Response from CFPB dispute versus Midland and PRA

[Anonymous]

I submitted seperate disputes to the CFPB against Midland and PRA about collection accounts reporting as open tradelines.  Not the response I wanted but i'm determined to continue disputing this inaccurate reporting.  

Midland's Response: 

Ms. XXXX,  you state that Midland Credit is providing inaccurate information to the credit reporting agencies and is attempting to represent itself as a creditor on your consumer credit files. A review of Midland Credit's business records indicates that it is using the appropriate Metro 2 code to report itself as a "Debt Buyer" to the three major credit reporting agencies. However, it has no control over the manner in which each credit reporting agency decides to display that information. You are encouraged to communicate directly with the credit bureaus should you have any further concerns. In addition, if you obtained your credit report from a compilation source, the information being furnished may appear to vary. The credit bureaus have advised that it appears this way because they do not directly populate the fields on credit reports pulled from any source other than directly from the credit bureau itself. Midland Credit is accurately furnishing information for the all of above-referenced accounts to the three major credit reporting agencies. Please note that when a creditor "charges off" an account, it means that the creditor no longer believes the consumer will pay the bill and has written the debt off of its books. Often, they then sell the debt to a collection agency. The underlying promissory obligation remains valid, due and owing. Just as the original creditor had the right to legally seek repayment of the promissory obligation, the new third-party purchaser has the right to repayment of the credit account. The above-referenced accounts remain collectible, due and owing to Midland Credit.

PRA Response: 

In response to your complaint, Portfolio Recovery Associates, LLC ("PRA") has verified the PRA accounts ending in XXX, XXXX, XXXX, and XXXX and the accuracy of the information we furnished to the consumer reporting agencies in regard to the accounts. We believe that no further steps in response to your complaint or follow-up actions are required at this time.

[RobertEG]

Part of the settlement agreement with the CFPB centered on that practice of asserting an account relationship that does not exist, and is thus misrepresentation on their part.

You did exactly the right thing and sent it to exactly the right party.... the CFPB.

Plese update us when you get the response from your CFPB complaint.

[Anonymous]

I got almost the same exact response from Midland via the CFPB website yesterday for how they are reporting a paid collection on my wifes credit report.  I wanna punch whoever represents Midland in the face personally, but I'm going to need the CFPB to step up and see that there are obvious violations of federal law and do something to help me.

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@Anonymous wrote:

I submitted seperate disputes to the CFPB against Midland and PRA about collection accounts reporting as open tradelines.  Not the response I wanted but i'm determined to continue disputing this inaccurate reporting.  

Midland's Response: 

Ms. XXXX,  you state that Midland Credit is providing inaccurate information to the credit reporting agencies and is attempting to represent itself as a creditor on your consumer credit files. A review of Midland Credit's business records indicates that it is using the appropriate Metro 2 code to report itself as a "Debt Buyer" to the three major credit reporting agencies. However, it has no control over the manner in which each credit reporting agency decides to display that information. You are encouraged to communicate directly with the credit bureaus should you have any further concerns. In addition, if you obtained your credit report from a compilation source, the information being furnished may appear to vary. The credit bureaus have advised that it appears this way because they do not directly populate the fields on credit reports pulled from any source other than directly from the credit bureau itself. Midland Credit is accurately furnishing information for the all of above-referenced accounts to the three major credit reporting agencies. Please note that when a creditor "charges off" an account, it means that the creditor no longer believes the consumer will pay the bill and has written the debt off of its books. Often, they then sell the debt to a collection agency. The underlying promissory obligation remains valid, due and owing. Just as the original creditor had the right to legally seek repayment of the promissory obligation, the new third-party purchaser has the right to repayment of the credit account. The above-referenced accounts remain collectible, due and owing to Midland Credit.

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[Anonymous]

Let us know how the CFPB handles. Thanks.

[kennerchick]

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@Anonymous wrote:

I submitted seperate disputes to the CFPB against Midland and PRA about collection accounts reporting as open tradelines.  Not the response I wanted but i'm determined to continue disputing this inaccurate reporting.  

