topic Re: Debt Validation Letter Midland Credit in Rebuilding Your Credit

Debt Validation Letter Midland Credit

Anonymous — Sun, 10 Jan 2010 04:47:48 GMT

Hello,

I am in the process of writing a debt validation letter to Midland Credit Management, LLC. There is a rather high collection amount ($4,336) for an Aspire Visa account that was allegedly opened.

On one credit report the date of last activity says 09/2003, and it states on one of my credit reports the following:

"Status Details: This account is scheduled to continue on record

until Mar 2010.

This item was verified and updated on Nov 2009."

I am a little unclear about the rules on Statute of Limitations for open accounts i.e. credit cards. It seems every time I research this I get different information regarding the time it takes for things to be removed off your credit report. Some people say 7 years, and it also seems like certain states have different times when things fall off.

According to the research I have been doing it appears that Michigan, which was the state I was living in at the time the alleged account was opened is 6 years. However I now live in Illinois which appears to have a 10 year SOL for Open Accounts.

My question to the group is should I send a debt validation letter to Midland since I am disputing this debt?

If I do a DV letter will this backfire because my return address and new address of residence is now in Illinois?

Should I even write a DV letter in this situation?

What is the best thing to do dispute an alleged debt thats affecting your credit score when its this close to the SOL?

I really want to fight this one since I want to buy my first home, and I have been making the right credit descsions now thanks to myfico!

These guys also filed a judgement against me in Michigan which I was out of that state with proof for over 6 months. I am fighting that as well.

Thanks in advance!

Re: Debt Validation Letter Midland Credit

RobertEG — Sun, 10 Jan 2010 06:21:04 GMT

Hi Shaun.

A DV letter is sent primarily for the following reasons:

You dispute the debt, or

You want to get a CA to stop collection activity.

If the debt is not disputed, and the CA is not hounding you, then there is little to be served by sending them a DV,

They never have to respond, and if they do, they will just validate.

As for statute of limiatations, I think you are a bit confused. As regards credit reporting and scoring, SOL has absolutlely NO relevance.

SOL has nothing to do with credit repoting, or drop off of derogs. SOL is just a legal defense that you can raise in court. Nothing more.

What you need to establish is the date of your first default on your agrrement with the original creditor. UnderFCRA 605(c), this sets a single, date certain, after which the CRA is prevented from including, in any CR they issue, any reference to this prior CA,

What is your DOFD with the OC?

Message Edited by RobertEG on 01-09-2010 10:21 PM

Re: Debt Validation Letter Midland Credit

Anonymous — Sun, 10 Jan 2010 06:38:29 GMT

I dont know what my DOFD is but its likely as far back as 2001, or 2002. It was my first credit card I ever received, an Aspire Visa. The only information I can find about it is the alleged date of last activity which Midland says is september of 2003.

I think this is when the debt was purchased by Midland.

How do I obtain date of last activity or date of first delinquency, apparently Aspire Visa is now out of business to my knowledge.

In regards to SOL not having any impact on credit score, how long do I have to wait for something to fall off?

In a perfect world I would have handled this account better but it was a my first credit card and it was add incredibly high interest rate and I was young and immature.

Thanks for your help Robert.

Re: Debt Validation Letter Midland Credit

Anonymous — Sun, 10 Jan 2010 06:56:11 GMT

Aspire Visa is an incredibly crooked company and would put all types of fees, and memberships that you did not sign up for etc. They were sued by the State of New York and also the FTC has given them some law suits. Aspire Visa suddenly stopped all of peoples accounts good or bad, and they don't have a number to call.

At this point I want this off my credit report because barely even remember the account and I know I never charged any where near this amount.

Plus its incredibly old which is why I thought SOL would help me get this off my report.

How do I dispute something and get it removed off my credit report if the OC is not responsive and the CA is playing hard ball?

Re: Debt Validation Letter Midland Credit

LIGHTNIN — Sun, 10 Jan 2010 07:55:20 GMT

Hi shaunwave,

I believe you are confusing SOL with CRTP, but don't worry thats normal.

SOL is the time period a creditor can sue and win.

CRTP is the length of time an item can be reported on your CR.

Midland Credit Management, you have in your first post as scheduled to continue on record until march 2010

So it will probably stop reporting about April 2010.

I would suggest to keep reading and learning before doing anything.

Re: Debt Validation Letter Midland Credit

Anonymous — Sun, 10 Jan 2010 17:37:52 GMT

Good advice I think I will, do some more homework before I do anything else. Thanks guys.

Re: Debt Validation Letter Midland Credit

Anonymous — Mon, 11 Jan 2010 01:52:46 GMT

As mention, CRTP is what governs when an account will be removed from your report.

