topic Re: Junk Debt Collector? in Understanding FICO® Scoring

Junk Debt Collector?

Anonymous — Thu, 05 Jul 2007 15:53:07 GMT

I have been receiving a series of “Settlement Opportunity” letters from Midland Credit Management, Inc. The letter shows the original creditor as a local hospital that I was in for a couple of weeks 10 years ago. The original creditor currently does not show up on any of my credit reports. (It may have shown up at some point, and dropped off, but I do not know for sure) I would like to buy a home within 6 months, so I am doing all that I can to clean up and protect my credit score. Do I need to take Midland Credit Management, Inc. up on their settlement offer of $367.88 on a $490.50 balance to prevent this from showing up on my CR? Can they do that if it has already run its course as a collection on my CR a few years back? Oh, when I call the original creditor, they have no record of the account. I am scared that if I do not pay these people, a collection will show up on my CR just as I am ready to pre-qualify for a home loan. Has anyone had any dealings with Midland Credit Management, Inc.?

Re: Junk Debt Collector?

chartley3 — Thu, 05 Jul 2007 17:04:55 GMT

How long ago did the debt take place?? Depending on where you live the SOL to collect on the debt could be expired or expiring soon. if that is the case I would politely tell them the SOL has expired.

Re: Junk Debt Collector?

Anonymous — Thu, 05 Jul 2007 18:44:23 GMT

I would first DV them. Then I would figure out exactly when this debt occured. It definitly sounds like it's beyond the Credit Reporting time of 7.5 years. They cannot legally report it anymore, if they do they are in violation of the FCRA.

what state do you live in? You know have to figure out if it is beyond you state's SOL's. If it is send them a cease and desist letter. In in state you know your rights under the FCRA and your rights under the FDCA http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

Also keep an Eagle eye on your credit report and make sure they don't try to re-age it etc. If it is beyond the 7.5 reporting time it can no longer show up on your report.

but also remember there is no SOL on them trying to collect the debt just when they can bring you to court and leagally win.

Re: Junk Debt Collector?

Anonymous — Thu, 05 Jul 2007 19:19:22 GMT

Thanks to chartley3 & Boswd for your replies. I live in the state of Florida, and I believe the SOL on this debt is 5 years. I definitely will be keeping an eye on my CR, and I will send Midland Credit Management, Inc. a cease and desist letter. I guess that I can sleep a little better now. Thank you.

Re: Junk Debt Collector?

Anonymous — Fri, 06 Jul 2007 06:19:34 GMT

The debt is clearly outside of the statute of limitation...You dont even have to DV them..

Just watch your credit report and make sure they dont try to stick something in there.

Collection Agencies are the scum of the credit world. Tell them to all go pound sand.

Re: Junk Debt Collector?

Anonymous — Fri, 06 Jul 2007 23:43:34 GMT

If it's from 10 years ago, then you are beyond both the Florida SOL and the CRTP.

You can C&D them, but I think a DV letter carries a lot more legal weight.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=5032

C&D

A C&D makes them go away and stop calling or writing, but they could still stick something on your CRs or file a lawsuit and try to get a judgment.

You could dispute the CR reporting away, assuming they accurately report the DOFD, but if they are bugging you over this then there's at least a chance they will lie to the CRAs and claim the debt is from 2004. They could further lie and claim "Well, the OC told us it was from 2004". It would be tough to catch them in a violation of law.

They could file a lawsuit and get a default judgment, if you don't respond, and they wouldn't be breaking ANY laws.

If they fail to validate, which they can choose to do, then under law, with caselaw to back it up, and even a staff opinion letter from the FTC, they must cease all collection efforts including calls, letters, lawsuits and CRA reporting.

If they don't cease all collection efforts, then you have them dead to rights in violation of the law. If they sue, they are in violation. If they call, they are in violation. If they write, they are in violation. If they report to the CRAs, they are in violation.

DV punches well above it's weight class. I say DV it.