Small Claims Against MCM

Anonymous · ‎12-05-2014

So I figured this little dirty secret that MCM was doing on my credit report to keep the scores low. The debt is over 6 years old so it should have little damage on my score. I found out a collection cannot report late, however every 2-3 months they would report to the bureaus that I am 120 days late, which shows it as a recent late and that it would hurt your score more!! I'm sure you can put up a good class action on this one.

Also to add, since they do this every 2-3 months, its a clear intention. If it was a single one, they can argue an accident and therefore should not be an FCRA violation. But the fact this has gone on for 2 years shows an intentional act.

I am in the middle of escrow and this is really screwing me over now with some ridicolous rates.

Has any one had luck taking them to small claims? Will they settle and remove it if I take them to court?

RobertEG · ‎12-05-2014

Are they reporting a new late, or simply updating their reporting, part of which is the fact that the OC account had a status of 120 late?

Big difference.

I dont't believer that there is any reporting code for a debt collector to report a monthly delinquency based on being late in a billing due to them........

Anonymous · ‎12-06-2014

Exactly. They are reporting a new 120 day late every 3 months!! This make it seem this is a recent late. This is completely illegal. They classify themselves as a factoring company to get away with this. regardless, they should never report a late.

RobertEG · ‎12-06-2014

Ah, the old "I am a creditor, and you have a loan with me" reporting .........

That is a common complaint.... so much so that I would additionally be sure to send a formal complaint to the CFPB.

Any action they might choose to take may be very helpful in supporting your position in any legal action you might bring.

Anonymous · ‎12-06-2014

What is everyone's luck with getting them to settle and remove rather than going to court?

Anonymous · ‎12-09-2014

*BUMP*

Imperfectfuture · ‎12-10-2014

@RobertEG wrote:
Ah, the old "I am a creditor, and you have a loan with me" reporting .........

That is a common complaint.... so much so that I would additionally be sure to send a formal complaint to the CFPB.
Any action they might choose to take may be very helpful in supporting your position in any legal action you might bring.

Agree with Robert on this, BUT, MCM has been convincing cfpb it's legal reporting. They are using the same tactics (I do believe they are the same as) Midland. Our state cracked down on them, so they ceased that form of reporting, but still showed as account and not collections (however, they are now gone from all my reports).

You will have some leeway by studying the complaints, and look for the thread started by ballerforlife regarding portfolio recovery delete. There has been some success (I would start the dispute process over the phone with the CRA's, after doing your research), THEN following up with BBB complaint if not removed. This will take some time to research, but it is overwhelming the cfpb so far. They are removing portfolio recovery for the same infractions, but not midland. Study the BBB complaints for midland to get a good idea of how to present argument.

Keeeo at it (I kinda let them go, only 1.5 years when started till drop off). If all else fails, your damages due to loss of credit and less than favorable terms on mortgage are the basis for suit. But the judge wants to see all avenues covered before you get there.

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