You need to do know DOFD. This is the date you went delinquent and never caught up prior to charge off/collection.

A CR directly from the CRA should show DOFD.

If it is scheduled to stay on your report until March 2010, then they are reporting DOFD as 2002 or 2003.

Is the OC reporting as well?

~~If you live in a different state then the state you opened the account in, check to see if the state you opened the account in tolls SOL.~~

I didn't see the last part about the judgment. Did Midland file a judgment over this account or another account? Is MI where you opened the account? Check MI state statutes to see what the law is regarding judgments, being served, etc.

Links below are helpful.

Message Edited by sidewinder on 01-10-2010 07:52 PM

Re: Debt Validation Letter Midland Credit

Anonymous — Mon, 11 Jan 2010 02:14:09 GMT

Thank you.

Apsire Visa was the OC and they are not reporting, only Midland after apparently purchasing the debt. The DOFD I am pretty sure is well past the CRTP but I am trying to get that information. The biggest issue is that Aspire Visa is not exactly a customer service driven type of organization, and calling them for information produces no results.

Do I have any risk by trying to obtain records of this account? I have pulled all the my credit reports but unfortunately Aspire is not reporting probably because its way past the CRTP. I believe Midland did the judgement for this account unfortunately I need to drive to Michigan to the 50th District Court to obtain this information as they will do nothing over the phone.

Do you have any advise to obtain the DOFD from the OC if they are unresponsive? Aspire has an online request but I am a little hesitant to use this for fear of waking the sleeping monster.

Will the Credit Reporting Agencies be able to look through old credit reports to get this if I write to them?

I am trying to buy a home and this derogatory is one that is still affecting me, and because this falls off in March or April does not help because I need to get pre-approved for an FHA loan in March or April so I can qualify for the tax credit.

Re: Debt Validation Letter Midland Credit

RobertEG — Mon, 11 Jan 2010 02:21:09 GMT

If you are unsure of the DOFD being used by the CRA to establise the required drop off date of a CA at 7 1/2 from the DOFD, can get it from the CRA.

FCRA 623(a)(5)(A) requires that an original creditor must, within 90 days of referring an account for collection, provide the DOFD on their account to the CRA. That is how the CRA ensures their compliince with FCRA 605(c). So this date must be recorded in your credit file.

So how do you get it?

FCRA 609(a)(1) provides you the right to request the CRA to provide you with "all information in the consumer's file at the time of the request."

This request is not free. It requires that you submit a fee to the CRA in the amount of $10.50. FCRA 612(f).

Send then a written request under FCRA 609(a)(1) for disclosure of the DOFD reported by the OC in compliance with FCRA 623(a)(5)(A), along with a check in the amount of $10.50. The CRA lingo refers to this as the "FCRA Compliance Date/Date of First Delinquency." They must comply with this request.

Message Edited by RobertEG on 01-10-2010 06:21 PM

Re: Debt Validation Letter Midland Credit

RobertEG — Mon, 11 Jan 2010 02:57:57 GMT

Suggested letter:

This is a written request under the provisions of FCRA 609(a)(1) that you provide to me all information in my credit file as it relates to the reporting to you by original creditor, (name, account number), of the statutory “FCRA Compliance Date/Date of First Delinquency” that is recorded in my creidit file. That is the date upon which your statutory obligation for credit reporting of collection activity under FCRA 605(c) is based, and thus of importance not only to me, but also to you.

Posting of this date by the original creditor to my credit file is a statutory requirement under FCRA 623(a)(5)(A), since the original creditor has now placed the debt into collection with a third party collection agency. The collection account that is now reporting to you is (identify the CA and their account number with the CRA)

That is the date that I seek disclosure of.

I understand that this request requires payment of the fee set forth in FCRA 612(f), which is currently $10.50. Attached is my check in that amount to cover the fee for this request.

Message Edited by RobertEG on 01-10-2010 06:47 PM

Message Edited by RobertEG on 01-10-2010 06:57 PM

Re: Debt Validation Letter Midland Credit

Anonymous — Mon, 11 Jan 2010 03:01:35 GMT

Robert thank you.

One question who do I send this too? The OC, CA or the CRA or all three?

Do I send this Certified Mail with read receipt?

thanks again.

Re: Debt Validation Letter Midland Credit

RobertEG — Mon, 11 Jan 2010 03:06:45 GMT

You send it only to the CRAs to which the CA is posted,.

No need fior paying CMRRR fees. It has no statutory periiod attached to it.

