How to Settle Debt with Midland Funding

Sarah Edwards | November 09, 2023

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Harris is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Settling a debt can help you leave your financial struggles in the past and move on with life. If you’ve been sued by Midland Funding, you can reach a debt settlement agreement at any stage of the debt lawsuit process. Just be sure to follow these three steps: respond to the case with a written Answer, determine how much you can afford to pay and send an offer, and get the settlement agreeement in writing. SoloSettle takes care of the settlement negotiation process for you.

Summary: Settling a debt can help you leave your financial struggles in the past and move on with life. If you’ve been sued by Midland Funding, you can reach a debt settlement agreement at any stage of the debt lawsuit process. Just be sure to follow these three steps: respond to the case with a written Answer, determine how much you can afford to pay and send an offer, and get the settlement agreeement in writing. SoloSettle takes care of the settlement negotiation process for you.

Midland Funding, LLC is one of the nation’s most prominent debt collectors. The company frequently purchases charged-off accounts from creditors like JP Morgan Chase, Synchrony, and Capital One. Creditors typically charge off accounts when the consumer stops making payments for six months or longer.

If your old credit card account is with Midland Funding, you’ll want to take action quickly to avoid a potential debt lawsuit. Midland Funding is known for raising the stakes on debt collection fast, and the company won’t hesitate to file a claim if you fail to respond to its efforts.

How can I stop collection efforts from Midland Funding?

Midland Funding sometimes purchases accounts from creditors but doesn’t have enough information about the debt to validate it.

The first time you receive any written communication from Midland Funding, it will include a statement that indicates you have 30 days to force them to validate the debt. Take advantage of their offer to validate your debt. It’s part of the rights the Consumer Financial Protection Bureau gives you against debt collectors like Midland Funding.

In your request to validate the debt, feel free to ask Midland Funding to confirm and provide any information concerning the debt. You can ask them for the following:

  • A copy of the original loan agreement
  • The license number for Midland Funding in your state
  • The last time you made any transactions on the account
  • A calculation of the obligation you owe, including interest and fees
  • Verification that the debt is not past the statute of limitations in your state
  • Confirmation Midland Funding purchased the debt and now owns your account

You can request a formal debt validation by sending a Debt Validation Letter to Midland Funding.

Send your message promptly and wait for a response. If Midland Funding fails to respond, it should cease all collections activity. If the company continues to contact you without validating the debt, it’s violating FDCPA rules, and you can file a complaint.

Check out the video below to learn more about how a Debt Validation Letter can help you:

What should I do if Midland Funding validates my debt?

If Midland Funding can fully validate your debt, you’ll want to negotiate a payment arrangement with them. If you have some savings you can rely on to pay back the majority of the debt, try to make a settlement agreement with them.

Start your settlement offer low, at 50%-60% of the total value of the debt. Midland Funding will likely have a proposal of its own, so you may go through several negotiation rounds before you can come to an agreement.

Midland Funding will offer you a few options if you don’t have any savings and want to make monthly payments toward your balance. Consider your monthly budget and decide which payment arrangement you can afford. Keep in mind that the longer your repayment lasts, the longer you’ll have to deal with the company.

You can start with an initial monthly payment agreement then work on building your savings to settle the debt with Midland Funding when you have more money. That way, you’ll be able to eliminate the debt faster.

Midland Funding is suing me for an old debt. Can I settle the debt before my court date?

Midland Funding typically doesn’t wait too long to pursue a debt lawsuit once it purchases an account. Company representatives know the statute of limitations is winding down, and the longer they wait, the less time they have to pursue a lawsuit.

If you’re on the unlucky end of a lawsuit from Midland Funding, you’ll want to try to settle with them before your court date.

Keep in mind that debt collectors, like Midland Funding, purchase debts from creditors at an average of 4% the original debt amount. This means that, if they can get you to pay off the full debt, they make a huge profit.

Because of this, there is a good chance Midland Funding will settle for less. Let’s take a look at an example.

Example: Justin is being sued by Midland Funding for a $1,000 debt. He uses SoloSuit to draft and file an Answer into the case to avoid losing by a default judgment. After reviewing his finances, Justin decides he can afford to pay off $800. He uses SoloSettle to send an offer. He starts low with a 50% offer at $500. After a few rounds of negotiations, Midland Funding accepts an offer of $700 (or 70% of the origina debt amount). Justin saves money and gets Midland off his back, and Midland makes a big profit since they purchased the debt for just pennies on the dollar.


You can start the process by filing an Answer to Midland Funding’s Complaint. The company’s Complaint will list the allegations made against you, including the debt you owe and why the company believes it needs a default judgment to further collections against you.

An Answer protects you from a potential default judgment. If you don’t respond to the Complaint, the judge will assume that Midland Funding’s grievances are accurate. By responding with an Answer, you’ll be able to defend yourself in court.

Chances are that you won’t need to go to court if you successfully settle the claim with Midland Funding. However, your Answer serves as backup if your efforts to resolve the situation fail.

Follow these steps to settle a debt with Midland Funding

Debt settlement is a great way to leave your financial struggles in the past and move forward.

Follow these three steps to settle your credit card debt with Midland Funding:

  1. Answer the debt lawsuit against Midland Funding.
  2. Send your first settlement offer to start negotiations.
  3. Get the debt settlement agreement in writing.

Let’s break down each step a little further, or you can watch this video to learn more:

First, respond to your Midland Funding lawsuit.

Filing an Answer into your case will help you avoid a default judgment, giving you time to negotiate a settlement agreement. Once you’ve filed your Answer with the court and Midland Funding, you’re in an excellent position to begin the settlement negotiation process.

Second, get ready to send a settlement offer.

Determine how much you can afford to pay in a lump-sum settlement. At a minimum, you should offer Midland Funding at least 60% of the value of your debt through settlement. If you can’t afford the 60%, list what you can pay and explain your situation in the letter to Midland Funding.

Send the following email to the company, making sure to insert the relevant information concerning your case:

“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.”

Extending the settlement agreement by 90 days gives you some extra time to build up your savings to pay off your account.

Once you send the letter to Midland Funding, give them a few days to consider your offer. They will likely send a counteroffer, and you may go through several rounds of negotiation before reaching an agreement.

Finally, when you have an agreement that you can fulfill and that Midland Funding accepts, make sure to get the agreement in writing. Typically, Midland Funding will draft the debt settlement agreement document and file it into the court case. Getting everything in writing will protect you if Midland Funding attempts to further its collection actions against you on the same debt.

Sometimes, the prospect of negotiating with a debt collector like Midland Funding can seem intimidating. If you’re not comfortable handling the process yourself, reach out to the professionals for guidance. That way, you won’t have to face the debt collectors alone.

SoloSettle handles the settlement negotiation process for you.

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

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