Question

I received 2 leters in the mail, both stating that a lawsuit has
been filed against me by Midland Funding LLC. the first letter is
from “American Mediation & Alternative Resolutions”, the other
from “Ferrey & Nicholas, Inc.” both want to work with me to
settle my case before trial. To begin with I have not been served
with a summons for a lawsuit. I called the small claims court clerk
and she would only say that I have not been served yet and the

address she quoted was the wrong P.O. box number on the case. From
what research I have found it is for a FCNB Spiegel credit card I
had a few years ago. I fell on some hard times and got behind on my
payments. I then was contacted by “NAFS Collections”with whom I
made regular payments that were automatically deducted from my
account. Then one day they called and said that I had to settle the
account and they would accept $463.02 to be paid in full and I had
to do it that day because it was the end of the month. I made the
payment but I never recieved anything in writing saying it was paid
in full. Now this. I’m not sure if just copies of checks made out
to this collection agency will work to prove I paid since there is
no account number on it to reference and I never got anything in
writing, also is Midland Funding LLC the same as NAFS Collections
and Midland Credit Management Pinnacle Financial Group. What should
I do now, I have not been served and since the address is wrong the
court clerk said I can go there and be served? I don’t want them to
go to court and not be there, I will lose for sure.

Midland Funding

My answer:

1. Spiegel Group Inc., went bankrupt in 2003 and effective June 30,
2003, the New York based Cardholder Management Service (CMS) took
over tracking and collection of about 4 million credit card
accounts, replacing First Consumers National Bank (FCNB), the
Spiegel private label card issuer. DirectMag.com

2. American Mediation & Alternative Resolutions and Ferrey
& Nicholas, Inc. are each debt settlement companies that were
trolling public records looking for lawsuits, and trying to drum up
business for themselves. These two have nothing to do with your
alleged debt or the lawsuit. You can safely ignore their letters.

3. Although you have not been served with a summons, you actually
know about the lawsuit. Not only do you know about the lawsuit, you
talked to the court clerk and they know that you know about the
lawsuit. No doubt a note was made in the clerk’s file when you
inquired about the case, and you cannot deny that you know about
the lawsuit. Actually receiving the summons is not essential since
you in fact know about the lawsuit. That’s all the summons does
anyway. It informs you of the lawsuit.
The clock is ticking!

Except, of course, if you live in Texas. The Texas courts have made
some strong statements about the necessity of actual service. Many
other jurisdictions are not as picky and look to evidence of
constructive notice. The best you can do when you know you’ve been
sued, however you get that knowledge, is to act quickly. In this
situation, delay is not your friend.

4. NAFS Collections (probably National Action Financial Services -
Williamsville, NY) is not the same company as Midland Credit
Management, and Pinnacle Financial Group is a different company
yet. Midland Credit Management is likely related to Midland Funding
LLC, but I’m not sure. This needs to be researched or verified.

5. What must be done immediately is to go to the court clerk’s
office and get a copy of the complaint, which then must be answered
pronto! Remember, they have the burden of proof, and since it has
been bouncing around from collection agency to collection agency
for years, they might not have the paperwork anymore. Spiegel is
long gone. You may also have a statute of limitations defense in
addition to the fact that you already paid.

Does this Spiegel debt show up on your credit report?