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.
Michael,
I live in SLC, UT. I Johnson Mark, LLC is suing me on behalf of Midland Funding for $6149.10. Within the complaint the paragraphs were misnumbered. It looked like a person had not even looked at it. I filed my response with the West Jordan Court, after an expensive $50 cab ride, since I don’t have a car I live 30 minutes away from that court. I also mailed them a response and have verification that they got it.
In my response I stated that the statute of limitations had passed since the last payment I made to this card was over 6 years ago. I haven’t heard anything about this debt from anyone in about 5 years. I also asked for statements and contract, and calculations of the total I mentioned above. That number doesn’t include the over $600 they want to add as the legal fee.
My question is what happens now?
Do they have a time limit on their side now also to respond?
Do I just keep calling the court to find out if they filed anything else?
What should I be doing until I hear from them?
I filed with the court 4 days ago.
Thanks.
I would encourage you to talk legal strategy with an experienced consumer law attorney (I am not one).
If it were me I would file a motion to dismiss based on the debt being passed the SOL to legitimately use the courts to collect.
Hi, Michael,
I have a joint checking account with my mother, never thought anything of it until now since a lien has been placed on my account. My mom apparently owes almost 20k to Midland and she has no memory of ever receiving any type of notice in the mail. We called them together and they said that this was the first notice and the only solution for lifting the lien was to pay the balance. I keep asking her about what type of debt/card she had but her memory is vague and does not know. I’m unable to pay any of my own bills because of this lien, and when talking to the people this seems to be a very long process. I took my mother to the courthouse today to fill out paperwork for hardship, but she did not meet any of the requirements and could only write a letter which she submitted. What can be done? I really need to access my account to pay my rent, bills, etc. I am head of the household, but just recently started living on my own, so my parents address is still on all of my documents so I don’t think I’ll be able to get the lien lifted off my account that way. Only my salary gets deposited in my account though.
Do a search in your courts records for your moms name and pull a copy of the lawsuit filed by Midland. Post an update with what you learn.
Looks like there was a final judgement on 01/27/10. The motion for writ garnishment began 04/07/15. Defendants motion to dissolve writ garnishment happened today 5/01/15. The debt owed is almost 20k. My mom remains confident that she never received a summons or anything like that.
What state are you in?
Florida.
Michael,
I just wanted to update you with our case. The garnishment was dissolved and everyone received their money back. We weren’t able to get anything solved until the actual court hearing. While the case has been closed, my mom still has to deal with Midland and they can come back and try the same thing again. She’s looking into bankruptcy for this issue. But thank you very much for the help and advice.
Thanks much for posting the outcome Justin. Best to you and your mom moving forward.
I posted the info and question above but havent received a reply. Not sure I did correctly. Its under Mchelle Schwartz posted on april 19th 2015 at 2:30 pm.
I posted a reply to your comment from yesterday. Let me know if you are unable to see that.
Hi Michael, I am a single 61 year old woman who lost her job of 14 years Jan 2014. I lost my apt. as it came w my employment as a residential property manager. I am staying w my Sister and her Husband due to no where to go and no money. I was able to get unemployment for 6 months here in Tn. but that has passed. I have been having health issues ongoing now just before I was let go and have applied for SSD. I am now awaiting a date for a hearing on my case. I am unable to work. I was sued by Midland funding and got my summons last year and attended court as required. The judge wasnt hearing cases so I got a new date. I went and the attorney for them was there and told me he was just there to make sure it was my debt and I could leave. Now I think I should have stayed and spoke w Judge because I cannot pay anything on this debt due to my inability to work. I will be applying for early SS in Nov. I thought I was going to get my day in court to let the judge know this. What can I do? I already did an exemptions form for my car and filed it at City Hall. I own nothing but it as I lost anything of value when I had to move. Not that anything I owned was worth much. I showed him the exemptions form done and he said we are only there to make sure my debt. Is there anyway to still talk w the Judge?