Message Edited by RobertEG on 01-10-2010 07:06 PM

Re: Debt Validation Letter Midland Credit

Anonymous — Mon, 11 Jan 2010 04:25:00 GMT

Thank man, this seems to be exactly what I needed. I will report back with the results.

Re: Debt Validation Letter Midland Credit

Anonymous — Sat, 06 Feb 2010 19:51:15 GMT

OK I wrote the letter as suggested and all I am getting is the same information that I normally see in my credit report regarding Midland Funding. What I am looking for is the information regarding the Original Creditor such as when this account closed. I am sure that the date of last activity for the original creditor is before the September 2003 date that Midland is reporting. Since Aspire Visa is unresponsive what options do I have for Midland to prove this date? I believe that September 2003 is when Midland bought this alleged debt. Should I send I debt validation letter to Midland?

This is the last negative item on my report but because its claims I owe over $4,000.00 it is really hurting my fico score.

Re: Debt Validation Letter Midland Credit

BungalowMo — Sat, 06 Feb 2010 20:23:21 GMT

Couple questions...do you have all 3 of your reports?? Is the Midland CA on all 3? And, just to be sure, you say the OC (Aspire) is NOT reporting to any of the 3 CRA's??

For the reports that midland IS on...do they all give the March 2010 date for removal??

Re: Debt Validation Letter Midland Credit

Anonymous — Sat, 06 Feb 2010 21:58:02 GMT

Thank you for your quick reply. I do have all three reports, I have been double checking all of them in efforts to buy my first home. I subscribe to myfico.com for Equifax and TU fico scores, mycreditkeeper.com, Zendough (TU) Advantage Score, and Premier Credit Manager (EX score not FICO). The OC, (Aspire) does not show up on any of my credit reports.

I am looking at my current Equifax Consumer Credit Report that I just received in the mail today.

Midland Funding shows up on my, Equifax as an account, that was opened in 06/2005, and a date of 1st Delinquency of 09/2003, it states that I am disputing it and shows a balance and past due amount of $4,336.00.

Midland also shows up on my Experian as account as well with similar information.

Midland only shows up only as a collection account on my Transunion and does not show that this is an "account" where TU shows what accounts you have.

Only my Experian credit report from Experian directly does it show that this is will be off in March 2010.

The following copied from this report.

MIDLAND CREDIT MANAGEMENT

Address:

8875 AERO DR

SAN DIEGO, CA 92123

(888) 403-6206

Account Number:

* edit *

Original Creditor:

ASPIRE VISA

Address Identification Number:

* edit *

Status: Collection account. $4,336 past due as of Nov 2009. Status Details: This account is scheduled to continue on record

until Mar 2010.

This item w as verified and updated on Nov 2009.

My fear is that if this wont be off my credit report in March 2010 (hopefully March 1st 2010) as stated in the EX report. This could affect my ability to get the best rate on a home loan. I know that the original creditor, Aspire Visa is now out of business, and I cannot get past statements or information regarding this account from them. I feel like I am at mercy to what Midland Funding states is correct which puts me at a disadvantage for receiving the best offers. I also know that this account went into default before the 09/2003 because I know I defaulted on this card when I lived in California and couldn't use the card when I relocated back to Michigan in 2001. This was first credit card. I am not trying to be have something removed that is true I am just certain that the date reported is incorrect I just cant prove it.

Should I send Debt Validation letters to Midland and Aspire Visa with CMRRR also a letters stating that state this is past the Statute of Limitations? Again I just dont have proof because Aspire is not responsive. I thought the letters that I was sending to CRA were going to get them to get the proof from Midland Funding but that didnt seem to be the case.

Here is a copy of the letter I sent.

Experian

P.O. Box 2002

Allen, TX75013

(Accountholder that needs to disclose and verify actual Date of First Delinquency)
MIDLAND CREDIT MANAGEMENT
8875 AERO DR

SAN DIEGO, CA 92123

(888) 403-6206

Original Creditor: (Not responsiveto calls or requests regarding alleged account)

Aspire Card Services,

P.O. Box 105555

Atlanta GA 30348-5555.

Re: Account No: * edit * (AspireVisa)

To Whom It May Concern:

This is a written request under the provisionsof FCRA 609(a)(1) that you provide to me all information in my credit file asit relates to the reporting to you by original creditor, (Aspire Visa, * edit *), of the statutory “FCRA Compliance Date/Date of FirstDelinquency” that is recorded in my credit file. That is the date upon which yourstatutory obligation for credit reporting of collection activity under FCRA605(c) is based, and thus of importance not only to me, but also to you.

