Summary: If you’re hearing from Midland Funding LLC you have an account in collections. That’s bad for your credit and bad for you. Here’s what you can do.
Collection agencies are never fun to deal with, and Midland Credit Management Inc is no exception. If you’re getting calls or letters from them, you’ve come to the right place.
I know what you’re thinking.
It can’t be that easy.
That’s true. Dealing with debt collection companies is not easy, and it can be stressful.
But we can help.
Here’s how to deal with Midland Funding Credit Management and get them out of your life for good.
Who is Midland Funding LLC?
Midland Funding, LLC, also known as Midland Credit Management, is a debt collection company. They buy past-due accounts from other lenders and try to collect the money that’s owed.
Midland Funding is not accredited by the Better Business Bureau, but the company works with Midland Credit Management (MCM), which has been accredited by the BBB since 2000.
What’s the difference between Midland Funding and MCM Credit?
The answer is simple.
Midland Funding owns your account, and MCM Credit Management is the “middle-man” that works with you to collect the debt.
Because Midland Funding LLC relies on Midland Credit Management Inc to service your account, any letters, phone calls, and negotiations must go through Midand Credit.
Here’s What You Can Do
📰 New Federal debt collection regulations took effect on Nov. 30, 2021. The new rules will have a far-reaching impact on the debt collection industry. If you have delinquent debts or accounts in collection, these rules will affect you.
Learn more about Regulation F and what will it mean for consumers with debts.
If you’re hearing from Midland Credit Management – or any collection agency – there are things that you can (and should) do. There are also two things that you should not do:
- Don’t Panic. It won’t help.
- Don’t ignore the situation. That won’t help either. They won’t go away.
That’s what you shouldn’t do, but what should you do?
Here’s where to start.
☝️ NOTE: These are DIY steps.
If you get lost along the way or don’t have time to work on this by yourself, you can get help from Credit Saint, our #1 recommended credit repair company.
1. Know Your Rights
The rights of debtors and the obligations of debt collectors are spelled out in the Fair Debt Collection Practices Act (FDCPA). Here are some key points.
- A debt collector cannot call you before 8AM or after 9PM.
- A debt collector cannot call your place of employment.
- If you have a lawyer, the collector must communicate with your lawyer.
- A debt collector may not communicate with your friends or family members or tell them about your debts.
- Debt collectors cannot threaten to harm you, your reputation, or your property, or use profane language.
- Debt collectors must identify themselves and the company they represent. They cannot claim to be law enforcement or other officials.
- A debt collector cannot threaten you with imprisonment or seizure of assets.
For a full review of your rights under the FDCPA see this summary from the Consumer Financial Protection Bureau (CFPB).
If you believe that a debt collector is violating the rules, you can report them to the FTC, the CFPB, and your state’s attorney general.
2. Validate and Verify the Debt
Under the new regulations that came into effect on Nov. 30, 2021, debt collectors must send you a Notice of Debt within 5 days of their first contact with you. This notice must contain much more information than the notices that collectors sent under prior rules.
If the notice is incomplete, it is invalid, and the debt isn’t collectible. That makes it important to know what’s required.
A valid Notice of Debt must contain an itemization date. This can be one of five different dates.
- The date of the last statement or invoice provided to the consumer by the creditor.
- The charge-off date.
- The date of the last payment applied to the debt.
- The date of the transaction that gave rise to the debt.
- The judgment date, if there is court judgment on the debt.
This date will help you establish whether the Statute of Limitations on the debt has expired and when it will drop off your credit report.
The Notice of Debt must also contain extensive information about the debt:
- The debt collector’s name and mailing address.
- The consumer’s full name and mailing address.
- If the debt is related to a financial product (like a loan or credit card), the notice must contain the name of the creditor to whom the debt was owed on the itemization date.
- The account number associated with the debt.
- The name of the creditor to which the debt is currently owed.
- The amount of the current debt and an itemized list of any payments made and added fees, interest, or other charges.
The Notice of Debt must contain a statement advising you of your rights under the Fair Debt Collection Practices Act (FCPA), including a statement that you have the right to dispute the debt within 30 days of receiving the letter.
The notice must also contain a returnable form allowing you to declare that you are disputing the debt and allowing you to select one of three reasons for a dispute:
- This is not my debt.
- The amount is wrong.
- Other (you will need to supply additional information.)
The CFPB has published a sample Notice of Debt that will help you determine whether the one you receive is complete.
Why It’s Important
Many debt collectors who purchased debts before the new regulations came into effect will not have the required information. They may not be able to get it from the original creditor. They may still try to bluff or intimidate you into paying them or admitting that the debt is yours.
If you receive a Notice of Debt, examine it in detail to make sure it complies with the law. If it doesn’t, inform the collector that you will not discuss the debt until you receive a Notice of Debt that complies with Regulation F.
Always Dispute the Debt
If you do not dispute the debt within 30 days, it is presumed valid. Always dispute debts held by collection companies.
If you are using a dispute or debt validation letter template, be sure that the template is designed for notices received after the implementation of Regulation F on Nov. 20, 2021. Much of the information that debtors used to ask for is now required in the Notice of Debt.
Send the debt collector a certified letter addressing these issues.
- Ask for documentation that verifies that you owe the debt, such as a copy of the original contract.
- Ask whether the statute of limitations on the debt has expired. The collector doesn’t have to tell you, but they can’t lie. If they won’t say, the statute of limitations may have expired.
- Ask whether the agency is licensed to collect debt in your state. Again, the collector is not allowed to lie. You can ask for the date of the license, license number, and the state agancy that issued the license as well.
- A copy of the last billing statement sent by the original creditor.
Send the letter to Midland Funding by certified mail.
