Archive for the ‘Midland Funding Lawsuits’ Category

How to Fight Midland Funding

Tuesday, April 15th, 2014

An increasing number of consumers have reported that they have received a summons from the company Midland Funding. If you are one of them, it is likely that you don’t recognize this company. So, who are they?

They describe themselves as ‘one of the nation’s largest buyers of unpaid debt’ but those in the business refer to companies like these as Junk Debt Buyers. These companies buy old debts from banks and credit card companies for next to nothing with the hope of pursuing the debt and collecting payment.

We might imagine that you owned a credit card five years ago but you fell into some financial trouble and couldn’t pay your bill and so defaulted on payment. Your credit card company chases you for the payment for a while, maybe even for a few years but you are unable to pay. The credit card company eventually gives up and charges off your account. They may be able to put it down as a tax loss. As the debt is still valid, the credit card company sells off the debt, for pennies, to a company such as Midland Funding. Now, the junk debt buyer will pull out all the stops to collect that money.

So, now you understand who is suing you, you need to know how to fight back them. That, in itself is your first step.

Decide to Fight

These junk debt buying agencies buy thousands of debts hoping that they can simply sue and collect. Receiving a summons is greatly intimidating under any circumstances and most people assume they are the underdog so they roll over and submit. Midland doesn’t expect you to fight or know anything about this kind of lawsuit, so they don’t plan for that.

An important factor in this is that the burden of proof is with the plaintiff. That means that the Midland Funding has to prove everything and have evidence to back it all up. Surprisingly, this is something that they consistently struggle to do.

What’s more, with so many consumers deciding not to fight, the junk debt buyers would rather just sit back and collect from the easy cases rather than spend time and manpower chasing a few thousand dollars.

Answer Your Summons

However you decide to play it, it is vital that you respond to the Summons and submit an answer on time. If you ignore it or present it late, then the junk debt buyer will receive a default judgment against you, meaning that you lose and giving them the chance to garnish your wages and clean out your bank accounts. Again, this is what they hope for as it means little or no work on their part and it will be over before it has even started.

When reading your summons, pay close attention to the deadline given. Some states will give you 20 days, others will allow 30 days in order for you to answer you summons.

The Answer

As part of your answer, you will need to admit or deny their allegations one by one.A word of caution when answering your summons: be very careful not to incriminate yourself by admitting the debt. Yes, you may have defaulted on a credit card but remember that they have the responsibility to prove that. If they cannot provide the necessary documents as evidence that you owe this exact amount, then they cannot prevail.

If you are having difficulty completing your answer to the summons, The Defendants package has clear instructions, tips and examples that can help you submit an answer.

Your keys to success

Your success in the court case ultimately comes down to how much homework you are willing to do. You are going to need to research your local court rules as well as your state rules to help you win.

As we have previously mentioned, the plaintiff has the burden of proof and for them to win, they need to prove several things to you and the court.

  • Check Statute of Limitations

    This means that you need to check if your debt is too old to be sued on. Any contract has a given amount of time before it becomes too late for a party to sue. Each state differs in the time allowed and considering that in some states it is as low as 3 years, it may be likely that your debt is too old. Of course, they hope that you don’t notice that.

    If it is too old, you may submit a motion to dismiss a long with your answer.

  • Affidavit

    The complaint that you received with your summons is nothing more than a list of allegations. Any individual or company could accuse someone of the same thing. To win a case, they need to back-up and prove, with evidence, that the allegations are true.

    An Affidavit may come with the summons. This is the junk debt buyer’s version of evidence but you need to examine this closely. It should be signed by an employee of the original creditor. If it is signed by an employee of the junk debt buyer then it is not real proof.

    Midland cannot testify to a statement from another company is not official nor compelling. If this is the case, you could file a motion to strike the case as hearsay.

Don’t be Intimidated

These companies will try devious and underhanded tactics to get what they want and to bully you into surrendering. In most cases, this is all that they have – aggression. If they don’t have any dependable evidence that is not based on hearsay, they have very little else to stand on so they resort to bullying and harassment.

