Interested to learn about how we deleted Midland Funding from our client's credit report, just like the one below?
This change led to a significant improvement in our client's credit score.
Before getting into the nitty-gritty of how this removal works, let's first understand who Midland Funding is and the ways they can impact your credit report.
Disclaimer: This content is for informational and educational purposes only and does not constitute legal or financial advice. The mention of specific company names is purely for illustrative examples regarding common credit reporting and collection scenarios. It does not imply endorsement, criticism, or specific factual assertions about any company's practices. Readers should seek personalized advice from qualified professionals (legal, financial, credit counseling) before acting. Use of this information is at your own risk. No outcomes are guaranteed.
What Is Midland Funding?
Midland Funding LLC is a company based in San Diego, California, that specializes in purchasing unpaid debts from original creditors. These debts typically come from credit cards, personal loans, auto loans, and other types of unsecured accounts. Midland Funding is one of the largest debt buyers in the country and operates under a parent company called Encore Capital Group, a publicly traded financial services firm.
When you miss payments on a credit account and the lender decides it's no longer worth trying to collect, the account is often sold to a third party. That’s where Midland Funding comes in. They buy these delinquent accounts—sometimes for just a few cents on the dollar—and then pursue collection on the full balance.
Here’s how it typically works: ⇣
- A consumer misses payments on a credit card or loan.
- The original creditor “charges off” the debt and sells it to a company like Midland Funding.
- Midland Funding now owns the debt and has the legal right to try to collect the full amount.
- The company may contact the consumer directly or hire a collection agency to reach out.
- Midland Funding may also report the debt to credit bureaus as a collection account.
It’s important to know that while Midland Funding is not the original lender, they are considered the legal owner of the debt once it is purchased. They can take legal action to collect, including filing lawsuits, though they must follow federal and state laws like the Fair Debt Collection Practices Act (FDCPA) and any applicable state statutes of limitations on debt collection.
Having a Midland Funding account on your credit report usually means the original creditor has sold the debt, and the entry may appear as a collection item. This can have a negative impact on your credit score, especially if it’s recent.
Note: Midland Funding claims to work with consumers to resolve debts in a fair and transparent way. They offer payment plans and settlement options, and some consumers report resolving their debts through negotiation. However, like any collection agency or debt buyer, experiences vary, and it’s important to handle any communication carefully and keep records.
How Does Midland Funding Affect Your Credit Score?
When Midland Funding reports a collection account on your credit report, it can significantly lower your credit score —especially if it’s recent. Collection accounts are considered negative entries and can remain on your credit report for up to seven years from the date of the first delinquency.
Even if you pay off the debt, the collection account may still appear on your credit report, marked as "Paid Collection," which can continue to affect your credit score.
Here’s why collection accounts like Midland Funding hurt credit scores:
Credit scoring models like FICO and VantageScore weigh collection accounts heavily. That’s because they signal that you didn’t pay a debt as agreed, and the original creditor had to sell the account to a third party. Even if the original balance was small, the presence of a collection can be a red flag to lenders, landlords, and even some employers.
Real-Life Scenario:
Let’s say you had a credit card with a $500 balance. You lost your job, fell behind, and stopped making payments. After about six months, the credit card company gives up and sells your debt to Midland Funding.
Now, Midland Funding LLC owns the account and starts reporting it as a collection on your credit report. Maybe you’ve since gotten back on your feet and paid it off—but your credit score still took a hit.
Here’s how that plays out:
- Your score drops because of the new collection account.
- Even after payment, the collection stays on your report, now marked as “Paid Collection.”
- That entry can still affect your creditworthiness for up to 7 years from the date of the original missed payment.
- Lenders may still view you as a higher-risk borrower, even though the balance is zero.
This is also the reason why a lot of people are frustrated with debt and collections.
Why Deletion Matters More Than Payment
Paying a Midland Funding collection doesn’t automatically remove it from your credit report. Unless the company agrees to a “Pay for Delete” arrangement (which is rare and not guaranteed), the account remains. And while a paid collection is slightly better than an unpaid one, many lenders and scoring models don’t make a big distinction.
The real goal? Deletion.
When a collection account is deleted, it disappears from your report as if it was never there. That can result in a significant score boost, especially if your credit file is otherwise healthy.
Midland Funding, What Can You Do?
Here are practical steps you can take if Midland Funding is showing on your credit report:
- Get Your Credit Report:
Pull your free credit reports from all three bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com. Look for any Midland Funding entries. - Check for Accuracy:
Look closely. Are the dates correct? Is the amount right? Do you even recognize the debt? If anything looks off, you have the right to dispute it. - Send a Debt Validation Letter:
Under the Fair Debt Collection Practices Act (FDCPA), you can ask Midland Funding to validate the debt. If they can’t provide proper documentation, they must stop collecting—and in many cases, delete the entry. - Dispute with Credit Bureaus:
If the entry is inaccurate or unverifiable, file disputes with the credit bureaus. Include copies of any letters or proof you have. If they can’t verify it, they must remove it. - Negotiate—But Be Smart:
You can try to negotiate a settlement. Some people request “Pay for Delete” in writing, though companies like Midland Funding often don’t agree to this. Still, it’s worth asking. Just be sure to get everything in writing before you send a dime. - Hire a Professional:
Credit repair companies (like ours) understand how to navigate this process quickly and correctly. We’ve helped clients get Midland Funding deleted from their reports—even when they were told it was impossible.
Midland Funding collections can drag your score down and stick around for years—but that doesn’t mean you’re stuck. You have rights, and with the right approach, it’s possible to minimize the damage—or even remove the account entirely.
Always check your reports, keep records of everything you send, and don’t ignore collection notices. The sooner you deal with it, the faster you can start rebuilding your credit.
