If you are contacted by Midland Funding LLC, it means that you have an old debt that they purchased from a lender like a credit card company or utility company. Now try to remember, do you still have outstanding debt? If so, your lender most likely sold your debt to Midland Funding LLC. Now, Midland Funding LLC is trying to collect your debt. If you want to make a payment or come up with a negotiation plan, you will need to work directly with a debt collection agency. Now, you may be wondering whether Midland is a legit debt collector or not. Let us find out more information about Midland Funding LLC.
What is Midland Funding LLC?
Midland Funding LLC is a debt collection agency headquartered in San Diego, California. This debt collection agency is a subsidiary of Encore Capital Group Inc. For your information, Encore Capital Group Inc is a well-known debt buying company. To collect on Midland’s debt accounts, Midland Funding LLC partnered with Midland Credit Management Inc. This company is also a subsidiary of Encore Capital Group Inc. Midland collects consumer debt from original creditors such as healthcare providers, credit card companies, auto loan companies and personal loan companies. Midland Funding LLC primarily purchases debt from global banks, credit cooperatives, and utility providers.
Here is Midland Funding’s contact information:
-
- Phone number — 1 (800) 825-8131
- Website: https://www.midlandfunding.com
- Address: 350 Camino de la Reina Ste 100, San Diego, California 92108-3007
By the way, how exactly does your debt go from the original creditor to a debt collector like Midland Funding LLC? If your payments are delinquent, the original creditor such as a credit card company or utility provider will contact you and send you a written notice. If you ignore the original creditor’s collection efforts, they usually sell your debt account to a third-party debt collection agency like Midland Funding LLC. Then, this third-party debt collection agency makes a collection account for your debt and takes over. After that, Midland Funding LLC will collect your debt.
Is Midland Funding LLC a Legit Debt Collector?
Yes, Midland Funding LLC is a legit debt collector. It is one of popular debt collection agencies in California. Many companies that have already worked with Midland Funding LLC. As we said before, Midland Funding LLC usually works with companies like healthcare providers, credit card companies, personal loan companies, and auto loan companies. Midland Funding LLC primarily purchases debt from utility providers, global banks, and credit cooperatives. Aside from that, Midland Funding LLC also has been accredited by the Better Business Bureau (BBB).
Yes, Midland Funding LLC is indeed a legitimate debt collection agency. However, through the Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB), they have many customer complaints. As of early 2024, the Better Business Bureau (BBB) reported over 680 complaints against Midland Funding LLC debt collection agency in the last three years. Some of these complaints include Midland Funding LLC contacting people about debts they do not owe and Midland Funding LLC not providing detailed information about alleged debts. Well, these customer complaints against Midland Funding LLC are examples of common violations of the Fair Debt Collection Practices Act (FDCPA). For your information, the Fair Debt Collection Practices Act (FDCPA) is a federal law which protects you from harassment and unlawful behavior from third-party debt collectors and collection agencies. If you believe that a third-party debt collection agency has committed a violation, you should not hesitate to report it to the Consumer Financial Protection Bureau (CFPB). Even, you can also sue for compensation.
How to Know IF I am Being Scammed or Not?
As we know that Midland Funding LLC is a legitimate debt collection agency. However, nowadays, many scammers are using various ways to get money. These scammers may try to use the company name Midland Funding LLC to scam you. Now you might be worried about such unwanted things. For this case, you must be careful. If someone contacts you on behalf of Midland Funding LLC and collects a debt, do not trust them immediately. So, how do you know if you are being scammed? Remember that a legitimate debt collection agency will not ask for sensitive information, such as your bank account information or Social Security Number (SIN), because they already have that information. Well, unlike scammers, they will ask you for sensitive information. They will ask for your bank account information or Social Security Number (SIN).
If you find something irregular or suspicious about a debt collector, you can report it to the Federal Trade Commission (FTC). This government agency will protect your rights as a consumer. In addition, you can also be suspicious of someone if they cannot answer all the questions you ask about the debt that they are accusing you of. Scammers usually do not like being questioned about debt. They will refuse to answer questions related to debt for various reasons. Finally, to know if you are being scammed or not, try asking for the employee ID number or company information about Midland Funding LLC. If the person calling you is really part of Midland Funding LLC, they will definitely give you an employee ID number or company information about Midland Funding LLC. But if the person is a scammer, they will not be able to provide the information you requested.
What Should I Do When Midland Funding LLC Contacts Me?
If you are contacted by a debt collection agency, the first step is to check whether the debt is legitimate or not. Sometimes, debt collection agencies need to correct some details, such as the name of the creditor or the amount of the debt. Often, debt collection agencies buy debts in bulk from various creditors so misinformation can happen. When you are contacted by a debt collection agency and asked to pay a debt, do not rush to pay it, make sure first that the debt is legitimate. To know whether the debt is legitimate or not, you must validate the debt. Debt validation is done to verify that the debt really belongs to you, the amount of the debt is accurate, and the debt collector really owns the debt account. If the debt collector can prove that the debt really belongs to you, and the amount of the debt is accurate, and they own the debt account, then you should immediately think about what you will do next regarding your debt. However, if the debt collector provides false information and the debt is not yours, then they should stop contacting you.
