Why Does Midland Funding, LLC Think You Owe Them Money?

midland credit management lawsuit

Midland Funding LLC and Midland Credit Management Inc. 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. 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.

If you have received notice that Midland Funding is suing you in Texas, contact an experienced debt lawsuit defense attorney from our firm for immediate assistance.

What Is Midland Funding?

If you do not recognize the names Midland Funding, LLC or Midland Credit Management, that is because they are not the company that you originally owed the debt being collected. Usually, after an original creditor attempts to collect a debt for a certain amount of time, it turns it over to a debt collection company or sells it to a debt buyer and charges off the account.

Midland Funding and Midland Credit Management are debt buyers – they buy delinquent and charged-off debts from creditors, banks, and loan lenders for pennies on the dollar. They make money by collecting the full amount you owed to the creditor, along with extra penalties and fees.

Midland Funding and Midland Credit Management are subsidiaries of Encore Capital Group, among the nation’s largest purchasers of consumer debts. Once they have purchased a debt, they attempt to contact the borrower by phone or mail. However, the companies do not stop at a payment request.

Every year, they file thousands of debt collection lawsuits against consumers. They hire a local debt collection attorney in the state where the consumer is located to try to collect some of the debt.

This is a large company with ample resources, so it is critical that you hire an experienced Texas debt collection defense lawyer to help you level the playing field and protect your rights during this difficult time.

Why Was My Debt Sold to Midland Funding?

People accrue debt every day, whether through mortgages, car loans, credit cards, personal loans, or medical debt. Companies that extend credit may initially try to collect the debt directly from you. However, they may have limited resources to continue pursuing these debt collection activities. Eventually, they might decide to sell the debt to a debt buyer and get something out of the unpaid debt instead of nothing.

Debt collection agencies have a singular focus: collect as much money as possible for the debt they have bought. They often use aggressive collection efforts, including sending letters and making constant phone calls to you. It is important to note that Midland Funding is a debt collector, so it must follow the rules set by the Fair Debt Collection Practices Act. This federal consumer protection law prohibits companies from taking deceptive or harassing activity against consumers while collecting debt.

Will Midland Credit Management Sue Me?

Failure to respond to Midland Funding, LLC or Midland Credit Management requests for payment or refusal to pay could result in the companies filing a lawsuit against you. This Midland Credit Management lawsuit typically occurs when the judgment amount requested is often much higher than the amount of the original debt.” 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 If Sued by Midland Funding, LLC

If you are being sued by Midland Funding, do not ignore the lawsuit. 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.

As long as the creditor can show that they notified you of the lawsuit and you fail to respond, the court can rule in the creditor’s favor. This can occur even if you have no debt with Midland Funding, they have the wrong person, or there are other viable defenses against them.

Once a judgment has been entered against you, the company may:

• Get a lien against your property
• Get law enforcement to seize property to pay off the judgment
• Get a writ of garnishment against your pay (for some out-of-state judgments), bank accounts, or investment accounts

What Should I Do If Midland Funding Sues Me?

If you receive notice that you are being sued by Midland Funding, LLC or Midland Credit Management, it is crucial that you do not ignore it. You generally have 20 days to respond to a civil lawsuit in Texas. Your answer should specifically address each allegation and assert any affirmative defenses you have.

Responding to the lawsuit stops the court from entering a default judgment against you, and it forces Midland Funding to produce evidence that you owe it the debt. Often, the company does not have sufficient evidence and documentation to support a ruling for a judgment against you. Debt lawsuits are typically plagued with many issues, including:

• No clear chain of title in who currently owns the debt
• Legal action against consumers is taken in the hopes that they will not respond and the debt collector will receive a default judgment
• Collection activity for debts that are too old to be legally enforceable
• Business record affidavits signed by a person who signs hundreds of such affidavits that attest direct knowledge of the amount of debt owed when they have no personal knowledge of this information

Even if you know you owe the debt, you can likely settle before the court date for less than the original amount of debt, and with a payment plan. Resolving the issue promptly may also help minimize the impact on your credit report. We recommend working with an experienced Texas debt defense attorney to defend you against the lawsuit.”.

Having an attorney to advise you when a debt collection company is suing you ensures that you are not stuck with an unfair judgment against you. At Warren & Migliaccio, we have extensive experience and success defending Texans against big debt collection companies like Midland Funding. Contact us today for a free consultation and begin mounting your defense.

How Can a Lawyer Help Me If I Am Sued for Debt Collection?

A knowledgeable debt defense lawyer can protect your legal rights and defend you against unsubstantiated claims. You can expect an experienced lawyer to:

• Advise you of your rights. A debt lawsuit defense lawyer can explain your legal rights to you so that you have a clear understanding of the case against you and possible legal strategies that can protect your interests.
• Prepare and file your response. A lawyer can prepare your answer to the lawsuit against you that complies with the applicable rules and protects you from a default judgment.
• Seek a dismissal of the case against you. If the lawsuit lacks legal merit or a procedural error has been made, your lawyer may be able to ask the court to dismiss the debt collection case against you.
• Assert defenses. You may have legal grounds that prevent Midland Funding, LLC from seeking a judgment against you, such as not having ownership of the debt or the expiration of the statute of limitations.
• Take action against abusive debt collection agencies. If the debt collector violated state or federal consumer protection laws, such as threatening criminal action, harassing you, or lying, not only may the case against you be dismissed, but you might also be entitled to damages against them.
• Investigate your case. Your lawyer can investigate the case to determine if you even owe the debt. It could be a case of mistaken identity, or the debtor might not have proof that they actually own the debt.
• Negotiate your debt. To avoid a judgment against you, your lawyer may negotiate a settlement with the debt collection agency that is well below the value of the original debt.
• Explore all of your options. Your attorney can explore all possible options available to you. If there is not a viable defense to the collection suit, your lawyer might recommend filing bankruptcy as a way to help protect your financial future and avoid serious consequences like the garnishment of bank accounts or the loss of your personal assets.

Contact Our Texas Debt Defense Lawyers Today for a Free Consultation

If you are facing a Midland Funding debt collection lawsuit or being sued by Midland Credit Management, do not hesitate to contact our law office for legal advice on your consumer debt. We offer a free consultation to answer your legal questions and discuss how we can help you. You may have more legal options than you think to deal with the lawsuit.