Familiarize yourself with the codes of practice outlined in The Fair Debt Collection Practices Act (FDCPA) which was created to protect consumers from these unethical methods. Also, remember that the best defense is a good offense, so throw everything you have back at them and show them that you are not ready to lie down and surrender. The Defendants Package has been specifically designed to help you fight back.

Beating Midland Funding in Court

Tuesday, August 13th, 2013

I was reading around on the Internet tonight and I read an interesting post on a message board in regard to Midland Funding Collection lawsuits and had to post it.

I thank the poster and will keep their message board ID confidential.

Here is that post:

My county holds civil court once each week on Monday. At 9:00 a.m. they list all of the cases where people have been sued and give the defendant the chance to admit the debt or deny it.

Most end up as defaults, either because the defendant is a no show or because they admit the debt.

If they deny the debt, they are set for the 10:00 a.m. docket at a future date to give the parties time to prepare for trial. I post here when I see something that I think is relevant.

These are my observations from the 10:00 a.m. docket this week:

On the cases handled by Mann Bracken and set for trial, all were dismissed. I suspect that they could not obtain the evidence from the original creditor.

One feisty woman that I remember from court a couple months ago said then that she owed the original creditor, but did not owe Midland anything because they purchased the debt and she had never done business with them. Her case was dismissed just before it was to be tried. I assume they had no proof of the debt nor the right of Midland to collect on it. Mann Bracken was the attorney.

Of interest, Midland had three different attorneys representing them. Almost all the other junk debt buyers use only one attorney. Another Midland attorney kept telling the judge he had no records to prove the debt. On the trial docket, he dismissed all his Midland cases.

All of this is consistent with what I have read here. The junk debt buyer attorneys are not prepared to go to trial because they don’t have the documents. In six months of watching court most weeks, I have only seen one junk debt buyer case go to trial, and that is last week when they had a confirmation of an arbitration decision and had the paperwork.

The lesson learned here is to ask for a trial.

The other lesson here is that if you get sued, go to court and watch, you know what to expect. It is not scary at all.

Midland Funding LLC Mann Bracken LLP Lawsuit

Tuesday, August 13th, 2013

Midland Funding LLC and Mann Bracken LLP face a class action in Federal Court in Marshall, Texas, accusing them of violating the Fair Debt Collection Practices Act.

Additional Information

  • avatar Luke Easter

    “Debt Collectors, Debt Collection Law Suits, PayDay Loans

    You’ve received a letter with 30 days to respond, don’t wait,
    The most important word to you right now is this, “Validate!”
    Unless they can prove any claim that will stand up in court,
    Then they have to remove the entry from your credit report.

    Or, you’ve just received a summons you’d like to forget,
    You’re being sued by a debt collector for credit card debt,
    Well relax; don’t get excited because you do have rights,
    Get ready, now’s the time to roll up your sleeves & fight.

    The Law of Equity,7th Amendment of The U.S. Constitution,
    And this is just the beginning of your defensive resolution,
    This country was founded? Let me put you in remembrance,
    An article we know as, “The Declaration of Independence.”

    These are just parts of your rights & defense, some not all,
    There is a violation of Federal R.I.C.O. & Civil RICO Law,
    A so-called, “valuable consideration” cannot be a mystery,
    Your right to know the amount paid. Why? Criminal Usury.

    Alleged debt is 10k but their purchase price was 100 bucks,
    In Ohio they cannot charge more than 5%, so lots of luck,
    Because your contract was with whomever, not with them,
    Hey don’t panic because this is how the process will begin.

    Midland Funding LLC is notorious for filing claims in court,
    However, without a valid written agreement they must abort,
    Research Case NO 3: 08 CV 1434, Document 50,08/11/09,
    U.S. District Court Judge David Katz ruled against, here’s why.

    Midland Funding LLC v. Brent, et al. the Ohio court did find,
    The affidavit, documentation was not properly, legally signed,
    Midland violated both the OCSPA & FDCPA trying to collect,
    And at an interest rate higher than allowed by law for said debt.

    “Volenti non fit injuria” is a legal term meaning assumption of risk,
    Ohio Fair Debt Collection Practices Act § 1319.12. Requirements,
    A signed written agreement & monetary consideration shall state,
    And in addition it shall expressly authorize with an effective date.

