How To Deal With Midland Funding LLC and Win
Midland Funding LLC is a legitimate debt collector that purchases consumer debts from original creditors. When they contact you, validate the debt first to ensure accuracy, then decide whether to dispute errors or negotiate a settlement. Taking action quickly protects your credit score and prevents lawsuits.
Respond to MidlandMidland Funding LLC is a legitimate debt collection agency. They focus on consumer debts under Encore Capital Group.
If Midland contacts you, validate the debt first. Verify the debt belongs to you before taking action.
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What Is Midland Funding LLC?
Midland Funding LLC operates from San Diego, California. They collect consumer debts from multiple sources.
The company purchases debt from credit unions, banks, and utility providers. They handle credit cards, medical bills, auto loans, and personal loans.
Midland Funding partners with Midland Credit Management Inc. (MCM) for collections. Both companies are subsidiaries of Encore Capital Group Inc.
Here’s Midland’s contact information:
- Website: https://www.midlandfunding.com/
- Phone number: 1 (800) 825-8131
- Address: 350 Camino de la Reina Ste 100, San Diego, CA 92108-3007
Your debt transfers from original creditor to debt collector through charge-off. Original creditors send notices and make calls when payments become delinquent.
Ignoring collection efforts triggers a charge-off to third-party agencies. Midland then creates a collections account and assumes control.
Why Is Midland Funding LLC Contacting Me?
Midland contacts you because they bought your old debt. They purchased it from a lender like a utility or credit card company.
They now own the debt and want to collect. You must work directly with the debt collection agency for repayment plans.
Is Midland Funding LLC Legit?
Yes, Midland is a legitimate company. However, customer complaints pile up against them.
The Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB) have received many complaints.
As of early 2024, over 680 complaints were filed in three years. Issues range from contacting people about debts they don’t owe to withholding information.
Note to reader: Reviews and complaints highlight relevant issues but may not represent all consumers’ experiences.
Complaints against Midland show common violations of the Fair Debt Collection Practices Act (FDCPA).
The FDCPA protects you from harassment and unlawful behavior. You can report violations to the CFPB and sue for compensation.
How Do I Know if I’m Being Scammed?
Scammers may use Midland’s name to con you. Watch for red flags.
Scammers ask for sensitive information legitimate collectors already have. Bank account details or social security numbers are warning signs.
Read our guide to the 8 Red Flags of Debt Collector Scams to learn more.
Validate the debt and request more information to protect yourself. Report suspected scammers to the Federal Trade Commission (FTC).
Do I Have To Pay Midland Funding LLC?
Check if the debt is legitimate when contacted. Debt collectors sometimes have incorrect details.
Amount owed or creditor names can be wrong. Debt collectors buy debt in bulk, causing information errors.
Validate the debt to verify:
- The debt is actually yours
- The debt collector genuinely owns it
- The debt amount is accurate
Collectors should stop contacting you if information is incorrect. If they prove the debt is yours, decide your next move.
Step 1: Send a Debt Verification Letter
Request a debt validation letter from Midland if you haven’t received one.
You can also send your own debt verification letter to them.
A debt validation letter contains essential details about the debt. By law, collectors must send it before or within five days of initial contact.
The letter indicates a 30-day period for disputing the debt. Collection agencies can’t continue efforts during these 30 days.
No phone calls, letters, or emails are allowed during this time. If they can’t verify your debt within 30 days, you don’t have to pay.
Review your credit report and challenge any incorrect information with major credit bureaus.
If the collector verifies your debt within 30 days, your next step depends on agreement or disagreement with the amount.
Step 2: Decide What To Do Next
If Midland accurately verified your debt, decide how to proceed. You have control over your next steps.
Three main options exist:
- Dispute the debt
- Negotiate or settle the debt
- Ignore the debt (not recommended)
Option 1: Dispute the Debt
You can dispute the debt if you disagree with the amount or details.
Incorrect information often appears on your credit report too. You need to check your credit report and dispute errors.
Under the Fair Credit Reporting Act (FCRA), you get free credit reports. You receive one from each major bureau every 12 months.
The three major credit bureaus are Experian, Equifax, and TransUnion. Get your free report from AnnualCreditReport.com.
You can request credit bureaus remove negative entries using the 609 Credit Dispute Letter.
Option 2: Negotiate the Debt and Make a Settlement Offer
Negotiating a debt settlement works when you can’t pay the full amount upfront. Many people face similar situations.
Creditors often accept settlements ranging from 40% to 60% of original amounts. You can start as low as 25%.
Be open to meeting around 50% of the debt. Willingness to negotiate helps you get lower percentages.
Our partner Solo can help you respond to collection attempts and negotiate better terms.
You hold leverage in negotiations despite appearances. Debt collectors acquire debt at fractions of its value.
They make profit even when you pay much less. Collections agencies are typically open to negotiating.
Can You Negotiate Every Past-Due Debt?
Negotiating every overdue debt may not be possible. But it’s generally an option for common consumer debt.
Credit card debt, medical bills, personal loans, and payday loans are negotiable. Tax debt is often negotiable through IRS processes.
Mortgage or car loan debts typically cannot be negotiated. Foreclosure or repossession options exist for secured debts.
For student loans, explore available forgiveness options if you face payment challenges.
Option 3: Ignore the Debt (Not Recommended)
Ignoring debt is never a good idea. Dealing with debt can feel overwhelming.
Persistent debt collector contact tempts you to ignore everything. Hoping the problem disappears is understandable but ineffective.
Ignoring the debt or collector won’t resolve anything. It can heighten stress and worsen financial anxiety.
Debt collectors may intensify collection efforts when ignored. More trouble and stress will follow.
What Happens if I Ignore Midland Funding LLC?
Ignoring Midland Funding won’t solve your debt problem. It creates additional problems instead.
Problems include:
- Hurting your credit score
- Costing you more money long-term (interest, fees, court costs)
- Creating an opening for lawsuits from the debt collector
Being sued creates more problems than before. Ignoring the lawsuit allows collectors to win default judgments.
Default judgments can lead to wage garnishment orders against you.
Avoiding debt doesn’t make debt collectors go away. Negative information falls off credit reports after seven years.
But debt remains collectible while the statute of limitations remains in effect.
Bottom line: Take action for yourself. You can handle Midland and come out stronger.
Can Midland Funding LLC Sue Me?
Unfortunately, Midland can sue you. Unanswered collection attempts may trigger legal action.
They can file a debt collection lawsuit against you.
Whether collectors sue depends on many factors:
- Your state’s wage garnishment laws
- Time your debt has been in collections
- Amount of debt you owe
If sued, you will receive a summons and complaint. Official court documents notify you of the lawsuit.
Paperwork gets delivered to you in person. It’s handed directly to you or left with an adult at your home.
Responding to the lawsuit is critical to avoid serious consequences.
If you can’t afford a lawyer, our partner Solo can help you draft an answer letter. They’ve helped over 280,000 people respond to debt lawsuits.
Key Points To Remember
Midland Funding LLC is a legitimate debt collection agency. They collect different types of debt but focus on consumer debts.
Credit card bills and personal loans are their primary focus. If they contact you, validate the debt immediately.
Confirm the debt is true and accurate before proceeding. Take action and respond to Midland as soon as possible.
Taking on a debt collection agency feels intimidating. But you have options to protect your personal finances.