Reply
New Member
Posts: 3
Registered: ‎08-27-2009
0

Midland Credit Management Settlement Offer (need advice)

I recently received a settlement letter from Midland Credit Management (MCM) for my over due Citibank card. Coincidentally I was about to contact Citibank this week about making arrangements to pay my account balance in full to help improve my credit history. I haven't paid on the card in 1.5 years and it appears that MCM is the collection agency that has a hold of my account. The letter I received stated that my overall balance is $649.06 but offered me a deal to send them a check for $389.44 (40% off balance) and they will stop applying interest on my account, update my credit report with the payment I made and most importantly they mentioned that my credit report will be updated as paid in full (much better that a settlement). I've been browsing online about MCM and have read nothing but bad things about this company. People have had horrible experiences with them not full-filling their agreement and have been known to scam people. So my questions are (1)do I pay them their offered settlement and trust that they will update positively on my credit report, (2) do I pay the account balance in full so I don't get screwed later on, (3) should I contact Citibank before making any arrangements. Any help would be appreciated. I'm in high interest to improve my credit ASAP now that I have the money to start paying off my debt, so I wish to get this settled immediately.
Senior Contributor
Posts: 4,267
Registered: ‎05-01-2008
0

Re: Midland Credit Management Settlement Offer (need advice)

Before you pay anything....How is Citi reporting?  Closed & sold?  0 balance?  OR....Closed w/balance posted?


Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 02/2015 TU 709 - EQ 676 - EX 729
Goal Score: 850

Bury me in the garden...last app 12.19.14

New Member
Posts: 3
Registered: ‎08-27-2009
0

Re: Midland Credit Management Settlement Offer (need advice)

The account with Citibank is closed/sold to CA.
Regular Contributor
Posts: 240
Registered: ‎08-08-2009
0

Re: Midland Credit Management Settlement Offer (need advice)

the collection agency owns the account.  I think it is a good settement for a report of paid in full.   i would take it, but try to see if they will remove the account if you pay at all or entice them by with the entire balance??
Valued Contributor
Posts: 2,717
Registered: ‎08-13-2009
0

Re: Midland Credit Management Settlement Offer (need advice)

Get verification that the collection agency legally owns the debt.

 

Citibank, I am sure, will still accept payments on the account.  Just tell them you owe them the money, not a collection agency.  (I do that with my medical bills.  And amazingly, the original creditor always accepts payments over the phone even when they can not possibly do so because the debt is in collections.) 

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Midland Credit Management Settlement Offer (need advice)

[ Edited ]

If the OC sold the account, legally, they can not accept payment.  They no longer own the account.

 

If you can afford the entire account, I would try a PFD with Midland.  It would be much better to have it removed.

 

They would more than likely report paid after CO or something to that affect.  It will not help you as it will still be a negative account.

 

And, I would be very careful accepting the settlement without specifics in writing.  Such as, you are no longer financially obligated to pay the remainder.  If you do not get something like this, they can come after you for the remainder.

Message Edited by guiness56 on 08-28-2009 05:33 AM
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.