Have you been sued by Midland Funding? – We win or there’s no Fee
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Midland Funding, LLC has sued me….now what?
The first thing that we tell our clients is this: “don’t be scared. Do not call Midland Funding or their attorneys. Do not pay them any money.” Midland’s entire business model is based on the fear that a lawsuit creates, and it only works if you behave like they want you to. They know that a large percentage of people will call Midland and immediately pay when they are sued. The other large percentage of people will do nothing and allow Midland to get a judgment. Either way, Midland wins. But, the fact of the matter is, Midland’s lawsuit is about as flimsy as the paper that it is filed on. There is a way to beat Midland’s system if you get legal help. With the right attorney you can turn this lawsuit into a money-saving opportunity. Fenters Ward has never lost a lawsuit to Midland.
Midland behaves much like any other debt buyer. For information about credit lawsuits visit our article on Consumer Debt Defense. There are a few things that you should know about Midland specifically.
All About Midland Funding, LLC
Midland Funding is a billion dollar company. Their business model is simple — Midland buys debts from banks that lend money to consumers. Midland is not a bank and they do not actually lend any money themselves. A debt is an asset that Midland can buy, and they want to pay as little as possible. Midland pays only 2 to 3 cents on the dollar for the rights to collect the debt against you. The fact that Midland buys the debts so cheaply is the secret to winning your case. Midland does not have the rights to communicate with the original creditor, and obtain the necessary documents, witnesses and proof needed to win the case under Pennsylvania law.
Need more proof? Take a look at the Consent Order drafted by the Consumer Financial Protection Bureau (“CFPB”) and the $40 million dollars in fines levied against Encore Capital Group, Inc., and its wholly-owned subsidiaries Midland Credit Management, Ind., Midland Funding, LLC, and Asset Acceptance Capital Corp. The CFPB is a federal agency charged with protecting consumers like you from unfair and abusive business practices.
The Consent Order was drafted by the CFPB based on facts collected over decades of research. Defense attorneys like Fenters Ward have been battling Midland in virtually every court in the United States for many years. Courts have dismissed millions of lawsuits filed by Midland for many reasons. The CFPB has taken notice, and detailed Midlands unfair and misleading debt-collection tactics in the 63 page Consent Order. The CFPB found that:
Why Has Midland Been Fined By The CFPB?
- Midland purchases debts for pennies on the dollar;
- Midland does not have the complete original account level documentation;
- Midland files misleading lawsuits when they have not viewed the complete account level documentation;
- Midland files lawsuits for debts that are out of the statute of limitations;
- Midland sends misleading collection letters;
- Midland fails to adequately investigate disputed debts.
Encore Capital Group, Inc. (Midland) has agreed to pay $42 million in refunds, stop collecting on $125 million worth of existing accounts, and pay a penalty of $10 million to the CFPB’s Civil Penalty Fund.
How has the Consent Order affected Midland Funding?
Fenters Ward defends several Midland cases every week. Since the Consent Order of September 2015, the number of lawsuits filed by Midland did not appear to have decreased. Midland still employs the same tactics in court. Apparently, Midland derives too much in profits from these tactics and they are not motivated to stop any time soon. The good news is that Pennsylvania courts are becoming increasingly aware of Midland’s unfair debt-collection tactics, which can only mean a greater chance of success in defending these types of lawsuits.
Don’t allow yourself to fall victim to Midland Funding. Do not delay. Once Midland obtains a default judgment you will lose your right to dispute the case forever. Call one of our experienced attorneys today. We would be honored to represent you.
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