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If you just received a call or letter from Midland Credit Management, you might be wondering ...
Why is Midland Credit Management contacting me?
Today I'll explain what you need to know, as well as what to do next.
First, let's get familiar with Midland Credit Management.
What Is Midland Credit Management?
Midland Credit Management is one of the largest debt collection agencies in the United States. They collect past due debts ranging from medical bills to credit card debts. Some of their clients include Capital One, Discover, Chase and Walmart.
Midland Funding, on the other hand, is a financial company that purchases delinquent accounts for pennies on the dollar, then Midland Credit Management services those accounts attempting to collect the outstanding balances.
Midland Credit Management and Midland Funding sound synonymous but are two different companies. They are both subsidiaries of Encore Capital Group.
What To Do If You Receive A Call Or Letter From Midland Credit Management
If you receive a call or letter from Midland Credit Management:
- Don't ignore the call or letter. Whether you legitimately owe the debt or not, you want to respond. Failure to respond usually only makes matters worse, especially if you owe the debt.
- Is the debt legitimate? If not, then consider disputing the debt. If you want to dispute the debt, you should respond in writing within 30 days of receiving their collection letter. If they don't validate the debt, you can then request they close their file and cease further collection activity against you. For more information on how to properly dispute a debt, please see my in-depth guide here. However, Midland Credit Management may validate the debt. If they do provide proof that you owe the money, then you need to start thinking about how to resolve that debt.
PRO TIP : Do not request validation of a debt if you know the debt is valid because there's a 99% chance that Midland Credit Management will be able to produce documentation to validate the debt. Once you force them to invest time and resources, they're likely to be in less of a mood to negotiate and you've reduced your chances for a favorable settlement. - Try and work something out. If you know the debt is valid, try to nip this problem in the bud and resolve the matter ASAP. Delaying only adds to your stress, not to mention interest and late fees will continue to accrue. If you have access to immediate funds, you can attempt to negotiate a lump sum settlement with Midland Credit Management for a reduced amount. If you don't have sufficient funds to offer a lump sum settlement, then propose a monthly payment plan you can afford.
Will creditors really accept less than full balance to settle past due accounts? Absolutely. Here's proof. For the past 15 years, we've helped our clients obtain millions of dollars in debt relief ... without the need to file bankruptcy. If you'd like to talk with us about getting debt relief for you, request a free phone consultation to see if you qualify.
Will They Sue Me?
I can tell you from firsthand experience that if you don't work out a lump sum settlement or monthly payment plan with Midland Credit Management they will likely sue you, which could ultimately result in wage garnishment, liens on property or seizure of assets.
And by the way, if they get a judgment against you, that judgment remains valid for years depending on the state you live in. So if they're unable to satisfy the judgment today, they might try again to enforce the judgment in a few years when you least expect it. Ouch.
So if you get a "pre-legal" notification letter in the mail from Midland Credit Management, they're probably not bluffing. It's their way of letting you know you have one final opportunity to work something out voluntarily before they start legal proceedings against you.
Here are a few common questions we get from clients:
- Can Midland Credit Management take money from my checking account? Maybe. If they sued you and received a judgment against you, the money in your checking account is fair game. But collection agencies like Midland Credit Management cannot just go into your checking account and take your money without first going through the legal system to get a judgment against you.
- Can Midland Credit Management garnish my wages? Same answer as the previous question. Collection agencies must follow due process of law. That means they can't garnish your wages, take your money or slap liens on your property until they prevail in court and get a judgment against you.
- Will Midland Credit Management settle out of court? Probably, but there are no guarantees. It's always better to reach a voluntary workout plan before a creditor or collection agency takes legal action against you or is awarded a judgment against you. When you force a creditor to initiate legal proceedings, that costs them time and resources, which means they're going to be less likely to cooperate. After a creditor gets a judgment against you, they know they have leverage against you because judgments remain valid for years. So yes, settling out of court is possible, but it's always better to resolve matters before they get to court.
How To Settle (i.e. Negotiate) With Midland Credit Management
If you owe the debt, one option is to try to negotiate a settlement for less than full balance with Midland Credit Management.
For tips on how to negotiate a settlement yourself, please see my in-depth guide here.
The key points to remember when attempting to negotiate a settlement on your own are:
- Don't let them bully you. Yes, you might owe money, but that doesn't mean you deserve verbal abuse. Just remain calm, stand your ground and don't let them rattle you.
- Remain humble. No one appreciates an arrogant jerk. You'll score more points by acknowledging you owe the money, that you feel bad you weren't able to pay as you had hoped and you desperately want to work things out voluntarily with the limited funds you currently have available.
- Make a reasonable offer. Don't offer a ridiculously low settlement offer like $0.05 on the dollar because that will almost surely get rejected. The higher offer you make, the more likely they'll accept it. If you shoot for something in the range of $0.30-$0.50 on the dollar, it's much more likely to get accepted. Naturally, you can only offer what you can afford. And remember, whatever you offer, the funds have to be available in your checking account ready to go for immediate release. That's part of the motivation for a creditor accepting less than full balance.
PRO TIP: When presenting your settlement offer, don't talk in terms of percentages like, "I'll offer you $0.35 on the dollar" because that will signal you're haggling like buying a used car. Negotiating a financial settlement on an outstanding balance is not the same as negotiating the price of a used car. Therefore, when presenting your settlement offer on your outstanding debt, always talk in terms of real dollars. - Get it in writing. Never release settlement funds on just a verbal agreement. Always get things in writing. This is standard in the industry and don't let anyone tell you otherwise. The settlement letter should state the settlement amount clearly and that after they receive the funds the matter will be considered settled and no further balance is due.
There's an art and a skill to successful negotiating. And some people just aren't good at negotiating. It's nothing to be ashamed of. If you'd like help resolving your outstanding debt(s), request a free consultation and we'll see what we can do to help. Negotiating settlements is our specialty and over the years we've obtained millions of dollars of debt relief for our clients.
Complaints And Reviews
As you might expect, most people are going to have an adversarial relationship with collection agencies in general. So Midland Credit Management has numerous online complaints, fair or not. Some people have accused Midland Credit Management of being unfair, harassing debtors and being unprofessional. Others have complained about the company's tactics for trying to collect debts, such as calling debtors at all hours of the day or sending letters that are difficult to understand.
Conclusion
If you have an outstanding debt being handled by Midland Credit Management, it's best to be proactive and try to work something out voluntarily before they take legal action against you. And based on our dealings with Midland Credit Management, they will sue.
Assuming you have access to some funds, the best option is to try and negotiate a lump sum settlement for less than full balance. If you don't have access to funds, then the next best option is to work out a monthly payment plan you can afford.
Whatever you do, don't ignore calls or letters from Midland Credit Management (or any debt collector) because often that just makes matters worse.
To see if you qualify for debt relief, fill out this form and we can let you know right away.
I received a certified letter from Midland Credit. I went through a debt consolidation back in 2021. They now want me to go to court to see if I can pay this bill. I live off of SS and have no way of sending them any money. What can they request of me at this time? What can I take to court to let them know I went through a debt consolidation? Please let me know, my court date is April, 17th 2023. Thank you