I am not sure what purpose would come from seeing the judge at this point. Not unless you do contest the debt for some reason.
It would be easier now, and before all this occurred, to speak with Midland Funding about how well you are described in Article 3 of their consumer bill of rights.
The information in your comment appears to be a good match for Midland Funding to consider you noncollectable. I would call them and get into the details of that if I were you. I do know that they take those hardship guidelines seriously, and have laid off collection of accounts with other readers of this site.
Post an update with your experience if you do not mind.
Hi, I’ve recently been sued by Midland Funding, and I negotiated on a settlement to pay in order to dismiss the case. Do I still need to file an answer at the court? Thank you for your help!
Did you get the settlement in writing from Midland Funding’s lawyer? Is there an agreement to drop the case? Is your agreement to pay a single lump sum amount by a certain date, and have you paid it?
I received a court summons that I am being sued by Midland funding I wrote their lawyer and called I also sent a letter to the Clerk of the county court .. Midland never answered letter or call I am on SS what do I do . Can I try and settle for less if they answer
How much is Midland suing for? When were you served the summons?
$597.00
The 17th
Okay, thanks. Are you aware of Midland Funding’s forgiveness and hardship guidelines? You can review them here. Compare what they list with your situation. If you fit the description, call them and share that information.
If you do not meet the description, it could make the most sense to negotiate a lower balance pay off with Midland Funding.
Thank you for your quick response. I don’t qualify for legal aid. I’m on my own. As far as admitting I owe the debt, I admit that I did/do owe Credit One Bank for less than the amount that Midland is suing me for. So, do I just ask the judge to have Midland prove that they now own my debt and that I owe it to them now? Are the affidavits and bills of sale that were attached to my original summons enough? Or do they have to have someone from Credit One Bank physically present to testify, or have “Custodian of Records” from Credit One? Sorry, doing just enough research to be dangerous, right? Also, if I don’t hear from them before court, will there be an opportunity at court to attempt settlement, hopefully with mediation so I’m not alone with these sharks? I’m just terrified of having to stand up in front of the judge and saying or not saying something that will lose the case completely for me. I am willing to settle, just don’t want to for the full amount as it doesn’t represent the amount that I would have actually charged, and hoping to for even less, knowing what Midland purchased the debt for.
The affidavit and bill of sale may be enough in some courts, and not in others. You do need to challenge that correctly to have a shot at forcing the issue.
You will have opportunity to bring up settling when at court. I have an article up with a good amount of tips and feedback about settling when sued.
I would generally prefer to settle out of court so that you can avoid a judgment entry. Your being terrified to speak to the judge, who may actually look you point blank in the eye and ask you if this debt was yours, is another reason to try to negotiate a settlement with Midland prior to the court day.
My small claims court date is this Thursday, 3/26 with Midland Funding for a Credit One debt in the amount of $1082. I sent a settlement offer of $300. They only got the letter today, so of course I haven’t heard yet. I intend to show up in court if I don’t hear from them, but my question is what the heck do I do in court. I do not have an attorney, nor can I afford one, figuring it would cost me as much as the $1082 to hire one. I was served a summons with a bunch of affidavits attached, no clue how to read them, but I’m assuming they are all documenting the chain of sale of the debt from Credit One to Midland. Is that all they have to show in court to prove they own it and I owe it to them? Or do they have to have more detailed information i.e. actual statements showing all bills and payments, interest, late fees etc, since I’ve had the account? And do I have to ask the court to have them produce that? Or will the court expect them to have it to prove their claim? The account was charged off by Credit One, still within SOL, I acknowledge the debt, but know the amount is inflated by about $400-$500 in fees or whatever else. My limit was $600 and didn’t actually charge over that amount it’s just been growing due to late fess and interest etc. I just don’t know what will be expected of me when actually in court in front of the judge.
