Sued by Midland Funding LLC in Colorado

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I was served a summons and was supposed to appear in court to answer the complaints in December 29, 2015 in the county court of Colorado. I filed my answer 1 week before Dec 29th.  I didn't hear anything from Midland until after a week ago when I got a document  from them which is actually a Settlement Stipulation in which if I would agree and sign it they will file it with the  court, which will never happen because I am not going to sign it.   I have been reading lot and learning a lot of information from all of you guys and I am so thankful that I found this site. Anyways, here is what it  said in the stipulation that I received from them.  I will not accept any settlements with them. This law firm already made money from me when they garnished my wages twice after I got a default judgment from other credit company they represented because I did not know my rights and what I did not know what to do after they sued me. This time they are coming after me again because they think that they can get money from me again. Now, I am fighting them and I wouldn't let them garnished my wage again.


1. Who is the named plaintiff in the suit? Midland funding LLC

2. What is the name of the law firm handling the suit? Machol & Johannes LLC

3. How much are you being sued for? ....$ 3,600.00 plus court costs

4. Who is the original creditor? (if not the Plaintiff) ....Citibank, Sears

5. How do you know you are being sued? (You were served, right?) ....Was served a summons

6. How were you served? (Mail, In person, Notice on door).... in person

7. Was the service legal as required by your state?

Process Service Requirements by State - Summons Complaint

8. What was your correspondence (if any) with the people suing you before you think you were being sued? They sent me a collection letter then I requested  debt validation. They replied back.

9. What state and county do you live in? Colorado

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations) August 2013 that's what it said in their letter to me, I'm not sure if it was true. I couldn't find information in my credit report because it wasn't even reported.

11. What is the SOL on the debt? To find out: 6 years

Statute of Limitations on Debts

12. What is the status of your case? Filed my answer to the summons, the last time I called the clerk at court there wasn't any activity showed yet and no court date set yet.

13. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?) no

14. Did you request debt validation before the suit was filed? Yes

15. How long do you have to respond to the suit? (This should be in your paperwork). Yes, I did responded, thank goodness for all the information that you have here.

Here is an example of what the summons/complaint may look like: Sued by a Debt Collector - Learn How to Fight Debt Lawsuits

16. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits. Just an account statement and a contract from the OC.


By the way, they also attached copies of Bill of Sale and Assignment signed by   Patricia Hall aka Financial Manager Citibank NA.,  an affidavit  of sale of account by original creditor signed by Patricia Hall, a photocopy of application paper from Sears showing the date I applied for the card, my name and signature on it. A seller data sheet which is nothing but just an ordinary paper  with information about my credit card account number, my name, open date, charge off amount( $3,631.00 and change), last payment amount (188.00), last payment date, last purchased date. In the bottom of the paper it said " Data printed by Midland Credit Management, Inc. from electronic records provided by Citibank, NA pursuant to Bill of Sale/ Assignment of accounts transferred on or about 3/18/2014 in connection with the Sale of Accounts from Citibank, NA to Midland Funding, LLC".

My questions are:

1. Do I need to respond to their proposed stipulation that I don't agree or will not accept any settlement from them?

2. When I send them my response do I need to send a copy to the court also?

3. What response should I send them with regards to the documents they gave me (Bill of Sale and etc.) are they going to use these as their evidence against me?

4. I really need your input and advice. I want to make sure I'm doing the right thing to win this case.


Thank you in advance.


There is al so a letter which I think is a settlement letter that came with the document that they sent me the letter said:

"This firm represents Midland Funding LLC. We would like to resolve the aboved-referenced matter. Enclosed is the original copy of a proposed stipulation providing for potential settlement. If this stipulation is acceptable, please sign the stipulation and return the original to our office, so we may file it with the court.

Please note that if the signed Stipulation is not received in our office prior to the next scheduled Court date (if applicable) pertaining to this matter, or within ten (10) days from the date of this letter, whichever is earlier, we reserve the right to take further collection or Court action in connection with this matter, which may be adverse to the Debtor/Defendant in this matter. For faster return than through US Mail, you are welcome to fax back the signed Stipulation to our office at blah, blah, blah. ......

In certain situations where a compromise of $600.00 or more occurs, the IRS requires Plaintiff to report the amount of forgiveness of debt on a 1099C form. The Plaintiff makes no representation about tax consequences this may have or any reporting requirement that may be imposed on it. You, the defendant, should consult independent tax counsel of your own choosing if you desire advice bout any consequences which may result from this agreement.



Machol & Johannes LLC

DocScan.pdf creditinfocenter1.pdf

DocScan.pdf creditinfocenter2.pdf



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Best way to beat Machol and Johannes and midland is arbitration.  It's also the easiest for you too.

i would file a motion to compel priviate contractual arbitration, and motion to dismiss or in the alternative stay case pending arbitration.

you say they sent you the credit card agreement? Read it.  Citibank has arbitration.  You are in county court, not small claims so the small claims clause won't apply.  

Type up the motion, take it to the courthouse along with the agreement and file it.  Send a copy of both to Machol and Johannes.  Ask the clerk when you file it if you need to schedule a hearing to have your motion heard, or if the judge will just rule on it. ( pretty sure they just rule, but your county may be different)

they may oppose your motion, but there is no reason it shouldn't be granted.  If they send you any discovery questions, don't answer them.  They are not allowed by rule 26a co. Rules.  I will post a sample motion you can use as an outline.  File it ASAP.

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Update..... Arbitration with JAMS


I just received an email from JAMS  that case manager has been assigned, also reference case ID# and that midland had paid the case management fees. The case manager was asking me if parties stipulate a specific arbiter or parties need to begin the strike process. By the way, I know this question sounds stupid but what is " strike process"? The other party responded and would want to proceed to the strike process. Do I just also let the case manager know to proceed with strike process? Any advice what would be best to do?

I have been reading different topics in the arbitration section since I got the email. I'm overloaded with information more than my brain can comprehend. I would appreciate your help. This is the 4th case I am dealing with the same law firm representing different plaintiffs.  The firs 2 were OC which I received default judgment and had garnished my wages because I did not know how to fight them and have not learned about this site. The 3rd one was just recent which I lost in court.


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That's surprising Midland has paid but the bill has just begun for them. Study up your streamlined procedures which explains everything. Rule 12 has the arbitrator selection procedures. Strike just means you're striking/crossing choices off a list until you've agreed on an arbitrator.

Midland and Citibank have both got CFPB orders against them you can use. Midland will have to provide those documents so make sure you push for that in discovery in arbitration.




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