Midland Credit Management ripoff Los Angeles California

Kimberly:

Steve seems to be a fountain of misinformation and he really needs to brush up on his FCRA and FDCPA and state debt collection laws.

The FCRA states in Section 605 (c) that:

"In general. The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and losss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charged to profit and loss, or similar action."

This means that the creditor has UP TO 180 days after you stop making payments to charge off the account (THIS IS A MAXIMUM-it can be earlier, but it can NOT be any later than 180 days in order to keep the creditor from holding on to the debt for years). The 7-year reporting period runs from the date of charge-off and NOTHING can restart the reporting period - not even if you pay off the collection account sometime down the road.

Section 605(a)(4) states in pertinent part:

"Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information: (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.

Which means the reporting period doesn't restart. Once an account is charged-off, it remains charged-off - a payment doesn't "undo" the charge-off. The calendar doesn't start all over if a payment is made, although the payment would be reflected as a "recent activity" on your credit report and will affect your FICO score until the remainder of the reporting period passes.

Steve is AGAIN confusing the rules for credit reporting with the rules of filing lawsuits (otherwise known as the Statute of Limitations), which is regulated by the individual states laws. The SOL for lawsuits runs from the date you first fell behind in your payments (not the charge-off date). A payment on a defaulted account MAY POSSIBLY restart the SOL and allow a collection company or creditor to sue you for a longer period of time. I say "MAY POSSIBLY", because not all states allow the restarting of the statute of limitations.

And one other thing...about who the FDCPA applies to and who it does not...

The FDCPA does not apply to the original creditor, or a collector that works within the creditor's company, operates using the name of the creditor, and collects solely for their employer.

A collector can be hired directly by the creditor to collect and still be considered "third-party" as long as they operate under a different company name.

And Kimberly...to answer your last question about what field determines the 7-year reporting period. The answer would be EITHER the date of first delinquency OR the date of last activity. However, it can be kind of tricky because not all of the CRA's report both on a consumer report. The best way to find out would be to call the credit bureau and ask them "when is this due to fall off of my report? And what date are you basing this off of?"

But remember, the date that they base this off of, CAN NOT BE MORE than 180 days after the initial delinquency.

If you've got proof of when the charge-off occurred, and it's actually earlier than the 180-period, than reporting starts on the earlier date. A good way to think of this is with medical bills....hospitals don't waste ANY time charging off bad debt. They typically wait 3 months for payment, then charge off the debt and assign it to collections. That 3-month date is the date that the 7-year period starts (even though it's before the 180-day maximum).

Thank You all for helping me on this matter.
I waited 10 days after i sent MCM my validation letter and disputed it with the credit b's. I got a letter on 6/9/06 from Equifax stating that they have removed MCM from my CR,so evidently MCM could not prove this was my debt. I do read reports on here so I will continue to watch my CR in case they feel like adding it back on. If I get antmore settlement letters from MCM does anybody know what I shouls do? Also there are 3 dates on your CR date opened, date of last activity and date reported which one of these do you use to start the 7to10 year clock for it to come off your CR?
Thanks for all your help.

"R",

You are the one with misconceptions that need to be cleared up.

There were so many errors, I don't know where to start.

The FCRA which falls under FTC enforcement is the guide for credit reporting.

Any negative entry will stay on your report 7 years from LAST ACTIVITY. When you pay on an old account that has been charged off, you RESTART the 7 year reporting rule, as the payment you made is last activity. You also restart the clock on SOL for enforcement of collections.

There is NO DIFFERENCE between a debt collection agency and a debt collection company. NONE. And, ANYONE who is a subscriber to a credit bureau can make an entry on your credit as long as thier business qualifies. Any licensed collection agency, company or lawyer can make an entry to your credit report.

It is nice to have your facts straight before clearing up misconceptions.

You should actually read the FCRA. It is on the FTC website. Then go to BudHibbs.com for additional resources.

