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How to Beat a Midland Funding LLC Debt Lawsuit

George Simons | February 02, 2024

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Fact-checked by Patrick Austin, J.D.

Patrick Austin
Attorney from George Mason
Patrick Austin, JD

Patrick Austin is a licensed attorney with a background in data privacy and information security law. Patrick received his law degree at George Mason University's Antonin Scalia Law School, where he served as the Editor-in-Chief for the National Security Law Journal.

Summary: Midland Funding is owned by Encore Captial Group, one of the biggest debt buyers in the United States. As such, Midland has a system of purchasing old debt accounts at a discount and collecting on the full amount. If you've been sued for a debt by Midland Funding, you should respond to the lawsuit ASAP with a written Answer. LLC, use SoloSuit makes it easy to draft and file your Answer and increase your chances of winning, all in a matter of minutes.

You may have heard the phrase: “80 percent of success is just showing up.” Well, that phrase applies with full force when it comes to being sued by a debt collector like Midland Funding LLC. To beat them, simply showing up gives you an edge relative to other consumers trying to figure out how to beat a Midland Funding LLC debt lawsuit.

Specifically, many debt collectors (Midland Funding LLC included) that file lawsuits against consumers are not actually prepared to prove their debt collection case in court. What does that mean for you? That means that if you simply “show up” to court, you have a chance to prevail that debt collection lawsuit, and the debt is dismissed forever!

Specifically, many debt collectors (Midland Funding LLC included) that file lawsuits against consumers are not actually prepared to prove their debt collection case in court. What does that mean for you? That means that if you simply “show up” to court, you will likely win that debt collection lawsuit, and the debt is dismissed forever!

So, if you have been sued by Midland Funding LLC, you may be tempted to ignore it with the hope that it will go away. Resist that temptation. Responding to the lawsuit, even if you know you owe money, will allow you to fight back and, most likely, beat Midland Funding LLC.

In this article, we will talk about Midland Funding LLC, what it is and its business model, and then we will talk about how you can easily and quickly respond to the lawsuit in order to stand up to Midland's intimidation tactics. With the help of SoloSuit, you will have the information you need to “show up” in court and force Midland Funding LLC to prove their case.

Don't like reading? Who does — watch this video instead.

Not sued yet? Fight back with a Debt Validation Letter.

What is Midland Funding LLC?

Midland Funding LLC is a wholly-owned subsidiary of a company called Encore Capital. You would not be at fault for not knowing who Midland Funding LLC is. If you owe some kind of consumer debt, you most likely dealt with a different company. Midland Funding LLC specializes in simply buying consumer debt from other companies and suing the consumers to collect on the debt.

Midland Funding's business model, similar to many debt collection shops, is to purchase a consumer debt for about three cents for every dollar owed. Then make a large profit by suing the consumer and getting them to pay off the full debt.

The next part of the business model is Midland Funding's expectation that the consumers they sue will fail to answer or otherwise show up to court—which actually happens about 90% of the time. When that happens, Midland Funding asks the court for what is called a “default judgment,” meaning that it wins its case against the consumer because the consumer did not show up. Then Midland Funding will use the default judgment to garnish the consumer's wages or otherwise interfere with the consumer's bank accounts. Don't let Midland Funding do that to you—make sure you show up in court. More on that below, but first:

Decide what you need to do next

People come to SoloSuit at all different points in the debt journey. The "Document Calculator" below will help you determine what you need to do next. Just enter the last document you received about the debt and it will calculate what you need to do next.

For example, if the last document you received about the debt was a Complaint and Summons, just select that from the drop-down menu and the calculator will tell you the next documents to file. It's easy!

Document Calculator

What is the last document you received?

This calculator is for educational purposes only.

Why is it so important to “show up” in court against Midland Funding LLC?

It is important to respond to a Midland Funding debt lawsuit because it is possible that the company will not have the necessary documentation to prove their case. Thus, by simply responding to the lawsuit, and essentially saying to Midland Funding that they need to actually prove that you owe a debt to them, Midland Funding could fold like a cheap pair of pants.

Even if you know you owe a debt, Midland Funding has the burden of proving (i) that they legally own your account with the debt on it, (ii) that the amount they claim that you owe is correct, and (iii) that they filed their lawsuit within the relevant statute of limitations.

SoloSuit makes it easy to win a debt collection lawsuit.

How do you “show up” in court against Midland Funding LLC?

