Midland Credit Deletion of Collections from Credit Report

[Zalo12]

Hi everyone,

It’s been a stressful few days to I hope I could get some help for some questions.

My parent has a collection of $1,000 that was first reported delinquent 2+ years ago and they will PIF by the end of the week.

In this case, Midland would delete its tradeline from the credit report, correct? 

Midland’s public policy on deleting collections is that

“We do not report to credit reporting agencies for accounts that are more than two years old (based on the date of delinquency) and paid in full (including accounts resolved for less than the full balance).” 
If I satisfy both stipulations can I reasonably expect Midland to not report this account on the credit report? Has anyone had any experience with this deletion policy?

My parent hasn’t been able to apply for a parent PLUS loan only because the collection creates an “adverse credit history”; would MCM deleting the tradeline fix this issue?

And last question, assuming that Midland will delete the tradeline, how long would that deletion take to show on the credit report? I know they report to the bureaus every 2 weeks, is there a processing period on top of that?

I truly appreciate the help!!!

[KateInquires]

Is this the only collection on your parent's credit report? The good news is, yes, that is considered 'adverse credit history' but they will only deny you the loan if the debt is greater than 2,085. If that's the only collection, they will qualify.

The reports can take a while to update if they pay for delete (could be 30-60 days) so if the hopes are to get your financial aid in time for fall, your other option would be to have the collection agency send you a letter saying the debt has been settled. 

I just went through this myself for a parent plus loan for my son school. Best of luck!

[OmarGB9]

Yes Midland will delete as long as the 2 years since DOFD have elapsed and the debt is satisfied (either in full or settled for less). 

The update should take no more than a couple of cycles (60 days), but in most cases is gone after 30 days.