Most provisions of the FDCPA apply only to 'third party' collectors. Collectors employed directly by the creditor are considered first party collectors, and most provisions of the FDCPA do not apply to them.

The 7 year negative reporting date starts upon the first 'major delinquency' NOT the charge off date. Major delinquency is when an account is more than 30 days late. Some creditors choose to use the charge off date, but if the consumer fights it, it has to be changed.

Just wanted to clear up some misconceptions on credit reporting. First, my background is 20+ years in the banking industry which includes secured and unsecured lending and I have seen it all on credit reports.

A creditor can continue reporting on a debt 7 years from DATE OF CHARGE OFF, not from the date you opened the account. This is the Federal Reporting Statute not to be confused with your state statute that allows legal recourse.

Your legal statute can run out and that means the creditor cannot take you to court to sue you for the funds, but the reporting to the credit bureaus will continue until the 7 years runs out.

Also, if you pay a charged off debt, it is not deleted off your credit report, only the status will change to show paid. It will still stay on for the 7 years from date of charge off. Keep in mind, you could have two tradelines for this debt...one from the original creditor showing "charge off" and one from the debt collection company showing "collection account/seriously past due" or "PAID" if you satisfied the debt. Both of these lines will stay on for 7 years from the original charge off date. A debt collection company cannot make an original creditor change their tradeline nor are they required to notify the original creditor that the debt is satisfied. Frankly, the original creditor doesn't care, they have sold the debt and they are done with it.

I would like to add one thing as well that not many people are aware of. There is a difference between a debt collection "agency" and a debt collection "company."

An "agency" works on behalf of either the original creditor or a debt collection company who has purchased the debt. An "agency" should never be reporting on the credit bureau, only the owner of the debt can report.

All debt collection "companies" are bound by FDCPA, but an original creditor or an agency of an original creditor may not be. You would have to check your state laws with regard to collection practices of orginal creditors and their agencies.

Hope this helps.

Just wanted to clear up some misconceptions on credit reporting. First, my background is 20+ years in the banking industry which includes secured and unsecured lending and I have seen it all on credit reports.

A creditor can continue reporting on a debt 7 years from DATE OF CHARGE OFF, not from the date you opened the account. This is the Federal Reporting Statute not to be confused with your state statute that allows legal recourse.

Your legal statute can run out and that means the creditor cannot take you to court to sue you for the funds, but the reporting to the credit bureaus will continue until the 7 years runs out.

Also, if you pay a charged off debt, it is not deleted off your credit report, only the status will change to show paid. It will still stay on for the 7 years from date of charge off. Keep in mind, you could have two tradelines for this debt...one from the original creditor showing "charge off" and one from the debt collection company showing "collection account/seriously past due" or "PAID" if you satisfied the debt. Both of these lines will stay on for 7 years from the original charge off date. A debt collection company cannot make an original creditor change their tradeline nor are they required to notify the original creditor that the debt is satisfied. Frankly, the original creditor doesn't care, they have sold the debt and they are done with it.

I would like to add one thing as well that not many people are aware of. There is a difference between a debt collection "agency" and a debt collection "company."

An "agency" works on behalf of either the original creditor or a debt collection company who has purchased the debt. An "agency" should never be reporting on the credit bureau, only the owner of the debt can report.

All debt collection "companies" are bound by FDCPA, but an original creditor or an agency of an original creditor may not be. You would have to check your state laws with regard to collection practices of orginal creditors and their agencies.

Hope this helps.

Just wanted to clear up some misconceptions on credit reporting. First, my background is 20+ years in the banking industry which includes secured and unsecured lending and I have seen it all on credit reports.

A creditor can continue reporting on a debt 7 years from DATE OF CHARGE OFF, not from the date you opened the account. This is the Federal Reporting Statute not to be confused with your state statute that allows legal recourse.

Your legal statute can run out and that means the creditor cannot take you to court to sue you for the funds, but the reporting to the credit bureaus will continue until the 7 years runs out.