The judge will likely rule in their favor if you admit the debt is yours. You could argue the fees if they cannot be substantiated by anything they bring to court.
With a balance this low, and where you admit the debt, it is indeed better to settle for the best savings you can negotiate with the attorney for Midland Funding. You may need more the 300, and perhaps double that, but you would likely still come out ahead over the costs associated with your own attorney. There are some exceptions to that of course. Low income legal aid offices being one of them. Have you looked into whether you qualify to get help from a legal aid office in your area?
Hi Michael,
I had contacted you previously regarding an incorrect lawsuit filed against my husband by Midland. Spoke to a few lawyers including the one you suggested and it’s too expensive to hire a lawyer for a mess that’s not ours so filed an answer with the court with evidence that it is not my husband’s account. Waiting on that. But in the meantime Midland sent us another letter for a different account also not ours and when we try calling them they don’t pick up. I am guessing they will file another suit. We have put in a complaint with Cfpb also waiting on an answer. We cannot afford to hire a lawyer to represent us but is there some way a lawyer could help us for a nominal fee and make them stop coming up with these fraudulent lawsuits.
He has checked all his credit reports and all other records and like I mentioned before even the social isn’t his. We have a new baby and my husband just started a new job we really don’t know how to get rid of them and I don’t think they will respond or take us seriously unless we have some representation Or file some suits against them. Is there a way to make them pay for our cost and hiring a lawyer to deal with this.
Any help would be greatly appreciated.
I would wait for the outcome of the CFPB complaint.
The way consumer attorneys take on debt collection cases at no cost to you, is when their are consumer protection violation laws that allow them to collect their fees from the other side (the debt collectors). The federal Fair Debt Collection Practices Act allows for that, as do many state laws. Did you talk about that with any of the attorneys you spoke with?
Depending on the CFPB complaint investigation outcome, you may be able to reference that to get any other collection activity from Midland to stop. How long ago did you file your complaint?
I submitted it on the 8th of this month. I will look into the lawyer s collecting their Fees from the other side. Thank you. I’ll update once I hear more.
I am seeing people get responses and results from the complaint filing process over about a 3 week period. You have a ways to go yet.
The case got dismissed. got a response from Midland acknowledging a case of mistaken identity And that they will take his name out of their database. Hopefully, we never have to hear from them again.
Perfect, and thanks for posting the update. If Midland or other debt collectors contact you in the future you will be better prepared to put a stop to any of it.
I paid a debt Midland purchased and sued me over. I didn’t agree with the amount but didn’t have the money to fight. I paid and have the letter from their attorney’s stating settled in full and closed account. Midland continues to report things to the credit agencies. They report balance changes, updates, etc. Today they changed three things including – paid to a collection account and $0 to a $4,216 balance. I have called their attorney’s office and they state they have nothing to do with it since it is closed and handled. I called Midland and they say they can’t talk to me because I have an attorney. I don’t and told them that. My credit went down 18 points since yesterday because of their false updating. I faxed them a letter again today. I faxed all credit agencies. I don’t know what else to do. These people are driving me nuts.
Is there a judgment for Midland Funding reporting on your credit along with the other trade line?
What was the total balance owed when you settled? What did you pay in total to resolve the debt?
