Midland Funding which is officially known as Midland Credit Management is one of the largest debt-buyers in the country. Midland literally buys debt from creditors like Chase Bank, Bank of America and other debt-buyers for a small portion of the value of the debt. It then contracts debt collection agencies to attempt to collect those debts from consumers. Midland then pursues consumers by way of litigation by retaining common debt collection law firms like Forster and Garbus and Rubin and Rothman in New York. These law firms sue consumers and often obtain default judgment against them. These judgments allow Midland to levy bank accounts, garnish wages and place liens on real property. A judgment is valid for 10 years and renewable for 10 years and allows a creditor like Midland Funding to accrue judgment interest of 9% annually raising the total debt amount significantly.
We were recently retained by a consumer who learned that they had a Midland Funding default judgment for over $15,000 against them when they received a wage garnishment notice from a New York City marshal. The letter informed the consumer that they had 20 days to resolve the issue or otherwise the garnishment would begin. We immediately moved to have the judgment vacated by filing an order to show cause explaining that the consumer was never served with the original summons and had no idea about the lawsuit. Rubin and Rothman, the debt collection law firm representing Midland Funding then consented to vacating the judgment against our client and agreed to settle the entire matter out of court for a reduction of over 65% of the debt owed.
