You may think of a debt collector as a shady, small office with people operating lines of phones used to harass people like you. Increasingly, corporations are dominating the space of debt collection. These billion-dollar companies make millions of dollars yearly in profits from buying large chunks of debt from creditors who must sell.
Midland has used questionable tactics to collect debt in the past. When you end up in debt to Midland, you can expect to be subject to illegal practices, such as filing a lawsuit against you without proof to show that you even owed the debt in the first place. If you owe Midland money, you may have room to negotiate regarding the amount you will have to pay back. You may not be as powerless as you think.
You can help your situation by hiring an California FDCPA attorney to stand up for you. When you owe money, you still have rights given to you by state and federal law. If Midland violates these rights, you can file a lawsuit directly against the company, leading to financial compensation.
Midland Buys the Debt You Owe and Then Comes After You
You may wonder why you received a letter from a company called Midland Funding because you never had a business relationship with it. Midland Funding is a debt collector and acquires a relationship with you when it purchases the debt you owe to a creditor. The creditor has written off the debt if you have not made payments for six months or more. Then, to get some money, it will sell your debt (along with that of thousands of other people) to companies like Midland.
Once Midland has bought your debt, it can collect it fully. Your original creditor is out of the picture, and Midland will take its place and start the collection process. The company may send you a letter informing you of the debt you owe and telling you it intends to collect, and a representative will likely call you to discuss your options. Midland will try to intimidate you into paying the debt using whatever means necessary and even file a lawsuit against you after a certain amount of time.
Midland Wants You to Ignore Its Letter and The Lawsuit
Midland aims to obtain a judgment allowing it to collect money. Each state has a specific period for how long judgments are open and valid, and Midland will do things like garnishing your income and even trying to seize your bank account. Once it registers the judgment, Midland will make your life difficult for many years and will not stop at simply getting a judgment.
You Can Negotiate to Reach a Settlement Agreement
If you owe the money that Midland says, reaching a settlement agreement may be in the best interest of you and the company. Midland does not want you to enter the bankruptcy process because if you enter Chapter 7 bankruptcy, it may see pennies on the dollar – if it gets any money from you at all. While you can declare bankruptcy, it does not come without a cost. If you end up in Chapter 7 bankruptcy, you may have some of your property seized by the trustee; therefore, it may benefit you to avoid this option.
Once a debt collector has purchased your debt, you can begin to negotiate a settlement plan that will allow you to avoid bankruptcy while Midland still makes a profit. In a way, you and the debt collector can both win some. In a settlement agreement, you agree to pay some of what you owe, and Midland Funding agrees to accept less than you owe and close the debt.
Negotiating a debt collection settlement requires a strategic approach. It is important to know your rights and options as a debtor, as well as to have a clear understanding of your financial situation. Consider engaging the services of a qualified debt collection attorney to guide you through the process and advocate on your behalf. An attorney can help you assess the validity of the debt, negotiate favorable terms, and ensure that your rights are protected throughout the settlement process.
During the negotiation process, maintain open and transparent communication with the creditor. Present your financial circumstances honestly and provide supporting documentation if necessary. By demonstrating your willingness to cooperate and find a mutually agreeable solution, you can increase the likelihood of reaching a favorable settlement.
When negotiating a debt collection settlement, be mindful of your limitations. Set a realistic budget that allows you to make the agreed-upon payments without compromising your ability to meet your other financial obligations. Remember, the creditor may be willing to negotiate the debt amount, payment terms, or even offer a payment plan that suits your financial capabilities.
Midland Wants Any Possible Money So It Can Continue to Buy Debt and Sue Others
Midland Funding is often willing to settle for less because it is better than getting nothing at all. You have to understand the way that Midland makes money. The company buys delinquent debt that creditors must write off because there has been no payment for at least 180 days. Midland pays far less than the total value of the debt, and depending on the quality of the debt, the company can pay as little as pennies on the dollar. If Midland gets more than that from you in a settlement, it has made money, booked the profits, and can purchase more debt to collect even more money.
Midland even characterizes its team as a group of “friendly” people trying to help you. In the end, this team is doing its job, which is to help Midland make money and to persuade you to pay. Individual debt collectors have incentives to go after you with everything they have to take home the most significant payday for themselves. Even if they settle for less than you owe, Midland makes money and considers it a successful collection.
