midland block settlement

[Anonymous]

Original creditor: Cap One Credit card Charge off: Sept 2011, Balance = $1210
Account sold to Midland: May 2014 Midland reported to all 3 CRA: Sept 2014

I sent Debt Validation to Midland multi times but they did not validate saying 30 days period is passed. They sent first dunning letter to old address in California. I live in NJ. Called them multiple times and disputed but never received validation letter yet.

Current status:
Reporting as collection account for $1210 to all 3 CRAs - as 'Account Disputed'.

I called them to settle and they said they can NOT settle since they received 'Cease and Desist' letter from me and that I disputed the debt. (I sent dispute letter but never sent Cease and Desist letter).
In order for them to settle the account - they are asking my letter saying
1. I do not dispute this account anymore, and
2. I cancel my last Cease and Desist request. (So they can mail me and call me)

I am planning to get a USDA or FHA mortgage for my first home soon in next 3-4 months. Is it a good idea to send the letter saying that I do not dispute the account and cancel cease and desist? When I login to my account in MCM, I can see my account, original creditor as Cap One but it says 'Balance Information unavailable' and message saying I should call them.

In this case Capital One is also reporting with 0 balance as charge off account and MCM recently reporting with 1200 balance.

Any suggestion if I should settle with them by sending these letters or just ignore that one in my report or may be file complaint with CFPB/BBB? I can still dispute it with CRA but I know nothing is going to happen. I only have 1-2 month before I go to bank for preapproval.

Please help.
Thanks in advance!

[Anonymous]

Could there have been some wording in one of your dispute letters that could be 'loosely interpreted' as a C&D request? They may think that your repeated validation requests are an attempt to 'trap them' into a violation of a C&D...

At this point I would send them a CMRRR letter rescinding any C&D they may feel they are under - that will at least allow them to communicate with you. I don't think a dispute would prevent them from negotiating with you.

[RobertEG]

You have two apparently contradictory positions from them.

First, they state that your DV was untimely, then they state that they cannot communicate with you based on a cease collection bar.

It is one or the other.

The "dispute"" they are referring to is your dispute of the debt via your DV, not a dispute under the FCRA.

However, if you are asserting that your DV was timely, you are inherently asserting that they are under a cease collection bar, which remains in effect until such time as they choose to provide the requested validation.  FDCPA 809(b).

Their request that you state that you withdraw any DV request would thus be appropriate on their part prior to communicating with you.

You have a decision to make......