I got notice in the mail to go to court. i was sick that day and called the attorney and the judge’s office to ask for a continuance. I emailed, faxed, and called the attorney and after no answer called the judge. I faxed them a letter asking for a different court date due to illness. I also finally got a clerk on the phone that said it was approved and I would get a new date in the mail. The next thing I got in the mail was a judgment. I called and they said I failed to appear. I was like??? Why would I have gone through all that effort to get continued then no show?? Regardless, I dealt with Midland’s Law Firm, Greene & Cooper and they said I owed $7,405. I paid $3,869.00 to settle in full. I have the letter from them stating it is settled in full. I have called Midland several times today and finally when I just talked to them they told me to call 678-507-0213 (that’s Greene & Cooper). I called and they are confused and said my account is settled and they are not sure why they are wanting me to call them because it is settled and even the judge has signed off on it. I am back with Midland on the phone and been on the phone 40 minutes and transferred 3 times. Just got put on transfer while talking………..to be honest I don’t know what the real balance was because I owed Home Depot $1200 from 2010. I purchased a washer and dryer and before three months a repair man had been to my house for the washer (under warranty) then HOme Depot sent me the parts and said I needed to fix it. I refused to pay for a washer that was under warranty and they refused to make right. $1200! I was told by the attorney’s for Midland that they showed I owed $7,450.00 but Midland never once reported that amount to credit…always $7,650 or higher numbers up to $8008. The rep that just put me on hold said my original balance was $4,216. WHICH I have never been told. The account has only EVER reported on my credit as collections not as a judgment.
I am worried that a judgment will be reported as a result of one being entered in the court. I would check with the court to see what the status for your case is.
Let me know how it goes today with the phone calls. It sure sounds like they have your file screwed up in their system. It will get worked out one way or the other.
When you feel you have done your best to work things out with them directly (it may take more than a day), and you have not gotten this all corrected, it may be time to escalate your concerns into complaints.
Hi Michael,
I was hoping to get some feedback on an upcoming summons I received about 2 weeks ago from MCM about a us bank cc i had in 2007. They are suing for a judgement, int/court costs, fees. I am unable to afford an attorney and at the moment i can’t afford to settle for a lump sum. The court date is set for this Mon and the paperwork says i also have to file an answer within 30 days. (I assumed when I go to court that that will be my answer, but am unsure.) I started doing research and part of that was to get my credit report so that I have the date of my last payment. (Aug 2008) I live in TN now and looked up the SOL for credit card debt and it said 6 years. Now I’m wondering if that means its expired or if I’ve read the information wrong. My goals are to slowly pay off my debts and I’ve managed to pay a few accounts over the years but this one is by far the largest at 8100.00 and I am no longer working so coming up with any respectable amount is completely out of the question. This debt happened years before I married and am worried it might hurt him in some way. The house is in his name only and our cars are paid off and 10 years old. I don’t own anything else. My husband doesnt seem to concerned about it saying “you cant get blood from a stone.” We cant make ends meet as it is but I will at least show up for court. Any advice would be helpful. Thank you in advance.
When was it that you last made a payment to anyone on the account?
Hi Michael,
In 6/2014, i settled a tmobile bill of $252 with MCM for $150 but Experian is still showing unpaid. I contacted Tmobile and was told i still owed $252. I paid it in full as 2/2015 to Tmobile over the phone with debit card. And now MCM is not willing to delete this of credit report and wanting me to get a refund from Tmobile. All i really care is to get it off my credit report.
I want to be sure I understand what happened with your account.
Tmobile sold your unpaid bill to a debt collector.
You settled the bill with Midland Credit Management (MCM) last year.
Was the Experian credit report showing Tmobile reporting you as still having a 252 dollar balance owed, or was MCM on there with a balance still owed, having not correctly updated any reporting with Experian?
You did not have much of a shot at deleting the collection from your credit reports. That is just not common. But you should expect that your credit reports would be updated to show you resolved the debt,and nothing further is owed.
I would be a bit bent that Tmobile took the money at all. If they sold the debt, they had no legal rights to collect. MCM is right to suggest you get a refund. Please post an update with that happens with that.
Hi Michael,
I had contacted you a couple of weeks ago about a fraudulent debt that my husband is being sued for, and you had mentioned that you could get me information for some lawyers with free consultation fee. We are currently in Hudson County in New Jersey. The lawyers representing Midland are Forster Garbus and Garbus.
Would really appreciate your help. Also how can we prevent them from selling this fake debt to someone else? I believe this debt belonged to the last person who had our current landline number as his creditors for other debts call frequently. I hope there is an easy way to clear this.
