Midland Funding, LLC Garnished Entire Checking San Diego, California

How did they get you bank account number?? Did they ever serve you with papers?? Typical third party scumbag debt collector actions.  Go to www.budhibbs.com - he has great information and a link to Attorneys who deal with these type of bottom feeders.


Midland Credit Management, Inc. (MCM)
Aka/ Encore Capital Group, Inc. (holding)
Midland Portfolio Services, Inc.
Midland International, LLC
Ascension Capital Group, Inc.
MRC Receivables, Corp.
Midland Funding, LLC
Midland India, LLC
8875 Aero Drive Suite 200

San Diego, CA 92123



These are some of the companies that comprise the purchaser, collector and reseller of massive amounts of junk debts under Midland/Encore. Look confusing? It is supposed to be. Just like a magician, they can change sellers, buyers, creditors, and collectors to amaze and confuse consumers, the credit bureaus, and the courts. Under the leadership of James Brandon Black, MCM is a major player in the world of junk debts and consumer complaints.




In late 2009, the holding company of Encore and affiliations agreed to pay the State of Maryland a civil penalty of $998,000 to settle alleged violation of state and federal debt collection laws. Under the terms of the Settlement Agreement with the State Collection Agency Licensing Board, an agency within the Office of the Commissioner, a division of the Department of Labor, Licensing and Regulation, the Encore-Midland companies will pay civil penalties totaling $998,000; three of the companies will become licensed as collection agencies in order to engage in collection-related litigation in Maryland State courts; and the Encore-Midland companies will change some business practices to ensure that both their litigation-related collection activities and their non-litigation (or traditional) debt collection activities comply with all applicable state and federal laws.




This may seem like a lot of money, however in the second quarter of 2010, Encore reported gross collections over $156 million, a 28% increase over the same period in the prior year. As one of the largest debt collection businesses in the nation, they file hundreds of thousands of collection lawsuits across the country, based on purchased accounts. These suits usually result in tens of thousands of default judgments per month, thereby allowing MCM to garnish bank accounts, wages (where allowed), place liens against property, and post information in credit files that oftentimes may not be accurate under federal law.




How is MCM able to take so much money from consumers when they are not a financial services company, such as a credit card issuer, a bank, making loans, or a finance company for goods and services? They buy debts that creditors, collectors or junk debt sellers do not want to collect on, for pennies on the dollar. They then, for the most part, manufacture documents from their paper mill using MCM employees who will swear under penalty of perjury (lie) the accounts are accurate and that they, the MCM employee, have first-hand knowledge of the existence of the debt and swear to the fact that it is just and owed.



James Brandon Black, CEO, Paul J. Grinberg, CFO, Robin Ross-Pruitt, Attorney, paid millions per year to make sure this paper-mill stays on track. Their documents are mass produced, and credit reports are flooded with information by MCM that violates the federal law by lacking in accuracy. Many feel this con game is no different from what Wall Street pulled on the American consumer. Lies, phony documents, bogus credit reporting all in the name of what appears to be a legitimate organization.



In 2009, in the State of Ohio stated in a ruling that an affidavit submitted by MCM was false in the specific sense that it purported to be based on the affiants personal knowledge, when it was in fact not. Midland and MCM were enjoined (under OH law) from using form affidavits that falsely claim to be based on the affiants personal knowledge. What this case concerned, the false statements by MCM employees that they have personal knowledge of the debt, is the lie that carries the entire junk debt, bottom feeder industry.



With new federal law, the Consumer Credit Protection Act, and the appointment of Professor Elizabeth Warren by the president to set up the agency, consumers may soon feel relief that perhaps the days of junk debt collectors stealing money from consumers based on fraud, inaccurate information and perjured affidavits may soon be over. It is widely held in the industry that if junk debt buyers could not place information in credit reports that is not accurate (per in the Fair Credit Reporting Act,) and use affidavits based on personal knowledge of a junk debt collector employee that are false, most of these vultures would die a quick death.



For now, consumers should be aware of and utilize the state and federal laws in place to stop MCM and others from victimizing them with their phony claims and credit bureau reporting of bogus and time barred debts. If you suspect that MCM is collecting in violation of the law, if MCM has filed a legal claim against you based on a purchased debt, or if you find MCM in your credit files and they cannot validate the debt, you may want to consider your legal options.



The Fair Debt Collection Practices Act is the federal law that regulates the activities of a debt collector. The Fair Credit Reporting Act regulates the information placed in credit bureau files. Most states have additional laws that protect consumers from deceptive acts such as collecting on time barred debts. MCM appears on track to collect more than $500 million on these debts, many of which are bogus. They have a large bank account, plenty of insurance and do not worry about their image to their stockholders.



Most cases filed by consumer lawyers against junk debt collectors settle out of court; only a small percentage ever go to trial. The number of default judgments taken by the junk debt industry in America, exceeds 80%, an absurd number given the circumstances. If consumers who are sued would take the time to seek the advice and assistance of a consumer law professional who is experienced in dealing with these suits, it would almost certainly result in a large decrease of judgments and could force them to remove that information from your credit files.



If you would like to acquaint yourself with a consumer law professional who deals with these collectors, please contact us:
assistance@budhibbs.com

Tell us what city and state you reside in, the name of the collector, attorney, and other pertinent information.



For more information on Midland Credit/Encore locations, management, addresses, and phone numbers visit: www.consumerjustice.com/collectors