Why is Midland Funding suing me?
Ah, Midland Funding. Any lawyer working with people to resolve debt issues has run across Midland Funding. I wish I could say nice things, but that's just not in the cards.
Midland Funding is a debt buyer that purchases mountains of debt from credit card companies at extremely low rates and tries to collect that debt from people who have never heard of or done business with Midland Funding.
Midland Funding is a debt buyer. Debt buyers are companies that purchase massive portfolios of consumer debt for pennies on the dollar and then turn around and try to collect that debt. Some debt buyers focus on medical debt while others focus on credit card debt. Some really shady outfits focus on payday loans and other borderline usurious debt. Most if not all of the cases I have had with Midland Funding come from credit card debt. As far as I can tell, Midland usually buys the debt directly from the credit card company or from a debt broker.
So how does Midland Funding make money?
Midland Funding makes money by collecting on the debt that they buy. Even though they probably paid what amounts to pennies for your debt, they can legally try to collect the entire amount. Think of it as though they were selling candy bars. Imagine they buy candy bars in bulk for 15¢ a bar then turn around and sell each bar at a sporting event for $1.15. That's what they do with your debt—they buy it cheap and collect it from you at full value.
So why are they suing me?
Suing people is how Midland Funding enforces the debt is supposedly owns. They file thousands of lawsuits against people who they claim have not paid the debts owed and take default judgments in a huge percent of cases. Most people ignore the Summons and Complaint and forget all about it until Midland Funding or one of the hundreds of other debt buyers starts garnishing their wages and really putting the pressure on.
What happens if ignore it?
Midland will probably take a default judgment and then try to find out where you work. Once they do that, they wil start garnishing your wages as soon as they can.
So what can I do?
Midland Funding, in my experience, has limited documentation of the debt. They have to prove that you owe the debt and that they own the debt. In the cases I have handled, they often don't have the paperwork to prove either. And even if they do have the paperwork, they often have no way to actually get it admitted in court. They file thousands of cases per year—do you really expect each and every case to be fully supported by documents? I don't.
Final point - there are tons of resources online about how to fight a debt collection lawsuit. I'm not the only lawyer talking about this online. But the process can be complicated, and a lawyer can help you keep your head above water when pushing back against companies like Midland Funding.