I received a letter from Midland In August of 2014 about a debt. I knew that the debt was mine so I immediately set up arrangements to pay. The letter stated that if I set up a payment plan by certain date and make all payments as agreed, debt will not be reported to credit bureaus. I have done that. Fast forward to January 2015 – debt showing on all reports. What can I do???
Call Midland and let them know that you took advantage of their offer to work out payments to keep them from reporting anything to the credit bureaus. They should be able to research your file and confirm, and then remove any reporting that should not have happened.
I think Midland hit a home run with their program to create less of a sting on the credit reports of folks who are already hit hard.
Let me know what happens.
Hi, I just received a pre-legal notice from Midland Credit Management, they are saying if I don’t pay them they will send me to an attorney. Reading the comments I realize this is a very likely possibility. I owe $3,900. I’m in a tough economic situation. My husband is a teacher and I stay home with the kids. We have 4 and I’m currently pregnant. I have explained to them I just can’t pay them, this is the only debt I have and I’ve considered declaring bankruptcy but it seems silly for such a low amount of debt. There is a possibility we could sell our house in the next months which is only under my husband’s name. If that happens I could offer to settle for 50%. But what if they sue me first? I don’t have any income. Can they come after my husband’s income? We are in the state of Virginia. Thanks in advance for any advice you can give me.
Gabriela
Is your home already on the market? If not, and unless you were ready to put it on the market anyway, I would not do that because of a Midland collection account. And bankruptcy should be taken off the table if just over a 4k collection balance. Assume the cost of filing chapter 7 all told is 1500 dollars, and that you could settle with Midland Credit Management for 2k. That would look like you filed over the 500 dollar difference.
How much can you pull together to offer as a settlement if you had a month or two to work with?
Hi thanks for replying. It’s not in the market yet but we are looking into selling to pay off my husband’s credit cards because we are going overseas in September of this year. We live paycheck to paycheck so getting any kind of money together it’s pretty much impossible. When we file our taxes this year I could see how much our return will be and maybe $1000 could go to midland…the thing is we usually save our return because my husband does not get paid for 2 months during the summer. So you think they’ll still sue me even though I don’t have any income?
I see lawsuits filed against people who will never be able to pay… ever. A realistic settlement with MCM now makes the most sense if you do not want to deal with being sued. Once sued, you could be looking at roughly the same cost to respond and put on a good defense using an experienced consumer law attorney that does this kind of work regularly. Defending does not come with any guarantees, so using a purely cost basis, settling with MCM makes the most sense.
If you can pull together 1500 dollars, I think you can get there, or close to it. Once sued, settling is still an option, but often at a premium over what may be possible had collections not reached the court.
Hi Michael,
My husband received a lawsuit notice from Midland today. I don’t know if this has happened to other people but he believes they have a rubbish case. First of all the social security number is not his. He has never had a Sears Citibank credit card and none of this is listed on his credit report.
Any suggestions in how to get rid of this quickly. Would help to know if it has happened to other people. We are in Hudson County in New Jersey.
Mixed files and mistakes do indeed happen in debt collection. I would contact Midland’s attorney in NJ that is suing and let them know the facts. If they do not respond to the issue and correct this, my next stop would be filing complaints with the CFPB and contacting an experienced debt defense attorney for a no cost consult about your options for taking this to another level.
Let me know what the attorney for Midland says and lets go from there.
Midland picked up a debt from a Chase VISA in 2012 that had defaulted in Feb 2010. I have never heard from Midland by phone or by letter. I am aware only from my credit report. I don’t have the original credit agreement, but I understand Chase agreements specifically call out that Deleware law governs their terms. My home state SOL is 6 years. In Deleware, the law is 3 years on oral agreements and 6 years on written. It seems to be in general agreement that credit card agreements (electronically signed) are considered an oral agreement. I guess because I didn’t affix my written signature to anything but that’s just a guess.
