Midwest Recovery Systems

[torry590]

I had a dispute with the CFPB for innaccurate information,  Midwest Recovery Systems CEO Himself responded (late btw) to the claim, my collection is to be deleted but that is besides the point. He even claimed they never got ANY of my previous disputes (which they did, they always verified).  I have useful contact information for them (he even gave me cell phone number, which I am not giving out) I however am willing to part with his email if anyone needs it. Plese feel free to PM me, I know how difficult this CA is, anything can help, I am here to help! 

[RobertEG]

What was your inaccuracy issue, and how did the CFPB handle it?

That is likely more useful than how the debt collector eventually responded.....

[torry590]

The issue was an account that was not mine. It was for an eledged payday loan which I have never taken out. They kept verifying it. I eventually filed a police report and sent that in too. Which is weird considering the CEO said they never received any disputes. The CFPB is a godsend

[NYCGIRL718]

Hi

Oh goodness this is happening to me now. I check my credit today because I am in between an approval for a mortgage and worried about anything going wrong. And wa la I see the entry in Experian. I called Midwest and she tells me it's from 2011 and a payday loans taken out in another state. I told her I never had a loan and she is telling me all I need to do is pay it. I informed her that I would be sending over a request for debt validation and she said no need to send anything, we can do everything verbal. I said no and thanked her. I then went to CFPB after finding out payday loans are illegal and not collectible in NYC. And the other this debt collector is not licensed here. Either way the debt is not mind. I filed a complaint. I also spoke to experien who directed me to the FTC website to complete an affidavit. I then went to my local precinct who gave me hell filing an identity theft report for something from 2011. I explained I just learned today after the debt collector added it this month to my report. etc... But they thought it to be impossible that I was never contacted. After going to a 2nd pct, I was able to file a report. I'm not waiting to get a copy to sent to Experian in a few days and this creditor. I'm devastated because this can really affect my mortgage approval.

[RobertEG]

When one has an "account not mine" assertion, the proper process is to use the identity theft procedure under FCRA 605B rather than the dispute process.

See the sticky post related to Identity Theft at the top of the General Credit Topics forum for details.

Use of the identity theft process totally removes the furnisher (creditor or debt collector) from the process.  Submision of the police report and affidavit to the CRA then requires the CRA to block the account with no furnisher input or involvement.

It was likely the submission of the police report rather than any direct CFPB or creditor involvment that utlimately resulted in removal of the account.

I would not recommend use fo the dispute process or CFPB complaint process as the means for getting account not mine blocks.

It can be handled directly and exclusively by the CRAs.

[RonM21]

That is good info to know for others, because probably, in this situation, my first instinct would have been to dispute.

[RobertEG]

To amplify a bit, the entire reason why the identity theft procedure of section 605B was added to the FCRA was the recognition that the dispute process was not adequate to address the issue of information reported to a CRA for which the consumer asserts they never authorized the account.

The creditor or business can, if they have reasonable documentation to show that the account was applied for by a party asserting to be the named consumer, verify the accuracy.  The credtior/business is not required to conduct their own private investigation and prove that the named consumer actually submited the request.

Thus, verification of a dispute is usually routine, and does not resolve the matter.

The identity theft process relies upon a sworn statement by the consumer to the effect that they never authorized the account as adequate to get it blocked from their credit report with no proofs required by either party.

[Anonymous]

Funny how these complaints have started recently for this company.

I checked Credit Karma which I do every month and saw this derogitory claim from Midwest Recovery Systems for a payday loan that I never took out.  When looking up the Payday Loan company that they say I got this loan through, all comments and reviews are it being a scam Payday loan company using threats to get money for unproven loans. The company is SSM Group LLC and they are the ones claiming that a payday loan I took out was never paid back. I think I would remember taking out a payday loan from them, or anyone.

They don't follow the rules and regulations for collecting debts and can never provide proof.

Just my opionion but it seems that Midwest Recovery Systems and SSM Group LLC are in this together. It's my opinion that this is their new scam tactic which is invading peoples credit.

[Anonymous]

Hi,

So I just logged on to my Credit Karma account and I see this  Midwest Recovery. I never took out a pay day loan but they had all my information. Can you help me??

[FireMedic1]

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@Anonymous wrote:

Hi,

So I just logged on to my Credit Karma account and I see this  Midwest Recovery. I never took out a pay day loan but they had all my information. Can you help me??

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http://ficoforums.myfico.com/t5/Bankruptcy/Midwest-Recovery-Systems/td-p/4781280