The Impact of Deleting Midland Funding from Your Credit Report
So, what happens if we successfully remove midland funding from your credit report? Simple, you'll have a credit score boost!
Removing a Midland Funding collection account from your credit report can have a positive impact on your credit score. Without the negative entry, your credit report reflects a more favorable credit history, which can lead to an increase in your credit score.
The exact impact on your credit score depends on various factors, including the age of the collection account, your overall credit history, and the presence of other negative entries. However, many individuals see a noticeable improvement in their credit scores after the deletion of a collection account.
How We Helped Our Client Remove Midland Funding from Their Credit Report
Our credit repair company worked diligently to assist our client in removing the Midland Funding collection account from their credit report. Here’s how: disputing errors and demanding accountability.
It’s not magic. It’s knowing your rights and using the system correctly.
Why Disputing Works
Many collection accounts, especially those bought in bulk by companies like Midland Funding, come with incomplete or inaccurate information. Sometimes:
- The amount is wrong.
- The dates don’t match.
- The original creditor isn’t listed clearly.
- The debt has already been paid or settled—but it still shows up.
- It’s not even your debt (hello, identity theft or mixed files).
Under the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA), you have the right to:
- Request validation of a debt from the collector.
- Dispute any information on your credit report that you believe is inaccurate or can’t be verified.
- Have unverifiable or inaccurate items removed.
Dispute Midland Funding: Here’s the Process We Used
1. Step One: Pulled All Three Credit Reports
We pulled the client’s reports from Equifax, Experian, and TransUnion. We confirmed Midland Funding was listed—same account, different details across bureaus (which happens more than you’d think).
2. Step Two: Mailed a Debt Validation Letter to Midland Funding
We sent a formal letter asking Midland Funding to:
- Prove the debt is real
- Prove our client owes it
- Show the chain of custody from the original creditor
- Confirm the amount is accurate
- Confirm they have the legal right to collect in our client’s state
By law, they have to pause collection until they respond. In many cases, they either don’t respond at all—or their response is incomplete.
3. Step Three: Filed Disputes with Credit Bureaus
Next, we filed separate disputes with each credit bureau. We challenged the Midland Funding entry with a detailed explanation:
“This account is inaccurate and cannot be verified. The amount is incorrect, and no documentation has been provided by the debt collector. Please investigate and remove this item if it cannot be validated.”
We attached a copy of the debt validation letter and proof that it was sent. That’s important. The credit bureaus have 30 days to verify the item or they must delete it.
4. Step Four: Follow-Up and Persistence
We didn’t stop after the first try. In some cases, it takes multiple rounds of disputes. If the bureaus claim the debt is verified, we asked:
- What did you use to verify it?
- Did the collector provide full documentation?
Many times, they don’t get a real answer—because Midland Funding couldn’t provide one.
Eventually, when Midland Funding failed to validate properly, the account was deleted from all three reports.
Important Tip: Never Dispute Online
Always send written disputes through certified mail with return receipt. It creates a paper trail—and online disputes can limit your rights to take legal action if needed.
Why We Don’t Recommend “Pay for Delete” First
Paying a debt doesn’t guarantee it will be removed. In fact, many debt collectors (including Midland Funding) have policies against pay-for-delete agreements. If you pay without getting a deletion in writing, the account could just get updated to “Paid,” which still hurts your credit.
Also, if the debt is not verifiable or not valid, why pay it at all?
That’s why disputing is always the first move. If the dispute fails and the debt is verified and valid, then we can explore other options.
What If the Dispute Fails?
Sometimes, the bureaus or Midland Funding push back. That doesn’t mean you’re stuck. Here’s what you can do next:
- File a complaint with the Consumer Financial Protection Bureau (CFPB)
- Involve your state attorney general’s office
- Get legal advice if you believe your rights were violated
But in most cases we’ve seen, especially with older debts or questionable documentation, persistence with the dispute process gets results.
Conclusion: Taking Control Starts Now
So, is removing Midland Funding from your credit report really achievable? Absolutely. While dealing with any collection account, especially from a major debt buyer like Midland Funding, can feel daunting, it's far from impossible with the right knowledge and strategy.
Successfully removing a Midland Funding collection account isn't just about tidying up your report; it's about unlocking tangible benefits for your financial future. When negative items like collections are deleted, it can pave the way for a healthier credit score. This often translates into:
- Easier Approvals: Getting the green light for loans, credit cards, or even rental applications becomes more likely.
- Better Interest Rates: A higher score can save you significant money over time with lower rates on mortgages, car loans, and other credit products.
- Increased Financial Opportunities: A stronger credit profile opens doors and gives you more options and flexibility.
- Reduced Stress: Knowing your credit report is accurate and reflects your best financial self brings invaluable peace of mind.
Dealing with collection accounts requires persistence and a clear understanding of your rights under the FCRA and FDCPA. The steps outlined earlier – verifying the debt, disputing inaccuracies, and strategic communication – are crucial.
Ready to Tackle Midland Funding Head-On?
If you're facing issues with Midland Funding or other challenging collection accounts and feel overwhelmed by the process, you don't have to navigate it alone. ASAP CREDIT REPAIR USA specializes in helping individuals effectively address and work towards removing inaccurate or unverifiable negative items from their credit reports.
We understand the tactics used by collectors and the specific procedures required by the credit bureaus. Our team has the expertise to manage the dispute process efficiently, saving you time and stress.
Don't let a Midland Funding collection hold your credit score hostage. Take the first step towards a cleaner credit report and a brighter financial future.
Contact us today for a free consultation! Let's discuss your specific situation and explore how our proven credit repair strategies can help you achieve your goals.
Note: The information provided in this article is for educational purposes only and does not constitute legal or financial advice. Always consult with a professional for your specific situation.