topic Re: How to approach Midland in Rebuilding Your Credit

How to approach Midland

nmk94 — Fri, 24 Apr 2020 14:26:16 GMT

I'm starting a new post but it's sort of a continuation off of this one. I'm just trying to drill down on one piece of it.

TL;DR, I have some collections I need to address. One is with Midland Funding, two others with Cavalry. I'm going to try and deal with Midland first because the balance for that is still adding to my CC utilization as the Cavalry charges are not.

In the original thread, @FireMedic1 wrote this:

"Your lucky. Both of those CA's will pay for delete. Settled or paid they will remove them from your reports like they never happened...See what they'll take to settle first. Anything less than full payment. It goes poof either way. Good Luck!"

I have been getting offers in the mail from Midland. They're offering to settle at 30% of the original balance if I pay in one lump sum. How should I approach this? Questions:

1. Does the offer in the mail qualify as getting something from them in writing? Can I just log on to the site and pay that way? If not, do I need to call/write them? Send them a check?

2. If they delete the collection, how will the original charge appear on my CRs? As settled?

3. Will I get a 1099 in the mail next year that lists the 70% as money I received as income?

Finally, the reason I have to address these collections rather than just letting them age off is that I need to get a new mortgage later this year (end of year). With that in mind, should I be focused on PIF rather than settling and PFD? PIF will be hard because of the size of the balances.

Thanks in advance. I am determined to try and clean up these baddies that been sitting on my report and keeping my score down for a long time.

Re: How to approach Midland

thornback — Fri, 24 Apr 2020 14:37:15 GMT

If you look up your account on Midlands website, the latest 30% settlement offer should be there and you can accept and pay online. If it's not offered there, then call them to accept the mail offer and make payment. You don't need deletion agreement in writing- it's their publically stated policy to delete so long as the debt is 2+ years old and paid - either in full or according to your settlement terms.

The original creditor will be advised of payment and will update their tradeline to reflect a $0 balance and likely, a notation indicating 'settled for less' - which is fine.

Midland will delete within 30-60 days of payment. They may first update the collection tradeline to reflect payment and then delete the following month according to the reporting cycle.

You will receive a 1099c for the difference if the original debt is over $600 and you must include that as income for the 2020 tax year.

Re: How to approach Midland

nmk94 — Fri, 24 Apr 2020 15:05:46 GMT

Thank you!! This is incredibly informative and answers all of my questions.

Re: How to approach Midland

thornback — Fri, 24 Apr 2020 15:08:25 GMT

@nmk94 wrote:
Thank you!! This is incredibly informative and answers all of my questions.

You're welcome! Best of luck with your new mortgage endeavor!

Re: How to approach Midland

Brian_Earl_Spilner — Fri, 24 Apr 2020 15:21:21 GMT

Log in online and there should be 3 options. The longer to pay it off, the less you save. Unless you actually create an account with them (you can pay it as a guest), they won't email you a receipt, so screenshot the payment and confirmation. In my case, they updated to 0 in a couple of days and deleted in about a week total.

Re: How to approach Midland

nmk94 — Fri, 24 Apr 2020 16:05:48 GMT

@Brian_Earl_Spilner wrote:
Log in online and there should be 3 options. The longer to pay it off, the less you save. Unless you actually create an account with them (you can pay it as a guest), they won't email you a receipt, so screenshot the payment and confirmation. In my case, they updated to 0 in a couple of days and deleted in about a week total.

Wow, that is very fast! Did you PIF or settle for less than the original amount?

Re: How to approach Midland

Brian_Earl_Spilner — Fri, 24 Apr 2020 16:06:44 GMT

The offer was for 40% and I took it

Re: How to approach Midland

FireMedic1 — Fri, 24 Apr 2020 23:35:10 GMT

Sorry @nmk94 I couldnt answer you in a timely matter. Been running calls since 8am and finally had time to stop and eat and login.

Re: How to approach Midland

nmk94 — Fri, 24 Apr 2020 23:42:28 GMT

@FireMedic1 wrote:
Sorry @nmk94 I couldnt answer you in a timely matter. Been running calls since 8am and finally had time to stop and eat and login.

Not a problem. You've already helped so much. Thank you!

Re: How to approach Midland

nmk94 — Wed, 29 Apr 2020 12:49:57 GMT

@Brian_Earl_Spilner wrote:
Log in online and there should be 3 options. The longer to pay it off, the less you save. Unless you actually create an account with them (you can pay it as a guest), they won't email you a receipt, so screenshot the payment and confirmation. In my case, they updated to 0 in a couple of days and deleted in about a week total.

How did you pay? Via credit card? Debit card? Is there a fee?

Everyone says don't give collection agencies your direct bank info which makes sense.

