Among the nation’s leading debt collectors, Midland Funding, LLC, is one of the leading companies in this field. Often, companies like JP Morgan Chase, Synchrony, and Capital One sell the company their charged-off accounts. If a consumer fails to make payments for six months or more, the creditor typically charges off the account.
You should take action quickly if your old credit card account is with Midland Funding to avoid a potential debt lawsuit. The company is known for quickly raising the stakes on debt collection, and it won’t hesitate to file a claim if you don’t respond. Here’s how to settle your Midland Funding debt.
What Can I Do To Stop Midland Funding’s Collection Efforts?
In some cases, Midland Funding purchases accounts from creditors but does not have enough information about the debt to verify the purchase.
The first written communication you receive will include a statement indicating you have 30 days to force them to validate the debt. You should take advantage of their offer to validate your debt. Midland Funding is one of the debt collectors you have rights against under the Consumer Financial Protection Bureau.
Please feel free to ask Midland Funding to confirm and provide any information regarding the debt in your request to validate the debt. The following information can be obtained from them:
- The original loan agreement should be provided
- Your state’s license number for Midland Funding
- Your last transaction on the account
- Interest and fees are included in the calculation of the obligation you owe
- The statute of limitations in your state has not expired for the debt
- Your account has been purchased and is now owned by Midland Funding
Midland Funding can provide you with a formal debt validation by sending a Debt Validation Letter.
You should send your message promptly and wait for a response. In the event Midland Funding fails to respond, all collection activities should be ceased. You may file a complaint with the FDCPA if the company continues to contact you without validating the debt.
What If Midland Funding Validates My Debt?

You should negotiate a payment arrangement with Midland Funding if they can validate your debt fully. It may be possible to reach a settlement agreement with them if you have some savings that you can use to cover the majority of the debt.
If you wish to settle the debt, you should start with a low offer of 50%-60% of the total amount. The proposal from Midland Funding will likely be different from yours, so you may have to go through several rounds of negotiation before an agreement can be reached.
If you do not have any savings and wish to make monthly payments toward your balance, Midland Funding will be able to offer you a few options. Consider your monthly budget and choose a payment arrangement that fits your budget. Please keep in mind that the longer your repayment period lasts, the more time you will have to spend dealing with the company.
Once you have more money, you can settle your debt with Midland Funding by starting with a monthly payment agreement. In this manner, you will be able to eliminate the debt more quickly.
If Midland Funding Sues Me, Can I Settle Before Going To Court?

As soon as Midland Funding purchases an account, it typically initiates a debt collection lawsuit. A company representative understands that the statute of limitations is winding down, and the longer they wait, the less time they have to file a lawsuit.
You will want to try to settle before your court date if you are the unfortunate recipient of a lawsuit from Midland Funding.
You should be aware that debt collectors, such as Midland Funding, purchase debts from creditors for an average of 4% of the original amount owed. In other words, if they can collect the full amount owed by you, they will make a huge profit.
Therefore, it is likely that Midland Funding will settle for less than what it originally requested. Here is an example.
In this example, Justin is being sued by Midland Funding for a debt of $1,000. To avoid losing on a default judgment, he drafts and files an Answer to the case. Justin decides that he can afford to repay $800 after reviewing his finances. In response, he sends an offer. Initially, he offers a 50% discount at $500. Midland Funding accepts a $700 offer (or 70% of the original debt amount) after several rounds of negotiations. In this instance, Justin saves money and Midland gets off his back, and Midland makes a substantial profit since they purchased the debt for pennies on the dollar.
The first step in the process is to file an Answer to Midland Funding’s Complaint. The company’s Complaint will list the allegations made against you, including the amount of debt you owe and why a default judgment is necessary to achieve further collection efforts.
You are protected from a potential default judgment if you file an Answer. The judge will assume that Midland Funding’s grievances are accurate if you do not respond to the Complaint. Defending yourself in court can be accomplished by responding with an Answer.
If your claim is successfully settled with Midland Funding, there is a good chance that you will not have to appear in court. Your Answer, however, serves as a backup in case your efforts to resolve the situation prove unsuccessful.
Three Steps To Settle Your Midland Funding Debt

The settlement of your debt may be a great way to move forward from your financial difficulties.
The following three steps should be followed to settle your debt:
- Answer the debt lawsuit against Midland Funding.
- Send your first settlement offer to start negotiations.
- Get the debt settlement agreement in writing.
The first thing you should do is respond to your lawsuit.
Answering your case will allow you to avoid a default judgment, giving you time to negotiate a settlement. Once you’ve filed your Answer with the court and Midland Funding, you’re ready to begin settlement negotiations.
In the second step, prepare a settlement offer for submission.
Calculate how much you can afford to pay in a lump-sum settlement. To settle your debt with Midland Funding, you should offer at least 60% of its value. Please explain your situation in your letter if you are not able to pay the 60%.
Make sure to include the relevant information concerning your case in the following email to the company:
“I, [your full name], am offering you a lump-sum payment of $__________ to settle the case with case number ____________. You can accept or counteroffer. If you accept, respond to this email with only ‘Accept.’ If you want to counteroffer, respond to this email with only ‘Counteroffer: $__________.’ Please do not contact me in any other way than by replying to this email. I’m prepared to litigate this matter and win in court. I’m also prepared to file an FDCPA complaint. This offer expires in 6 days on [MM/DD/YY]. I will pay the agreed amount within 90 days of the settlement date.”
You have an opportunity to build up your savings by extending the settlement agreement by 90 days.
After you have sent the letter to Midland Funding, allow them a few days to consider your offer. You may have to go through several rounds of negotiation before reaching an agreement after they send a counteroffer.
Lastly, when you have an agreement that you can fulfill and Midland Funding accepts, ensure that the agreement is in writing. A debt settlement agreement is usually drafted by Midland Funding and filed with the court. You will be protected if the company tries to pursue further collection actions against you on the same debt if you obtain everything in writing.
Negotiating with a debt collector such as Midland Funding may seem daunting at times. If you are not comfortable handling the process on your own, seek guidance from professionals. This will prevent you from having to deal with debt collectors on your own.
Summary
To move on with your life, you may need to settle a debt to leave your financial troubles in the past. If you have been sued by Midland Funding, you may reach a debt settlement agreement at any stage of the litigation process. Make sure you follow these three steps: provide a written response to the case, determine how much you can afford to pay and submit an offer and obtain a written settlement agreement.