It is easier than you think to respond, or Answer, a debt collection lawsuit. But remember, you only have a limited amount of time, so don't dawdle. Contact SoloSuit sooner rather than later to get the help you need to quickly create, complete, and file your Answer to the debt collection complaint. Here are a few things to keep in mind:

The court, in response to the lawsuit, is expecting you to file a document appropriately called an “Answer.” In that Answer, you need to admit or deny every statement of fact that Midland Funding makes in the Complaint, and you should briefly state why you do not owe any money. Specifically, the three things you need to focus on when filing an Answer are:

  1. Respond to each allegation listed in the Complaint. You need to admit or deny each and every allegation in the numbered paragraphs in the Complaint (most attorneys recommend denying everything);
  2. Assert Affirmative Defenses. If the debt was not in your name, you have already paid the debt, the company already forgave the debt, or the company is too late in suing you (i.e., the lawsuit was filed after the statute of limitations), then you need to assert those as “affirmative defenses;”
  3. Mail the Answer to Court on Time. Ensure that you mail the Answer to the appropriate court within the time allotted.

Those three steps might seem difficult – you may never have heard the term “affirmative defense” or “statute of limitations” before – but that is where you can easily get the help of SoloSuit.

SoloSuit makes it easy to respond to a debt collection lawsuit.

Does Midland Funding show up in court?

In most cases, Midland Funding LLC shows up in court hoping that the defendant misses the hearing so that they can obtain a default judgment. So, yes, Midland does show up in court most of the time, and you should show up too.

Do not let Midland Funding LLC intimidate you with a lawsuit—Fight back

As noted, many companies, including Midland Funding LLC, will file lawsuits against a consumer who owes a debt with the hope that the consumer will fail to respond. Don't be that consumer. Push back by simply showing up to court, and you will call their bluff. Let SoloSuit help you respond to the Midland Funding LLC lawsuit today. You have a way to fight back – and you can easily do it with the help of SoloSuit.

This flowchart outlines all the possible routes that a debt lawsuit with Midland Funding can take:

How to win a debt collection lawsuit flowchart. Litigation Flowchart.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

Midland Funding LLC collects for big banks and credit card companies

Midland Funding LLC purchases debts from credit card companies, banks, auto loan companies, and just about any other type of financial service. Namely, Midland is known to buy debt from Capital One, Citibank, Discover, and American Express. They are the nation's largest debt purchaser, which means they can be connected to any type of debt.

After Midland Funding LLC has purchased a debt from a creditor, it's actually Midland Credit Management that collects the debt. In other words, Midland Credit Management is the third party debt collection agency that services the accounts for Midland Funding LLC. You might be wondering, "Who is Midland Credit Management?" so let us explain.

Midland Credit Management collects on behalf of Midland Funding LLC

In short, Midland Funding and Midland Credit Management are basically the same entity, but they perform different roles. While Midland Funding LLC scours the nation looking for charged-off debts to purchase, MCM collects debt for the accounts that have already been purchased. Both entitites are a part of a parent company called Encore Capital Group.

For example, Jonny has a Discover credit card, and he's fallen behind on his payments. After a few months, Discover charges off the debt and closes the account. Here's where Midland Funding LLC swoops in and purchases the debt (sometimes for as low as 10%-20% of the original amount owed). Then, the torch is passed off to Midland Credit Management who reaches out to Jonny with the goal of getting him to pay off the full debt. When Jonny ignores MCM, the case is taken to court.

Keep in mind that, while Midland Funding LLC purchased the old debt, that doesn't necessarily mean that the debt is valid. The debt may be past the statute of limitations, it could be an incorrect amount, and Midland Funding might not have all the proper documentation needed to take legal action. For this reason, it's so important for Jonny to verify the debt before making any moves.

How to respond to a Midland Credit Management lawsuit

If Midland Credit Management sues you, filing a written Answer is the first step to responding. Here are 6 helpful tips for drafting an Answer:

