Midland Credit Management Changes PFD process

[NikJ4]

The purpose of this letter is to make you aware of a recent change to our credit reporting policy.

Effective October 11, 2016:

We have updated our credit reporting practices. As a result of these updates we will stop credit reporting on accounts that are both:

1. Paid in Full or Paid in Full for less than the full balance; and
2. More than 2 years old based on time since the date of delinquency

Additionally, we will not start reporting on any new accounts if:

• Payments begin within 3 months of our mailing of our initial notice; and
• Payments are made each calendar month thereafter until the account is Paid in Full or Paid in Full for less than the full balance

Has anyone else done this? I did go to their site and its also showing. I owe about $1K total so I think i am going to go for it as it will delete all items it references now once paid.

Nik J

[Anonymous]

They deleted mine under these guide lines of being over 2 years old

[RobertEG]

It will be interesting to see if there is any reaction by the CRAs to a clear and standard policy of deletions based on payment of the debt.

They are contrary to long-standing CRA published policy instructing furnishers not to delete based on payment of the debt......

[Anonymous]

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@RobertEG wrote:

It will be interesting to see if there is any reaction by the CRAs to a clear and standard policy of deletions based on payment of the debt.

They are contrary to long-standing CRA published policy instructing furnishers not to delete based on payment of the debt......

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They removed mone in october per there new guidlines. I was actually shocked. I gave up after a 2 year battle. They have more money. But they held truew to their word as stated on their website

We have updated our credit reporting practices. As a result of these updates we will stop credit reporting on accounts that are both:
Paid in Full or Paid in Full for less than the full balance; and
More than 2 years old based on time since the date of delinquency
Additionally, we will not start reporting on any new accounts if:
Payments begin within 3 months of our mailing of our initial notice; and
Payments are made each calendar month thereafter until the account is Paid in Full or Paid in Full for less than the full balance

[ALHondaGuy]

Am I reading this correctly: Will delete tradelines if paid in full (if it's a newer account, less than 2 yrs old) or paid less than full and more than two years old?

[Anonymous]

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@ALHondaGuy wrote:

Am I reading this correctly: Will delete tradelines if paid in full (if it's a newer account, less than 2 yrs old) or paid less than full and more than two years old?

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No has to be paid in full or less than AND 2 years old or older and they will delete

[fltireguy]

It says nothing about deletion, merely that they will stop reporting...my take on it is that after 2 years, they wouldn't report it as delinquent every month

[Anonymous]

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@fltireguy wrote:
It says nothing about deletion, merely that they will stop reporting...my take on it is that after 2 years, they wouldn't report it as delinquent every month

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Well they deleted mine call them up and ask. they will tell you, you dont have to take my word for it. Both of mine were deleted per these guidlines. 

Agency Report                     Date Removed         Original Creditor Amount Owed Bureau
MIDLAND FUNDING LLC        Nov 15, 2016          WEBBANK            $484
MIDLAND FUND                      Oct 24, 2016          WEBBANK             $484

Also How can a trade line be reported delenquent every month if it's a settle account? it can't be. 

If it however not settle they will continue to report it as an open collection untill it's paid

Lets say i settle it 1 month after showing on my CR...It would be against the CR guildline to keep reporting it as delenquent for the next 23 months as its a settle closed account....

[Anonymous]

Smart move on their part, I never understood why CA's didn't start doing that a long time ago.  They have a much better chance of being paid and on better terms for them if they didn't muck up peoples' credit reports even when paid.  There's rarely any accounting for common sense when money is involved.

[RobertEG]

Yes, there is a distinction between stopping of reporting and deletion of prior reporting.

However, my interpretation of their new policy is that they mean they will delete prior reporting of their collection.

Updated reporting by any party is only required if previously reported information changes such that it is not longer accurate.

FCRA 623(a)(2) imposes upon any furnisher the requirement to promptly update any prior reporting as becomes necessary to reflect its current accuracy.

Thus, in any PFD, if the consumer pays, the debt collector IS required to report to the CRA both that the collection is closed, the debt is settled, and that the new debt balance under collection is $0.

A statement that they will cease reporting implies deletion, not just cessation of updates, when the consumer has paid the debt, thus mandating further CRA reporting if the collection still remains.