If Midland Credit Management (MCM) is suing you for an alleged debt, you are not alone, and you have legal options. Many Texans find themselves having to navigate debt collection lawsuits, often feeling overwhelmed and uncertain about their rights and options. In the article below, our Texas debt collection defense lawyers provide information about Midland Credit Management to help you understand your situation and discuss steps to reach a favorable outcome in a Midland Credit Management lawsuit.
At Warren & Migliaccio, we defend Texans facing debt collection lawsuits across Texas. We have significant experience and success defending individuals like you against large creditors and debt collectors. Do not hesitate to schedule a free consultation with us to discuss your situation, understand your legal options, and see how we can help you put a debt collection lawsuit behind you.
What Is Midland Credit Management?
Midland Credit Management (MCM) is a debt buyer and debt collector headquartered in San Diego, California. Established in 1953, MCM purchases portfolios of charged-off debts from original creditors, like banks, credit card companies, and retailers, at a fraction of the value.
According to MCM’s website, if you hear from the company, it means “your lender has probably charged off one of your accounts and sold it to us.” Then, after buying these debts, it attempts to collect the total outstanding amounts, plus interest and fees, from consumers.
MCM is a subsidiary of Encore Capital Group, one of the country’s largest publicly traded debt buyers. According to Encore Capital Group’s website, Midland Credit Management is its primary business unit in the U.S. market.
Is Midland Credit Management Legit?
Midland Credit Management is a legitimate debt buyer and collection company that can legally engage in debt collection in Texas. While a debt collector does not need a license in Texas, it must have a valid $10,000 surety bond filed with the secretary of state. This surety bond’s purpose is to ensure that Midland Credit Management complies with the Texas Finance Code regarding debt collection.
MCM has an active surety bond filed with the secretary of state. You can look up its surety bond on the Texas Secretary of State’s Debt Collector Search page using file number 20170046. Old Republic Surety Company issued its bond.
However, even though MCM is a legitimate company, it does not mean you owe it the money it claims you owe. You should always verify the debt, especially when purchased from an original creditor. MCM may not have the evidence needed to prove that you owe the debt and that it has the legal right to collect the debt.
Who Does Midland Credit Management Collect for?
Unlike debt collectors who collect debts on behalf of original creditors, Midland Credit Management usually collects for itself. MCM buys charged-off debts from original creditors at a significant discount. Once purchased, MCM becomes the owner of these accounts. Therefore, when it collects a debt from a consumer, it is for its own benefit.
However, Midland Credit Management also services accounts owned by its sister companies, which are also subsidiaries of Encore Capital Group. One of MCM’s primary sister companies is Midland Funding, LLC.
If Midland Funding, LLC appears on your credit report or lawsuit paperwork, it likely means that Midland Funding is suing you as the owner of the debt, while Midland Credit Management is the company trying to collect it. See our guide about facing a Midland Funding, LLC lawsuit.
Does Midland Credit Management Sue?
Midland Credit Management does file lawsuits against consumers as part of its debt collection efforts. Generally, it may sue you if other collection methods like phone calls or letters do not work.
In Texas, you generally have 14 to 20 days to file a formal response to the lawsuit with the appropriate court overseeing the case. Your response should address the claims against you and list any defenses you have to the allegations.
Responding to the lawsuit is essential for protecting your legal rights and preventing potentially severe financial consequences. It allows you to seek dismissal, defend yourself, negotiate a settlement, or seek alternative debt relief options.
Failing to respond can lead to a default judgment against you. A default judgment essentially means MCM automatically wins the case because you ignored the lawsuit and did not show up in court. With a default judgment, MCM can pursue further legal action against you to collect the money.
How to Beat Midland Credit Management in Court
We understand that facing a lawsuit from Midland Credit Management can be overwhelming. However, legal options are available to you as long as you do not ignore the lawsuit. While each case is unique, there are general steps you can take to help you win a debt collection case or reach a favorable outcome in Texas. These steps include:
- Respond to the lawsuit. Avoid a default judgment by filing an Answer to the lawsuit with the appropriate court before the deadline. See our guide about how to respond to a court summons.
- Verify the debt. You have the legal right to demand debt validation from Midland Credit Management. This forces MCM to provide evidence that the debt is yours and that the amount claimed is accurate. It must also provide information about your original creditor and proof that it purchased your account and has the legal right to collect.
- Consider your legal defenses. There are many potential defenses to debt collection lawsuits. For example, pursuing debt collection through litigation is subject to a statute of limitations in Texas or a time limit. In Texas, the statute of limitations is four years. If the debt is time-barred, MCM cannot sue you to collect the debt. Other common defenses may include, but are not limited to, lack of proper documentation, mistaken identity, and bankruptcy.
- Explore your legal options. Your best legal options will depend on the unique circumstances of your case. For example, depending on the strength of your defenses, you may be able to seek lawsuit dismissal or fight the claims in court. On the other hand, if Midland Credit Management has a strong case against you, negotiating a settlement may be in your best interest. MCM may agree to accept a lesser amount if you can make a lump-sum payment or may work with you on a manageable payment plan. If your debt is overwhelming, seeking bankruptcy protection may be a viable option for you.
You can use our guide about how to win a debt collection lawsuit in Texas as a resource. However, we recommend scheduling a free consultation with our Texas debt defense attorneys about your situation. During a consultation, we will review the claims against you, answer your legal questions, and discuss potential legal defenses and options for moving forward.
We have significant experience and success defending Texans against debt collection lawsuits. When you work with us, we will protect you from a default judgment, investigate the claims against you, identify your potential defenses, and develop a defense strategy tailored to your needs and goals. Our attorneys will represent and defend you throughout case resolution. We will always strive for case dismissal. However, if that is not possible, we will fight for a favorable case outcome that works for you.
Schedule a Free Consultation With Our Texas Debt Collection Defense Lawyers
Are you facing a Midland Credit Management lawsuit in Texas? If so, do not hesitate to contact us today for a free, no-obligation consultation. We have significant experience and success in representing and defending Texans against debt collection lawsuits.
During a free consultation, we are happy to review the claims against you and discuss your potential defenses and legal options for moving forward. Call us at (888) 584-9614 or contact us online, and we will reach out to you soon.
