FCNB-Spiegel Midland Credit Management ripoff San Diego California

I followed the advice from other ripoff entries when I was first contacted by MCM and sent a letter requesting validation of my supposed debt. I sent the letter certified, return receipt, it was signed for on January 29th. I do not believe this to be an old paid debt of mine, in the beginning a rep. for MCM said it was for a Washington Mutual credit card, which I have never had...

This week I began receiving recorded phone messages asking me to hold for a important personal message, the past four times I simply hung up figuring it was a sales call, today an operator caught me before I could and it was a representative regarding my "associates" account stating my account was about to be turned to collection and they would like to work out a payment plan! I stated that I have already responded to the claim by mail; the rep. began to say they didn't receive it when I finished my sentence saying it was signed for. Then she says that apparently the request must not have been passed on...I told her to find it and provide me with all of the information that I've requested because I would not discuss this by phone.

I've kept a log of all dates of contact. After reading Misty's account, am I able to report them at this point for not providing me with proof of this debt within 30-days of my request? And where do I go next? Any venue to expose them would be pleasurable... Or even better, like Misty says, SUE, SUE, SUE!

Except for Judgments and Bankruptcies, everything else on your credit report older than 7 years is considered stale and you can require any and all Credit Reporting Agencies to remove it.

Do so, in writing, return receipt requested and have fun.

Bob
Texas

Feb. 2002 I contacted Midland Credit Management because I got a letter in the mail stating I had an open account with some company. I have been fighting with them ever since! I have sent three letters of dispute, demanding they either show me proof of the debt, or cease attempting to collect on it. I do not recall having any account with FCNB (who the hell are they anyway??) and I am not paying something that is not mine! I have had problems in the past with name and social security alterations reported on my 3 credit reports; someone may have tried to steal my identity at some point!

I have finally had ENOUGH. I filed a complaint with the Federal Trade Commission, the Better Business Bureau and the attorney general of California (that's where their corporate HQ are). I hadn't ever thought to search for a local office, but when I contacted the Arizona State Banking Department I found out they have an office right down the street from where I live & work! So.... this is what I did. I hadn't ever mailed my letters CERTIFIED, RETURN RECEIPT mail to them before. I wasn't going to let them off on a mere technocality! I mailed copies of ALL our correspondece, along with a letter of intent to SUE, to the local office, and the corporate office in California. I would like to thank Denise Bruins for signing for the local letter! For $26 I can file in small claims court. If they still do not verify the debt in question, within 30 days of receiving the letter, I will be receiving $1,000.00 from the bastards! So, I suggest anyone else having difficulties with them SUE them in small claims court as well.

Contact your local Banking Department, find out if they are licensed to do business in your state first of all! See if they have a local branch because the mail will move much faster! Send your letter of dispute by certified, return receipt mail (cheaper than registered). Then sit back and wait! SUE SUE SUE the harassing bastards!!!!!!!!!

I worked for Midland Credit Management for years. They purchase charged-off credit card contracts from the original creditors. Sometimes they purchase contracts that have already been paid off...but only because the original creditor has made a mistake and not properly closed out the account/reported the account correctly. It would do them no good to buy accounts that they knew had no balance due.

When you paid the original creditor, you did it through what is called a "settlement". It is when you pay a discounted amount, and the company writes off the remaining balance. It is unsettlingly common for companies to forget to zero out the balance on the account when a settlement is paid.

Your chances of clearing this up are very good, if you follow the below steps:

1. Write a letter disputing the balance and asking for proof of the balance and send it CERTIFIED MAIL, RETURN RECEIPT REQUESTED to Midland Credit Management.

2. Write a letter disputing the balance and the account and send it CERTIFIED MAIL, RETURN RECEIPT REQUESTED and send it to all three major credit reporting agencies (Experian, Equifax, and Trans Union). They will follow up with Midland to make sure that they respond to your dispute.

3. Don't give up...follow up with the credit reporting agencies if you do not hear anything within two months.

According to the FDCPA (the Fair Debt Collection Practices Act), they are required to respond to your dispute within a reasonable amount of time (usually 30 days). If they cannot provide you with written proof of the balance, usually a signed credit card contract, they are required to delete the negative entry off of your credit report.

I worked worked in the department that orders the proof for disputes. In most cases, any account that was older than 4 or 5 years, we did not have the proof to back up the balance. It's not that we were being fraudulent, it is because it costs a lot of money to maintain records, and because Midland owns millions of accounts, they don't keep all the records. If the balance is below $1000, in a lot of cases, they wouldn't even bother to order the contracts, they would just delete it because it costs money not only to maintain the paperwork, but also to order copies of it.

IMPORTANT TIP: All credit card companies, finance companies, and collection agencies are governed by the FDCPA. You can find important consumer information at the Federal Trade Commission's (FTC) website, including a copy of the FDCPA. All these companies have to respond to disputes in the same manner.

All debts/credit contracts can be reported for 7 years from the date they are closed or charged off. When a company charges off an account, it does not mean that a consumer does not owe the balance, it is simply an accounting term that means that the debt is no longer profitable. Companies can attempt to collect the balance until it is paid, that means that if you don't pay a bill, you can get calls on it 15 years from now!

It is very important that when you pay off any loan, credit card, or any type of debt, whether you pay the full amount or a settlement, you keep very good records. Keep all settlement offer letters, make sure and get a letter that has the original creditor name, original account number and a -0- balance. Keep copies of everything. Check your credit report 2-3 months after paying something off to make sure it is being reported as a zero balance. Good luck.