Re: How to approach Midland

bass_playr — Wed, 29 Apr 2020 23:16:48 GMT

@FireMedic1 wrote:
Sorry @nmk94 I couldnt answer you in a timely matter. Been running calls since 8am and finally had time to stop and eat and login.

Hey man, thanks a ton for what you do. Have been, so I know what it takes to do what you do, and with corona going on I'm sure it's a little crazier than usual. Mad props to you

Re: How to approach Midland

FireMedic1 — Wed, 29 Apr 2020 23:22:05 GMT

@bass_playr wrote:
@FireMedic1 wrote:
Sorry @nmk94 I couldnt answer you in a timely matter. Been running calls since 8am and finally had time to stop and eat and login.
Hey man, thanks a ton for what you do. Have been, so I know what it takes to do what you do, and with corona going on I'm sure it's a little crazier than usual. Mad props to you

Thank You Sir (I think your a he) Its easier/safer than going to a burning meth lab cook house. One breath of that crap your done.

Re: How to approach Midland

Anonymous — Thu, 30 Apr 2020 05:27:34 GMT

Was the 40% ofer given online or call, also in what method did you pay. I have 1 with Midland as well and want to take care of it soon.

Re: How to approach Midland

nmk94 — Sat, 09 May 2020 13:16:48 GMT

Just an update.

Settled this last week. I made payment on their best lump sum offer, 30% of the balance. Once I made payment, the new balance simply deducted that amount and still showed the remaining 70%, but on the site it says it takes a couple of days to reflect the discount.

True to their word it updated the balance to $0 after a couple of days. (It lists a second payment made for the balance in order to bring it to $0.)

And it looks like it's been deleted from my reports! Only took about a week. (I just checked Experian, will check the other two on Monday.)

Thanks to all, especially @thornback and @Brian_Earl_Spilner for the answers provided to my questions in this thread!

Re: How to approach Midland

Anonymous — Sat, 09 May 2020 13:31:40 GMT

@nmk94 wrote:
Just an update.

Settled this last week. I made payment on their best lump sum offer, 30% of the balance. Once I made payment, the new balance simply deducted that amount and still showed the remaining 70%, but on the site it says it takes a couple of days to reflect the discount.

True to their word it updated the balance to $0 after a couple of days. (It lists a second payment made for the balance in order to bring it to $0.)

And it looks like it's been deleted from my reports! Only took about a week. (I just checked Experian, will check the other two on Monday.)

Thanks to all, especially @thornback and @Brian_Earl_Spilner for the answers provided to my questions in this thread!

Woo hoo! Congrats!

Re: How to approach Midland

nmk94 — Sat, 09 May 2020 13:35:57 GMT

@Anonymous wrote:
Woo hoo! Congrats!

Thanks! I know it won't affect my score much (if at all) yet because I have another collection and two COs I still have to deal with, but it feels great to knock one off.

Re: How to approach Midland

Brian_Earl_Spilner — Sat, 09 May 2020 14:56:59 GMT

Congrats! 👏👏👏 Honestly, after doing it, I wished I had done it sooner. It was so painless.

Re: How to approach Midland

thornback — Sun, 10 May 2020 01:14:08 GMT

Awesome! And congrats! So...did you happen to gain any points on Experian?

Re: How to approach Midland

nmk94 — Sun, 10 May 2020 14:30:31 GMT

@thornback wrote:
Awesome! And congrats! So...did you happen to gain any points on Experian?

I haven't checked my score, just my report. I don't have access to a free Experian score. I'll probably pull my 3B again at some point in the next month or two though*.

Also, another update: I checked CK and this account has dropped off both Transunion and Equifax. So off of all three reports!

Edit: * I still have one collection. So I don't expect my score to go up much or at all until that other colleciton is removed.

Re: How to approach Midland

thornback — Sun, 10 May 2020 21:09:24 GMT

@nmk94 wrote:
@thornback wrote:
Awesome! And congrats! So...did you happen to gain any points on Experian?
I haven't checked my score, just my report. I don't have access to a free Experian score. I'll probably pull my 3B again at some point in the next month or two though*.

Also, another update: I checked CK and this account has dropped off both Transunion and Equifax. So off of all three reports!

If you're at all curious, you could sign up for the $1 / 7-day trial through Experian -- you'll get all 3 FICO 8 scores. Just cancel before the trial ends so not to incur the monthly subscription fee.

@nmk94 wrote:
Edit: * I still have one collection. So I don't expect my score to go up much or at all until that other colleciton is removed.

Glad to see you have your expectations in check. I hope there is a bit of an increase for you -- always nice encouragement to see score progress. Either way - one collection gone brings you one massive step closer to your goal... so, congrats again!