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Midland

Established Member

Midland

I have to admit I have been lurking on this site for the past two years since I started rebuilding. I really appreciate the knowledge I have gained. Starting scores on all 3 reports were in the high 400's. my goal is to buy a home. As of today I have 590 Experian? 552 Equifax and 609 TU. I just lost 21 points on EQ when LVNV was deleted.

With that said here is my issue. I noticed Midland is reporting 4 accounts on my credit as factoring accounts. I want to attack these because of course I learned here ther is no way I can be 120 days past due with a CA. What is my next course of action? Do I send a letter to Midland and file a complaint with the BBB? Should I also send a letter to the CRA's?
11 REPLIES
Senior Contributor

Re: Midland

Unfortunately there is no violation for them to be reporting a factoring company. We did you pull your credit reports from showing a 120 day past due?

Epic Contributor

Re: Midland

If you got your scores from one of the CRAs they are not real FICO scores and vary widely from them.

 

How is Midland reporting the past due?  They can report the worst delinquency on the account from the OC.  If that is what it is they can do that. 

 

Have you ever sent the CA a DV letter?  If so, did they validate?

Established Member

Re: Midland

I pulled my scores from myFico.com today and I see they are reporting 4 trade lines as factoring accounts and 120 days past due. All of these accounts are at least 6 years old and I know Midland is not a factoring company and is indeed a CA.
Established Member

Re: Midland

I did send them a DV letter and they didn't validate.
Epic Contributor

Re: Midland

Are they updating your reports?  Until they validate they cannot do that.

Established Member

Re: Midland

Yes. They are updating my reports with a higher balance every month.
Epic Contributor

Re: Midland

I would file a complaint with the FTC that they never validated and continue to update your CR.

 

File one with the BBB also for business practices.  YMMV on whether it will help or not.

 

 

Community Leader
Epic Contributor

Re: Midland

Whether or not they are a debt collector under the statute is not determined by their stated field of business.  It is determined, pursuant to FDCPA 803(6)(F)(iii), by whether or not the debt was in default at the time they acquired the debt. That section of the FDCPA states that if a debt was not in default when it was obtained by a party, they are not a debt collector under the statute.

 

A factor is nornally one who purchases accounts receivable in good-standing from a creditor, thus providing the creditor with instant cash, and relieving them of any further efforts to collect the debt.  The factor takes over as the recipient of future payments on the debt.  In such cases, they are not a debt collector.

 

Reporting as a factor implies that they purchased the debt in good-standing, but if your specific debt was delinquent at the time the acquired it, then they are a debt collector, regardless of the moniker they operate under.  Nothing precludes a factor from purchasing a debt in default, so dont get hung up on their general stated field of business.

They use their factoring company moniker to imply they have become a creditor rather than a debt collector, even if the debt was delinquent when purchased.

If that is your situation, they are misapplying their status.

 

Established Member

Re: Midland

Thanks RobertEG,

They acquired the debt after it was charged off from the original creditor. I am going to file a complaint with the FTC and BBB.