Also, if you pay a charged off debt, it is not deleted off your credit report, only the status will change to show paid. It will still stay on for the 7 years from date of charge off. Keep in mind, you could have two tradelines for this debt...one from the original creditor showing "charge off" and one from the debt collection company showing "collection account/seriously past due" or "PAID" if you satisfied the debt. Both of these lines will stay on for 7 years from the original charge off date. A debt collection company cannot make an original creditor change their tradeline nor are they required to notify the original creditor that the debt is satisfied. Frankly, the original creditor doesn't care, they have sold the debt and they are done with it.

I would like to add one thing as well that not many people are aware of. There is a difference between a debt collection "agency" and a debt collection "company."

An "agency" works on behalf of either the original creditor or a debt collection company who has purchased the debt. An "agency" should never be reporting on the credit bureau, only the owner of the debt can report.

All debt collection "companies" are bound by FDCPA, but an original creditor or an agency of an original creditor may not be. You would have to check your state laws with regard to collection practices of orginal creditors and their agencies.

Hope this helps.

Just wanted to clear up some misconceptions on credit reporting. First, my background is 20+ years in the banking industry which includes secured and unsecured lending and I have seen it all on credit reports.

A creditor can continue reporting on a debt 7 years from DATE OF CHARGE OFF, not from the date you opened the account. This is the Federal Reporting Statute not to be confused with your state statute that allows legal recourse.

Your legal statute can run out and that means the creditor cannot take you to court to sue you for the funds, but the reporting to the credit bureaus will continue until the 7 years runs out.

Also, if you pay a charged off debt, it is not deleted off your credit report, only the status will change to show paid. It will still stay on for the 7 years from date of charge off. Keep in mind, you could have two tradelines for this debt...one from the original creditor showing "charge off" and one from the debt collection company showing "collection account/seriously past due" or "PAID" if you satisfied the debt. Both of these lines will stay on for 7 years from the original charge off date. A debt collection company cannot make an original creditor change their tradeline nor are they required to notify the original creditor that the debt is satisfied. Frankly, the original creditor doesn't care, they have sold the debt and they are done with it.

I would like to add one thing as well that not many people are aware of. There is a difference between a debt collection "agency" and a debt collection "company."

An "agency" works on behalf of either the original creditor or a debt collection company who has purchased the debt. An "agency" should never be reporting on the credit bureau, only the owner of the debt can report.

All debt collection "companies" are bound by FDCPA, but an original creditor or an agency of an original creditor may not be. You would have to check your state laws with regard to collection practices of orginal creditors and their agencies.

Hope this helps.

Kimberly I am pretty much in the same kind of situation as you and would like to give you a heads up about MCM. I pretty much took all the steps you did and have just be summoned to court after a little respite from their harrassing. Please do check your Credit reports as these people have now resorted to reporting to the CRA another debt (but for the exact amount) under Medical. I am now having to hire a lawyer for Civil court no less! These people are dogs that dont let go! Please be on the lookout for continued harrassment.

I should have made that more clear.

I use a dual purpose letter, to avoid multiple communications, time and expense.

Let me clarify. I specify that the letter is dual purpose. I tell them that after they provide debt validation, they are to cease all communication with me.

I should have specified that.

I am working 12-16 hours a day back to back, and really do not have the time to be on here, but I feel it is important. I am on a mission with these debt collectors.

Hope this clears things up.

Kimberly, Steve's advice was right on the money. I have only one question for Steve:

Steve posted: " Send them a CEASE COMMUNICATIONS letter as per your rights under the FDCPA."

If one does this, does it not prevent them from sending you a response to the validation letter? I am not bashing your reponse, my question is legitimate, as I also wish to know. As I interpet the FDCPA a cease communication letter prevents them from contacting you except to notify you of legal action.

Kimberly,

Midland Credit Management are also JUNK DEBT BUYERS. They buy a debt of this type and age for LESS than a penny on the dollar.

You need to hammer them, and be aggressive as possible. DEMAND things, don't ask. They are governed by the FDCPA which is Federal Law. It doesn't matter if they like what you say or how you say it. They just have to comply.