    Encore Capital Group and others like them are, “Junk Debt Buyers,”
    Paying less than a penny then charging you up to 100 times higher,
    So, FYI there have been many lawsuits filed against them and won,
    Requesting, “summery judgment” does not mean it is over & done.

    Do not let lawyers push you around, respond and don’t be moved,
    They claim validity with credit card receipt copies, make them prove,
    You can’t buy groceries, clothes or gas with a copy of a $20.00 bill,
    The law is the law and it works both ways, when they Jack you Jill.

    Surely it’ss probably the biggest unknown consumer credit card fact,
    When sued you have the right to request a copy of the original contract,
    Why are there are so many judgments? Da! We have to know our rights
    They’re default judgments because you don’t show up in court and fight.

    Remember, this is just a partial list there is so much more you bet,
    Do your own investigation, a plethora of sites are on the Internet,
    Don’t allow these crooks to illegally use the legal system for pay,
    Make them understand, if it is hardball they want, two can play.

    Co to court, pursuant to the FDCPA Act § 803.4 and make them prove,
    By not being the original creditors they must establish dealings with you,
    Since they are not, their records are immaterial, irrelevant and hearsay,
    It will take some effort on your part but it’s worth it to make it go away.

    You received a letter; okay demand a “Debt Validation” here’s the deal,
    Respond within 30 days or they will assume the, “alleged” debt is real,
    If you’re at the summons/subpoenas stage there’s still plenty of time, or, online.

    Don’t forget they’re the Plaintiff you’re the Defendant so you defend,
    As aggressive as your adversary without backing down, you will win,
    It is not England in the 17th Century it’s America no need to escape,
    That tyrant King George III is not The President of The United States.

    When Law Enforcement violates U.S. Constitution Amendment #4,
    The case is thrown out and criminals routinely walk out the door,
    “Junk Debt Buyers” falsely make claims & defendants pay more,
    Any wonder why the rich stay rich while the poor remain poor?

    Bad enough that high interest rates create billionaires on the backs,
    Of the hard working majority who are faced with all kinds of attacks,
    Why do most judges allow this injustice to continue go to through?
    Uh, a leopard doesn’t change its spots they were once lawyers too.

    Midland Funding LLC & subsidiaries of Encore Capital Group Inc,
    Isaiah 1: 17, simply put their Gestapo tactics & criminal ethics stink,
    An injunction was issued now they can no longer demand by lies,
    Monies at a 1,000% rate destroying freedom and mom’s apple pie.

    It’s obvious that consumers are unaware of this very important fact,
    Accounts now uncollected are charged off on corporate income tax,
    The debt has become alleged because it is no longer the full amount,
    So, law firms and collectors are banking on your inability to count.

    This is an unjust practice and by law it should be labeled as corrupt,
    Forget the lobbyists isn’t it time for our elected officials to stand up?
    We have, “Certain Inalienable Rights” no “junk debt buyer” can deny,
    Written documents, “Founding Fathers” based freedom on that’s why.

    You’ll demand, “FDCPA Debt Validation” they’ll send a stack of copies,
    This is when you will know, not think, their game is getting very sloppy,
    Demand! It is your right to demand verification by FDCPA section 809,
    Read it since it’s at this point they legally have to stop wasting your time.

    Remember that unscrupulous nation we hurriedly sailed away from?
    Well, don’t look now but Centuries later has America now become?
    By predatory mortgage lending practices, citizens loose their homes,
    As soldiers fight overseas their spouses fall victim to PayDay Loans.

    With all of these exceedingly high interest rates where is Uncle Sam?
    Not only by their own Government but by con artists being scammed,
    Congress, House, Senate should be doing more not less than they can,
    Oh, if elected officials put their lives on the line then they’d understand.

    Why, when everything points to doing more they seem to do the least?
    And instead of coming across as a “Beauty” they raise up as a “Beast,”
    Even Elizabeth has declared a 10-year pay freeze and she’s the Queen,
    Ha, and we have elections but act like we’re still pawns under the King.

    A Supreme Court ruling reiterated the constitutional right to bear arms,
    06/28/2010, striking down a Chicago law leaving us susceptible to harm,
    So, how much longer will these financial institutions continue to prevail?
    Every single one found guilty of ‘any’ wrongdoing should end up in jail.

