Midland Funding Default Judgment

A Default Judgment occurs when no answer is filed to a lawsuit or you failed to appear in Court for a scheduled trial.  Judgment problems are very concerning and if you have a recent default judgment you should take immediate action to remedy the judgment.

Midland Funding is a debt buyer. The company is a unit of Encore Capital Group, the largest debt buyer in the country. Midland and Encore buy old credit card debt that has been “written off” by the original credit card lender. They pay less than the total amount of the debt (often just pennies on the dollar) and earn a profit by pursuing the debtor for the total amount of the debt.

How a Debt is Sold?

Credit card companies sell debts that are 180 days or more past due. When the debt is sold, the seller must provide the buyer:

  • Original agreement that includes the terms and conditions of the credit arrangement,
  • Copies of all paperwork related to the debt, including the dates of the transactions
  • Complete record of how interest and other charges were applied
  • Documentations of how payments were apportioned
  • Proof the buyer purchased the specific account
  • Terms and conditions of the sale of the debt

As long as the debt buyer is able to show proof of all of this documentations, they have a legal right to file a lawsuit and collect on the debt.

What Happens If the Debtor Doesn’t Respond to a Lawsuit?

More often than not (some statistics show more than 80-90 percent of the time) Midland receives a default judgment from the court after the lawsuit is filed because the debtor fails to respond to the lawsuit. The default judgment gives Midland the authority to collect on the total amount of the debt through bank levies and other aggressive techniques. Despite the company possibly not even having the authority to prove they are legally entitled to collect on the original debt, they are able to do so because of consumer ignorance and fear.

In order for Midland Funding to be granted the authority to collect on a debt, the company must show the court:

  • The debt hold (you) is responsible for payment of the account
  • That Midland rightfully owns the debt
  • That the amount is accurate
  • That the lawsuit been filed within the appropriate statute of limitations for collection

Debt are Trying to Take Advantage of Consumer Ignorance

If you’re contacted by Midland Funding, Midland Credit Management, Encore, or any creditor representing them, you need to take action. Don’t ignore their attempts to take you to court and don’t try to handle the situation on your own. There is a strong chance you will not be held responsible for the entire amount of the original debt and you should do whatever you can to defend yourself. For more information or to schedule a consultation, contact 1.800.220.4318.

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