FYI..The SOL in FL for Written Contracts and Promissory Notes is 5 years. Open ended credit is 4 years. FL courts lean towards the 5 year SOL for credit cards as they consider it a written contract. I fought this battle for my Mom in Manatee County Circuit Court.

Send a "Debt Validation" request exactly like this, by certified mail, return reciept requested. Put the certified# on the letter itself, and make a copy for your records.

Specify that you dispute the debt. DEMAND to see something you signed to create it, AND an account history. DEMAND to see documentation that they either own the debt and/or are contracted to collect it, and DEMAND to see that they are licensed in FL as a debt collector.

Then "CC" the letter to everyone you can think of, but dont actually cc anyone. Just the reference on the letter you send turns up the heat.

You are NOT dealing with FingerHut anymore. They sold this debt. Midland is notorious for RE Aging debts to make them appear to be collectable.

File separate FTC complaints on each violation of your rights.

Dont speak to them on the phone, EVERYTHING must be in writing. Send them a CEASE COMMUNICATIONS letter as per your rights under the FDCPA.

Don't be afraid to saturate all known fax#'s for them on a regular basis to get your point across.

Agency Details

Midland Credit Management, Inc. *
8875 Aero Dr. Ste 200
San Diego, California 92123-2255
Phone: (858) 309-6970
Fax: (858) 309-6977
Web Address: www.mcmcg.com

Bud Says...
Midland Credit Management is a scavenger debt buyer, bottom-feeder. They buy a lot of old debts that are (again) placed on consumer credit reports. MCM has BIG problem. Like most bottom-feeders, they must pay (usually $50.00) to retrieve documents on accounts the CLAIM are legitimate. So, like the others, it's easier and cheaper for them to ignore consumer complaints and NOT respond to your complaints.

Midland is a subsidary of Encore Capital Group, Inc.

I hope this helps!

Kimberly,

Midland Credit Management are also JUNK DEBT BUYERS. They buy a debt of this type and age for LESS than a penny on the dollar.

You need to hammer them, and be aggressive as possible. DEMAND things, don't ask. They are governed by the FDCPA which is Federal Law. It doesn't matter if they like what you say or how you say it. They just have to comply.

FYI..The SOL in FL for Written Contracts and Promissory Notes is 5 years. Open ended credit is 4 years. FL courts lean towards the 5 year SOL for credit cards as they consider it a written contract. I fought this battle for my Mom in Manatee County Circuit Court.

Send a "Debt Validation" request exactly like this, by certified mail, return reciept requested. Put the certified# on the letter itself, and make a copy for your records.

Specify that you dispute the debt. DEMAND to see something you signed to create it, AND an account history. DEMAND to see documentation that they either own the debt and/or are contracted to collect it, and DEMAND to see that they are licensed in FL as a debt collector.

Then "CC" the letter to everyone you can think of, but dont actually cc anyone. Just the reference on the letter you send turns up the heat.

You are NOT dealing with FingerHut anymore. They sold this debt. Midland is notorious for RE Aging debts to make them appear to be collectable.

File separate FTC complaints on each violation of your rights.

Dont speak to them on the phone, EVERYTHING must be in writing. Send them a CEASE COMMUNICATIONS letter as per your rights under the FDCPA.

Don't be afraid to saturate all known fax#'s for them on a regular basis to get your point across.

Agency Details

Midland Credit Management, Inc. *
8875 Aero Dr. Ste 200
San Diego, California 92123-2255
Phone: (858) 309-6970
Fax: (858) 309-6977
Web Address: www.mcmcg.com

Bud Says...
Midland Credit Management is a scavenger debt buyer, bottom-feeder. They buy a lot of old debts that are (again) placed on consumer credit reports. MCM has BIG problem. Like most bottom-feeders, they must pay (usually $50.00) to retrieve documents on accounts the CLAIM are legitimate. So, like the others, it's easier and cheaper for them to ignore consumer complaints and NOT respond to your complaints.