You Can Stop Midland from Getting a Judgment Against You
If you do not owe the money that Midland claims, you can and should fight back. First, you must dispute the fact that you owe any money, and if you can show Midland that they have made an error, they may stop collection efforts. Debt collectors can make mistakes because they buy large chunks of debt, and their employees often cut corners. They can make mass certifications that each debtor owes the money, even when they do not have the proper documentation.
Thus, you must fully participate in litigation if a company like Midland sues you for an allegedly unpaid debt. If you do not respond and fail to defend yourself in court, Midland may get a judgment against you, which it can collect upon for as long as the judgment is valid. If you do not owe the money, you must hire an attorney to defend yourself and show up in court. Midland will need to bring the documentation that backs up its claim, and if it cannot show that you owe money, you should successfully defend the lawsuit. When asked to prove that you owe money, Midland has its figurative “the emperor has no clothing” moment.
Midland’s entire business model rests on people like you not standing up and saying no when it tries to collect what it says is a debt. If the company has to show up in court, it may not have the necessary paperwork to win the case. Remember that Midland has the burden of proof to show you owe money.
Never ignore a complaint against you by Midland. You have a limited time to respond, which you must do by filing an answer within a set time, usually 20 or 30 days, depending on the service of process. As soon as you are served, speak with a debt collection attorney who can review the situation and determine how to answer.
Your lawyer will take the time to review the lawsuit and gather any evidence or documentation that supports your case. If you admit to owing the debt but cannot pay, your attorney might provide the court with an explanation of your financial situation. This can help you negotiate a more affordable payment plan or even have the debt dismissed. They also might try to negotiate with Midland out of court to avoid proceeding with the lawsuit.
You May Be Able to File a Lawsuit Against Midland Under the FDCPA
If Midland falsely claims you owe money, you can turn the tables against the company with a lawsuit. You can file a lawsuit under the Fair Debt Collection Practices Act when the debt collector engages in abusive tactics. Congress passed the FDCPA in the late 1980s to protect people like you from these tactics. The debt collector must be honest when collecting debt from you and cannot make any false statements, even if they are accidental. It is up to Midland to have its documentation in order and ensure that everything the debt collectors do is ethical.
The Government and Consumers Have a History of Suing Midland
Many people and organizations have sued Midland for wrongful conduct. In recent years, the Consumer Financial Protection Bureau sued Midland for violating the terms of a previous consent order. One of the significant instances of illegal behavior was Midland’s repeated efforts to collect debts without the required verification. In addition, Midland also used law firms to collect debts without giving the necessary disclosure to debtors.
Your Damages in an FDCPA Lawsuit
If Midland has done any of these or wrongfully claims that you owe a debt, you can file a lawsuit against the company. If you can successfully sue Midland under the FDCPA, you can receive the following in damages:
- Statutory damages of up to $1,000 for breaking the law
- Your actual damages that you suffered, including the time that you had to take from work to go to court to fight the lawsuit and the emotional distress that comes from being wrongfully sued
You can also file a lawsuit against Midland under state law. The FDCPA does not allow for punitive damages. However, you can get them under state law if Midland willfully and egregiously ignored the law. If the company has a widespread pattern of filing lawsuits that have no basis in any documentation, the court may want to punish it.
Hire an FDCPA Attorney Today if You Believe that Midland Was Acting Illegally
If you believe that Midland is trying to pressure you into paying for a debt you do not owe, or if the company has filed a lawsuit against you for a false debt, you need to hire an attorney. Some lawyers fight for their client’s rights under the FDCPA. An attorney can file an individual lawsuit on your behalf, or you can join a class action lawsuit (when a large class of plaintiffs have suffered similar harm). You may think what Midland has been doing was wrong, but you do not know it was against the law. A lawyer will review your case and help determine whether you can file a lawsuit.
You can only effectively take the fight to Midland with the help of an experienced attorney. While you have your right to a day in court, you may be unable to make a compelling case when speaking for yourself. Midland has attorneys who will go after the consumer with the maximum possible effect. They know how to manipulate the legal system unless you know what to do to stop them.
You Do Not Have to Pay Upfront for a Debt Collection Attorney
Hiring an FDCPA attorney does not cost you anything upfront. Your lawyer only receives payment if you win your lawsuit against Midland. Then, the law may even require Midland to pay your attorney’s fees. You do not have to pay your attorney anything if you do not win your case. You have the best chance of winning and getting justice when an attorney sits across the table from Midland. The company is not expecting it, and legal help can change the situation in your favor. Reach out a seasoned consumer protection lawyer in your case.