Once you receive the debt validation letter you have 30 days to send your debt dispute letter.
Remember that even if you know the debt is yours, the more important issue is whether they know it’s yours.
Because guess what?
If they can’t prove it’s yours, they can’t collect it or report it to the credit bureaus.
They might not be able to come up with that proof. Remember, Midland Funding purchased your debt, in bulk with a bunch of other debt, from the original creditor.
Who knows what was lost in the shuffle?
The onus is on them to provide proof. If they can’t, they’re required by law to remove it from your credit report.
Remember the Statute of Limitations
Always check the date of the debt against the statute of limitations in your state. If the statute of limitations has expired, the collector cannot pursue legal action against you.
The statute of limitations clock begins on the date when the debt was first reported as delinquent.
Remember that making a payment or acknowledging that the debt is yours can restart the statute of limitations.
The expiry of the statute of limitations will not remove an account from your credit record. If the statute of limitations has expired or will expire soon there’s a good chance that the seven-year period of appearance on your credit record is also nearly up.
If the statute of limitations is nearly up your best bet might be to just wait it out.
3. Stop Calls from Midland Funding NOW
Before Nov. 20, 2021, you could get as many as 15 calls per day from a debt collector, according to a Consumer Credit Card Market Report.
That’s way too many.
That has changed. Regulation F places strict limits on collection calls.
- A debt collector cannot call you more than seven times within seven consecutive days.
- If a debt collector speaks to you on the phone they must wait seven days before calling again.
Debt collectors can now contact you by email and text message as well, but you can tell them how they are permitted to contact you and when.
You can stop all communication from a debt collector.
Follow these simple steps to stop the calls.
- Write a “stop contact” or “cease” letter telling them to stop contacting you.
- Make a copy for yourself and mail the original to Midland Funding.
- To prove you sent the letter, send it by certified mail with “return receipt requested.”
Make sure you follow these exact steps.
If you do, the National Consumer Law Center states, “the collector can only acknowledge the letter and notify you about legal steps the collector may take.”
When you stop the phone calls, you get some breathing room. Remember that you still owe the debt, and the collector can take legal action.
Then you can tackle the next step.
4. Contest the Debt With the Credit Bureaus
If you believe that you do not owe the debt or that the collection agency has failed to validate the debt, you can file a dispute with the credit bureaus. You will need to dispute the account separately with each credit bureau.
Credit Reporting Bureau Mailing Addresses
|P.O. Box 740256 Atlanta, GA 30374-0256||P.O. Box 9701 Allen, TX 75013||P.O. Box 2000 Chester, PA 19016-2000|
You can also dispute it online:
The credit bureau must investigate and verify your debt. If they cannot, they must remove it from your credit record.
Remember that even if the debt is removed from your credit record, the collection agency can still pursue collection efforts.
Get Your FREE Credit Dispute Letter Template
Get our winning dispute letter, plus free tips to help you boost your credit.
5. Settle With A Pay For Delete Agreement
While occasionally the collection debt isn’t yours, most of the time, it is. If that’s the case, a settlement is one way to resolve the situation.
Remember that debt collectors pay, on average, 4 cents for every dollar of debt that they buy. That gives you room to negotiate. A collector can accept less than you owe and still make a profit.
An article from U.S. News & World Report found that collection agencies will settle for between 40-60% of the balance – which could mean thousands of dollars saved.
You might offer 10% of your balance to see what they say.
They’ll probably ask for more, but don’t let them push you around. With a little negotiation, you can reach an agreement you’re comfortable with.
Pay for Delete
A collection agency may agree to remove your account from your credit record if you settle your debt. This is called a “pay for delete” arrangement.
When you discuss a settlement, ask the collection agency representative if they will delete your record if you pay. Send a formal “pay for delete letter” to confirm the arrangement and ask for a written commitment.
Remember that you cannot compel a credit bureau to remove a legitimate account from your record. It will be recorded as paid, but it may remain on your credit report for seven years from the date when the account first became delinquent.
A pay-for-delete arrangement is a gamble. It may not work, but it’s worth trying. If the settlement is accepted you will no longer have to deal with the collection agency, and that’s a big plus.
Get Your FREE Pay for Delete Letter Template
After much testing, we have put written a great pay to delete letter you can use to get started.
Hire A Credit Repair Company
If you don’t want to go through all the trouble of writing letters and negotiating with Midland Credit Management on the phone, you can always consider hiring a credit repair company to help.
A credit repair company is equipped to deal with aggressive debt collectors to help you get the best possible outcome.
The credit repair industry has earned a terrible reputation, and you’ll have to look out for disreputable companies and credit repair scams. There are still some companies that are legitimate and helpful.
Choosing to work with an expert sooner rather than later can save you a lot of time and money in the long run.
Get Professional Help
We analyzed 21 credit repair companies based on price, service, and results, and picked our top three choices.
Then you can sit back and relax while the credit pros do all the work.
If you’d rather do it yourself, that’s okay, too.
What If They Sue?
Collection agencies will take you to court, sometimes over quite small amounts. If you do get sued, don’t ignore the case.
If you don’t respond, the judge will probably issue a summary judgment against you. You will be ordered to repay the debt. If you don’t, your wages could be garnished. In some states, your assets could be seized.
Not all companies will exercise their right to file a lawsuit against you, but a lawsuit is always a possibility when dealing with an aggressive debt collector.
⚠️ Important! Read up on what to do if you get sued by a debt collector to make sure you take all the right steps.
Get Rid of Midland Credit Management for Good
Hopefully, you found these suggestions for getting Midland Funding off of your credit report and out of your life helpful.
If Midland Funding, LLC is contacting you about debt, keep one thing in mind: Don’t bury your head in the sand. You have options.