Emailed PFD to MCM

[Anonymous]

Hi Everyone!

So I haven't been on this forum in quite some time because my personal credit rebuilding journey has become a success after following a lot of the wonderful suggestions given on this great site. I'm happy to say that after several years of trying to get my credit score up there, it's now in it's mid-700's & I have several CC's with good $-limits on them.

This time around, I'm back on here because I'm helping out my b/f rebuild his credit. We have found a CA acct on his credit reports from MCM (an acct that indeed is his). He just received a dunning letter offering 40% off of the original amount (which comes out to something like $1000). Without consulting me, he went ahead & called MCM to try to settle for $800 (due to rough times, that's all he has & will have anytime soon, since I've recently become unemployed & every penny counts). The agent he dealt with was quite rude & the b/f assured me he did not admit to ownership of the acct. & that he told the agent that he'd have to call later (he didn't give up any personal info, thank God).

FFWD to tonight, after reading lots of posts about MCM's unwillingness to be nice when one is trying to pay-off one's debt, I opted to help him write up a PFD email & BCC as many email addresses we could find from MCM & Encore (the parent company).

But now I'm shaking with nervousness thinking we've poked a beehive.

Did we do the right thing? Thoughts? Any feedback would be appreciated.

Thanks!

[LIGHTNIN]

The only time I'm nervous about a debt is. if the debt is within the state's SOL.

The SOL is the legal time limit a creditor can sue and win. SOL has nothing to do with credit reports

This is not to be confused with the CRTP,which is up to 7.5yrs from the DoFD, on a debt with a CA.

Here is how I remember the difference SOL is Legal time limit and the CRTP is the Reporting time on a CR. 

You may want to read What Steps Do I Take?Do I DV?PFD?. If you haven't already.

[Anonymous]

Hi Lightnin!

I did read up on whether or not I should DV or PFD & thought it'd be more straight to the point if we PFD'ed, since the b/f knows it is his debt & the CA had already sent the dunning letter.

As far as the SOL is concerned, we're confused because Verizon is no longer listed at all on his CR's.

MCM shows up on Equifax as follows:

MIDLAND CREDIT MGMT INC
8875 Aero Dr Ste 200
San Diego , CA-921232255
(800) 825-8131

Account Number: XXXX

Current Status:
Account Owner: Individual Account.

High Credit: $ 1,783
Type of Account : Open

Credit Limit:
Term Duration:

Terms Frequency:
Date Opened: 09/2010  Balance: $ 1,783
Date Reported: 10/2011  Amount Past Due: $ 1,783
Date of Last Payment:

Actual Payment Amount:
Scheduled Payment Amount:

Date of Last Activity: N/A
Date Major Delinquency First Reported: 11/2010

Months Reviewed: 11
Creditor Classification:

Activity Description: N/A
Charge Off Amount:

Deferred Payment Start Date:
Date Closed:

Type of Loan: Factoring Company
Account (debt buyer)
Date of First Delinquency: 11/2007
Comments: Collection account
81-Month Payment History
No 81-Month Payment Data available for display.

I know for a fact that the DoFD was not on 11/07 because the b/f had this unpaid debt before I met him, and we've been together since 10/06.

And from what I've gathered thru online research, it seems to be that NJ has a 6yr statute of limitations on contracts.

However, I wouldn't be surprised if the true DoFD is 11/05 (knowing the b/f's luck). So there's a chance the SOL would be up this coming Nov, since the CA did mention to the b/f that the 40% discount offer on the full amount would expire on 11/07/11.

So now what? Did we mess up? Should we just take up the discounted amount they're offering us (how we're going to come up with the remainder from here until their offer expiration date, I have no idea)?

Thank you for your input, it's *greatly* appreciated.

[LIGHTNIN]

The reason why the CA gave an expiration date of 11/7/11 is because they gave him 30days from the date of their letter, possibly around the 11th of Oct,2011.Don't worry about the OC (Verizon) not reporting, they just chose not to report.

Collections are either sold to CA's or assigned.

Assigned to a CA means the OC still owns the debt and the CA is only helping with collecting.

Find out who owns the debt. Contact the OC and ask.

They may still own the debt,see if they will accept your offer as PIF.But try to get it in writing first,if you can.

Tell b/f not to talk with CA over the phone. It's best to start a paper trail, that way there is not he said she said.Also in case if he goes to court, he can show proof that he was trying to settle this debt.

I would start with a DV letter, then if the verify counter with a PFD letter with b/f offer.

