Midland Funding Settlement: ZipDebt Creditor & Debt Purchaser Briefing Series
Midland Funding LLC, Midland Credit Management, Encore Capital Group

If you have a credit card or other debt account that has been sold to Midland Funding LLC and you are searching for reliable information on this company, you’ve come to the right place! Below I will explain some key facts and answer questions frequently asked about how to negotiate with Midland Credit Management when you have consumer debt, credit card debt, mortgage debt, student loan debt, medical debt, or another lump sum debt. In many cases, consumers can work out arrangements on their own with Midland. However, debt collection results are often much better with professional support. If you would like professional help in resolving an account purchased by Midland Funding, please read my series on full service Tailored Debt Settlement, then email me at [email protected] with the background information on your situation.
“My results: in 9 months I just finished settling my last account. I spent $66,293 to settle $208,435 for a savings of $142,142. My average settlement was just under 32% overall, with some as low as 10%! I couldn’t believe it was possible.“
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About Charles J. Phelan – ZipDebt’s Debt Relief Expert
Charles J. Phelan has 28 years of experience in consumer and business debt settlement, has personally provided debt relief help to more than 10,000 consumers since 1997, and garnered more than $9 million in debt savings for his clients (in the 10-year period of 2015 through 2024).

When he started this business, there were only a handful of other people offering debt negotiation services for credit card debt. By 2000, he was recruited as a pioneering expert to help build one of the nation’s largest debt negotiation companies. He was so successful that HUNDREDS of little companies sprang up around the country to take advantage of the debt relief business model.
But when Charles saw the fee structure in the Debt Settlement industry grow at an aggressive pace, he knew he was no longer comfortable recommending third-party debt companies and made the decision to publish the first version of his do-it-yourself debt relief training course. After four years of working one-on-one with consumers, he published the second (2008) version of the debt settlement course, and then kept right on coaching people through the massive financial crisis of 2008-2010 and beyond.
He continued with the do-it-yourself debt settlement coaching approach through 2019, and also started offering full-service debt negotiation support again in recent years. As of May 1st, 2020, he is only offering his Tailored Debt Settlement program for select full-service clients.
If you’re looking for debt relief and need help getting your debt settled, Charles the man for the job! Complete the Debt Relief Consultation form below to take your first step towards relief!
“My advice, follow the program perfectly. Hang in there and realize you are saving at least $1000-$2000 per hour of your time. I’m serious.”
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Why Choose ZipDebt’s Tailored Debt Settlement Program?
The Tailored Debt Settlement approach offered by ZipDebt.com is a far better and much more effective solution for debt-stressed consumers than traditional programs offered by large debt firms. The key difference is that those companies virtually ignore the risk of legal action faced by consumers while in a collections situation. The Tailored approach focuses first on risk management by correctly prioritizing the order in which the debt accounts must be handled. It’s also a more cost-effective debt relief program since the fees are far lower compared to large debt company fees – ZipDebt fees are among the lowest offered in the industry at only 20% of negotiated savings! This translates to getting out of debt FASTER with LESS RISK.
Benefits to consumers using the services of ZipDebt.com include:
- personal hands-on attention, with longtime debt settlement expert Charles J. Phelan handling all aspects of the debt process directly
- retention of full control over the money used for settlement, rather than being required to bank funds in an “escrow” account that is under the control of the debt company
- a holistic approach to designing the debt settlement process that emphasizes proper risk management
- a fee structure that is reasonable and tied to negotiation performance, creating a win-win situation between the consumer and the debt collection provider
ZipDebt.com (Manchester Publishing Company, Inc.) is registered (#2686785) as a debt settlement provider with the California DFPI under the CCFPL and is an A+ rated, accredited business with the BBB.
Frequently Asked Questions
What is Midland Funding LLC?
Midland Funding LLC is a large and well-established purchaser of delinquent credit card debt accounts. Major bank creditors like Capital One, Citibank, and many others commonly sell accounts to Midland Funding LLC for debt collection.
Note: If your debt was acquired by Portfolio Recovery Associates, please note that this is a completely different debt collection company with different procedures. Here is a reliable information page on how to resolve your debt with Portfolio Recovery.
Who Owns Midland Funding LLC?
Midland Funding LLC is owned by Encore Capital Group, the parent company located in San Diego, CA, not to be confused with Encore Receivables Management, an unrelated debt collection agency. Encore Capital Group is the largest publicly traded debt buyer in the United States.
What is Midland Credit Management, Inc. or MCM, Inc.?
Midland Credit Management, Inc., abbreviated as MCM, Inc., is the debt collection organization that services files acquired by Midland Funding LLC. A wholly owned subsidiary of Encore Capital Group, MCM, Inc. is typically the actual company debtors will be speaking with to work out payment arrangements or settlements on their purchased accounts.
Midland Funding Debt Collection
Collection activity on debts bought by Midland Funding LLC are usually handled by Midland Credit Management, Inc., or MCM, Inc. An initial notice is sent to the debtor which identifies Midland’s ownership of the account, states required disclosures, and provides instructions for payment.
How to Negotiate Safely with Midland: ZipDebt.com Strategy Recommendation #1
My first recommendation to consumers wanting to resolve debts purchased by Midland is a financial safety tip: Do NOT use the outdated and possibly dangerous strategy of Debt Validation, also called “disputing the debt.” Yes, I realize that numerous other websites still recommend this approach, which relies on language in the Fair Debt Collection Practices Act, and aims to “force” the debt purchaser to back down if they cannot prove the obligation is owed by debtor. The problem nowadays is that the debt buyers usually DO have the necessary documentation to confirm the debt’s validity. Given that validation demands are viewed negatively by those on the receiving end, if one’s goal is to work out an amicable resolution, this approach is entirely counterproductive. In my professional practice, I never request Debt Validation. The only exception would be an instance where there really is a bonafide dispute about the obligation.
