topic Re: Midland Credit Management Collection/Judgement in Rebuilding Your Credit

Midland Credit Management Collection/Judgement

ChezG — Thu, 05 Jan 2023 19:27:48 GMT

I'm looking to clean up a Midland account with the following details:

Original Creditor: Care Credit/Synchrony Bank

DoFD: January 2, 2017

Balance: 2122.28

Original Amount: $1505.92

Settlement Offer: $1881.71 (asked for 50% but the rep didn't budge because "a judgement was awarded already")

Judgement filed: June 2019 (8% interest according to the rep I spoke with)

This account is currently showing on my TransUnion and Experian reports with a balance of $1901, which is technically incorrect.

After checking out Midland's website, it would appear that they do offer PFD past 2 years.

Will this account be reported as a Judgment at some point or would the DOFD of 01/17 prevent that from happening in 01/24?

How much is this account really affecting my scores after being on my report for 6 years?

Is it best to just leave them alone (made a phone call today to get the details above) and see what happens in 12 months?

Any help is greatly appreciated!

Re: Midland Credit Management Collection/Judgement

vntrsc — Thu, 05 Jan 2023 20:52:05 GMT

The credit bureaus are no longer reporting judgments. However, they are public record so possible future creditors with which you might try to open an account can find it.

Judgments are automatic liens on your property. If you haven't already done so, you need to check your state laws to find out how long they last, if it can be renewed, and what actions can be taken to enforce them.

Re: Midland Credit Management Collection/Judgement

ChezG — Thu, 05 Jan 2023 22:27:21 GMT

Thanks for the response. I wasn't aware at all that judgements no longer report. Would this mean that this account will automatically fall off after the 7 year mark (January 2024) but still come back to haunt me, if unpaid, for a longer period of time?

Also, thanks for letting me know about the possible lien against my property. I'll look into this further with the state that I own my home in.

Re: Midland Credit Management Collection/Judgement

OmarR — Thu, 05 Jan 2023 23:07:32 GMT

Judgments are typically good for 10 years, so this will be on your public record until 2029. They can be renewed every 10 years, but renewal usually has to be filed before the 10 years has lapsed. Since this is a valid debt, they also have the permissible right to hard pull your credit report, making sure that every potential lender sees that Midland is pulling your reports every year or two or however much they feel like in order to stay on your radar.

You could wait it out and see if they forget about you. Also, some jurisdictions make them jump thru bigger hoops to renew if you moved to a different state since the original filing. But as the other poster mentioned, people moving have a high possibilty of selling their home, and that's where you get hung up.

Laws do vary, so check what applies to you.

Re: Midland Credit Management Collection/Judgement

ChezG — Thu, 05 Jan 2023 23:53:00 GMT

Thank you both for the insight. I'll get this paid off completely. Hopefully, they will agree to settle for less than the current offer but we shall see. Very much appreciated!

Re: Midland Credit Management Collection/Judgement

OmarR — Sat, 07 Jan 2023 00:20:01 GMT

I forgot to mention that since a judgement has been entered, they can garnish your wages (except in certain areas such as Texas) and they can also attempt to locate and levy any bank accounts that have your name on them.

So it's definitely in your best interest to have this taken care of sooner than later.

Good luck!

Re: Midland Credit Management Collection/Judgement

ChezG — Sat, 07 Jan 2023 00:31:31 GMT

Thanks for pointing this out. I've been working extra hours to get this squared away. I'll also use some profits from my LLC to help with the settlement offer. Should be able to knock it out by February!

Re: Midland Credit Management Collection/Judgement

vntrsc — Sat, 07 Jan 2023 15:16:28 GMT

Getting rid of the debt is a good move. But for future reference (hopefully it will never be an issue), check your state laws regarding wage garnishment.

Four states that I know of do not allow wage garnishment for consumer debts such as credit card debt. Those states are South Carolina, North Carolina, Texas, and Pennsylvania. There might be other states, as well, but I'm not sure.