Read What Steps Do I Take?Do I DV?PFD? If you haven't already. Also see if other will chime in, to see if they have any other ideas.

[Anonymous]

Hello there!

So here's my latest update:

1) We called Verizon & verified that indeed the debt was sold to MCM. 

2) We not only got a general email response to the PFD email we sent to MCM stating that they can't discuss this matter via email, but we also got a letter in the mail a couple of days later stating the generic "we cannot delete...but in the meantime we'll put account as disputed on CRA...please call blah blah blah"

3) I've been trying to get the b/f to remember DOFD & he vaguely recalls that it can range anywhere from Nov. 05 to possibly several months later after that date (the only reason he can recall the Nov. 05 is because that's when he became a new client with T-Mobile, thus leaving the Verizon acct to his brother's "responsibility"; and since there's no way to reach the brother, we just have no way of knowing the actual DOFD) . 

4) Since we could be potentially dealing with a soon SOL on this acct (buuut maybe not...*aarrggh* this is so frustrating), should we still go ahead & DV, even though I've read thru this site that it's not always the best idea to awaken a sleeping giant? Once again, the b/f is well aware the debt is his, we're just trying to settle & hopefully get a deletion.

5) In the meantime, I've also PM'ed another myFICO contributor to hopefully get the contact info they utilized to get MCM to delete. 

As always, ANY input from the Rebuilding Community would be grrreatly appreciated!

[LIGHTNIN]

Do you know. if the debt is passed SOL?        If you dont know, just tell us.............What state does your b/f live in?

The actual DOFD can be obtain, by contacting Verizon. They should have this info.

When we talk about a "sleeping giant" it means the CA is sleeping, not bothering a person about a debt. 

To "awaken a sleeping giant" means something was done and the CA noticed the debt was not paid yet. The phone calls start again and the letters too.

Since the CA is already talking with your b/f, I would say the sleeping giant is awake.

Is the Verizon acct his brother's "responsibility"?  Who actually sign the contract with Verizon?  (b/f, his brother or both).

[Anonymous]

Do you know. if the debt is passed SOL?        If you dont know, just tell us.............What state does your b/f live in?

We don't know if the debt has passed SOL, we're just speculating. He lives in NJ, so from what we've read it's a 6 yr. SOL; correct? 

The actual DOFD can be obtain, by contacting Verizon. They should have this info.

Even though they've sold the debt to MCM? 

When we talk about a "sleeping giant" it means the CA is sleeping, not bothering a person about a debt. 

To "awaken a sleeping giant" means something was done and the CA noticed the debt was not paid yet. The phone calls start again and the letters too.

Since the CA is already talking with your b/f, I would say the sleeping giant is awake.

*aahh* OK, this makes sense & eases our nerves a wee bit. Thanks.

Is the Verizon acct his brother's "responsibility"?  Who actually sign the contract with Verizon?  (b/f, his brother or both).

The b/f soley signed for this cel phone acct. 

Thank you, thank you, thank you.

[LIGHTNIN]

With EQ reporting the DoFD as 11/2007 (if correct) this debt is still within SOL.

The CA still has 2yrs to go court and win. That would mean a judgment on b/f CR, for 7yrs from the date filed with the court. Also would ding his credit score.If the CA takes it to court, they will ask for the full amount plus court fee and possible attorney fee too.

The good news is the CA is willing to accept 40% off, leaving the balance about $1070. I would suggest that b/f do a PFD letter. Sometimes these letters go back and forth, until both parties can agree on the amount and the terms.

That's a good deal, if b/f has the funds. In my experience, the CA's always wants there money within 30days, but they will agree to payment plans too. Some will do 3month other 6months, some will do even 12 months. As long as the CA has the money coming in, they will be flexible.

I don't know how long Verizon keeps account records, but if b/f can prove the DoFD is 2005,it would save b/f alot of grief. It would be in his best interest to contact Verizon,to see if they still have the payment history or aleast the DoFD. 

I hope this info helps

[sophmore]

I thought that I read that the SOL on cell phone bills is 2 years.  Did I misunderstand?

[LIGHTNIN]

That is an on going debate here on the forums,some say it applies only to landlines,some says only cell phone and other says applies to both.It's a law that was written over 80 years ago in the Telecommunications Act of 1934. That was way before even cell phones were invented.

IMO, I dont think this law was intended for cell phones. I have not read that this Federal SOL 2 year law, has even worked for someone.

It would cost more money taking the CA to court,then it would paying the CA a little over $1000.