Midland Credit Management

[Anonymous]

The OC and CA can attempt to collect this debt forever, regardless of SOL, DOFD or CRTP.  These dates only restrict their ability to sue you and report to the CRA's.  However, once the SOL and DOFD/CRTP have past, the debt is still valid and they can still attempt to collect it by letter, telephone and other "requests" for you payment.

A debt does not become invalid or extinguished unless it is paid or discharged in bankruptcy (or you die, but even then they can pursue the estate if there are assets).

For all practical purposes, if you notify the CA to "cease and desist" all communication by phone or letter, the matter is effectively dead, because they can no longer contact you to attempt collection, they cannot report it to credit and they cannot prevail with a suit against you.  The debt is now in "limbo" because it is a valid debt, but has no effective means to pursue a collection.  Only your moral inclination at that point would "compel" any type of settlement.

[2wheel]

I been disputing Midland Credit Managment for 4 months now because after you pay them which I did for my wife they updated equifax as a open account with 120 days past due and then put in notes that this was a collection account. I tried disputing it a couple of times but equifax would always come back saying it was my debt. I know this I am trying to dispute the narritive code for it. Talked to equifax floor supervisor today and he agreed that the account is reporting incorrectly and will have it ( CLOSED ) Dont know that they mean by closed account? Will it still show but closed or will it just be deleted because of it being closed? Any insight on this ?

[Anonymous]

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@2wheel wrote:

I been disputing Midland Credit Managment for 4 months now because after you pay them which I did for my wife they updated equifax as a open account with 120 days past due and then put in notes that this was a collection account. I tried disputing it a couple of times but equifax would always come back saying it was my debt. I know this I am trying to dispute the narritive code for it. Talked to equifax floor supervisor today and he agreed that the account is reporting incorrectly and will have it ( CLOSED ) Dont know that they mean by closed account? Will it still show but closed or will it just be deleted because of it being closed? Any insight on this ?

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They won't delete most likely, they will correct.  If I understand your dispute, you want them to recode as paid collection rather than open account, right?

Let me tell you that if you are successful, your FICO score will PLUMMET.  After public records (BK, liens & judgments) a collection (coded as such) is the nastiest FICO factor there is.  They are worse than a charge off, late or both.

We are not talking about a small difference.  We are talking 50 to 100 point difference.  Don't dispute to get a recode.  Leave it alone unless you can get it deleted.  But the problem with disputing for delete based upon inaccurate "code" and classification is they may just update it correctly to Collection and you then still have the collection, but it is coded in a way as to decimate your FICO.

Message Edited by txjohn on 05-08-2009 03:48 PM

[Anonymous]

Even when a collection is misreported in the accounts section, rather than the collections section.....chances are FICO still sees it as a collection. Only in very rare circumstances does FICO not know it is a collection.

While it is reporting wrong, I would almost bet FICO still reads it as a collection.

[2wheel]

Ya they cant code it to collections I think what they are doing it changing the status from open to close but I am wondering if the 120 past due will show. After they close it. Its paid in full. And experian did the same thing And I got a 15pt increase for it go figure that 1

[Anonymous]

Hey Sidewinder -

FYI:  I had a Midland Credit Management CA which reported as a "true" collection on TU and as an account on EQ.  With all else equal, my EQ score was 806 and my TU was 706, exactly 100 points difference.  Once I got Midland removed off both TU and EQ, my EQ scores went to 809 and my TU went to 803.  My TU and EQ reports were identical in every account, except Midland.

Conclusion:  How it is coded is very much a factor in FICO and FICO does see a difference.  Now, a LO review will most likely see the "Collection" comment and company name and react in the same manner.  But FICO, it knows the difference and scores accordingly.

[2wheel]

Then what do they mean by closing the accout then txjohn the status is open and showing 120 days late will the 120 come off when the account shows closed? Becase transunion and eqifax is equal except for this being in accounts as open 120 days past due there is a 76 point diffrence between the 2

[Anonymous]

Having the account status go to "CLOSED" would be fine.  But having the account "recoded" as a collection account that shows up under the collections section of report will KILL FICO more than it is being hurt coded as an account.

The reason it is showing 120 late is that is how the "account" is classified as in collection.  But since it is coded under accounts, it is like an OC internal collection department not outside collection, at least in FICO scoring.

[2wheel]

Cool thanks wonder if I will receive and bonus points for the outcome..