If you have recently received a collection notice or communication from Midland Funding, LLC, you might be wondering why they believe you owe them money. This can be confusing, especially if you don’t recognize the name or the debt. Midland Funding is one of the largest debt buyers in the United States, and its practices have left many consumers puzzled about the legitimacy of their claims.
As an attorney with extensive experience in bankruptcy law, I have represented countless clients who are facing collection efforts by Midland Funding and other collection agencies. If Midland Funding is pursuing you for money, it’s important to understand why this might be happening and what your options are. In this article, we will discuss the reasons Midland Funding might claim you owe them money and how to address it.
What Is Midland Funding, LLC?
Midland Funding, LLC is a debt buyer. This means they purchase overdue debts from other companies, often for a fraction of the original amount. These debts can include credit card accounts, personal loans, medical bills, or other types of unsecured debt. Once they purchase these accounts, they may attempt to collect the full amount owed or, in some cases, sue the debtor in court to recover the debt.
Typically, when you have a debt that goes into default, it may be sold to a collection agency like Midland Funding. While they may not have originally provided the credit or loan to you, Midland Funding now has the right to attempt collection or even sue for repayment.
How Does Midland Funding Acquire Your Debt?
Midland Funding buys debts from various companies, including credit card issuers, retail stores, and banks. These companies sell their delinquent accounts to debt buyers like Midland Funding when they have been unable to collect the debt on their own. The debts are often purchased at a deep discount, sometimes for only a few cents on the dollar.
Once Midland Funding purchases the debt, they assume the role of the creditor. They then attempt to collect the full amount of the debt, plus any additional fees, interest, and charges that may have accumulated. Their goal is to recover more than they paid for the debt, allowing them to profit.
However, this process isn’t always straightforward. Sometimes the original documentation related to the debt—such as the original loan agreement, transaction history, or proof of the debt itself—may not be available. This can create complications when Midland Funding tries to collect on the debt.
Why Does Midland Funding Think You Owe Them Money?
There are several reasons why Midland Funding might think you owe them money. Understanding these reasons can help you evaluate your situation and decide how to respond.
1. You May Have an Outstanding Debt from an Original Creditor
If you have ever missed payments on a credit card, personal loan, or other financial obligation, that debt could have been sold to a collection agency, like Midland Funding. It’s common for debts to be sold after they have been in default for a certain period, typically 180 days or more.
Even if you don’t remember the original creditor, Midland Funding might claim you owe money because they have acquired the right to collect on that debt. They will send notices to inform you that the debt has been sold to them and that they now own it.
2. They May Be Pursuing an Old Debt
Debt buyers like Midland Funding often purchase old debts that have been charged off by the original creditor. Just because the debt is old does not mean it is no longer enforceable. In Texas, for example, the statute of limitations on credit card debt is typically four years. If Midland Funding is attempting to collect on an old debt that is past the statute of limitations, you may have a defense.
However, the statute of limitations does not automatically stop the collection process. You may still need to assert this defense in court if Midland Funding sues you.
3. The Debt May Not Be Yours
Unfortunately, it is also possible that Midland Funding is attempting to collect a debt that you do not actually owe. This can happen for several reasons. Perhaps the account was opened in your name fraudulently, or there may be a clerical error in their records. In some cases, Midland Funding may be pursuing someone with a similar name or someone who lives at your address.
If Midland Funding claims you owe money but you believe the debt is not yours, you must respond to their communication. Failure to do so may result in further collection efforts, including legal action.
4. They Could Be Pursuing a Debt That Is Inaccurate or Unverified
As mentioned earlier, Midland Funding purchases delinquent debts, but they may not always have the original documentation or complete records of the debt. This can make it difficult for them to verify the debt in court if necessary. In fact, one of the most common defenses against a debt collection lawsuit is that the debt buyer, like Midland Funding, cannot prove that the debt is valid.
If Midland Funding sues you, they must be able to provide proof that you owe the debt. If they cannot, the case may be dismissed. However, in order to successfully challenge the debt, you may need to take legal action.
5. You May Have Missed Important Legal Notices
Sometimes, Midland Funding sends letters or other notices to inform you of the debt and any collection efforts. If these notices are not responded to or ignored, Midland Funding may file a lawsuit against you in court. At that point, you may have no choice but to fight the case in court.
If you are served with a lawsuit or collection notice, it is important to respond within the required time frame. Ignoring the issue can lead to a default judgment against you, which could result in wage garnishment, bank account levies, or other collection actions.
What Are Your Options When Midland Funding Says You Owe Money?
If Midland Funding is claiming that you owe them money, you have several options for how to respond. Here are some key steps to consider:
1. Request Verification of the Debt
If you are unsure about the debt, you have the right to request verification from Midland Funding. Under the Fair Debt Collection Practices Act (FDCPA), you can request documentation that proves you owe the debt. Midland Funding must respond and provide proof that the debt is valid and that they are authorized to collect it.
2. Dispute the Debt
If you believe the debt is inaccurate or does not belong to you, you can dispute it. You can do this in writing, requesting that Midland Funding cease collection until they provide the necessary proof. In cases where you have been the victim of fraud or identity theft, reporting the issue to the Federal Trade Commission (FTC) and local authorities may also be necessary.
3. Consult an Attorney
If Midland Funding is taking legal action, it is important to seek professional help. An experienced bankruptcy or debt defense attorney can review your case and determine whether there are grounds to fight the debt. They can also help you understand your options, including negotiating a settlement, seeking debt forgiveness, or pursuing bankruptcy as a potential solution.
4. Consider Filing for Bankruptcy
In some cases, filing for Chapter 7 or Chapter 13 bankruptcy can provide a fresh start. Bankruptcy can eliminate many unsecured debts, including those bought by debt buyers like Midland Funding. However, bankruptcy is a serious decision and should only be considered after consulting with an attorney. Here’s more on what you should know https://www.moneywiselaw.com/midland-funding/.
Get Legal Help with Your Debt Issues
If you are dealing with Midland Funding or any other debt collector, it’s important to understand your rights and options. You don’t have to face debt collectors alone. If Midland Funding is claiming you owe them money, we are here to help you navigate your legal options.
At Warren & Migliaccio, L.L.P., we specialize in bankruptcy law and debt defense. Our team has helped thousands of clients in Texas resolve debt-related issues, including collections by companies like Midland Funding. Contact us to to get started here https://www.wmtxlaw.com/contact-us/.
