure to get any new agreement documented before making the payment. If they do not budge on the amount they will settle for, let them know you are going to work on getting the money together. Call a week before the offer expires and let them know you found a way to pool together the money, but need a couple extra weeks. Give them a date you can pay by at that point, and ask them to send you the new agreement with that date, then pay by that day.
I wanted to ask I have been making payments to midland on a credit card I took out in my son’s name , i know it was wrong, but, now my question is, Midland actually let my son and I put the debt in my name and took it off my son’s credit report. The date the card was charged off was May of 2010, Midland reported in November of 2013 on my son’s credit report, then they took it off, at that time the balance was $1004.00, February 20, I called to ask if I may skip a payment, they said Yes, well i got a notice today stating my balance now is over 1500. which on Jan. statement it was down to 900.00 I called and asked why, and they stated since I skipped a payment and they have that i called on that date, that they added the interest from the very beginning since I didn’t follow through with my obligations to continue making payments. Can they do this? Can they add back all this interest when i never signed anything or agreed to anything, and on the phone call on Feb. 20th I was never told that? Can you please help, since I have no where to turn at this point.. thank you
Diane – If they made a deal to settle for less than what was owed, and you agreed to it under certain terms, not following through can lead to the deal being let go. Did you get all of this in writing?
If it were me, and given everything that you have going on with this account, I would call Midland Credit and ask to talk with a supervisor. Explain all that has transpired, and that when you called to skip a payment, and they said okay, that no one said you balance would revert back. That had you been told, you would have found some way to get the money, but you were not given that chance by them just saying okay.
Let me know how you progress.
I wanted to know can a debt collector like midland credit management sue you if they are not the
original creditor from the start? Also if the person doesn’t have any money or job can they still sue you and put a judgment on your credit report?
Cortez – Debt buyers like Midland Credit can and do sue to collect debts purchased from original creditors. The fact that you may not have a job or other money at this time does not always deter a debt collector from suing, but it can depending on the circumstances.
If you can share more details I may be able to offer more than just general feedback.
I was served by Midland Funding last year. I went to a lawyer to get advise on what a should do. Midland had my address in the wrong county, the lawyer had sent a responds denying the lawsuit do to a wrong address. Midland had served me again with the right address. My lawyer told me to deny again to buy sometime. I had to go to a pre trail conference and the Lawyer representing Midland Funding told the judge Midland is withdrawing the suit. Can and will they sell the debt to another debt collector..
Lori – Midland states on their website that they rarely resell debt, but reserve the right to. My opinion… no, Midland Funding will no resell your debt.
Michael, Would Midland send me a letter as to why they have decided to with draw the case? Can I be served again or have a judgement served?
Thank you,
Lori
Lori – I would only expect to be able to understand the reason for the case being withdrawn to the extent the reason is provided in court, or through a filing in court. I would not expect to get a letter from Midland Credit about why, nor do I think you are likely to get a meaningful response if you request one.
Given the information about your situation you have shared so far, I would not say that Midland could not file again. But you should run legal questions by an attorney in your state. In order to be met with a judgment, they would have to sue, and of course you would be aware of that like you were this time, so, no judgment served.
Just received a call from Midland. They say I owe for a credit card issued by first national bank in 2005 and last used in Feb of 2007. I do not remember ever owning a credit card from first national bank and when I asked for more details they said they had an account number which does me now good if I do not remember ever having one. They could not even tell me if it was a Visa or Mastercard. They then told me it could be identity theft and wanted me to go file police reports and they wanted other documents. All i wanted was more information. What should I do. She was not easy to talk to and her only answers were pay the $500 ish I owe or file a police report. Ideas?
Lisa – Never pay a debt you cannot fully recognize. Is there anything about this showing on your credit reports? Were you ever an authorized user on someone’s accounts?
I am not sure I would take this so far with ID theft yet. It could be just a bad set of information passed on to debt collectors (it happens). Post an update after checking your credit report and lets go from there.