I have some concern that the only reason I haven’t heard from Midland is because at the time I had a different address and phone number, and so someday a judgement could come as a real surprise. Of course, I don’t really want to call them up and say “here I am! Come get me!” Can I breathe easy that 3 years has passed? Or do I need to worry for another year (6 years total) in regards to a lawsuit?
Your comment would be appreciated very much.
The jurisdiction you can effectively use for limiting access to the courts would not be decided until you are in the courts challenging the applicable SOL.
Look for Midland Funding cases in your local court that have the SOL jurisdiction argument and see how the court ruled. You could also call an experienced debt collection defense attorney in your state to see what they have experienced when/if raising that argument.
You may also want to alleviate any concern about being sued without your knowledge by searching for your name in the courts that would cover your prior address. Post an update if you got sued there.
I will follow up with the information gathering you suggest. Thank you for sticking with this thread for years and offering all the advice to those of us who have no idea what we’re doing.
I received a toll free call today that I didn’t answer (was sleeping). I always Google those. Who was it? Midland Funding!!! I’m not psychic though. I’ve been working on improving my credit. I saw their soft pull on my report. I knew they were watching.
I found the research you suggested to be difficult. I thought these would be public records. It seems they are semi-public. They are published by a website you have to pay for. Only abstracts are free. But the civil court does post a schedule, and this coming week, I found that Midland Funding has brought two cases in my city’s civil court, and I found that in both of those cases, the defendant is being represented by the same attorney, whose office is right in my neighborhood. The attorney’s website offers a free consultation so I am going to take them up on that. I will post here if I can get any good information on who wins with dueling SOLs. It’s very confusing to the layman.
On a funny note: Midland is represented by an attorney named SLAMOWITZ. That’s the kind of hard hitting name I’d expect.
I figured out how to search court records in my jurisdiction. It was right on the court’s website, hidden in plain sight. I just didn’t understand the language at first. No cases against me. But I did see that they are filling about a dozen lawsuits a day in my area, and it’s not even a big city. Most go undefended, which makes me sad for those people.
Midland called today and I answered. The person who called offered a settlement at 60% if I took care of it right now. Incidentally, the 60% settlement = the original card limit, so it’s not much of a deal. It just cuts out a few years of tack on fees and interest after default. I stated that I would need it to be in writing so he should mail me and I will get back to him. He immediately became hostile. He said he had already sent me a letter with the offer 2 weeks ago (which coincides with those calls I received that I didn’t answer and there was no message).. But he hasn’t sent a letter. I verified he had the correct address (which was my original fear that he didn’t). He became angry and insisted that I was lying about not receiving the letter. I told him I was ending the call. If he wanted to discuss this matter further, I would need a letter specifically stating what the debt is and what the settlement offer is.
He is clearly in India. He gave me his name and number so I could call back after receiving the letter. He gave me the whitest name you’ve ever heard. I understand people in Indian call centers fabricating an Americanized first name to be more relatible. Many of us go by a nickname that is not on our birth certificates. But who in a legitimate business also fabricates their last name? It’s hard to deal straight up with people who aren’t straight up with you. But I’m trying to be patient.
I do intend to respond with a validation letter. I do see from my review of court cases that the local attorney I had identified has not only fought Midland many times, but has done so specifically in matters involving Chase, although I was unable to see anything more than that those cases were “disposed”. I had not contacted him yet thinking I was putting the cart before the horse since I hadn’t actually received anything indicating there would be a lawsuit yet… but maybe I better talk to somebody before I send the validation letter. Many templates I’ve found online sound threatening, threatening FDCPA lawsuits right away over any slip up on their part. I’m not looking to be threatening, just to fully exercise my rights. I do believe the SOL is up on this. But I don’t want to have to argue that in court if I don’t have to. I would rather have them come to that realization first. I found a good non-threatening letter on the consumerfinance.gov site. But again, I think I’ll take the local attorney’s free consultation first.
