How to approach Midland

[nmk94]

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.

[thornback]

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. 

[nmk94]

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

[thornback]

---

@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!

[Brian_Earl_Spilner]

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.

[nmk94]

---

@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?

[Brian_Earl_Spilner]

The offer was for 40% and I took it

[FireMedic1]

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.

[nmk94]

---

@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!

[nmk94]

---

@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.