Should I Fight My Midland Funding Lawsuit if I Owe the Money?

I believe many people don’t fight back against debt buyers like Midland Funding, LLC because they believe that they owe the money so why fight it?  In this article I want to give you three reasons why you should fight back against Midland Funding even if you believe you owe on the debt.

#1 – You May Not Owe the Debt Buyer (Midland Funding, Portfolio Recovery, Unifund, etc.)

You didn’t enter into a contract with Midland Funding (or any debt buyer).  They never extended you credit and you never agreed to pay them a penny.  Because you never entered into an agreement with the debt buyer they must prove that they are the true owners of the debt before you are obligated to pay them any money.  Surprisingly many junk debt buyers struggle to prove that they are truly the owner.

In his new book Bad Paper: Chasing Debt from Wall Street to the Underworld, author Jack Halpern discusses how many debt buyers purchase nothing more than a spreadsheet with names, addresses, telephone numbers, and amounts owed.  Worse, he discusses how sometimes more than one debt buyer is working the same portfolio resulting in two different collection companies trying to get paid on the same account (your account!).

The point being there is a big difference between a debt buyer alleging that you owe them money and a court sanctioning that by granting a judgment.  If they can’t prove that they own the debt you don’t owe them a cent.

#2 – Make the Debt Buyer Prove the Amount Owed

I typically do a handful of debt buyer trials per week.  It always amazes me when I ask the debt buyer’s witness what the interest rate is and they can’t give me a straight answer.  They don’t know what it is.  They often respond with a lame answer like “we just leave that up to our lawyers”.  If they can’t even testify as to what they interest rate is then how in the world can they testify to the court as what amount is actually owed?

Not only that but you will see all sorts of fees, cost, attorney’s fees, etc. that have been added on to the total debt.  Routinely I meet with people who had a $1,000 credit limit and are being sued for $8,000!  Make the junk debt buyer prove their case.  If they can’t prove to the court how much you actually owe then they don’t deserve a judgment.

#3 – Settlement May Occur During the Lawsuit

Settlement may be easier and for less after you fight back.  Once a court cases is responded to here in Arizona all sorts of documents have to be disclosed.  Sometimes after a company like Midland Funding realizes what they don’t have in the form of evidence they may be more willing to take a low-ball offer to settle out the case.

Just because you owed money to a bank or credit card company years ago doesn’t mean you should fold as soon as a debt buyer comes knocking.  The debt buyer’s presence changes everything and fighting back may make this entire thing go away.