    Really nothing much to say in defense of the leaches at Pay Day Loans,
    Except to sit down, restructure needs verses wants, to leave them alone,
    But against blood sucking debt collection companies how can you fight?
    When you fail to take advantage of laws and understanding your rights.

    Now they have file for a Summery Judgment, what shall you reply?
    Here are two to be used as following legal defenses are reasons why,
    Check this ok, “Lack Of Standing” and “Lack Of Legal Sufficiency,”
    Violating the FDCPA, that is none other than, “Unclean Hands” # 3.

    In Ohio along with District Court Judge David Katz there’s the, OAG,
    As the state also filed an injunction citing a, “false affidavits” legality,
    Supreme Court says a false one is worse than none at all as their decree,
    CV-10-5132-LRS Eva Lauber & other Plaintiffs v. Midland Funding LLC.

    Finally, the United States Constitution has your citizen rights guaranteed,
    “Certain steps are required before depriving us of life, liberty, or property,”
    The 14th Amendment, “fundamental rights” we have “due process” by law,
    And as consumers you have protection not from some of these but for all.”

Citibank Credit Card Lawsuit

Wednesday, August 29th, 2012

When it comes to receiving credit card lawsuits, there are debt buyers who will present a case, and then there are credit card issuers that will present a case. The main purpose of both companies when filing a suit is to get judgment against the consumer. They would like to have all the money stripped from the debtor in hopes that he/she won’t even respond to the Summons and just ignore the lawsuit. If the court Summons is ignored the debt collectors can garnish a person’s bank account, take their savings and sometimes even their assets once judgment has been issued.

Here are a few of the Facts regarding Citibank:

  • Citibank is the largest international credit card issuer and largest bank in the country
  • Citibank offers some very appealing credit cards
  • When customers sign up for a Citibank credit card they have no intention of defaulting
  • Citibank is known to sue cardholders shortly after only missing a few payments
  • The credit card company has formulated a system that allows them to sue their clients at a much lower cost than most creditors
  • Defendants can protect themselves under the FDCPA (Fair Debt Collection Practices Act) for unfair and deceptive collection practices

Within recent years Citibank, one of the largest global credit card issuers, has been called out on participating in some unlawful practices when dealing with credit cardholders. There was a federal class action lawsuit claiming that Citibank induces cardholders into paying for charges that they are not even obligated to pay according to their contract. Citibank achieved this by falsely misrepresenting that the cardholder only has 60 days to dispute a charge. Customers that find Citibank’s credit card services unsatisfactory have the right to dispute the charge and not have to pay the remaining amount on their purchase according to the contract. However, most customers have been under the false representation made that they must pay for the purchase. Then Citibank tells them that they’ve waived their right to withhold payment to the credit card contract.

Despite the unlawful practices like unjust enrichment, breach of contract and breach of implied covenant of good faith and fair dealing, consumers going up against debt lawsuits should be aware of the tricks when fighting their own case.

Usually high costs are associated with taking legal action against customers for the typically bank or creditor, but with the system that Citibank has devised they are able to sue their clients at lower cost than most.

It has been stated that Citibank will sue any and everyone, every chance they get. (I know of a District Attorney who has been sued by the credit card company also.) As the original creditor, Citibank will usually hire local attorneys and file a lawsuit against the card holder for their unpaid balance and include plenty of fees. However, most collection attorneys are not suing under the name of the bank – Citibank. They likely bought the account/debts months prior from Citibank and just use the bank’s name as the plaintiff, which is unethical. Defendants can protect themselves under the Fair Debt Collection Practices Act by suing for unfair and deceptive collection practices and pointing this out to the judge. A Motion to Dismiss might also be appropriate in such situation. Everyone’s situation is unique.

Once the bank realizes that the defendant means business and sees that their name is involved with the misrepresentation made by the collection attorney they will claim to have no interest in the matter and move to dismiss, leaving those attorneys high and dry. It is important that any consumer who decides to defend himself in a credit card lawsuit, go over all of the Court Rules and be aware of his rights. A detail like this that many defendants might overlook or not even consider could get the entire case thrown out if caught and brought to the court’s attention.

