Sued by Midland Funding? Here's what you need to know:
Updated: Dec 31, 2019
Did you just get a notice in the mail that Midland Funding is suing you? Are you wondering who Midland Funding is and why they are suing you?
Midland Funding is a debt buyer that purchases unpaid accounts from banks, credit card companies, and payday lending companies. Creditors generally will stop trying to collect on accounts and will deem them “charged off.” “Charged off” means that the original creditor has given up on being repaid according to the original terms of the loan and now considers your account to be “bad debt.” This does not mean, however, that you no longer owe the amount that has yet to be paid.
The original creditors then sell these “charged off” accounts to debt buyer companies, such as Midland Funding, for pennies on the dollar. Midland Funding then initiates lawsuits on all of the accounts as a means to force payment by the debtor. Not only do they force a settlement by initiating a lawsuit, but they then add on fees and other penalties, claiming you owe even more money to them.
You Need to Respond to the Lawsuit!
The most important thing to do when being sued by Midland Funding is to make sure you respond!
“First and foremost, you will not want to ignore that collection lawsuit and decide you’re not going to respond or just put it away or tear is up” – Barry Coleman, Vice President of Counseling and Education Programs for the National Foundation for Credit Counseling.
The summons that you receive from Midland Funding, letting you know that you’ve been sued, will list a date by which you must file a response with the court. If you ignore the date and the court action altogether, the judge will assume the debt is yours. What this means is that Midland Funding can then enter a default judgment against you. A default Judgment allows Midland Funding to collect the amount of money they are suing you for, plus interest, by garnishing your wages, placing a lien against your property, freezing the funds in your bank account or garnishing the funds in your bank account.
Force Midland Funding to Prove you Owe Them Money
You might think that the debt is not yours or that Midland Funding is suing the wrong person and decide to ignore it. Maybe they will just forget? Wrong. Often times debt buyers such as Midland Funding have inaccurate information and sue anyway. If you are concerned that Midland Funding is suing you but that you do not owe any debt, you must defend yourself so that a default judgment is not erroneously entered against you.
Negotiate A Settlement with Midland Funding
If you’re interested in negotiating a settlement with Midland Funding after a lawsuit has been initiated, it’s best to reach out to a skilled Debt Relief Attorney as soon as possible. Often times, once the lawsuit has already been initiated, it is more difficult for you to negotiate a settlement on your own. Mostly because the lawyers at Midland Funding are so hard to get on the phone. Additionally, if you do get them on the phone, they are going to be less likely to offer you a payment plan and are going to ask for you to make a lump sum payment.
When you have an attorney negotiate on your behalf, your chances of negotiating a lower settlement is much greater. An attorney can also carefully review all of your information to make sure you aren’t paying debt that you don’t actually owe.
Call the Debt Relief Attorneys at RC Legal Group today for a free case evaluation!
858-800-2458 or email us directly at firstname.lastname@example.org