How To Deal With Midland Funding LLC

What Is Midland Funding LLC?

Midland Funding LLC is a debt collection agency based in San Diego, California. Midland collects consumer debts from credit cards, medical bills, and auto and personal loans. They mainly purchase debt from credit unions, global banks, and utility providers. 

Midland Funding LLC partners with Midland Credit Management Inc. (MCM) to collect on accounts owned by Midland. Midland Funding and Midland Credit Management are subsidiaries of Encore Capital Group Inc., a well-known debt buyer. 

Here is Midland’s contact information: 

Website — https://www.midlandfunding.com/ 

Phone number — 1 (800) 825-8131

Address — 350 Camino de la Reina Ste 100, San Diego, CA 92108-3007

How exactly does your debt go from an original creditor to a debt collector? The original creditor (credit card company, utility provider, etc.) will send you written notices and call you if your payments become delinquent. If you ignore their collection efforts, they will charge off your debt to a third-party agency such as Midland. This agency then creates a collections account for your debt and takes over. 

Why Is Midland Funding LLC Contacting Me?

If Midland contacts you, you have an old debt they bought from a lender such as a utility company or credit card company. They are attempting to collect on the debt they now own. If you want to work out a negotiation or repayment plan, you will need to work directly with the debt collection agency. 

Is Midland Funding LLC Legit?

Yes, Midland is a legitimate company. However, they have many customer complaints against them with the Better Business Bureau (BBB) and the Consumer Financial Protection Bureau (CFPB). 

As of early 2024, the BBB reported over 680 complaints against Midland in the past three years. Issues range from Midland contacting people about debt they do not owe to Midland not providing sufficient information about alleged debts when requested. 

Note to reader: These reviews and complaints highlight relevant issues but may not represent all consumers’ experiences.

The complaints against Midland exemplify common violations of the Fair Debt Collection Practices Act (FDCPA). The FDCPA is a federal law that protects you from harassment and unlawful behavior from third-party debt collectors and collection agencies. If you believe a debt collector has committed a violation, you can report them to the CFPB and even sue for compensation. 

How Do I Know if I’m Being Scammed?

While Midland is legitimate, scammers may try to use the company’s name to con you. You can spot a scammer if they ask for sensitive information that a legitimate debt collection agency would already have, such as bank account information or your social security number. To learn more, read our guide to the 8 Red Flags of Debt Collector Scams.

The best way to protect your personal information is to validate the debt and ask for more information. If you think you’re dealing with a scammer, you can report them to the Federal Trade Commission (FTC), a government agency that specializes in protecting consumers' rights. 

Do I Have To Pay Midland Funding LLC?

If a debt collection service contacts you, your first move should be to check if the debt in question is legitimate. Sometimes, debt collectors might need some details corrected, such as the amount owed or the creditor's name. Debt collectors typically buy debt in bulk from various creditors so it’s common for information to get skewed. 

To figure out if the debt is legitimate, you need to validate the debt to verify that:

• The debt is an actual debt that you owe.

• The debt collector genuinely owns the debt.

• The amount of the debt is accurate.   

If the debt collector has incorrect information and the debt is not yours, they should stop contacting you. If they can prove the debt is yours and they own it, you have to decide what to do next. 

Step 1: Send a Debt Verification Letter

If you haven’t already received a debt validation letter from Midland, you need to request one from them or send your own debt verification letter. 

A debt validation letter is a document from a debt collector that contains essential details about a debt they’re attempting to collect from you. By law, they must send you this letter before or within five days of their initial contact. The letter also indicates a 30-day period for you to dispute the debt.

During this 30-day period, the collection agency can’t continue their collection efforts. This includes making phone calls and sending letters or emails. If they cannot verify your debt within these 30 days, you are not obligated to make a payment. If you find yourself in this situation, make sure you review your credit report and challenge any incorrect information with the major credit bureaus. 

If the debt collector successfully verifies your debt within the 30-day time frame, your next step will depend on whether you agree or disagree with the amount they claim you owe.

Step 2: Decide What To Do Next

If Midland has accurately verified that you do owe the debt they claim, you’ll need to decide what you’d like to do next. Though it may not feel like you have options, you do have control over how you proceed. 

