Midland Funding, LLC and Midland Credit Management are purchasers of debt that has been charged off. If you are contacted by them or sued by them, the company is now the owner of a debt. Companies like Midland Funding purchase delinquent debts for pennies on the dollar. When they file a lawsuit, the requested judgment is often much higher than the amount of the original debt. Although your first instinct may be to avoid the calls and skip court, this will result in a default judgment against you of the full amount requested.
Who Are They?
If you do not recognize the names Midland Funding or Midland Credit Management, that is because they are not the company that you originally owed the debt being collected. Subsidiaries of Encore Capital Group, these companies purchase delinquent debts from credit card and cell phone companies, banks, and auto or personal loan lenders. When these companies have not received payment for more than 180 days, they will “charge off” the debt. This means the company feels it would cost more to recover the amount than the debt is worth, so they call it a loss, at least for now.
These companies then sell these “charged off” debts for much less than the debt amount. Midland Funding and Midland Credit Management are among the nation’s largest purchasers of these debts. Once they have purchased a debt, they attempt to contact the borrower by phone or mail. The companies do not stop at a payment request. Both entities have been accused of deceptive debt collection practices such as harassment, intimidation, and wage garnishment without notifying the borrower.
Why Do They Sue?
Failure to respond to their requests for payment or refusal to pay could result in the companies filing a lawsuit against you. When they file suit, the judgment amount requested will often be much higher than the amount of the original debt. Midland Funding says that they add the cost of litigation to the original debt, but the judgment requested is often much higher than the amount originally owed. Many people are confused when they are served with a lawsuit. Embarrassment and uncertainty cause them to ignore the situation hoping it will resolve itself.
What Not To Do
Ignoring the payment requests will escalate the matter and not resolve anything. If you do not appear in court and fail to respond within the allotted time, it will result in a default judgment against you of the full amount requested. Once a judgment has been entered against you, the company can garnish or freeze accounts, place liens on property, and even seize property.
What To Do
The first thing you should do when you are contacted by Midland Funding or Midland Credit Management is to contact a debt lawsuit defense attorney. If you live in the Dallas, Texas area, Warren and Migliaccio, LLP are ready to help you develop a legal strategy. They have the legal knowledge and experience to help you avoid judgment.
Responding to the lawsuit stops the court from entering a default judgment against you and it forces Midland to produce evidence that the debt is owed by you. Often, the company does not have sufficient evidence and documentation to support a ruling for a judgment against you. If you know you owe the debt, you can likely settle before the court date for about half the amount of the debt.
An attorney has the legal knowledge and experience to apply the law to your case. Having an attorney to advise you when you are being sued by a debt collection company ensures that you are not stuck with an unfair judgment against you. Contact us today for a free consultation on your case if you are in the Dallas, Texas area. Warren and Migliaccio, LLP want to be your debt lawsuit defense attorneys.
