Is Midland Funding trying to collect against you?
Midland Funding, LLC, is a debt buyer that frequently sues to collect on what debtors owe. If you’re facing collection or litigation actions from this company, you can expect them to use aggressive tactics against you. Fortunately, you have several options to protect yourself. It starts with hiring the right debt settlement attorney.
That’s where The Fullman Firm comes in. We understand how stressful debt can be, but we also know how to take the steps needed to help our clients move forward. If you’ve been contacted or sued by Midland Funding, we’re ready to work with you.
What Is Midland Funding?
Midland Funding, LLC, buys old debt at very low prices. These are credit card accounts that the original creditor has decided to sell rather than pursue further. Often, these debts are purchased with poor documentation, which is one reason they cost pennies on the dollar. Once the debt is purchased, the original credit card company no longer has any right to collect on it. That becomes the right of whoever purchases it.
Usually, debt purchases go something like this. A debtor defaults on a credit card, and the credit card company does what it can to collect the balance. This often includes hiring collection agencies to pursue the debtor. If the company fails to collect, the account is sold to a debt buyer. The debt buyer then does what it can to collect.
Debt buyers like Midland Funding understand the amount of work it takes to collect anything on these accounts. But that only gives them an incentive to pursue the debtor to get whatever it can. If the company buys a $1,000 debt for $100, then every dollar they collect over $100 becomes profit. If they think they have an advantage over you, they will try to collect the full amount.
What You Can Expect From Midland Funding
Midland Funding is a massive debt buyer. The company is a subsidiary of Encore Capital Group, which operates out of San Diego. Encore has been accused of unfair debt collection tactics and so has Midland.
The company may show up on your credit report. This confuses many debtors since they never took out a card with Midland. But remember, Midland buys debt, so there’s a good chance an old credit card account has wound up with them.
In addition to other collection efforts, Midland also files thousands of lawsuits every year. This is usually done by way of hiring a local debt collection attorney to go after debtors. It’s important to understand that Midland wants the full balance of the debt, not the amount it paid. So again, if the company paid $100 to purchase a defunct account with a balance of $1,000, they will want the $1,000 from the account holder. The company will also tack fees and other charges on to the account.
What Happens If I’m Sued By Midland Funding?
Debt buyers tend to be aggressive with the accounts they purchase, and that includes filing lawsuits. There’s a good chance you’ll be sued by Midland Funding relatively soon after they buy the account. This is where the debt gets more complicated.
A lawsuit begins with filing a summons and complaint. In the complaint, Midland Funding will allege everything against you relevant to the debt. That includes your identity, how much you owe, and how far behind you are on the debt. The summons requires you to respond to the lawsuit. After being served with the complaint and summons, you have 30 days to answer.
In your answer, you can assert any legal defenses you may have to the lawsuit. For example, sometimes the amount of debt is stated incorrectly since account documentation is often so poor. Even if you can’t think of a defense at first, your written answer can generally deny owing money to Midland Funding, so that they will be required to prove it – if they can. In fact, not answering it just allows Midland Funding to obtain a default judgment against you.
Midland Funding Has A Judgment Against Me; Now What?
A court judgment isn’t just another piece of paper, and it’s far worse than a collection letter. A judgment allows Midland Funding to seize money from your bank account, put a lien on your property, garnish your wages, and more. The judgment will follow you and Midland will use it until it collects everything ordered against you.
How Can A Debt Settlement Attorney Help Me?
Whether Midland Funding is trying to collect from you or the company has already filed a lawsuit, having a debt settlement attorney could save you significant money, time, and stress.
Keep in mind that even in the best case scenario, Midland Funding has to spend time and money working to collect on the debts it purchases. The company cannot simply buy an account and immediately initiate collection efforts. Collection calls, letters, lawsuits, and executing judgments all take work. That gives you leverage.
Debt buyers such as Midland Funding would rather forego the cost of these efforts. They would also prefer to not have debtors declare bankruptcy if the pressure of their debts becomes too much. That’s why they’re willing to accept a settlement which is often much less than the account balance. A debt settlement attorney can help you negotiate a payoff that will get Midland Funding out of your life once and for all.
Contact Our Midland Funding Debt Settlement Lawyer Today
Don’t let Midland Funding’s collection and lawsuit efforts overwhelm you. If you’re ready to put your debt behind you, reach out to The Fullman Firm. Our law firm will review your case and create a settlement strategy that’s tailored to your exact needs. Give us a call today to schedule your confidential consultation.