Posting of this date by the original creditorto my credit file is a statutory requirement under FCRA 623 (a)(5)(A), sincethe original creditor has now placed the debt into collection with a thirdparty collection agency. The collection account that is now reporting toyou is (MIDLAND CREDIT MANAGEMENT, * edit *)

That is the date that I seek disclosureof. Iunderstand that this request requires payment of the fee set forth in FCRA612(f), which is currently $10.50. Attachedis my check in that amount to cover the fee for this request.

Thanks for your help BungaloMo, I truly appreciate it.

edited to remove account numbers

Hey, everyone, just to remind --be sure when you copy/paste and especially when you screenshot to delete/ blur out any account numbers. The Midland account number was a partial, but the CC number looked like a full. You don't know who's reading these forums! --hauling

Message Edited by haulingthescoreup on 02-06-2010 01:58 PM

Re: Debt Validation Letter Midland Credit

BungalowMo — Sat, 06 Feb 2010 21:48:21 GMT

Ok, You wrote this:

Midland also shows up on my Experian as account as well with similar information.

But further down you wrote:

Only my Experian credit report from Experian directly does it show that this is will be off in March 2010.

It seems that Equifax is reporting under accounts, with a drop off date of 09/2010

Experian is under accounts with a drop off date of 03/2010

Trans Union has it listed under "collections" what is TU reporting as the drop off date??

Right now, you do NOT want to send any kind of dispute or anything to Experian OR Midland, as they are the one with a drop off date NEXT month! Let that sleeping dog lie!

Disputes are only for accounts that do not belong to you. OR, are reporting misinformation on your accounts that are reflecting negatively. Don't dispute the one that is dropping so early, you'll only be asking for trouble.

Re: Debt Validation Letter Midland Credit

Anonymous — Sat, 06 Feb 2010 22:28:29 GMT

Got it and thank you.

So your advice is to just let it be until March of 2010.

Should I expect this to pop off the first day or the last day of March 2010 the reason why this is so critical is that I need to get my pre-approval letter done soon so I can start looking for a home. My goal is to take advantage of the $8,000.00 tax credit that is being generously offered and the deadline is April 30th 2010.

TU does not show a drop off date anywhere on my report the "date of last active" shows "not available", but again this does not show up in my credit report as an "account" it is only shown as a "collection account"

Also if I do in fact want to dispute this date of last activity/ delinquency should I risk contacting Aspire Visa or trying to use the online information request form from the "Contact Us" at the aspirecard.com site to get some proof?

Thanks again for helping and listening.

Re: Debt Validation Letter Midland Credit

BungalowMo — Sat, 06 Feb 2010 22:36:31 GMT

@Anonymous wrote:
Got it and thank you.

So your advice is to just let it be until March of 2010.

Should I expect this to pop off the first day or the last day of March 2010 the reason why this is so critical is that I need to get my pre-approval letter done soon so I can start looking for a home. My goal is to take advantage of the $8,000.00 tax credit that is being generously offered and the deadline is April 30th 2010.

TU does not show a drop off date anywhere on my report the "date of last active" shows "not available", but again this does not show up in my credit report as an "account" it is only shown as a "collection account"

Also if I do in fact want to dispute this date of last activity/ delinquency should I risk contacting Aspire Visa or trying to use the online information request form from the "Contact Us" at the aspirecard.com site to get some proof?

Thanks again for helping and listening.

What date would you be disputing? I think folks use the "dispute" far too often for items that are, in fact, not actually disputed.

If you contact aspire for anything, do it in a cordial way, and only ask for a printout of your last 6 mosof activity with them. That's it. That will at least give you an actual DOFD to work with.

Leave the disputes for accts that are NOT yours, pr for inaccurate reporting that is putting a negative light on your overall account. Otherwise, disputes cause you all kinds of grief!

Lastly, just curious, what are your current TU & EQ FICO's. Too many people focus on the 8k rebate, when in fact, waiting a little longer & having a higher FICO & a better interest rate will far outweigh the 8k. Waiting could save you 50k + in interest over the life of the loan. Don't be penny-wise & dollar-foolish.

Re: Debt Validation Letter Midland Credit

Anonymous — Sat, 06 Feb 2010 22:47:33 GMT

Thank you for the solid advice.

One more question...

What is the best way for me to get information from Aspire should I write to them or use the online method? They have no phone number because I believe they are out of business. They do have an address but my previous written requests have not been successful.

Also should I write to them using CMRRR or just a casual letter, with proof of identity?

I think getting the statements is key at this point and this could be the most important thing left for me to do.

My TU is looking pretty good with a Fico score in 676 and my EQ is 649 which I cant seem to raise.

I believe my FAKO EX is around 660, however my Score Tracker from mycreditkeeper says 711.