Oh, and I did contact Chase by phone, and they gave me an address to write to in order to request a copy of the cardholder agreement for the related account, and I have done so. Hopefully they will reply. From everything I’ve seen online, it’s standard issue for Chase to include in their agreements that Delaware law applies, and they specifically say “regardless of where the cardholder lives or where the card is used”. Delaware law calls out 3 years for the SOL, shorter than my home state of New York’s 6 year SOL. I don’t see how Midland could fight that. So I’m wondering if they don’t want to send me a letter, because they will be legally bound to acknowledge the expired SOL. I’m not sure if the same legal requirement exists over the phone. We shall see.
Oddly enough, debt collectors right here in the states are allowed a fabricated name.
I would talk with the local consumer law attorney first too.
That’s crazy to be able to make up a name. I do feel like there are lots of consumer protections on the books right now, but that seems like a basic miss. Full disclosure though, my name is not really “Curious” 🙂
I just got off the phone with my local consumer law attorney. He agrees with my stance on the SOL, and stated that if they do sue me, he would defend my case at no charge and would recover his fees from Midland based on them bringing an out of SOL lawsuit. He stated that in New York, between the originating state (Delaware) and the state of residence, the shorter SOL trumps. We talked about the contents of my validation letter and he gave me the go ahead to send it, and told me to fax him everything I get back and he would review it.
So I’m feeling really good today knowing that I’ve got somebody in my corner so I cannot be bullied. The attorney gave me props for all the research I had done before contacting him, which I could not have done without the kindness of people like you putting their advice online. Thanks again Michael, for the advice you give that helps us feel comfortable and know where to start. I appreciate it very much.
Here’s a curiosity question about how Midland assesses interest. I was curious that midland was charging me an interest rate so much less than the interest rate on the defaulted card they were collecting on. I’m assuming there is a reason that doesn’t involve being nice, since the FDCRA permits debt collectors to charge the same interest that the original creditor charged. So why wouldn’t Midland take advantage of that rule?
Midland is incorporated in Delaware. I noted that the maximum interest rate on a loan in Delaware is 5% + the Federal Reserve Discount Rate which is currently 0.75%. Some reverse mathematical engineering reveals that 5.75% is the rate that Midland is in fact charging my account.
Chase, the original creditor, states in it’s credit agreement that it is based on the laws of Delaware, yet they were charging me a much higher rate. For reasons I don’t fully understand, that appears to be because credit cards are exempt, something to do with the fact that a credit card is used all over not just in Delaware.
Does all of this mean that Midland is not able to ever charge interest on collections greater than 5% + FRDR? Or is this because both Midland and the card are governed by Delaware law? Or is there some other reason? Is the debt that Midland is collecting no longer considered a credit card debt even though it was a credit card debt when purchased?
I was just curious. It’s all very confusing, but I’m learning a lot.
If the math you did fit the Delaware state cap interest rate scenario perfectly, it would seem to be the answer. The why of it is not something I can answer or expound upon, and I would agree that it is an oddity.
Credit card interest rates in general are largely a function of a 70’s Supreme Court Decision, Smiley v Citi.
I cannot think of a way the credit card debt would become anything other than a defaulted credit card debt after it is sold to a debt buyer like Midland Funding.
Edit: The Marquette decision also from the 70’s, was part of a one-two punch to the gut of consumer wallets.
I follow my credit reports (at least two of them) on Credit Karma, which updates for me every Saturday. This Saturday, I received a notice that a collection had been removed from my Transunion report, “Midland Funding”. Odd. I never even sent a validation letter. I thought maybe it was just an error in how they present the data. I have a captial one card, and sometimes I’ll get a msg that “CAP ONE” is being removed but “CAPITAL ONE” is being added. So I pulled my reports from all three bureaus directly. No mention of Midland Funding. I had previously been on two reports. Also, the original creditor, Chase, was also removed from Transuion. 2.5 years before they would naturally time off. No idea why.