    1. The Answer isn't the place to tell your side of the story in detail: At this stage in the suit, the burden of proof is not on you. You shouldn't give an elaborate description of your side of things, because this can actually end up weakening your case. Just respond to each claim that was listed against you in the Complaint document, and watch the burden of proof weigh heavily on Midland's shoulders.
    2. Deny Deny Deny: Most attorneys recommend that you deny as many of the claims against you as possible. Denying is kind of like saying, prove it, so it requires Midland to do more work to prove their case.
    3. Include defenses: You should include a section in your Answer where you state your affirmative defenses. These are facts you can raise that prove Midland has no case (i.e. the debt is past the statute of limitations, the debt is fraudulent, Midland harassed you into paying off the debt, etc).
    4. Use standard formatting or “style”: Your Answer should be typed with standard font (i.e. Times New Roman or something similar) and look professional. Most courts require that you include a caption with the court's name, a title, and the case number.
    5. Include certificate of service: The certificate of service is usually a small statement at the end of the document that certifies the Answer was sent to the plaintiff's attorney with the official mailing address that was used. Some courts have a specific form you must fill out for service.
    6. Sign it: Make sure to sign your Answer at the bottom of the page. All courts require a signature, and some require a wet signature.
To learn more about these 6 steps, check out this video where SoloSuit's founder breaks each of them down:

What if I haven't been sued yet?

If you've only received a collections notice from Midland, but not a lawsuit, the best way to respond is with a Debt Validation Letter. When a debt collector contacts you in any way, whether it's by phone or mail, you can respond with a Debt Validation Letter. This letter notifies Midland that you dispute the debt and requires they provide proof you owe the debt. They can't call you or continue collecting until they provide validation of the debt.

Using the previous example, Jonny finds out that his debt is years old before Midland takes the case to court. Since he hasn't been active on that account for more than 15 years, the debt is likely past the statute of limitations (which varies by state). Jonny sends a Debt Validation Letter, and he finds out that Midland doesn't even have enough documentation to prove that they own the debt. They let Jonny know that they will cease collection efforts. Jonny wins!

As you can see, Debt Validation Letters can make all the difference, especially when dealing with huge debt buyers like Midland Funding. This video shows how to make a Debt Validation Letter in two steps:

Get started with a Debt Validation Letter here.

Midland Funding's address is P.O. Box 340 in Waite Park, MN

If you decide to send a Debt Validation Letter, or if you just need to contact Midland Funding, you should use the following address:

Midland Funding, LLC
P.O. Box 340
Waite Park, MN 56387-0340

If you need to send the letter to Midland Credit Management, here's their address:

Midland Credit Management
P.O. Box 939069
San Diego, California 92193

Be sure to keep a record of all your communications with Midland Funding in case you need it for court later on. Any letters you send should be sent via USPS certified mail with a return receipt requested. This will ensure that you have proof of sending a Debt Validation Letter, which will likely strengthen your case in the future.

Settle your debt with Midland Credit Management

You can settle a Midland Credit Management LLC lawsuit by working with the law firm that is suing you to negotiate a settlement agreement. It may take several rounds of negotiations, but Midland Credit Management is usually willing to settle a lawsuit for less, and they will still earn money from the settlement.

On average, debt buyers like Midland Funding purchase debt portfolios from big banks and credit companies for 4¢ per dollar of debt owed. For example, if you owe $1,000 to Discover, and they sell the debt to Midland after charging it off, Midland may pay only $40 to acquire the debt. So, even if settled for half the amount you originally owed, Midland would still make a huge profit.

Keep this in mind while you work to settle a Midland Credit Management lawsuit. Now, see what being sued by Midland Credit Management actually looks like.

Example of Midland Credit Management lawsuit

Note: names have been changed for privacy purposes.

Mike received a notice from ABC Legal that he was being sued by Midland Credit Management for an old debt with Capital One. Below are the court documents he received in the mail

First, Mike received a court Summons that notified him of the case:

Second, he received a Complaint which outlined all the specific claims against him, including the claim that he owed $3,411.65 to Midland Credit Management:

The typical process that a Midland Credit Management lawsuit involves is services of these court documents and then filing a motion for default judgment.

Midland Credit Management and its lawyers don’t expect you to respond to the lawsuit in time, and if this happens, they have the right to request a default judgment against you. Here’s what that looks like:

In Mike’s case, Midland Credit Management claimed he didn’t respond to the lawsuit in time and filed for default. However, they didn’t know that Mike used SoloSuit to draft an Answer to the case and filed it before his state’s deadline. When Midland realized this, they were shocked.

Mike still wanted to settle the debt, so he contacted ABC Legal to negotiate. When Midland Credit Management realized Mike wasn’t going down without a fight, they were more open to discuss settlement options and accept his offer to settle for 50%.

In the end, Mike saved money by settling, and Midland earned more money than it cost to purchase the debt from Capital One.

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