I had opened a complaint to the BBB for Midland Funding, citing the FTC ruling and they responded today. I'm not sure what they are asking me to provide? I really hoped they would just drop it
Thank you for your letter inquiry dated April 16, 2013, regarding Ms. Ronan’s complaint, which Midland Credit Management, Inc. (hereinafter “Midland Credit”) received the same day via E-mail. Midland Credit appreciates the opportunity to answer your questions.
An investigation of this matter indicates that Midland Credit became the servicer of the above-referenced account on behalf of purchaser, Midland Funding LLC (“Midland Funding”), on September 8, 2009. Information provided by the seller, Jefferson Capital Systems, LLC, at the time Midland Funding acquired the account indicates that this account was originated on September 8, 2005 as a First Bank of Delaware/Tribute MasterCard account number ending in XXXX, in the name of Jacqueline Ronan, under the last four of the social security number XXXX. Subsequently, the account was charged-off as an unpaid delinquent-debt on May 20, 2008. The balance at the time of purchase was $1,214.44. The balance due as of April 25, 2013, including interest accrued, is $1,359.13.
Ms. Ronan expresses concern whether the above-referenced account is collectible, due to an order issued by the Federal Trade Commission (“FTC”), which she states applies to the above-referenced account.
Having reviewed both the account information and a copy of FTC order 1:08-CV-1976-BBM-RGV, Midland Credit notes that while the FTC may have issued an order against the CompuCredit Corporation and Jefferson Capital Systems, LLC providing restitution payments to certain defined consumers, it does not render all accounts ever issued by First Bank of Delaware invalid or unenforceable. Part II of the FTC order provides that only affected accounts in which the restitution payments were greater than or equal to the balance due were to be removed from a consumer’s credit files. With respect to accounts in which a balance remained after an adjustment for restitution payments, the consumer’s credit files were allowed to be updated with accurate information under the FTC order.
Consistent with this understanding, the previous creditors that sold Ms. Ronan’s accounts for value did so with a representation that the same were valid promissory obligations. Based on the information currently available to Midland Credit, unless Ms. Ronan is able to provide some sort of information to demonstrate that the above-referenced accounts are not legally enforceable, Midland Credit will continue to deem the accounts as valid, due and owing.
Verification information provided by the seller is enclosed for Ms. Ronan’s records. Please note that the verification information provided by the seller meets the requirements of the FDCPA. The original contract, complete payment history, and a full set of billing statements are not required under the FDCPA. Chaudhry v. Gallerizzo, 174 F.3d 394 (4th Cir. 1999).
With that said, Midland Credit stands ready to assist Ms. Ronan in clearing her record if the above-referenced accounts were specifically affected, and requests that she provide any documentation or evidence proving that her specific accounts should be rendered invalid. She may forward the appropriate documentation to Consumer Support Services (Attn: Melanie) at the address on this letterhead. Until it receives such documentation proving otherwise, based on the information available to it, the information provided by the issuer, Midland Credit must respectfully conclude that it is accurately reporting the accounts to the three major credit reporting agencies as required.
I can't help on the question of the post, but OP, you may want to edit your post to remove personal information (name, SSN digits, account digits).
With the issue being one of interpretation of an FTC ruling as it applies to your specific account, I would not be pursuing the matter via a BBB.
They have no enforcement authority, and of course cannot issue any binding interpretation of an FTC ruling.
I would send a formal complaint to the FTC. They know the scope of their own ruling, and can help with its possible application to your case.
They would be the party to determine what, if anything, is needed.