Sued by Midland Funding? What to know
Factual overview · Updated July 16, 2026
DebtDefense is not affiliated with, endorsed by, sponsored by, or connected to Midland Funding. Midland Funding names and marks are the property of their owners and are used here to identify the company factually.
DebtDefense is not a law firm and this page is not legal advice. It is general, factual information to help you understand a debt lawsuit. No outcome is guaranteed. For advice about your situation, consult a licensed attorney in your state.
Who is Midland Funding?
Midland Funding, LLC is a debt buyer — a company that purchases portfolios of charged-off consumer debt and collects on it, including by filing lawsuits. It is a subsidiary of Encore Capital Group, Inc., a publicly traded company (NASDAQ: ECPG) headquartered in San Diego, California, which the CFPB has described as the largest debt buyer and debt collector in the United States. Accounts owned by Midland Funding are commonly serviced and collected by an affiliated Encore company, Midland Credit Management, Inc. When Midland Funding sues, it does so as the owner of the account, not as the original bank or lender.
- Source: Subsidiaries of Encore Capital Group, Inc. (SEC Exhibit 21) — lists Midland Funding, LLC
- Source: CFPB enforcement action page — Encore Capital Group, Midland Funding, et al.
Why are they suing you?
Debt buyers purchase portfolios of charged-off accounts — debts the original lender has written off — often for a small fraction of the balance. They are generally not the original creditor. Once they own the account (which may have been bought and sold more than once), they try to collect the full balance, sometimes by filing a lawsuit. Being sued by a debt buyer does not mean the amount, the ownership, or the paperwork is automatically correct — those are things a defendant can ask the company to prove.
What the public record shows
The items below are drawn from primary sources — government enforcement records and the company’s own filings — and are linked so you can read them yourself. Allegations by regulators are described as allegations, with the outcome.
CFPB action (2015)
In 2015 the CFPB took action against Encore Capital Group and its subsidiaries — including Midland Funding — as part of a case involving two of the largest debt buyers.
The CFPB alleged that Encore and its subsidiaries bought debts that were potentially inaccurate, lacking documentation, or unenforceable, attempted to collect without verifying the debt, and filed lawsuits using robo-signed court documents. These were the CFPB's allegations.
Outcome: Announced September 9, 2015, by consent order. Encore and its subsidiaries were required to pay up to $42 million in consumer refunds and a $10 million penalty, and to stop collecting on more than $125 million in debts.
CFPB action (2020)
In 2020 the CFPB sued Encore and its subsidiaries again, alleging they had violated the terms of the 2015 consent order.
The CFPB alleged that, since 2015, the companies sued consumers without possessing required documentation, used law firms and an internal legal department without providing required disclosures, failed to provide consumers with required loan documentation, and collected on time-barred debts without required disclosures. These were the CFPB's allegations.
Outcome: The lawsuit was filed September 8, 2020, and the court entered a stipulated final judgment on October 16, 2020. It required the companies to pay $79,308.81 in consumer redress and a $15 million civil money penalty, to make specified disclosures, to refrain from collecting time-barred debt without disclosures, and to comply with provisions of the 2015 order for five more years.
What happens if you don’t respond
This is the most important part. If you do not respond by the deadline on your court papers, the court can enter a default judgment against you — a ruling that you owe the full amount, entered simply because you didn’t answer, without the debt buyer ever having to prove its case. A judgment is what typically lets a creditor garnish your wages, levy your bank account, or place a lien. Responding on time is how you keep the case from being decided against you automatically and force the company to actually prove what it claims.
What people commonly do
- Respond in writing by the deadline on the summons, rather than ignoring it.
- Ask the company to prove it owns the specific account and that the amount is correct (the chain of title from the original creditor).
- Check whether the debt is past the statute of limitations for their state.
- Check whether the original card agreement had an arbitration clause, and what that can mean for the case.
- Consult a licensed consumer attorney — many offer free consultations, and some take cases where the law shifts fees to the other side.
Deadlines
Deadlines are set by the court, and they are short — often measured in a small number of days or weeks from when you were served. The exact deadline and what it requires (appearing on a return date, filing a written answer, or both) depend on your state and court, and they are stated on the papers you received. DebtDefense currently supports Virginia; if you’re elsewhere, use your state court’s official self-help resources and don’t rely on another state’s rules. The free analysis reads your specific papers and tells you your deadline.
Frequently asked questions
Is Midland Funding a real company?
Yes. Midland Funding, LLC is a real debt buyer and a subsidiary of Encore Capital Group, Inc., a publicly traded company (NASDAQ: ECPG) based in San Diego. Its accounts are often collected by an affiliate, Midland Credit Management.
What's the difference between Midland Funding and Midland Credit Management?
They are affiliated companies under Encore Capital Group. Midland Funding, LLC is typically the entity that owns the purchased account (and is often named as the plaintiff), while Midland Credit Management, Inc. is the entity that services and collects it. Both are part of the same corporate family.
Can Midland Funding garnish my wages?
Not on its own. A debt buyer can only garnish wages after it wins a court judgment and then obtains a garnishment order. If you never respond to the lawsuit, the court can enter a default judgment, which is what typically opens the door to garnishment or bank liens. Responding by your deadline is how you keep that from happening automatically.
Do I have to go to court?
There is a date on your summons, and ignoring it is the option that reliably goes badly, because the court can rule against you by default. What you're required to do — appear, file a written response, or both — depends on your state and court. Your court papers state your specific deadline; the free analysis reads them and tells you what yours is.
Upload your court papers — the analysis is free.
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DebtDefense is not affiliated with, endorsed by, sponsored by, or connected to Midland Funding. Midland Funding names and marks are the property of their owners and are used here to identify the company factually.
Not a law firm; not legal advice; no outcome guaranteed. Company facts on this page are sourced to the primary records linked above. Last reviewed July 16, 2026; scheduled for re-verification by 2027-01-16.
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