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Midland Credit Management Settlement Offer (need advice)

New Member

Midland Credit Management Settlement Offer (need advice)

I recently received a settlement letter from Midland Credit Management (MCM) for my over due Citibank card. Coincidentally I was about to contact Citibank this week about making arrangements to pay my account balance in full to help improve my credit history. I haven't paid on the card in 1.5 years and it appears that MCM is the collection agency that has a hold of my account. The letter I received stated that my overall balance is $649.06 but offered me a deal to send them a check for $389.44 (40% off balance) and they will stop applying interest on my account, update my credit report with the payment I made and most importantly they mentioned that my credit report will be updated as paid in full (much better that a settlement). I've been browsing online about MCM and have read nothing but bad things about this company. People have had horrible experiences with them not full-filling their agreement and have been known to scam people. So my questions are (1)do I pay them their offered settlement and trust that they will update positively on my credit report, (2) do I pay the account balance in full so I don't get screwed later on, (3) should I contact Citibank before making any arrangements. Any help would be appreciated. I'm in high interest to improve my credit ASAP now that I have the money to start paying off my debt, so I wish to get this settled immediately.
Message 1 of 6
Senior Contributor

Re: Midland Credit Management Settlement Offer (need advice)

Before you pay anything....How is Citi reporting?  Closed & sold?  0 balance?  OR....Closed w/balance posted?

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Message 2 of 6
New Member

Re: Midland Credit Management Settlement Offer (need advice)

The account with Citibank is closed/sold to CA.
Message 3 of 6
Regular Contributor

Re: Midland Credit Management Settlement Offer (need advice)

the collection agency owns the account.  I think it is a good settement for a report of paid in full.   i would take it, but try to see if they will remove the account if you pay at all or entice them by with the entire balance??
Message 4 of 6
Senior Contributor

Re: Midland Credit Management Settlement Offer (need advice)

Get verification that the collection agency legally owns the debt.


Citibank, I am sure, will still accept payments on the account.  Just tell them you owe them the money, not a collection agency.  (I do that with my medical bills.  And amazingly, the original creditor always accepts payments over the phone even when they can not possibly do so because the debt is in collections.) 

Message 5 of 6
Epic Contributor

Re: Midland Credit Management Settlement Offer (need advice)

If the OC sold the account, legally, they can not accept payment.  They no longer own the account.


If you can afford the entire account, I would try a PFD with Midland.  It would be much better to have it removed.


They would more than likely report paid after CO or something to that affect.  It will not help you as it will still be a negative account.


And, I would be very careful accepting the settlement without specifics in writing.  Such as, you are no longer financially obligated to pay the remainder.  If you do not get something like this, they can come after you for the remainder.

Message Edited by guiness56 on 08-28-2009 05:33 AM
Message 6 of 6