If Midland Funding has contacted you about a debt they claim you owe, it’s important to understand how the company works and what rights you have when it comes to debt collection.
Maybe you’ve received a phone call or a debt collection letter from Midland Funding, and now you’re not sure whether to contact them and what to do about the debt they say you owe them. Perhaps Midland Funding has even filed a lawsuit against you. If you’re in any of these situations, here’s what you need to know.
Midland Funding LLC is a subsidiary of Encore Capital Group, along with Midland Credit Management Inc and Asset Acceptance Capital Group. All together, they are the largest debt buyer and debt collector in the U.S.
The company buys unpaid debt from banks, credit unions, and other lenders — typically for pennies on the dollar — and then tries to collect on the original full amount.
Debt is often purchased when an account that has gone 180 days without payment or when less than the minimum was paid for 180 days.
Once the debt has been purchased, Midland Funding LLC will show up on your credit report as a new creditor. If the debt belongs to you, it can call you to try to collect and potentially even sue you for the amount you owe by hiring collection law firms on their behalf to file lawsuits.
In Sept. 2020, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Encore Capital Group, Inc., as well as its subsidiaries, Midland Funding LLC, Midland Credit Management, Inc., and Asset Acceptance Capital Corp.
In 2015, the CFPB found that the companies violated the Consumer Financial Protection Act (CFPA), Fair Debt Collection Practices Act (FDCPA), and Fair Credit Reporting Act and settled with a consent order. Now, the CFPB has alleged that Encore and its subsidiaries have violated that consent order and again violated the CFPA and FDCPA.
More specifically, the CFPB alleges that Encore and its subsidiaries have sued consumers to collect debts, even though the statutes of limitations had run on those debts. They claim they have also attempted to collect on debts for which the statutes of limitations had run without providing required disclosures.
In another Midland Funding lawsuit, the company was sued by the attorney general for 42 states and the District of Columbia for the practice of “robo-signing.” The practice involves employees signed hundreds of affidavits daily (sometimes up to 400) stating that consumers owe money and have personal knowledge of it, despite spending just seconds on each affidavit.
In 2019, the CFPB received 344 complaints against Midland Funding. Of those complaints, 238 were closed with an explanation from the company, and 106 were closed with some form of non-monetary relief. Complaint topics included:
Midland Credit Management (MCM) is a partner to Midland Funding, so it’s possible that you’ve been served for a lawsuit from MCM instead of Midland Funding.
In either case, your best bet is to get in contact with a debt resolution law firm to understand the best course of action.
Tayne Law Group has resolved many debts with not only Midland Funding but also their partners, Midland Credit Management and Encore Capital Group.
For example, a client came to us with a QVC account with an original balance of $1,371.02. Tayne Law Group’s debt resolution team settled the account with Midland Funding for $471.10 — that’s a savings of roughly 66%.
If Midland Credit Management is suing you or threatening to, we can help discuss your debtor rights and work with them to resolve your debt quickly and efficiently. We can also help you save money with a debt resolution plan that just makes sense for you financially.
It doesn’t cost more to work with attorneys, but it’s the choice you make for you and your family to be comfortable with the right people who can protect your rights and get the matter resolved in the best possible way for you.
Contact us or call today for a free, no-obligation debt help consultation and see what a difference a phone call can make. Call NOW! 1-866-890-7337
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