As of two years ago Citibank became the largest bank holding company in the country. Citibank is the largest international credit card issuer having expanded its global reach to more than 90 countries. This could definitely cause some intimidation among customers who receive a debt lawsuit Summons for their credit card account. Luckily, when it comes to the Court of Law, the size and reputation of a company won’t matter as much if they are breaking the law. One must know their rights and their local statues so that justice can be served. Winning a credit card lawsuit against Citibank may seem tough and take some work and extra effort, but it can be done. If possible go after those debt collectors instead who are usually “representing” Citibank. It could be easier to get a settlement or get the case dismissed.

Additional Reading

How To Beat Credit Card Debt Lawsuit

Wednesday, August 22nd, 2012

When receiving a credit card lawsuit from a debt collector, defendants must be sure to respond to the lawsuit by the date specified in the court papers to preserve their rights. Debt collectors will contact a person for two reasons: if debtor is behind in paying bills or the creditor’s records mistakenly make it appear that a consumer is behind on payments.

After a debt collector first contacts a consumer, they must send a written “validation notice” within the following five days telling the person how much money they owe. This notice should also include the name of the creditor to whom the money is owed and how to proceed if the consumer doesn’t think they owe the money.

Credit Card Complaint

Whenever receiving a debt Summons, a credit card Complaint should be found attached. The credit card Complaint should list numbered paragraphs with each paragraph stating a count against the consumer and listing facts per the creditor. After receiving the Complaint the defendant needs to answer his Summons using each paragraph with a denial or admission and then list their affirmative defenses. (link to defenses) After having answered the Summons with affirmative defenses, the consumer would file it with the court, send a copy to the plaintiff certified mail and keep a copy for his own records. Again, the credit card Complaint will list the creditor’s reasoning’s set in paragraphs of all the counts and facts that they have against the Defendant.

Interrogatories to Credit Card Company

Interrogatories are written questions that a party may serve on any other party which must be answered in writing or under oath. They are the most useful means of asking simple, unambiguous questions, obtaining basic information like witness names or verifying facts underlying a vague or indefinite statement in pleading.

How To Answer Interrogatories

Failure to answer the interrogatories regarding credit card debt or any lawsuit can result in a contempt charge from the court. Here are some steps in answering the interrogatories for a credit card lawsuit:

  • Before answering the first question, carefully review all the questions listed. Up to 25 questions can be listed by each creditor. Expect questions regarding employment, living arrangements, monthly expenses and bank account information.

  • Answer each question truthfully with basic answers. If a question does not apply, write “N/A” in the provided space, letting the creditor know that the question was not skipped. “N/A” also shows a refusal to answer. Making an objection to a question listed on the interrogatory requires permission from the court not to answer.

  • Locate the court address on the form and return the completed interrogatories within the allotted time frame. The interrogatory form should state how many days are allowed to submit the answered questions, and typically the time frame will vary from 10-30 days. Be sure to get two certified copies from the court.

  • Mail one certified copy to the creditor, and keep one certified copy for personal records.

Credit Card Lawsuit Scam

Personal Experience:

I took out a credit card and the collection agency did not attach any proof that I now owed them money. I did not take the credit card out with the collection agency; I took it out with original creditor so I owed the creditor money, not the debt collectors. For this reason I denied the suit. The Collection Agency suing me didn’t attach any type of evidence that I owed them money. There was no Chain of Assignment provided or proof whatsoever that I owed them money as opposed to the original creditor.

The amount of money that the debt collection company had listed was unreasonable and inaccurate. Plus there was no proof to assist it. Victory was mine just because I knew my rights and knew exactly what to look for in the documents. Without proof there is no case. I have won more than one of these credit card lawsuits, and with top debt buyer companies and banks. Apart from Capital One, all of my lawsuits had nothing, and I still beat Capital One too. These companies just wanted to buy tons of defaulted credit card accounts, hire a lawyer and make some profit.

If a collection agency wants to buy defaulted accounts they need to prove that they purchased the account as well as the amount they are suing for. Defendants have to watch these amounts, and make sure that they are listed accurately. Everything must be proven.

