Midland Credit Management MCM MCM trying to collect a credit card debt that was paid to a different collection agency! San Diego, California

Your loan officer is taking the easy way out here that is best for him, and not in your best interest.

All you need to do is swear out an affidavit that you paid the alleged debt, and attach any proof you have. Then, take this directly to the underwriter of your loan, and they will do a "lender exception" on it.

The loan officer doesn't get paid until after your loan closes, and is only looking after his own interest here, or is incompetent.

And, you can sue the collection agencies involved for all damages if they prevent you from getting the loan, or cause you to pay a higher rate, etc.

They ARE responsible for performing "due diligence" in the collection of any debt.

Furthermore, post charge off interest is regulated and limited by law, and there is absolutely no way a $300 debt could ever reach $700 within the legal statute of limitations period, nor could it even go from $700 to $900. It is impossible.

Keep in mind that it is illegal for any collection agency to add "collection fees" to an amount owed by a debtor. They cannot add fees of any kind to your post charge off debt. That is the whole reason for the federal law that requires "charge off".

You need to hold everyone accountable. Stay off the phone. Do everything via certified mail, return reciept requested.

Make your loan officer earn his money, or find a different one. My advice is to go to a loan broker.

If you have proof that the debt was paid, cancelled check etc,  submit it to the mortgage lender, to show the debt has been paid in full.  If this does not work, take a certified copy of the cancelled check, or however you paid the debt, and send it to MCM.  If they still harass you about this, advise them that you will be contacting an attorney.  Have the attorney deal with them.  

There is no reason for them to be contacting you,  after you provide the proof that the debt was paid in full.   I had this happen to me several years ago.  I sent the debt collector proof that the debt was paid, and haven't heard anything from them since. Nor have I heard from any other collector in regards to this debt. 

Just keep a certified copy on hand so that if another debt collector tries to collect, you can send them a copy of the proof of payment as well.   Keep accurate records of any and all contact they make with you,  so if you need it,  for future reference, you have it on hand. 

This should take care of the issue.

Good Luck,,,