How to Settle a Midland Funding LLC Debt Lawsuit and Win

Midland Funding is owned by Encore Capital Group, one of America’s largest debt buyers. They purchase old debt accounts at steep discounts and collect on the full amount. If Midland Funding has sued you for a debt, respond immediately with a written Answer. Our partner Solo makes it easy to draft and file your response.

Why Responding to Midland Funding Gives You the Edge

You’ve probably heard that 80 percent of success is showing up. That wisdom applies completely when facing a Midland Funding lawsuit. Simply responding gives you a significant advantage.

Many debt collectors, including Midland Funding, aren’t prepared to prove their case in court. If you show up and make them prove the debt, they often can’t. The result? Your case gets dismissed forever.

You might be tempted to ignore the lawsuit. Don’t make that mistake. Responding protects your rights and gives you negotiating power. Even if you owe money, you deserve fair treatment.

What Is Midland Funding LLC?

Midland Funding LLC is a wholly-owned subsidiary of Encore Capital. You probably didn’t deal with them originally. They specialize in buying consumer debt from other companies and suing to collect.

Their business model is simple but profitable. Midland purchases consumer debt for about three cents per dollar owed. They then sue consumers and collect the full amount. The profit margin is massive.

Here’s the key to their strategy: Midland expects you won’t answer the lawsuit. About 90% of consumers don’t respond. When that happens, Midland requests a default judgment. They win automatically because you didn’t show up.

With a default judgment, Midland can garnish your wages or freeze your bank accounts. Don’t let them win by default. You have options.

Why Showing Up in Court Matters

Responding to a Midland Funding lawsuit is crucial because they often lack proper documentation. By requiring them to prove their case, you might expose fatal weaknesses in their claim.

Even if you know you owe a debt, Midland must prove three things:

• They legally own your account and the debt
• The amount they claim is accurate
• They filed within the statute of limitations

Many debt buyers fail to provide adequate proof. They purchase debt portfolios with incomplete records. When forced to present documentation, they often fold.

How to Respond to a Midland Funding Lawsuit

Responding to a debt collection lawsuit is easier than you think. You need to act quickly, though. You have a limited time to file your Answer.

The court expects you to file a document called an Answer. In your Answer, you admit or deny every statement in Midland’s Complaint. You also explain why you don’t owe money.

Three Critical Steps for Your Answer

1. Respond to Each Allegation: Admit or deny every numbered paragraph in the Complaint. Most attorneys recommend denying everything you can.
2. Assert Affirmative Defenses: Raise defenses like wrong debtor, already paid, debt forgiven, or statute of limitations expired.
3. File on Time: Mail your Answer to the correct court before your deadline expires.

Our partner Solo can help you draft a proper Answer in minutes. You don’t need legal knowledge or expensive attorneys.

Does Midland Funding Show Up in Court?

Yes, Midland Funding typically shows up in court. They hope you won’t appear so they can get a default judgment. You must show up too. Attend every hearing and deadline.

Fight Back Against Midland Funding’s Intimidation Tactics

Many companies, including Midland Funding, file lawsuits hoping consumers won’t respond. Don’t be that consumer. Push back by showing up and demanding proof.

You have the power to call their bluff. Make them prove every element of their case. They often can’t.

Midland Funding Collects for Major Banks

Midland Funding purchases debts from credit card companies, banks, and auto loan providers. They’re known to buy debt from Capital One, Citibank, Discover, and American Express.

As the nation’s largest debt purchaser, they connect to virtually any type of consumer debt. After purchasing your debt, Midland Credit Management takes over collection efforts.

Understanding Midland Credit Management’s Role

Midland Funding and Midland Credit Management are related but perform different functions. Midland Funding purchases charged-off debts. Midland Credit Management collects on those accounts. Both operate under Encore Capital Group.

Here’s how it works: You fall behind on your Discover card. Discover charges off the debt and closes your account. Midland Funding purchases the debt for 10-20% of the original amount. Midland Credit Management then contacts you to collect the full debt.

Just because Midland purchased your old debt doesn’t make it valid. The debt might be past the statute of limitations. The amount could be incorrect. Midland might lack proper documentation to sue you.

How to Respond to a Midland Credit Management Lawsuit

If Midland Credit Management sues you, file a written Answer immediately. Here are six essential tips:

1. Keep It Simple: Don’t tell your entire story in the Answer. Just respond to each claim. The burden of proof is on them.
2. Deny Strategically: Most attorneys recommend denying as many claims as possible. Each denial requires Midland to prove their case.
3. Include Defenses: State your affirmative defenses. Examples include expired statute of limitations, fraudulent debt, or harassment.
4. Use Professional Formatting: Type your Answer in standard font like Times New Roman. Include a caption with the court’s name and case number.
5. Add Certificate of Service: Certify that you sent the Answer to the plaintiff’s attorney with their official mailing address.
6. Sign Your Answer: Sign at the bottom. Some courts require a wet signature.

What If You Haven’t Been Sued Yet?

If you’ve only received a collections notice from Midland, respond with a Debt Validation Letter. You can send this letter when a debt collector contacts you by phone or mail.

A Debt Validation Letter notifies Midland that you dispute the debt. They must provide proof you owe it. They can’t call you or continue collecting until they validate the debt.

Debt Validation Letters are powerful tools against debt buyers like Midland Funding. Many debt buyers lack proper documentation. When forced to prove ownership, they often can’t.

Midland Funding’s Mailing Address

Send your Debt Validation Letter to this address:

Midland Funding, LLC
P.O. Box 340
Waite Park, MN 56387-0340

For Midland Credit Management, use:

Midland Credit Management
P.O. Box 939069
San Diego, California 92193

Keep records of all communications with Midland Funding. Send letters via USPS certified mail with return receipt requested. You’ll have proof of sending the letter for court.

How to Settle Your Debt With Midland Credit Management

You can settle a Midland Credit Management lawsuit by negotiating with their law firm. It may take several rounds, but Midland usually settles for less than the full amount.

Debt buyers like Midland purchase debt portfolios for about 4 cents per dollar owed. If you owe $1,000 to Discover, Midland might pay only $40 to acquire it. Even if you settle for half, Midland still profits massively.

Keep this leverage in mind during negotiations. You have more power than you think.

Real Example of a Midland Credit Management Lawsuit

Mike received a lawsuit notice from ABC Legal on behalf of Midland Credit Management. The case involved an old Capital One debt. He received a court Summons notifying him of the case.

He also received a Complaint outlining specific claims against him. Midland claimed he owed $3,411.65. The typical Midland process involves serving court documents and filing for default judgment when consumers don’t respond.

Midland expected Mike to miss his deadline. They planned to request a default judgment. But Mike used Solo to draft an Answer and filed it before his state’s deadline.

When Midland realized Mike fought back, they were shocked. Mike still wanted to settle, so he contacted ABC Legal to negotiate. Facing an actual court battle, Midland became more open to settlement options.

In the end, Mike settled for 50% of the claimed amount. He saved money. Midland still earned more than their initial investment. Everyone won.