Midland's Response: 

Ms. XXXX,  you state that Midland Credit is providing inaccurate information to the credit reporting agencies and is attempting to represent itself as a creditor on your consumer credit files. A review of Midland Credit's business records indicates that it is using the appropriate Metro 2 code to report itself as a "Debt Buyer" to the three major credit reporting agencies. However, it has no control over the manner in which each credit reporting agency decides to display that information. You are encouraged to communicate directly with the credit bureaus should you have any further concerns. In addition, if you obtained your credit report from a compilation source, the information being furnished may appear to vary. The credit bureaus have advised that it appears this way because they do not directly populate the fields on credit reports pulled from any source other than directly from the credit bureau itself. Midland Credit is accurately furnishing information for the all of above-referenced accounts to the three major credit reporting agencies. Please note that when a creditor "charges off" an account, it means that the creditor no longer believes the consumer will pay the bill and has written the debt off of its books. Often, they then sell the debt to a collection agency. The underlying promissory obligation remains valid, due and owing. Just as the original creditor had the right to legally seek repayment of the promissory obligation, the new third-party purchaser has the right to repayment of the credit account. The above-referenced accounts remain collectible, due and owing to Midland Credit.

PRA Response: 

In response to your complaint, Portfolio Recovery Associates, LLC ("PRA") has verified the PRA accounts ending in XXX, XXXX, XXXX, and XXXX and the accuracy of the information we furnished to the consumer reporting agencies in regard to the accounts. We believe that no further steps in response to your complaint or follow-up actions are required at this time.

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I got something similar from CFPB!

I'm taking mine to the BBB.  I just need to sit down with a clear head and write the complaint where it sounds professional and will get Midland and PRA deleted!  I am going to go to the BBB in the state they are located in so it hits home! LOL

I don't believe that the CRA are putting these accounts whereever they want! Nor do I belive that they are listing these companies as a "Factoring Company" which they are NOT!  The CRA adds what is sent to them to put on your reports! At least that's what I think anyway.

These collectors think we are stupid! 

I know that these collectors can not show a payment history, they can't say you have a 1 month term and they can not be in a different section other than COLLECTIONS!  So if I know it and other's on this forum knows it, why don't they?!

Good Luck and please keep us updated

[Anonymous]

UPDATE 09/22/2015

I received the results of my dispute from Equifax today and they deleted the five Midland tradelines.  I submitted the dispute on 09/01/2015 and they deleted 09/22/2015.  The original estimated investigation results date was 10/01/2015. My basis for the dispute was incorrect reporting. I used RobertEG's verbiage and expertise.  

"A party who purchases a debt that is in default for the sole purpose of collecting the debt is not a creditor" FDCPA 803(4).  I also mentioned I had filed a complaint with the CFPB on 08/31/15 which as you know didn't work out sucessfully.  

Now I have to dispute with Transunion and Experian.  

Hopefully there's no chance of these items showing back up in my Equifax Credit report.  

Thanks!

[RobertEG]

The frustrating issue for me is that this topic has repetitively been posted for close to two years now, and many have filed formal complaints with the CFPB.

To date, no clear and definitive determination has been apparently been provided by the CFPB on this repetitive issue.

The CFPB has been very active on debt collection practices matters in the past two years, but for some reason appears reluctant to make a finding on this matter.

Apparntly, they dont see the answer as being clearly one of  violation.........

[kennerchick]

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@Anonymous wrote:

UPDATE 09/22/2015

I received the results of my dispute from Equifax today and they deleted the five Midland tradelines.  I submitted the dispute on 09/01/2015 and they deleted 09/22/2015.  The original estimated investigation results date was 10/01/2015. My basis for the dispute was incorrect reporting. I used RobertEG's verbiage and expertise.  

"A party who purchases a debt that is in default for the sole purpose of collecting the debt is not a creditor" FDCPA 803(4).  I also mentioned I had filed a complaint with the CFPB on 08/31/15 which as you know didn't work out sucessfully.  

Now I have to dispute with Transunion and Experian.  

Hopefully there's no chance of these items showing back up in my Equifax Credit report.  

Thanks!

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Hi upwardonward,

When you went in to do the dispute, what did you select before putting RobertEG's verbiage in the box?  There's a bunch of stuff you can select and I want to make sure I select the samething that helped you.

Thanks!

[Anonymous]

I put this account doesn't belong to me.

[kennerchick]

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@Anonymous wrote:
I put this account doesn't belong to me.

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Thanks! I just did an equifax dispute for PRA and Midland with the info you provided.  Fingers crossed!