Sued by Midland Credit Management in Florida?
Sued by Midland Credit Management in Florida?
Midland Credit Management (MCM) is one of the largest debt buyers in the United States. They purchase portfolios of charged-off consumer debt for a fraction of the original amount and then attempt to collect the full balance — often by filing a lawsuit against you. If you have been sued by Midland Credit Management or its legal affiliate, Midland Funding LLC, you have more options than you might think. Learn more about what to do if you’ve been sued by OL Law Group.
Who Is Midland Credit Management?
Midland Credit Management is a wholly-owned subsidiary of Encore Capital Group (NASDAQ: ECPG), one of the world’s largest publicly traded debt purchasing companies. Their business model is straightforward: they buy charged-off consumer debts — primarily credit card accounts — from banks and other original creditors for pennies on the dollar. They then pursue collection of the full balance through letters, phone calls, and lawsuits.
In Florida, Midland files thousands of collection lawsuits each year through their legal affiliate, Midland Funding LLC. These lawsuits are often filed using standardized, mass-produced paperwork, and they rely on the fact that many consumers do not respond to the lawsuit or do not know how to properly defend themselves.
What to Do if You Are Sued by Midland in Florida
Receiving a lawsuit summons can be alarming, but the most critical first step is to take action. In Florida, you have only 20 days to file a formal response with the court after being served. Ignoring the lawsuit will not make it go away. Instead, Midland will almost certainly obtain a default judgment against you, which can lead to wage garnishment, bank account levies, and other serious consequences.
Here are the essential steps to take:
- Do Not Ignore the Lawsuit. The 20-day deadline to respond is strict. Failing to respond allows Midland to win automatically by default.
- Review the Complaint Carefully. Examine every claim made in the lawsuit. Is the debt amount correct? Do you recognize the original creditor? Debt buyers often operate with incomplete or inaccurate records.
- Consult with a Debt Defense Attorney. Before you admit to anything or attempt to negotiate on your own, speak with an experienced attorney. Many defenses may be available to you. An attorney can assess the strength of Midland’s case and advise you on the best path forward, whether that is fighting the lawsuit, negotiating a settlement on favorable terms, or considering Chapter 7 bankruptcy or Chapter 13 bankruptcy as a broader solution.
Key Defenses Against a Midland Credit Management Lawsuit
Fighting a lawsuit from a debt buyer like Midland is not hopeless. Their business model relies on consumers not knowing their rights. Several powerful defenses can be used to challenge their claims.
Lack of Standing to Sue (Chain of Title)
For Midland to have the legal right to sue you, they must prove they actually own your specific debt. This requires them to produce a complete “chain of title” — a series of documents showing every assignment of the debt from the original creditor to Midland. Gaps or deficiencies in this chain of ownership can invalidate their right to sue, and it is a common failure point in debt buyer lawsuits.
Statute of Limitations
In Florida, the statute of limitations for lawsuits based on written contracts, such as credit card agreements, is five years. The clock typically starts from the date of your last payment on the account. Many of the debts Midland purchases are old, and if the statute of limitations has expired, the lawsuit is time-barred and can be dismissed.
Inaccurate or Incomplete Records
As the third-party owner of the debt, Midland often lacks the original signed contract and a complete history of payments, fees, and interest charges. Without this documentation to prove the exact amount owed, their case may be too weak to withstand a proper legal challenge.
Regulatory Actions Against Midland Credit Management
Midland Credit Management and its parent company, Encore Capital Group, have faced documented regulatory scrutiny for their collection practices. In October 2020, the Consumer Financial Protection Bureau (CFPB) settled a lawsuit in which Encore Capital Group was required to pay a $15 million civil penalty. The CFPB alleged that the company had violated the terms of a previous 2015 consent order related to its debt collection and litigation practices.
This type of documented regulatory action underscores the importance of holding debt collectors accountable under federal law, including the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). If Midland has reported inaccurate information to the credit bureaus or used improper collection tactics against you, you may have a counterclaim against them.
Frequently Asked Questions
Can Midland Credit Management garnish my wages in Florida?
Yes, but only after they have successfully obtained a court judgment against you. If Midland wins a lawsuit — either because you did not respond or because the court ruled in their favor — they can then seek a writ of garnishment to take a portion of your paycheck. This is why it is critical to respond to the lawsuit within the 20-day deadline and prevent a default judgment. If you are already facing a garnishment, you have rights and may be able to claim exemptions under Florida law.
Will settling with Midland remove the debt from my credit report?
Not necessarily. A settlement will update the account status to “paid” or “settled,” but the negative history of the collection account itself can remain on your credit report for up to seven years from the date of the original delinquency. In some negotiations, it may be possible to arrange for a deletion of the tradeline, but this is not guaranteed and should be negotiated carefully with the help of an attorney.
What complaints have been filed against Midland Credit Management?
Consumers can review complaints filed against Midland Credit Management through the CFPB’s public complaint database. These complaints, along with the documented 2020 CFPB enforcement action requiring Encore Capital Group to pay a $15 million civil penalty, provide a factual record of the types of issues consumers have reported. If you believe Midland has violated your rights under the FDCPA or FCRA, an attorney can evaluate whether you have grounds for a counterclaim.
Get Help Today
Don’t let Midland Credit Management intimidate you into giving up your rights. At Ziegler Diamond Law, we have extensive experience defending Florida consumers against debt collection lawsuits. We understand their tactics and know how to build a strong defense. Contact us today for a free consultation to discuss your case. Call (727) 538-4188 or reach out online to learn how we can help.