The three main options are to: 

• Dispute the debt.

• Negotiate or settle the debt.

• Ignore the debt (while this is technically an option, this is not recommended). 

Option 1: Dispute the Debt

If you disagree with the amount (or other details) that Midland has indicated on your debt validation letter, it’s your right to dispute the debt. 

Often, if there’s incorrect information on your debt validation letter, that same information was incorrectly reported to the major credit bureaus and is on your credit report. You need to check your credit report and dispute any errors. 

Under the Fair Credit Reporting Act (FCRA), you have the right to a free copy of your credit report from each of the three major credit bureaus once every 12 months. The three major credit bureaus are Experian, Equifax, and TransUnion. You can get your free credit report from AnnualCreditReport.com. 

Also, under the FCRA, you have the right to request credit bureaus remove negative entries from your credit report using the 609 Credit Dispute Letter.

Option 2: Negotiate the Debt and Make a Settlement Offer

If you can't pay the total debt upfront (which is the case for many people), negotiating a debt settlement might be the path to consider.

Creditors often accept settlements ranging from 40% to 60% of the original amount owed. You can initiate discussions starting as low as 25%, but be open to meeting around 50%. Showing your willingness to negotiate may help you get a lower percentage.  To learn more about how to negotiate a successful settlement, read Upsolve’s Guide to Beating Midland Funding LLC.

Although it might not seem like it, you do hold some leverage in a negotiation. Debt collectors are typically open to negotiating because they acquire your debt from the original creditor at a fraction of its value and will likely make a profit even if you pay much less than what you originally owed.

Can You Negotiate Every Past-Due Debt?

Negotiating every overdue debt might not be possible. But, it's generally an option for common types of consumer debt (credit card debt, medical bills, personal loans, payday loans, etc.). Tax debt is also often negotiable, but the IRS has its own process for negotiating owed tax debt.

Debts tied to mortgages or car loans typically cannot be negotiated since there’s the option of foreclosure or repossession. And, when it comes to student loans, exploring available student loan forgiveness options can be helpful if you're facing challenges with payments.

Option 3: Ignore the Debt (Not Recommended)

While technically a choice, ignoring debt is never a good idea. Dealing with debt can be overwhelming, and when debt collectors persistently contact you, the temptation to ignore everything in the hope that it disappears is entirely understandable.

Ignoring the debt or the debt collector won't resolve the issue. In fact, it can heighten stress and worsen financial anxiety. It may even prompt debt collectors to intensify their collection efforts, creating more trouble and stress.

What Happens if I Ignore Midland Funding LLC?

Unfortunately, ignoring Midland Funding won’t solve your debt problem and could actually create additional problems.

Those problems include:

• Hurting your credit score

• Costing you more money in the long run (with interest charges, fees, potential court costs, etc.)

• Creating an opening for you to get sued by the debt collector 

Being sued can create more problems. If you also ignore the lawsuit, it might allow the debt collector to win and receive a default judgment and wage garnishment order against you. 

Avoiding the debt doesn't make the debt collector go away or make the debt itself disappear. Although negative information will fall off your credit report after seven years, the debt is still collectible as long as the statute of limitations remains in effect.

Bottom line: The best thing you can do for yourself is to take action. You can take on Midland and come out the other side.

Can Midland Funding LLC Sue Me?

Unfortunately, Midland can sue you. If persistent attempts from a debt collector go unanswered, they may take legal action by filing a debt collection lawsuit.

Whether or not a debt collector sues you depends on many factors, such as:

• Your state’s wage garnishment laws

• The amount of time your debt has been in collections

• The amount of debt you owe

If you get sued, you will receive a summons and a complaint, which are official court documents notifying you of the lawsuit and outlining the case details. Your paperwork will be delivered to you in person and handed directly to you or left with an adult at your home. 

Let’s Summarize…

Midland Funding LLC is a legitimate debt collection agency that collects different types of debt but focuses on consumer debts like credit card bills and personal loans. If they contact you, you need to validate that the debt is true and accurate, and if it is, you need to take action and respond to Midland as soon as possible. Taking on a debt collection agency can be intimidating, but you have options to protect your personal finances.