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DLC

New Midland Funding Court Strategy

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Midland Funding has started a new court strategy in Texas and maybe other states also.

Reviewing the Texas online court records, Midland has started opening old cases with Default Judgements. They have reopened dozens of cases in 2019 and none in 2018.

The cases are asking for courts to garnish money from major banks like JP Morgan and others. I don’t think the law has changed in Texas regarding garnishments, ( Texas law prevents wage garnishment on consumer debt.)

Midland has found something or someway to get information on the defendants in their old Judgment wins.

If anyone has some information on this, please inform us.

 

The e-file count on debt cases being filed has continued to grow at an alarming rate. I feel we are witnessing something regarding consumer debt and the court system of great importance in history.

 

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9 hours ago, DLC said:

The cases are asking for courts to garnish money from major banks like JP Morgan and others. I don’t think the law has changed in Texas regarding garnishments, ( Texas law prevents wage garnishment on consumer debt.)

Texas is still one of the few states that does not allow wage garnishment for civil debts.  They do allow bank levy and that is what they are doing. 

9 hours ago, DLC said:

Midland has found something or someway to get information on the defendants in their old Judgment wins.

There is nothing new about this.  Because they have a judgment against the consumer they can pay the bureaus to subscribe to a list of consumers who apply for or receive new credit.  Then they compare the names to those who owe them money.  Once they identify someone with a new employer, new address, new credit accounts/loans they know the consumer is rebuilding and it may be a good time to use a bank levy to collect.

9 hours ago, DLC said:

I feel we are witnessing something regarding consumer debt and the court system of great importance in history.

Not even close.  This has been going on since the start of the great recession/depression in 2008.  They have simply refined their collection techniques on judgments.  Since 95% of judgments they get are default judgment because the consumer never responds they simply let post judgment interest add up then file for a bank levy knowing the paycheck will hit the bank at some point.  You will see this kind of activity at tax time when refunds start rolling in as well.

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The e-file count on debt cases being filed has continued to grow at an alarming rate. I feel we are witnessing something regarding consumer debt and the court system of great importance in history.

I would not be worried about the rate in which cases are being filed. Whether anyone files 10, 100, or 1000 cases, if the rate default stays the same, then it does not matter. Besides, if too many cases are being filed, it will clog up the court system because they still need to be adjudicated the traditional way. Defaults may go faster but they would default anyways so there is no injustice.

Here in Minnesota, all a JDB has to do is prepare a summons and complaint and pass it along to the sheriff to serve on the debtor. No need to file a court case. There were some abuses that the legislature took care of but even after that, the default rate remained at about 95% - 98%. I think it is the same thing in Texas whether they use eFile or traditional methods.

Also, many state courts are turning to efiling (and might require lawyers to use it) as a way to save on costs considering they take the largest brunt of state budget cuts.

Quote

Midland Funding has started a new court strategy in Texas and maybe other states also.

Reviewing the Texas online court records, Midland has started opening old cases with Default Judgements. They have reopened dozens of cases in 2019 and none in 2018.

The cases are asking for courts to garnish money from major banks like JP Morgan and others. I don’t think the law has changed in Texas regarding garnishments, ( Texas law prevents wage garnishment on consumer debt.)

Midland has found something or someway to get information on the defendants in their old Judgment wins.

If anyone has some information on this, please inform us.

This is nothing new. JDBs are know to sit on cases for years and they try to collect. They may notice someone trying to get new credit or they might just blanket the national banks with garnishments in hopes that one sticks. By sitting on the debt, they actually get more interest than if they put into a MMF so it behooves them to sit for a couple of years and let the judgement grow.

I think you are trying to find something changing but nothing is changing here.

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