Midland Funding Files Credit-Card Debt Suits against Monterey County Residents

by San Antonio Attorney

An 78-year old woman who was an HSBC cardholder was sued by Midland Funding seeking to collect her $6,185 unpaid debt. The debt was incurred by purchases that she can no longer recall. After her effort to create a repayment plan failed, she tried to disregard phone calls from unfamiliar numbers.

Time went by, and Kim McRae received a summons to appear in court but she decided not to show up. A few months later Midland won a default judgment, and McRae now owes $800 for legal services, $225 for court costs, about $400 for additional interest and the principal debt.

The credit card collection company has filed around 900 consumer debt lawsuits in Monterey County. Less than 1% of defendants in collections lawsuits are represented by a lawyer. A number of cases have received judgments just like McRae. Consumers normally ask themselves how their debts end up with firms like Midland to begin with.

Minnesota Attorney General Lori Swanson recently won a $500,000 suit against the credit card collection company. Midland was charged with robo-signing. Swanson exposed that the firm buys unpaid debts from banks like HSBC, Bank of America, Chase, and Citibank for approximately three cents per dollar.

Furthermore, these debt buyers who litigate with consumers usually expect the person they are suing not to appear in court. Because of this, the judge is required to enter a default judgment against consumers in favor of the debt buyer. Consumers who are dealing with a similar situation have to be completely aware of their options.

Because small claims court is limited to non-lawyer cases, these types of corporate cases are sent straight to civil court. An average consumer ends up facing off against properly trained lawyers in suits and ties.

 

If a credit-card debt buyer files a lawsuit against you, you should defend yourself in court. In case you really owe the money, you can enter a settlement or payment arrangements with the company. You should consider hiring a San Antonio Lawyer already experienced with handling debt buyers.

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