Consumer Debt Lawsuits

Credit card lawsuits are civil cases. Because consumer debt lawsuits are not criminal cases they won’t result in jail time. Despite the harassment and threats made by debt collectors and aggressive layers a debtor won’t go to jail f or this kind of lawsuit. Some people will end up paying more than they really should because they get scared or intimated by collection attorneys and are unaware of their rights. Without the properly knowledge the average consumer will find it hard to imagine themselves having a winning chance over these savvy attorneys or even be able to overcome the debt collectors. Opposing attorneys will try to get the answers to more questions than are necessary and of course more money than is required.

Unless proof of valid assignment is present it is rare to see a third party debt collector sue a consumer. Original creditors need to initiate the collection lawsuit or provide the debt collector with the assignment or else they will have a very difficult time legally forcing the consumer to pay the so-called “money that is owed”. Sure, the attorneys hired by collection agencies may be very well-trained in their field. However, the same attorneys know the little tricks and gimmicks for handling consumers who don’t know how to defend themselves. If applicable, the defendant should let the judge/court know that the creditor never had them sign a valid contractual agreement with them and force the creditor to prove that they loaned the money which was in the bank or creditor’s possession before the supposed loan. Learn as much as you can to go up against these attorneys and fight the credit card case. Winning is so achievable with the right resources. One extremely helpful resource that will walk consumers through the entire Summons process is The Defendant’s Package. Keep exploring the site for more information on how to beat these junk debt buyers.

The Defendant's Package

Additional Reading

Myths About Credit Card Lawsuits

Wednesday, August 22nd, 2012

There are lots of lies and false beliefs floating around the Internet about dealing with debt and credit card lawsuits. It is not just the Internet where false information is being spread, but tons of myths surround debt and have for many years. Unless a person sits down to do their own research or hires an attorney to take care of their debt lawsuit for them, they will continue to be ignorant to a number of things regarding debt litigation.

We would like to address some of the popular myths surrounding credit card debt, and make sure that the consumer is clear on the facts before taking on their own case. While there are many myths about debt collection and ignoring a court Summons, here are some notables:

Myth: If I owe debt I will lose my debt lawsuit.

FACT: Everything regarding this debt must be proved by the creditor. If the creditor/Plaintiff fails to provide evidence and proof that you owe the debt you can win the case.

Myth: If I ignore my court Summons the debt lawsuit will go away.

FACT: By ignoring the Summons you automatically lose the case. You can’t ignore the Summons or respond late. Otherwise the creditor wins the case by default judgment.

Myth: There’s no way I will win my credit card lawsuit without an attorney.

FACT: Defending yourself in court against debt collectors and creditors isn’t as hard as you think. People do it all the time and win their cases. Creditors want people to assume they cannot defend themselves and give up. That makes it easier to win. Oftentimes, it is just a matter of proving that the Plaintiff does not have the required evidence to win the case. If more people were confident enough and knew how to get around these third party collector’s tactics, they would probably fight for themselves in court as well. There are also samples that have been used to help win debt lawsuits available on this website.

Myth: There’s no need to worry if I have never heard of the company suing me.

FACT: Third party collectors and debt buyers buy defaulted debts from credit card companies and file lawsuits in order to collect the money, interest, court costs and legal fees. This is very legal, but you just need them to prove that the debt belongs to you, and they usually don’t have all of the information required.

Myth: The creditor must personally the Summons in order to take the debt lawsuit ahead.

FACT: The creditor is required to do no such thing. A creditor can simply tape the papers to your front door or serve a third party at your residence.

Myth: The judge will help me out and even set up a repayment plan for me.

FACT: It is not the duty of the judge to arrange a repayment plan. The judge is there to determine whether you owe the debt or not based on the evidence provided. That is his only job. Paying back debt and arranging a plan is the defendant’s responsibility, not the judge’s.

Myth: I can just show up in court on the “Answer Date”.

FACT: The “Answer Date” is the final day you are allowed to file an answer. It is not a hearing date.

Myth: I can explain to the judge why I didn’t pay off the debt.

FACT: The worst thing a defendant can do when fighting a credit card lawsuit is to admit to having debt. By stating to the judge why the debt was not paid off you are admitting that you acquired the debt and basically handing the case over to the creditor. The plaintiff would surely win if you say state such a thing.

