Midland Credit Managment

Anonymous · ‎10-08-2015

i received a letter from Midland Credit Managment regarding a capitol one credit card account from 2009. It's due to fall off in November. The letter is requesting for me to call them to resolve the debt. it does state that because the age of the debt i cannot be sued but if i dont pay it, they can continue to report it to the CRA as unpaid. is this true? When i posted a few months ago about paying or letting this debt go....i was advised by many to let it ride since it was soon to fall off.

RobertEG · ‎10-08-2015

They have already reported their collection, and the absence of any additional reporting of paid, along with the collection still being open, indicates that the debt remains unpaid. That is true regardless of whether they continue to also make monthly updates.

Once the collection has passed the credti report exclusion period (max of 7 years plus 180 days from DOFD, but the CRA will likely exclude at approx 7 years), the CRA will thereafter discontinue reporting of the collection in normal credit reports they issue. The debt collector does not delete and is not required to discontinue reporting, it is the CRA that discontinues inclusion in your credit report, which effectively removes the collection from scoring and from the ability of others to become aware of the unpaid debt via a simple pull of your credit report.

However, the debt remains unsatisfied, and the debt collector can continue any remaining legal efforts to collect.

They will rely, even if expiration of SOL and credit report exclusion have occured, on the consumer either feeling the obligation to pay, or a potential creditor requring payment of all unpaid delinquent debt as a condtion of future loan approval.

Yes, there can still be benefit in paying delinquent debt after expiration of SOL and credit report exclusion.

Much depends upon whether you will be applying for credit in which the prospective creditor may become aware of and require payment of any unpaid, delinquent debt.

That will often occur in a mortgage applcation process.

darwin_wins · ‎10-08-2015

What would you recommend someone say in 4 years after 7.5 years about such a debt? Say if you apply for mortgage and now this may pop up, would you write to CA and say hey, I will pay you 10% to settle this debt for good and never to show up on the report? Would CA go for such options? I mean I know at that point they will see a query on your report about trying to get mortgage and will probably strong arm you to get as much as they can?

RobertEG · ‎10-08-2015

If they know you are applying for a mortgage, that will most likely cause them to hold out for a high percentage, if not the entire debt.

You cant control their observation of a recent inquiry by a mortgage lendor, but be careful not to otherwise inform them of your need to pay as part of your mortgage app process.

Yes, their knowledge that a consumer may still be required to pay a delinquent debt even after expiration of SOL and credti report exclusion is a primary reason why they continue to keep theri name in your face......

darwin_wins · ‎10-08-2015

So I guess if you apply and they start flagging your ssn for the old unpaid debt they could ask you to pay entire sum if not like 80-90% of the total amount. And if you preemptively decide before you app for mortgage you may end up paying CA even though there is a possibility that they may be never interfere in your future mortgage process.

Anonymous · ‎10-08-2015

@RobertEG wrote:
They have already reported their collection, and the absence of any additional reporting of paid, along with the collection still being open, indicates that the debt remains unpaid. That is true regardless of whether they continue to also make monthly updates.

Once the collection has passed the credti report exclusion period (max of 7 years plus 180 days from DOFD, but the CRA will likely exclude at approx 7 years), the CRA will thereafter discontinue reporting of the collection in normal credit reports they issue. The debt collector does not delete and is not required to discontinue reporting, it is the CRA that discontinues inclusion in your credit report, which effectively removes the collection from scoring and from the ability of others to become aware of the unpaid debt via a simple pull of your credit report.

However, the debt remains unsatisfied, and the debt collector can continue any remaining legal efforts to collect.
They will rely, even if expiration of SOL and credit report exclusion have occured, on the consumer either feeling the obligation to pay, or a potential creditor requring payment of all unpaid delinquent debt as a condtion of future loan approval.

Yes, there can still be benefit in paying delinquent debt after expiration of SOL and credit report exclusion.
Much depends upon whether you will be applying for credit in which the prospective creditor may become aware of and require payment of any unpaid, delinquent debt.
That will often occur in a mortgage applcation process.

That being said, doesn't it all boil down to OP's ability to pay? IF the debt is due to fall off ( CR's ) sometime in 2016 then I would let it ride unless I was able to pay all or part of the debt in exchange for removal. Midland includes that tidbit about not being able to sue you due to the SOL because they HAVE to after losing several lawsuits. (They're in court alot and they lose alot lately.) Prior to that they used their harrasing & bullying maneuvers but neglected to inform the un informed recipients that they, in fact, couldn't sue.

We all make mistakes and we learn. But, I will never defend anything that CA's like MCM\Midland do because the destruction they have caused people is far worse than any un paid debt they incurred.

Anonymous · ‎10-14-2015

I received a letter from midland yesterday that the account is closed and that they will no longer be collecting on this account. I have no further financial obligation regarding this account. I mean....i'm happy but why would they send this notice a week after trying to collect the debt? very strange.

Anonymous · ‎10-14-2015

Probably because of the beat down they received in court a few weeks ago. They were ordered to stop collection activity on something like 200,000 accounts.