Midland is a subsidary of Encore Capital Group, Inc.

I hope this helps!

Kimberly,

Midland Credit Management are also JUNK DEBT BUYERS. They buy a debt of this type and age for LESS than a penny on the dollar.

You need to hammer them, and be aggressive as possible. DEMAND things, don't ask. They are governed by the FDCPA which is Federal Law. It doesn't matter if they like what you say or how you say it. They just have to comply.

FYI..The SOL in FL for Written Contracts and Promissory Notes is 5 years. Open ended credit is 4 years. FL courts lean towards the 5 year SOL for credit cards as they consider it a written contract. I fought this battle for my Mom in Manatee County Circuit Court.

Send a "Debt Validation" request exactly like this, by certified mail, return reciept requested. Put the certified# on the letter itself, and make a copy for your records.

Specify that you dispute the debt. DEMAND to see something you signed to create it, AND an account history. DEMAND to see documentation that they either own the debt and/or are contracted to collect it, and DEMAND to see that they are licensed in FL as a debt collector.

Then "CC" the letter to everyone you can think of, but dont actually cc anyone. Just the reference on the letter you send turns up the heat.

You are NOT dealing with FingerHut anymore. They sold this debt. Midland is notorious for RE Aging debts to make them appear to be collectable.

File separate FTC complaints on each violation of your rights.

Dont speak to them on the phone, EVERYTHING must be in writing. Send them a CEASE COMMUNICATIONS letter as per your rights under the FDCPA.

Don't be afraid to saturate all known fax#'s for them on a regular basis to get your point across.

Agency Details

Midland Credit Management, Inc. *
8875 Aero Dr. Ste 200
San Diego, California 92123-2255
Phone: (858) 309-6970
Fax: (858) 309-6977
Web Address: www.mcmcg.com

Bud Says...
Midland Credit Management is a scavenger debt buyer, bottom-feeder. They buy a lot of old debts that are (again) placed on consumer credit reports. MCM has BIG problem. Like most bottom-feeders, they must pay (usually $50.00) to retrieve documents on accounts the CLAIM are legitimate. So, like the others, it's easier and cheaper for them to ignore consumer complaints and NOT respond to your complaints.

Midland is a subsidary of Encore Capital Group, Inc.

I hope this helps!

As I Stated in my report above about my first purchase to FH was in 97. Well I have got my credit report and FH is showing that this account was opened in 5/99,so how Can I have purchased stuff in 97? Makes no sanse to me. Also I am still trying to find out about MCM being licensed in FL. HELP

Hello All,

First I would like to say Thank You to all that have given information to individuals like myself who know squat about dealing with these people.

I sent MCM a letter on 4-25-06 asking them to validate my account,I also asked for something with my signature on it,payment and purchase history and proof that the SOL has not expired.I recieved papers from them today, 12 in all. My first purchase to FH was on 10-23-97 and my last was on 5-14-00.That takes care of the first 3 papers.The other 9 look to be statements, the first one starts on 9-21-00,10-21-00,these 2 show payments made and the other 7 show nothing. Now just looking at this to me seems that i opened this account in 97 and didnt make a payment until 2000.SURE. This was reported to the credit bureaus in 01 and it is 06 ,the SOL for FL. is only 4years and they didnt send nothing concerning this at all. I have seen other reports and I thought some said that MCM is not licensed to collect debt in FL. Can anyone tell me if this is correct or do you know a website I can goto so I can find out???
If they are not licensed does this mean it ia illegal for them to bother me about this? If anybody can help me I would be very grateful.

I would suggest you contact them in writing and request an itemized bill for what they say you owe. Tell them you are disputing the bill and that you must have an itemized statement so that you can check it against your records. Bear in mind they have no idea whether you have kept records or not so they won't know any better. Chances are you may never hear from them once they see you are serious about verifying the debt.

PLEASE If anybody has some suggestions please let me know.