Sending a Debt Verification Letter
To know that the debt is legitimate, make sure you receive a debt validation letter from Midland Funding LLC. In addition, you can also send a debt verification letter. For your information, a debt verification letter is a letter that you can send to a debt collection agency to get more information about the debt they claim to you.
It should be noted that a debt validation letter is a written notification letter sent by a debt collection agency to a consumer or debtor. The letter contains important details about the debt. By law, debt collectors must send a debt validation letter to you before or within five days of their initial contact. The debt validation letter also indicates a 30-day period for you to dispute the debt. If you have not received the debt validation letter, then you need to request one. Debt collection agencies cannot continue collection efforts against you during this 30-day period. They cannot make phone calls, send letters, or send emails to you.
If the debt collector is unable to verify your debt within 30 days, then you are under no obligation to make a debt payment. When you encounter this situation, you should review your credit report. Do not hesitate to raise objections to incorrect information with the major credit bureaus. On the other hand, if the debt collector manages to verify your debt within the 30-day period, then you should immediately decide on the next step, whether you agree or disagree with the amount of debt they are accusing you of.
Decide What to Do Next
If Midland Funding LLC successfully verifies your debt within 30 days, and proves that you are indeed the owner of the debt, then you will have to decide as to whether you agree with the amount of debt Midland Funding LLC is charging you. In this case, you can either dispute the debt or negotiate the debt.
Option 1: Dispute the Debt
Sometimes, Midland Funding LLC makes a mistake where the amount of debt they claim is not accurate. If you disagree with the amount or details of the debt that has been submitted on your debt validation letter, then you can dispute the debt. When there is incorrect information on your debt validation letter, the incorrect information will also reach the major credit bureaus and will then be listed on your credit report. Therefore, you should check your credit report and report any errors. You can also get a copy of your credit report for free from the major credit bureaus (Experian, Equifax, and TransUnion) every 12 months. That is under the Fair Credit Reporting Act (FCRA). In addition, AnnualCreditReport.com can also provide you with a free credit report. Under the Fair Credit Reporting Act (FCRA), using a 609 Credit Dispute Letter, you can request the credit bureaus to remove negative entries from your credit report.
Option 2: Negotiate Your Debt and Create a Settlement Offer
Having debt makes you stressed. You surely want to pay off your debt immediately. However, your poor financial situation means that you cannot pay your debts in full. If you are experiencing this problem, you may want to consider debt negotiation. Debt settlement is an avenue that can be considered. Keep in mind that creditors often accept debt settlement ranging from 40% to 60% of the original amount owed. Now, you can try to do so. You can start negotiating your debt settlement with a lower offer, for example, 25%-30% of your total debt. Midland Funding LLC will still be able to make a profit on the debt you pay. Remember that third-party collection agencies usually buy our debt accounts cheap. They acquire your debt from the original creditor at a price much lower than its value. So, they will usually be open to negotiating the debt.
What Happens if I Ignore Midland Funding LLC?
Never ignore a debt or you will get into trouble. If Midland Funding LLC contacts you and collects a debt that is really yours, make sure you respond. Neglecting to pay your debts will have a negative impact. Here are the problems that will arise if you ignore debts collected by Midland Funding LLC.
-
- Your credit score becomes bad
- You will lose more money due to interest charges, court costs, and other fees.
- You will be sued by debt collectors
If you are sued by Midland Funding LLC, never ignore the claim. Make sure you do not ignore the lawsuit filed by Midland Funding LLC. Ignoring the lawsuit will make Midland Funding LLC win and receive an invalid court judgment and wage forfeiture order against you. Remember that avoiding debt will not make debt collectors give up. They will still pursue you until you pay the debt. Yes, the negative information will indeed disappear from your credit report after seven years, but as long as the statute of limitations is still in effect the debt can still be collected by debt collectors.
Can Midland Funding LLC Sue Me?
Yes, Midland Funding LLC can sue you. Midland Funding LLC may take legal action by filing a debt collection lawsuit if their persistent efforts go unheeded by you. Therefore, you should never ignore Midland Funding LLC. Generally, whether or not a debt collection agency like Midland Funding LLC will sue you depends on various factors, such as:
-
- The laws regarding wage garnishment.
- The amount of debt you owe
- The amount of time your debt was collected.
If you are being sued by Midland Funding LLC, you will receive a summons and complaint. That is an official court document that informs you of the lawsuit filed by Midland Funding LLC. Certainly, it also outlines the details of the case you are facing. Usually, the court sends the document to you in person and it is either handed to you or left with an adult at your home. Make sure you respond to the lawsuit. If you do not respond to the lawsuit, then you will suffer legal consequences. If you are unsure about responding on your own, you can ask a lawyer for help. A reliable lawyer will help you handle your case.
