Settle Debt with Midland Funding: 3-Step Guide

Midland Funding, LLC is one of the nation’s largest debt collectors. The company purchases charged-off accounts from creditors like JP Morgan Chase, Synchrony, and Capital One. Creditors typically charge off accounts after six months of non-payment.

If Midland Funding now owns your old credit card debt, take action quickly. The company is known for aggressive collection tactics and won’t hesitate to sue.

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Don't face Midland Funding alone. Our partner Solo handles negotiations, protects you from default judgment, and helps you settle for less than you owe. Most clients settle for 50-70% of their debt amount.

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Stop Collection Efforts with a Debt Validation Letter

Midland Funding sometimes buys accounts without complete documentation. You have rights under federal law to force them to prove the debt.

The first written communication from Midland Funding must include a validation notice. You have 30 days to request proof of the debt. The Consumer Financial Protection Bureau guarantees you these rights against debt collectors.

Your validation request should ask for specific information. Demand everything related to your account:

A copy of the original loan agreement
Midland Funding’s license number in your state
The date of your last account transaction
A detailed calculation of the balance, including interest and fees
Verification that the debt isn’t past your state’s statute of limitations
Proof that Midland Funding owns your account

Send your debt validation letter promptly and wait for their response. If Midland Funding fails to respond, they must stop all collection activity. Continued contact without validation violates FDCPA rules. You can file a complaint with the CFPB if they persist.

What to Do When Midland Funding Validates Your Debt

If Midland Funding proves the debt is valid, you need to negotiate. You have two main options: settlement or payment plan.

Settlement Strategy

If you have savings available, negotiate a lump-sum settlement. Start your offer low at 50-60% of the total debt amount.

Midland Funding will likely counter your initial offer. Expect several rounds of negotiation before reaching an agreement.

Remember that Midland Funding bought your debt for pennies on the dollar. They typically pay just 4% of the original debt amount. Even a settlement at 60-70% gives them massive profit.

Payment Plan Option

If you lack savings, our partner Solo can help you arrange monthly payments. Review your budget carefully and choose an affordable payment amount.

Longer repayment terms mean more time dealing with the collector. Consider starting with monthly payments while building savings. You can settle later when you have a lump sum available.

Can I Settle After Being Sued by Midland Funding?

Midland Funding files lawsuits quickly after purchasing accounts. They know the statute of limitations is counting down. Time pressure works in their favor.

You can absolutely settle your debt even after being sued. You just need to protect yourself first with a proper court response.

Debt collectors purchase debts at roughly 4% of the original amount. If they collect the full balance, they make enormous profits. That’s why Midland Funding often settles for less.

Example: Justin faces a lawsuit from Midland Funding for $1,000. He files an Answer to avoid default judgment. After reviewing his finances, Justin determines he can pay $800. He starts negotiations at 50% with a $500 offer. After several counteroffers, Midland Funding accepts $700 (70% of the original debt). Justin saves $300 and ends the harassment. Midland still profits hugely since they bought the debt for just $40.

File Your Answer First

Your first step is filing an Answer to Midland Funding’s Complaint. The Complaint lists all allegations against you, including the debt amount and why they deserve judgment.

An Answer protects you from default judgment. Without your response, the judge assumes Midland Funding’s claims are accurate. Your Answer lets you defend yourself in court.

You probably won’t need court if you settle successfully. But your Answer serves as backup protection if negotiations fail.

3 Steps to Settle Debt with Midland Funding

Debt settlement helps you move past financial struggles and rebuild your future. Follow these three essential steps:

Step 1: Respond to the Lawsuit

File an Answer to avoid default judgment. Your Answer buys you time to negotiate settlement terms. Once filed with the court and served on Midland Funding, you’re positioned to start negotiations.

Step 2: Send Your Settlement Offer

Calculate how much you can afford as a lump-sum payment. Offer Midland Funding at least 60% of your debt balance as a starting point.

If you can’t afford 60%, offer what you can and explain your financial situation. Use this email template with your case details:

“I, [your full name], am offering a lump-sum payment of $__________ to settle case number ____________. You can accept or counteroffer. If you accept, respond with only ‘Accept.’ If you want to counteroffer, respond with only ‘Counteroffer: $__________.’ Contact me only by replying to this email. I’m prepared to litigate this matter and file an FDCPA complaint if necessary. Your offer expires in 6 days on [MM/DD/YY]. I will pay the agreed amount within 90 days of settlement.”

The 90-day payment window gives you breathing room to build your savings. After sending your offer, wait several days for their response.

Expect a counteroffer and multiple negotiation rounds. Stay patient and firm on amounts you can actually afford.

Step 3: Get Everything in Writing

Once you reach an acceptable agreement, demand written documentation. Midland Funding typically drafts the settlement agreement and files it with the court.

Written agreements protect you from future collection attempts on the same debt. Never make payments without signed settlement documents.

Negotiating with debt collectors can feel overwhelming. If you’re uncomfortable handling negotiations yourself, our partner Solo manages the entire settlement process for you. You don’t have to face aggressive collectors alone.

Understanding Your Rights Against Midland Funding

Federal law protects you from abusive debt collection practices. The Fair Debt Collection Practices Act limits how collectors can contact you.

Midland Funding cannot harass you with repeated calls. They cannot threaten you with actions they don’t intend to take. They cannot contact you at work if you request they stop.

Document every interaction with Midland Funding. Keep copies of all letters and emails. Record dates and times of phone calls. Your documentation becomes evidence if they violate your rights.

What Happens After Settlement?

Once you pay the agreed settlement amount, Midland Funding must dismiss the lawsuit. They should file a dismissal with the court within 30 days.

Check your court case online to verify dismissal. If Midland Funding delays, contact them immediately and reference your settlement agreement.

Your settled debt will appear on your credit report. The account should show as “settled” or “paid settled” rather than unpaid. Settled accounts hurt your credit less than unpaid judgments.

After seven years, the settled account will fall off your credit report entirely. You can start rebuilding your credit immediately after settlement.

Frequently Asked Questions

What is Midland Funding and why are they contacting me?

Midland Funding is a debt collection company that purchases charged-off accounts from original creditors like Chase, Synchrony, and Capital One. They contact you because they bought your old debt, typically after you stopped making payments for six months or longer.

How do I validate a debt with Midland Funding?

Send a debt validation letter within 30 days of receiving your first written notice from Midland Funding. Request proof including the original loan agreement, their state license number, your last transaction date, a detailed balance calculation, statute of limitations verification, and proof they own your debt. They must stop collection efforts if they cannot validate the debt.

Can I settle with Midland Funding after being sued?

Yes, you can settle at any stage of a lawsuit. First, file an Answer to avoid default judgment. Then negotiate settlement starting at 50-60% of the debt amount. Midland Funding often accepts less since they bought your debt for just 4% of the original balance. Always get the settlement agreement in writing before paying.

How much should I offer to settle my Midland Funding debt?

Start your settlement offer at 50-60% of the total debt amount. Midland Funding typically purchases debts for about 4% of face value, so even a 60% settlement gives them significant profit. Expect multiple negotiation rounds before reaching a final agreement. Never agree to more than you can actually afford to pay.

What happens if I don't respond to a Midland Funding lawsuit?

If you fail to respond to the lawsuit with an Answer, the court will grant Midland Funding a default judgment. Default judgments allow them to garnish your wages, freeze your bank accounts, or place liens on your property. Always file an Answer within the deadline specified in your summons, typically 20-30 days.

How to Settle Debt with Midland Funding in 3 Simple Steps