Myth: I don’t stand a chance against big companies like Capital One, Midland Funding, and LVNV.

FACT:Don’t be intimidated by large well-known collection companies. They make mistakes in court too, and have been defeated by consumers who defended themselves on debt lawsuits.

Clear your mind of the wrong myths before you lose money or fail to win your case. Don’t ignore the credit card Summons when it comes, and don’t give up before the process has even begun. Whenever being sued by a credit card company, respond to the Summons! Take everything one step at a time, and do your homework. There is enough information available here to get you started on defeating those junk debt buyers and debt collectors in court over money that you may not even owe.

Additional Reading

Beating Junk Debt Buyers

Friday, August 17th, 2012

Many attorneys representing debt collection agencies do not have the documents necessary to prove their case. Summons and Complaints cannot be simply sent out to people and then they automatically give up the money. It doesn’t work that way; and if people are giving up their money that easily, it shouldn’t. In the U.S. court of law, most states require that proof be attached to the Complaint in order to initiate the credit card lawsuit. Most of these junk debt buyers’ attorneys don’t even expect the average person to respond to the Summons because they are too scared or do not know how to challenge the lawsuit.

It is unfortunate that collection attorneys get away with so much. If the consumer doesn’t know his court rules or what is required for a legitimate lawsuit the attorney will get away with the money. The more one knows when dealing with a debt lawsuit, the better chance he will have at overcoming the case. Consumers must be aware of what needs to be attached to the Complaint and write up the correct motions in order to dismiss their case for non-compliance of court rules.

Debt lawsuits are typically filed by a debt buyer who possesses little or no documentation of the underlying debt. About 97% of people facing third party debt collection lawsuits do not respond to their lawsuit.

Here is the scenario that hundreds of Americans go through when dealing with debt:

Upon receiving a credit card, many consumers will run financial hard times, job loss or economic distress and end up having a difficult time making payments. Some will try to work with the credit card company, but still fail to catch up on payments.

After the credit card account is about 120 days delinquent the account is “charged off”. When an account is “charged off” it means that the original creditor has written off the “bad debt” for accounting purposes.

At this point the original creditor may do one of three things:

  • Clear their books of bad debt
  • Take a generous tax write-off
  • Collect from bad debt insurance
  • Sell the debt to third party debt collectors.

Charging off a debt does not mean that a person no longer owes the debt to the original creditor.

Next, the original creditor will sell the account with thousands of other accounts to third party debt collectors. Once the creditor sells the charged off accounts to debt buyers they package the accounts into portfolios, and each portfolio normally contains thousands of charged off consumer accounts. Now the portfolio has a “face value” – the total amount of debt from all the charged off accounts.

Junk debt buyers like Midland Funding or LVNV Funding buy the portfolio of accounts for a huge discount off the face value. At this point the original creditor is no longer involved with the account.

Once they have attained the account the junk debt buyer will file a lawsuit against the consumer for the full amount and sometimes even more. Not only will the junk debt buyer due for the full charge off amount, but they will also ask the court to grant pre-judgment interest, post judgment interest, attorney fees and court costs.

Junk Debt Buyers File Credit Card Lawsuits by the Thousands

Typically a junk debt buyer doesn’t even receive much information about the debt. The junk debt buyer receives no more than a spreadsheet with thousands of names, addresses, telephone numbers, account numbers and charge off amounts, which is just enough to call and send consumers letters demanding payment or to file a lawsuit. Junk debt buyers almost never have to prove their case because consumers will not answer the lawsuit. They see the Summons and just ignore it, either in hope of it going away or for fear of losing the case.

Since they lack sufficient documentation to support a debt lawsuit against the consumer, fighting back is viable option for the everyday consumer who receives a Summons in the mail from a third party collector. Junk debt buyers are counting on the fact that oftentimes consumers need to clear blemishes from their credit reports and are usually willing to pay old, mysterious debts without question. Don’t pay on random debt without having proof that all of this money is owed and to the original creditor. Get evidence of a contract agreement and documentation.

