What should I do?

[five22bags]

I will try to explain my situation as best I can:

I live in Michigan. In 2001-2003, I lived in Florida where I went to college for a few years. While I was there, I ran up a hefty Verizon cell phone bill and being the poor college student at the time, I did not pay it. Long story short, the debt was being collected by Midland Credit (who I know is quite notorious). At the time, I did not know any better, and paid Midland Credit at a slightly discounted price in 2006, with no agreements in place to delete it once I've paid or anything--I fell for the whole thing hook line n sinker.

Well now its 2009. Statute of Limitations for contracts signed in Florida are 5 years, and in Michigan its 6 years. I'm assuming my SOL pertains to Florida, since thats where I signed my Verizon contract. Besides that, I've noticed that I've been marked 120 days late on payment in July 2008. I paid MCM in 2006 in full with a single check. Sadly, I have no documentation of me paying them, or them sending me a receipt of payment (which I believe they did, but I thought it was all said and done so I did not retain this document).

I've disputed the existence of this account with the CRAs and all came back with a letter that simply said "this debt is valid". Which of course means nothing to anyone.

Where do I go from here? Do I send a DV letter to MCM? Will they sue me? CAN they sue me?

Thanks in advance.

[llecs]

State laws on SOL vary. Some allow for tolling from state to state and most allow the SOL to be reset with a payment.

They can still sue at anytime. Anything could have awaken them like a dispute, DV, PFD, etc.

If you have the $$$ to PIF, and since SOL is unexpired, then I'd suggest DVing them. If they verify and you agree then go for a PFD. However, search around for PFD success stories for PFDing MCM first. If you don't have $$$ to PIF, then wait until SOL expires which is likely 6 yrs from 2006.

ETA....your DOFD, if this debt occured while in FL, would be between 2001-2003. Now it could easily be after if you carried a FL number after moving. But if the DOFD is during this period, then it will be removed on its own from your CR sometime by next year, if not sooner. However, you'd still be on the hook due to the SOL.

Message Edited by llecs on 02-26-2009 04:19 PM

[five22bags]

But I've already paid them, but I'm questioning whether or not I was legally obligated to; a verification of debt. Should I even bother?

Thanks. 

[llecs]

My bad. My mind was focused on the first payment you had made and the SOL comment. You were legally obligated to pay then but aren't now. However, if ever sued, you'd have to prove it. Do you have any old bank statements or anything like that? Is it possible to go to your old bank and request back statements?

I'd personally DV them. The only way SOL could be reset possibly is with a payment. They'd have to prove to the court that you made the payment in 2006 on a debt that they won't acknowledge payment on anyway. Keep DVing them, dispute the balance owed, and I'd keep detailed records of the letters they send you, phone call attempts, etc. You'd want to look for info that you could use against them. I'd also check to see if they are required to be licensed in your state.

If collection activity ratchets up, and it could, then I would expand it into BBB complaints, complaints to the FTC, and also to your AG.

[Junejer]

Let's not forget that this is a cell phone and Federal SOL is two years. DV them.

[five22bags]

My confidence is peaking on this matter, thank you very much for your collective insight. Here is my DV letter. Its the "standard" DV letter thats been floating around the internet. I made it past tense (since I already paid it). Do I need to change anything? Do I need to include that SOL for cell phones is 2 years?

Thanks again.

Midland Credit Management

8875 Aero Dr Ste 200

San Diego, CA 92123

Re: Acct # xxxxxxxx

To Whom It May Concern: 

This letter is being sent to you in response to a listing in my credit report by your company. Be advised that this is a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested. 

This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I had any legal obligation to pay you. 

Please provide me with the following: 

What the money you say I owed is for; 

Explain and show me how you calculated what you say I owed; 

Provide me with copies of any papers that show I agreed to pay what you say I owed; 

Provide a verification or copy of any judgment if applicable; 

Identify the original creditor; 

Prove the Statute of Limitations had not expired on this account at the time of collection;

Show me that you are licensed to collect in my state;

Provide me with your license numbers and Registered Agent 

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following: 

Violation of the Fair Credit Reporting Act 

Violation of the Fair Debt Collection Practices Act 

Defamation of Character 

If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist. 

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is. 

If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately. 

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS. 

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.

[Anonymous]

five22bags,

Your DV letter is what's sometimes referred to as a "Nutcase Letter". By and large, I don't find Nutcase Letters to work very well. Simple, short, sweet DV letters work much better. They carry the subtle inference of "Comply or be sued."

See the DV link in my sig.

[five22bags]

"I pulled my credit bureau report, and I discovered that you claim I owed you a debt. Under § 809 of FDCPA, send me validation of this debt."

I changed 'owe' to 'owed' because I already paid it in 2006. Should I give them an account number? How will they look me up? They most definitely have my permanent residence address; they collected the debt while I was in Michigan (to re-cap, my original debt was out of Florida).

Everyone here has been unmeasureably helpful. Thank you all for your help up to and beyond this point.

[Anonymous]

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@five22bags wrote:

Should I give them an account number? How will they look me up? They most definitely have my permanent residence address; they collected the debt while I was in Michigan (to re-cap, my original debt was out of Florida).

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Your name and address. That's all I'd give 'em. No need to help 'em out in any way, shape or form if they aren't going to follow the law.

[five22bags]

I've sent out the DV letter today to Midland Credit Management. I will post the results here when I get them so maybe someone else can benefit from my experience.

Thanks everyone!