Debt Validation Letter Midland Credit

[Anonymous]

Hello, 

I am in the process of writing a debt validation letter to Midland Credit Management, LLC. There is a rather high collection amount ($4,336) for an Aspire Visa account that was allegedly opened.

On one credit report the date of last activity says 09/2003, and it states on one of my credit reports the following:

"Status Details: This account is scheduled to continue on record

until Mar 2010.

This item was verified and updated on Nov 2009."

I am a little unclear about the rules on Statute of Limitations for open accounts i.e. credit cards. It seems every time I research this I get different information regarding the time it takes for things to be removed off your credit report. Some people say 7 years, and it also seems like certain states have different times when things fall off. 

According to the research I have been doing it appears that Michigan, which was the state I was living in at the time the alleged account was opened is 6 years. However I now live in Illinois which appears to have a 10 year SOL for Open Accounts. 

My question to the group is should I send a debt validation letter to Midland since I am disputing this debt? 

If I do a DV letter will this backfire because my return address and new address of residence is now in Illinois?

Should I even write a DV letter in this situation?

What is the best thing to do dispute an alleged debt thats affecting your credit score when its this close to the SOL?

I really want to fight this one since I want to buy my first home, and I have been making the right credit descsions now thanks to myfico!

These guys also filed a judgement against me in Michigan which I was out of that state with proof for over 6 months. I am fighting that as well.  

Thanks in advance! 

[RobertEG]

Hi Shaun.

A DV letter is sent primarily for the following reasons:

You dispute the debt, or

You want to get a CA to stop collection activity.

If the debt is not disputed, and the CA is not hounding you, then there is little to be served by sending them a DV,

They never have to respond, and if they do, they will just validate.

As for statute of limiatations, I think you are a bit confused.  As regards credit reporting and scoring, SOL has absolutlely  NO relevance.

SOL has nothing to do with credit repoting, or drop off of derogs.  SOL is just a legal defense that you can raise in court.  Nothing more.

What you need to establish is the date of  your first default on your agrrement with the original creditor.  UnderFCRA 605(c), this sets a single, date certain, after which the CRA is prevented from including, in any CR they issue, any reference to this prior CA,

What is your DOFD with the OC?

Message Edited by RobertEG on 01-09-2010 10:21 PM

[Anonymous]

I dont know what my DOFD is but its likely as far back as 2001, or 2002. It was my first credit card I ever received, an Aspire Visa. The only information I can find about it is the alleged date of last activity which Midland says is september of 2003.

I think this is when the debt  was purchased by Midland. 

How do I obtain date of last activity or date of first delinquency, apparently Aspire Visa is now out of business to my knowledge. 

In regards to SOL not having any impact on credit score, how long do I have to wait for something to fall off?

In a perfect world I would have handled this account better but it was a my first credit card and it was add incredibly high interest rate and I was young and immature.

Thanks for your help Robert. 

[Anonymous]

Aspire Visa is an incredibly crooked company and would put all types of fees, and memberships that you did not sign up for etc. They were sued by the State of New York and also the FTC has given them some law suits. Aspire Visa suddenly stopped all of peoples accounts good or bad, and they don't have a number to call. 

At this point I want this off my credit report because barely even remember the account and I know I never charged any where near this amount.

Plus its incredibly old which is why I thought SOL would help me get this off my report. 

How do I dispute something and get it removed off my credit report if the OC is not responsive and the CA is playing hard ball?

[LIGHTNIN]

Hi shaunwave,

I believe you are confusing SOL with CRTP, but don't worry thats normal.

SOL is the time period a creditor can sue and win.

CRTP is the length of time an item can be reported on your CR. 

Midland Credit Management, you have in your first post as scheduled to continue on record until march 2010

So it will probably stop reporting about  April 2010.

I would suggest to keep reading and learning before doing anything.  

[Anonymous]

Good advice I think I will, do some more homework before I do anything else. Thanks guys. 

[Anonymous]

As mention, CRTP is what governs when an account will be removed from your report.

You need to do know DOFD. This is the date you went delinquent and never caught up prior to charge off/collection. 

A CR directly from the CRA should show DOFD. 

If it is scheduled to stay on your report until March 2010, then they are reporting DOFD as 2002 or 2003. 

Is the OC reporting as well? 

If you live in a different state then the state you opened the account in, check to see if the state you opened the account in tolls SOL. 

I didn't see the last part about the judgment. Did Midland file a judgment over this account or another account? Is MI where you opened the account? Check MI state statutes to see what the law is regarding judgments, being served, etc. 

Links below are helpful.

Message Edited by sidewinder on 01-10-2010 07:52 PM

[Anonymous]

Thank you.

Apsire Visa was the OC and they are not reporting, only Midland after apparently purchasing the debt. The DOFD I am pretty sure is well past the CRTP but I am trying to get that information. The biggest issue is that Aspire Visa is not exactly a customer service driven type of organization, and calling them for information produces no results.

Do I have any risk by trying to obtain records of this account? I have pulled all the my credit reports but unfortunately Aspire is not reporting probably because its way past the CRTP.  I believe Midland did the judgement for this account unfortunately I need to drive to Michigan to the 50th District Court to obtain this information as they will do nothing over the phone. 

Do you have any advise to obtain the DOFD from the OC if they are unresponsive? Aspire has an online request but I am a little hesitant to use this for fear of waking the sleeping monster. 

Will the Credit Reporting Agencies be able to look through old credit reports to get this if I write to them?

I am trying to buy a home and this derogatory is one that is still affecting me, and because this falls off in March or April does not help because I need to get pre-approved for an FHA loan in March or April so I can qualify for the tax credit.

[RobertEG]

If you are unsure of the DOFD being used by the CRA to establise the required drop off date of a CA at 7 1/2 from the DOFD, can get it from the CRA.

FCRA 623(a)(5)(A) requires that an original creditor must, within 90 days of referring an account for collection, provide the DOFD on their account to the CRA.  That is how the CRA ensures their compliince with FCRA 605(c).  So this date must be recorded in your credit file.

So how do you get it?

FCRA 609(a)(1) provides you the right to request the CRA to provide you with "all information in the consumer's file at the time of the request."

This request is not free.  It requires that you submit a fee to the CRA in the amount of $10.50.  FCRA 612(f).

Send then a written request under FCRA 609(a)(1) for disclosure of the DOFD reported by the OC in compliance with FCRA 623(a)(5)(A), along with a check in the amount of $10.50.  The CRA lingo refers to this as the "FCRA Compliance Date/Date of First Delinquency."  They must comply with this request.

Message Edited by RobertEG on 01-10-2010 06:21 PM

[RobertEG]

Suggested letter:  

This is a written request under the provisions of FCRA 609(a)(1) that you provide to me all information in my credit file as it relates to the reporting to you by original creditor, (name, account number), of the statutory “FCRA Compliance Date/Date of First Delinquency” that is recorded in  my creidit file.  That is the date upon which your statutory obligation for credit reporting of collection activity under FCRA 605(c) is based, and thus of importance not only to me, but also to you. 

Posting of this date by the original creditor to my credit file is a statutory requirement under FCRA 623(a)(5)(A), since the original creditor has now placed the debt into collection with a third party collection agency.  The collection account that is now reporting to you is (identify the CA and their account number with the CRA)

That is the date that I seek disclosure of. 

I understand that this request requires payment of the fee set forth in FCRA 612(f), which is currently $10.50.  Attached is my check in that amount to cover the fee for this request.

Message Edited by RobertEG on 01-10-2010 06:47 PM

Message Edited by RobertEG on 01-10-2010 06:57 PM