Midland Funding LLC: A Look Inside

 


Being unable to pay your payments on time can have catastrophic personal and financial consequences. When a loan goes unpaid and into collections, it often leads to the collection of further debts. This appears to be especially true when a customer is unable to pay owing to personal circumstances such as the loss of a job or a family member's death.

What's even more frustrating when you're in a financial bind is being approached by debt collectors who are using every trick in the book to recover overdue debt from you. Awareness – understanding of their legal rights and knowledge of methods to employ when dealing with debt collectors – is the best tool a consumer can have when dealing with the conditions of being placed in collections and approached by collectors.

BECOME FAMILIAR WITH MIDLAND CREDIT MANAGEMENT

Midland Credit Management, a collection agency owned by publicly held Encore Capital Credit Group, will use a range of strategies to recover outstanding debt payments. Consumers who are forced to interact with Midland Funding LLC should know who they are and what their reputation is so that they may communicate in a way that best protects them.

Midland Credit Management, aka Midland Funding, has been in operation since 1953 and has a BBB rating of A+ since 1992. It is based in San Diego, but, like all other debt collectors, it buys debt accounts from a variety of lenders all around the world and then pursues individuals for payment.

Midland has an A+ rating with the Better Business Bureau, and their business procedures have been rated 3.7 out of 5 stars. Despite this, Midland Credit Management has 67 bad reviews on the BBB website alone. That's without taking into account the company's countless complaints on other consumer advocacy websites.

Midland's most common complaint is that it breaches agreements or acts on debt that is inaccurate or outright untrue. The Consumer Financial Protection Bureau and Encore Capital Group (Midland's parent company) settled a court case in 2015 over allegations that "the business bought debts that were inaccurate, lacked documentation, and unenforceable and collected payments from consumers using false statements and false court documents," according to the BBB. The firm committed to repay clients $42 million, pay a $10 million penalty, and stop collecting over $125 million in debts under the conditions of the Assurance."[1]

Although a settlement of the issue does not imply guilt, this instance, together with a slew of consumer complaints filed over the last decade, suggests Midland may be participating in tactics that violate FDCPA consumer rights (Fair Debt Collection Practices Act).

The Fair Debt Collection Methods Act (FDCPA) was enacted in September 1977 to protect customers from exploitative debt collection practices that were often abusive. The Act established explicit regulations that clearly identify the types of debt collection tactics that lenders and debt collectors can and cannot use. Any of these standards that are not met are punishable under the law.

BE AWARE OF YOUR RIGHTS.

The Fair Debt Collection Actions Act (FDCPA) prohibits lenders and debt collectors from engaging in the following practices, according to the FTC:

Harassment

"Debt collectors are prohibited from harassing, oppressing, or abusing you or any third persons with whom they come into touch."

  • Make a threat of violence or harm
  • Make the names of individuals who refuse to pay public (exception: giving the information to the credit reporting companies)
  • Use obscene/inappropriate language
  • Use the phone to irritate or harass others on a regular basis

Statements that are not true

"When trying to collect a debt, debt collectors may not lie."

  • When they claim to be lawyers or government representatives, they are not.
  • Inform the customer that he or she has committed a crime.
  • Saying they own or work for a credit reporting company is a lie.
  • Falsify the amount of debt outstanding
  • They claim that the letters or paperwork they've sent are legal documents.
  • When they say the papers they've sent aren't legal forms, they're lying.
  • Inform a customer that if they do not pay, they will be arrested.
  • Declare that they will seize, garnish, attach, or sell a consumer's property or wages unless they are legally entitled to do so and intend to do so.
  • If it would be illegal to do so or if they do not plan to do so, say they will pursue legal action against a consumer.

Misrepresentation

"In connection with the collection of any debt, a debt collector may not make any false, fraudulent, or misleading representations or use any deceptive or misleading techniques."

  • Give anyone, including a credit reporting firm, inaccurate credit information about a consumer;
  • If it isn't an official document from a court or government agency, send it to the consumer.
  • Use a fictitious business name.

Unfair Business Practices

"When attempting to collect a debt, debt collectors may not engage in unfair techniques."

  • Attempt to collect any interest, fee, or other charge in excess of the amount owing unless the contract that established the debt or state law permits it;
  • Make an early deposit of a post-dated cheque.
  • Seize property or threaten to take property unless it is legal to do so.
  • Send a postcard to a customer.

There are particular procedures you may take to protect yourself while talking with Midland Funding or any other debt collector if you find yourself in this situation. To begin, inform them that you will only be communicating with them in writing and that they are no longer permitted to phone you.

Finally, make sure you get a written agreement if you agree to removal (paying a lower amount than the total outstanding in exchange for your record being deleted from Midland's credit bureau report). Midland has received numerous complaints for promising to settle for removal and then failing to do so. It's effectively their word against yours if you don't have it in writing.

Dealing with debt collectors can add to the already high level of stress that comes with falling behind on payments. Knowing your rights and the precise actions you may take when dealing with debt collectors will provide you some breathing room as you begin the process of debt recovery.

Related Articles:

https://thephenixgroup.com/does-debt-consolidation-hurt-your-credit-score-2

https://thephenixgroup.com/who-are-the-three-credit-bureaus

https://thephenixgroup.com/ad-astra-recovery-services-what-you-should-know


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