Strategy Recommendation #2
My second recommendation to consumers seeking to fully repay their debt is to simply call Midland Credit Management, Inc., and work out a long-term payment arrangement. Full balance repayment arrangements can often be negotiated for 12, 24, or even 36-month terms, at zero percent interest. In fact, all payments made by the debtor go toward reducing the balance, as there are no fees or interest being added to the balance acquired at the time the debt was a charge- off by the original creditor. An important tip here is that payments can be made ADJUSTABLE if you work it correctly. If you’re in a temporary financial crunch, for example, you can offer very small payments to start, like $15-20 per month for 3-6 months, then step up to higher payments later when you’re doing better financially.
Strategy Recommendation #3
My third recommendation to debtors wanting to settle debt with Midland Funding LLC for a discounted payoff is to set your settlement expectations according to the collection status of the account. Recently purchased accounts being worked directly by MCM, Inc. are usually easier to settle than those stamped for “pre-legal status” by Midland. Those accounts already placed with third-party collection law firms represent a higher level of difficulty, with a further distinction between pre-lawsuit filing or post-lawsuit. Do not expect low percentage settlements with this debt buyer just because “they bought my debt for pennies on the dollar.”
Timeline for Negotiating Settlements with Midland Funding LLC
Time is equal to risk when dealing with defaulted collection accounts in general, and that is no different when we’re talking about a debt acquired by Midland Funding. The longer a consumer waits to work out either a payment arrangement or a settlement, the higher the probability that the account will escalate to legal status.
Typically, within 30-60 days of purchasing your account, you will receive a friendly notice from Midland Credit Management, Inc. with instructions for accessing their online payment portal and providing contact information for you to call on the phone and work out an arrangement.
Within 2-4 months after purchase, some accounts are selected by Midland Funding for “pre-legal status,” meaning that eventually the account will be assigned to a lawyer or law firm for legal action.
The best time to negotiate a settlement with Midland Funding is prior to the account being selected for legal status, so if possible, consumers should respond quickly to the initial notification.
If your account is selected for “pre-legal,” do not panic! Get on the phone and work something out before a lawyer or law firm gets involved. It is still possible to work out either payment arrangements or settlements on an account that is designated for “pre-legal,” but the clock is ticking.
Once Midland Funding assigns an account to a lawyer or law firm, you will no longer be able to speak directly with representatives at Midland and will be referred back to the lawyer or law firm. It’s best to negotiate a settlement or payment arrangement BEFORE the law firm files a lawsuit against you, but it is still possible to settle even after a lawsuit has been filed, and even after a judgment has been entered against you. Generally speaking, though, legal settlements are frequently for a majority of the balance compared to the deeper discounts that are often available if the settlement is negotiated before escalation has taken place.
Does Midland Show Up to Court?
Yes! If Midland Credit Management, Inc. selects an account for pre-legal status, this is not a bluff. If no arrangement is made, they will eventually assign the account for legal action. Debt collection lawyers and law firms file numerous lawsuits around the country annually on behalf of Midland Funding, LLC. It is unwise to assume that a claim by Midland will be easily defended in court, that judgment will be deferred, or that they will not show up.
How Can I Avoid Being Sued by Midland Funding LLC?
The short answer is to make a repayment plan and make payments, even small payments like $25 per month, that will not negatively impact your finances or budget but begin to pay down a balance in the thousands. Do something to show you’re not just going to completely ignore the existence of the debt obligation. Time equals risk after a debt buyer purchases a credit card debt account. It’s rare for any debt buyer to immediately step up to legal action right after acquiring an account, and Midland Funding LLC is no different. There is usually a period of at least 2 months, and often much longer, for a debtor to work out credit card debt payment arrangements or a debt settlement with Midland, before the account escalates in status.
How Do I Remove a Midland Funding Entry on my Credit Report?
When a debt buyer acquires a credit card debt account from one of your creditors, they will generally add their own entry to your personal credit report via a credit bureau. This can both imapct your credit score and be frustrating/annoying to consumers, but it’s not as significant an issue as it used to be. The reason for this is that Midland Funding, LLC took a lead role in the debt buying industry to change how accounts are reported. It used to be that a negative entry would remain for up to 7 years on the credit report. However, Midland Funding will remove their credit report entry after only TWO YEARS beyond the point where the account was paid or settled. This means that there is little point to filing credit report disputes relative to Midland Funding entries, , since they are in compliance with the Fair Credit Reporting Act, and since they drop off so quickly now anyway.
SUMMARY
Midland Funding, LLC is a sophisticated and professional debt buying organization with a track record of playing fair with industry professionals and consumers as well. While some consumers might be angry that one of their accounts (whether that be a credit card, mortgage, stuent loan, lump sum, or medical debt) was sold to this company, and start out by looking for information on how to “fight Midland Funding,” or how to “beat Midland Funding in court,” the reality is that a far better approach is to simply work out payment arrangements or a debt settlement to resolve the matter. Further, Midland Credit Management, Inc., collecting on behalf of Midland Funding, LLC, is unlikely to commit collection violations under the Fair Debt Collection Practices Act, so hiring an attorney to “go after” Midland for violations is not a strategy I would recommend.
Consumer Reports is a well-known reporting organization respected for its impartial and thorough analysis of products, services, and companies and has used ZipDebt as a source for its informative articles on Debt Relief. See the ZipDebt Consumer Reports article here.

HELP & SUPPORT
For consumers looking for more help and support in resolving a debt acquired by Midland Funding, LLC, I offer full-service debt negotiation via my Tailored Debt Settlement Program (fee 20% of savings). For more information on my unique debt relief approach, please read the 5-page debt settlement series starting here.