Midland Funding is a debt buyer that purchases unpaid loans. Generally, lenders will sell defaulted loans for much less than a borrower owes. After Midland Funding buys the borrower’s information, it will turn around and initiate a lawsuit against them for the remaining loan balance, often tacking on fees and other penalties.
Forcing the Debt Buyer to Prove its Claims
The summons you receive from Midland Funding, notifying you of the legal action against you, will list a date by which you must respond. If you do not answer the lawsuit, a judge will assume the debt is yours and rule in favor of the company. However, by submitting a response, Midland Funding will be forced to prove that it has a right to collect on the debt and that you actually owe what it’s trying to recover.
Debt buyers receive limited borrower information from lenders, and it is sometimes possible to get such lawsuits dismissed because the company won’t have the information required to satisfy its burden of proof.
Negotiating a Settlement
The disclosure statement Midland Funding sends, which contains information about the evidence they plan to use at trial, may show there is enough to support the company’s claims. In such instances, it may be possible to settle the lawsuit.
When you settle, you negotiate with Midland Funding to come up with a lower amount that you agree to pay. Because debt buyers purchase loans for so little, they often have room to accept much less than what they claim you owe. By having an experienced lawyer on your side, you might be able to work out an agreement where you pay much less than what the company was initially trying to collect from you.
Discuss Your Case with the Law Office of Simon Goldenberg, PLLC During a Free Initial Consultation
If you’re facing a debt lawsuit from Midland Funding, it is imperative to reach out to a skilled attorney as soon as possible. Failing to act within a certain amount of time could result in paying on a debt you don’t owe or more than you should. Our lawyer is a skilled negotiator and will carefully review all information related to your case to seek a settlement less than what the debt collector is attempting to recover.
We are dedicated to helping eliminate debt. Call us at (888) 301-0584 or contact us online today.