My credit score only went up 1 little point. I guess because this is 5 years old now, it didn’t mean much by the model that Credit Karma uses. I’m dying to know why it was removed, but I’m not going to poke the sleeping bear. I’ll just keep monitoring and see if it stays this way.
Question for Curious and Micheal… I was just served suit papers at an old address that i used to open the credit card. i was sent them to the new address from the person living in the old address. i currently reside in DE. I just called Midland and they are calling me back after they consult the attorney since they filed the suit in NJ and I reside in DE. What does the SOL really mean> the account was opened in 2009 but the last purchase was 2010 and last payment was 2013. So what does the statute go by? Any help is appreciated. Im not sure if they will work with me to settle?
The SOL to file a legitimate lawsuit will typically go by the date you last made a payment, so 2013. Delaware has a 3 year SOL, and would be the shortest of the states you mention.
Midland will typically work with you to settle a debt or set up payments. Can you pull together half of what is owed?
Nobody so far tried to clarify the involvement of the IRS with Midland LLC. If you settle your debt
with a negotiated amount MIDLAND LLC or MIDLAND CREDIT MANAGEMENT will send you a letter or a form to file with your tax. This form assumes that debt collector had settled the debt for a certain amount., say $X. The amount he bought the package of debt in individual case may be $F. The form considers $C, which is $X-$F as your income. In my case the IRS sent me a collection notice for C which is $1,490. I have to pay a total of $608 on that considered income, I am on a payment plan. Is this debt legit or the IRS is fully accepting the version of Midland LLC or
Midland Credit Management? Can somebody clarify this to me?
You can be taxed on the amount of debt forgiven if it is in excess of 600 dollars. How Midland handled this is normal. Depending on the circumstances, and whether your debts total to more than your assets at the time of settlement, you could avoid the tax on forgiven debt.
Just a quick question, how do I go about having a judgement on my credit reversed? I have a letter from the court stating the debt was voluntarily dismissed from the original debtor. Portfolio Recovery placed the judgement.
When and why did PRA dismiss the judgment they got?
Have you looked at the court record and double checked to see that it has been updated?
You will want to send a dispute to the credit reporting agencies about the judgment being dismissed, but before I go into more detail about that, it will help to know the answers to those two questions.
I kind of have 2 things here going on. back in 2008 my boyfriend lost his house to foreclouser. he had a 1st and 2nd on the home. Havent heard anything since then on it. He also has a Chase credit card of 4,700 he stopped paying. he had some really bad times and was raising his child with autism alone. His last payment on the CC was 8/2010. In reading info on SOL its 4 yrs in California. Is this true? he has Midland credit calling and not leaving any messages, and something has shown on his credit report for $25,000 which we cant tell the original creditor is. Can they sue since its passed the 4 yrs? Any help would be great
If his records are accurate he is likely passed the SOL to be sued by Midland in California. Has Midland sent any collection notices in the mail?
What are the goals for the old debts?
We havent received anything from them at all, he noticed 2 times they called him but never left a message. in reality his goal is to not pay anything with is cost of caring for his autisic son. the mother pays him nothing in support. His records of dates are correct since we have records of his last statements, it helps that i keep very thing sometimes.
Once the statute of limitations to sue has passed, and the intent at the time is to never resolve the account(s), there is little risk in picking up one of Midland’s collection phone calls and letting them know that you are aware the SOL is passed, and that you have no intention of ever paying, and request that they cease all further communications. They generally will quit with the calls from that time forward.
It is helpful to send the request to cease all communication in writing using certified return receipt mail.
I recommend folks be certain they do not want to somehow later come back and improve their credit, or get approved for a new home loan, etc., before doing anything with a cease communication request. This concern typically only applies to the period of time (often 7.5 years) that the collection accounts will stay on your credit reports.