The debt collection business has changed fundamentally over the past few years, with more and more creditors selling debt at a discount to debt buyers rather than trying to collect it themselves. Although this is a convenience for them (half a loaf and all that), it presents problems for debt buyers when debtors stand up to the bully and fight!

These debt buyers have also been getting in trouble for their tactics, as was seen when the Consumer Financial Protection Bureau sued Encore Capital Group (the owner of Midland Funding, Midland Credit Management, and Asset Acceptance Capital). A settlement entered on September 9, 2015, resulted in Encore paying millions in refunds and penalties.

Midland's Secrets Revealed!

Even more interesting than this development (considering how much money these companies make, which was a slap on the wrist) are the facts that came to light about these companies through the litigation. If you are being pursued by any of these companies, these are things you need to know!

  • They pay about 3 cents on the dollar for every debt they buy.
  • They do not receive any actual documentation on the debts they buy.
  • In many cases, NO documentation exists to prove the debt.
  • When they buy a debt, the original creditor does not verify the amount due or whether the claim is still within the statute of limitations! So Midland doesn’t know if the balance claimed due is correct or even if they can still legally sue!
  • They do not independently verify the information provided on the debt to make sure it is accurate.
  • They continue to buy debts from creditors that have provided inaccurate information in the past.
  • They do not provide their lawyers with the information necessary to prove their case and prohibit them from contacting the original creditors to do so.
  • When debtors actually fight back and Encore does not have the evidence to prove the debt, they have instructed their lawyers to dismiss the claim!

These facts show that a collection lawsuit against you by Encore, Midland Funding, and its other subsidiaries is often a House of Cards that will collapse if you shake the table by disputing it in court. For more information on the CFPB suit against Encore and what it revealed, check out Jay Fleischmann’s article here.

Find Out More From a New Jersey Debt Relief Lawyer

Want more secrets on how to protect yourself from creditors? Then download my free book, The Biggest Secrets Your Creditors Don't Want You to Know. Become empowered and protect your rights! Sometimes, it is worth it to fight back!  Are you a visual learner rather than a reader? Do you enjoy watching YouTube to learn new things? Then check out my 3-part video series on how creditors use lawsuits in New Jersey to collect debts

I Can Help You Fight Back!

Leveraging their secrets against them can undoubtedly level the playing field in negotiations, but playing on that field can still be very difficult. Sometimes, you need an experienced coach in your corner.

If you live in New Jersey, are being sued for $10,000 or more, and want a New Jersey debt relief lawyer to represent you to make a deal, schedule a call with me to discuss your case.

I have represented creditors for many years and am familiar with the collection industry and how it ticks. Put my experience to work for you!

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.