Additional Reading

Midland Funding Lawsuit

Wednesday, June 13th, 2012

Have you recently received a telephone call, collection letter or Summons from Midland Funding? Midland Funding is a company that buys credit accounts that are in default, also known as “bad debt”, in an effort to make profit. These sneaky collectors are trying to get money off of your so called debt by buying large blocks of alleged defaulted credit card accounts for pennies on the dollar or less. Their main purpose of attempting to collect whatever they can on the accounts. We’ll help you defend yourself from this debt lawsuit scheme.

Midland Funding’s Secret Methods

Midland Funding files dozens of lawsuits a day with the hopes of collecting on old debt claims that have been charged off by the original creditor.

When dealing with this company be sure to question the legal sufficiency. Midland must establish facts to prove that you really had this credit account with the original creditor that you defaulted on on a certain date and agreed to pay XX amount of interest on. They basically need to prove that they have the right to sue you and collect on the so-called debt. When a party files a lawsuit in the state of Pennsylvania, which is where Midland Funding is based, there are several issues that have to be pleaded in the lawsuit.

Here are four facts that need to be established by Midland when attempting to sue you for bad debt:

  • Defendant had a credit account with XX (original creditor)
  • Defendant agreed to pay XX amount of interest
  • Defendant defaulted on credit account on XX date
  • Plaintiff (Midland) has the right to sue Defendant on the alleged debt

Legally Insufficient Credit Card Lawsuits

Oftentimes, the lawsuits filed by Midland Funding are legally insufficient when initially filed. One must catch them early on and object to the lawsuits on insufficient grounds. This can be done successfully using The Defendant’s Package.

Just like any other debt buyer Midland Funding buys debts that have been charged off by the original creditor. Understanding exactly how these debt buyers operate will only help you in fighting the debt lawsuit filed against you. It is actually their idea that the defendant’s, who usually have a lack of knowledge about these credit card collection cases, do not file a response and allow default judgment to be entered. Remember, by failing to respond or filing too late, you are handing over the case to them resulting in default judgment so they automatically win the case. When you do not file a case the court automatically assumes that you are in agreeance with the lawsuit and give the debt buying company, like Midland, everything they are asking for. The fact is that once a creditor has obtained judgment against the defendant they can garnishment their wages.

Reasons Why You Should Contest a Lawsuit By a Debt Buyer Like Midland Funding

In some cases Midland Funding is attempting to sue a consumer, and the person being sued does not even owe the debt! This may be hard to accept, but it’s true. There have been cases when the Defendant didn’t even have an account with the bank being mentioned in the lawsuit. When junk debt buyers purchase accounts they receive minimal information and don’t receive the underlying contract or copies on any other communication on the account so the debt that was bought is usually very old and the statue of limitations has run. The lack of evidence that many of these companies have can be quite surprising. When asked to present the evidence in support of the debt lawsuit, the collectors often have no documented proof that the Defendant even owes the debt. This is when they include affidavits full of hearsay and other non-admissable evidence. If possible, have an attorney review your lawsuit to determine if there is something you should even contest. In the meantime, you can look for the following on your own:

  • How old is the debt?
  • Has the statute of limitations run?
  • Ask for documented proof and evidence that support the collection agency’s lawsuit
  • Check for lies and falsified information

The Truth About Midland Funding Lawsuits

Don’t be intimidated when going up against one of the nation’s largest debt collection firms. We have experienced triumph over this same collection agency and others have as well. Midland workers have even admitted to signing hundreds of affidavits without reading over them or verifying whether a debt was actually owed. In many cases the debts were over a decade old. Debts 10 years or older are known as “zombie debt”, and Midland will purchase these debts from other businesses and credit card companies for cents on the dollar as mentioned before. Robo-signing has been widely condemned in foreclosure cases, which has resulted in tons of crackdowns in several states. This practice has led to the investigation of many collection firms.

Fight Junk Debt Buyers

According to a recent statement, Midland’s corporate parent stated that 95% of consumers ignore letters sent by the company, leaving the court system as the only remaining option. Consumers who do not respond to mailed legal notices don’t realize that debt collectors can easily obtain a default judgment, while others often wonder if the phone calls and mailings were a scam. Since Defendants facing Midland’s tactics can’t always afford attorneys or have them represent them in such cases, The Defendant’s Package can be beneficial to consumers who choose to fight the junk debt buyer and win their credit card collection case.

The Defendant's Package

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