Time to call in the experts-Midland

[MadinKS]

Well, I am stumped on how to proceed on this one. Before I found this site and became so informed, my wife made payment arrangements w/Midland Credit Management on an old Household account. She was nervous because they had just sued and won a judgment for her old Spiegal account. At any rate, I didn't find out about this until Feb. and that's when I found this site. Anyway, I sent a PFD to settle because I felt it was easier than fighting the SOL. I got a response and an accepted settlement, however, they won't delete. If I pay, I'm screwed because it's a paid collection and they won't delete. If I don't pay, I'm screwed because they will probably seek legal action because they have a record of payments, which would or could be considered admission to debt. What would you do? Haven't quite dealt w/this predicament. I'm stumped in KS.

[Fizzle1979]

My two cents, if they even try to sue, do you think they have all the required documentation? Depending on how old it was before the last payment, maybe they kept bad records and would not be able to prove you owed them anything in court. I would write them and say I'll pay XXX amount only if you remove the listing from my credit report, you can not sell the account and it is to never appear on my credit report again for any reason. Then again I have been feeling really brave here lately after getting all my baddies deleted but two.

[MadinKS]

I sent a letter stating that, but I don't think Midland w/mess around. They sued my wife back in Oct. (she didn't get served so of course it was a default but that's another issue) and she has already expressed that she doesn't want anything to do w/going to court. I don't know if I could go in her place or not, but she is scared and I don't want to put her in the position that she resents my efforts. Know what I mean? This whole deal is making me doubt myself. Kinda disheartening.

[cracrap]

get power of attorney and represent her in court??

[MadinKS]

That's what I was thinking, but hadn't had a chance to check on that yet. This is really the only debt that is w/in SOL(maybe) that I'm worried about. If they come to court and say, your honor, she's been paying since we harassed her about it in October. How can it not be her debt? See what I mean? It's a rock and a hardspot for me again! Dangit.

[Big Time]

Here are my off-the-wall sugestions:

1) You could wait a few months after you have paid it in full, then dispute the TL withe the CRA's. After PIF, the JDB's won't have much interest in it, and usually don't bother to verify antyhing. IF they do, try again every 3-4 months until it comes off.

2) Sue the bastards first for coersion, stating that's the only reason your wife made payment arrangements in the first place. Then settle on your terms so they won't have to spend money on litigation. (This could easily backfire, though. If something like this actually went to trial, your settlement letter could be used against you)

3) Refuse to pay, sighting that your wife doesn't need good credit because you da MAN and can take care of her just fine. If your reports are merged, get them seperated first.

Also point out that a "paid collection' gives you no incentive to pay squat, and that if they sue, you will make them reconstruct the chain of custody in court, and will countersue for everything you can think of. You can do this part on the phone if you wish, but make sure you get a supervisor who understands what chain of custody is.

[MadinKS]

If something like this actually went to trial, your settlement letter could be used against you

I addressed that issue in the settlement letter. Payment doesn't mean debtor agrees this is her debt, etc.

3) Refuse to pay, sighting that your wife doesn't need good credit because you da MAN and can take care of her just fine.

I'm startin' to wonder. This crap has got me in a pickle.

[kel]

You say that you sent them a PFD. Did they agree to delete and do you have a signed copy. If so I would let them Know that you are trying to live up to your end in the agreement and they should do the same or they are in breech of contract.

kel

[MadinKS]

You say that you sent them a PFD. Did they agree to delete and do you have a signed copy. If so I would let them Know that you are trying to live up to your end in the agreement and they should do the same or they are in breech of contract.

No, they sent a settlement letter on their letterhead and didn't return my settlement offer. Said their company policy prohibits removal of tradeline.

[Big Time]

You're doing everything right so far. Any violations on their tradeline?

[MadinKS]

How ironic is this. The rep for Midland Credit Management called and my kids freakin' answered. I talked to this lady and she says my wife's paid $602 on this account already and they will accept $589 for settlement. Well, the original balance was listed as $1050 on TU, $1231 on EQ(CSC) and $1049 on EX, but the latest bill, prior to settlement letter I sent says, she still owes $881. If my calculations are correct she only owes $548 according to the 2 CRAs. And if she already paid the $602, then how is there a balance of $881 left to pay on a max debt of $1231(if that is the balance) So, WTF?? What's the balance? I think I may have found the angle.

[zfire]

Did you ask them to put that angle in writing?

[MadinKS]

I'm working on a letter. I'll post here in a little bit. BTW, the elevator music is playing. Hear it?

[CleverCynic]

No one else thinks it's weird she got sued without a summons?

I'll tell you what though, more and more I'm really happy with my policy of never answering the phone for the last several years and screening calls. I didn't think these companies ever did anything but threaten... it is apparent that if they don't like your tone or have some reason to believe you are consuming more of their time by sometimes talking and sometimes not, they pull some strings and get you bumped to the top of the list for revenge purposes.

That part about the kids answering the phone struck home though... lol. Everyone here should have an unlisted number!

[MadinKS]

Ok. I guess this might be considered more of a nutcase letter, but here it is. See what you think.

Dear Sir or Madam,

I am in receipt of your agreement to settle this alleged account for $589, however, after my husband’s conversation with Donna Fernandez, there is some confusion. Per Donna Fernandez, I have made $602 in payments on this alleged account already but the original balance on all three credit bureaus differs between $1049 on Experian, $1050 on TransUnion, and $1231 Equifax (violation of the FCRA § 623 Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2]). How am I supposed to know how much I allegedly owe? I also notice that you have reported the dates to the credit bureaus that correspond to the month and year you bought the alleged debt, not the required date of first delinquency that preceded the collection(another violation of the FCRA § 623 Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2]). By the way, don’t try now to go back and cover your tracks. It’s too late. Now, if you read the latest bill from Midland Credit Management, dated 4-11-2007, it states I have a balance of $881.44. Let’s just assume that the balance of the alleged account was $1231. How is the latest bill $881.44? Where is the credit for the $602 dollars I have already paid, per the recorded conversation with Donna Fernandez (violation of FDCPA § 807 False or misleading representations [15 USC 1692e])? If you add the $881.44 and $602.00 it equals $1483.44 (another violation of the FDCPA § 808. Unfair practices [15 USC 1692f] and FCRA § 623 Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2]). So, unless you want to answer these questions in a Federal courthouse, I would suggest you take the $602.00 you have already coerced out of me and delete all reference to this account on all three credit bureaus, including, but not limited to, Equifax, Experian, and TransUnion. I am no longer willing to settle this account that you have not even validated with me, and if you chose to pursue this in court, I will be more than happy to produce all the documents necessary to defend myself and counter-sue for everything the Kansas statutes will allow. In addition, I will pursue a Federal case for the violations your company has already committed. In addition, I will pursue a Federal case for the violations your company has already committed. Lastly, I will be contacting the FTC, the Kansas Attorney General, the California Attorney General, and the BBB to file complaints on the Federal violations. Here are the statutes I have so far. Care to violate any more?

This is the FCRA statute I that covers the inaccurate reporting:

§ 623. Responsibilities of furnishers of information to consumer reporting agencies

[15 U.S.C. § 1681s-2]

(a) Duty of Furnishers of Information to Provide Accurate Information

(1) Prohibition

(A) Reporting information with actual knowledge of errors. A person shall not

furnish any information relating to a consumer to any consumer reporting

agency if the person knows or has reasonable cause to believe that the

information is inaccurate.

(5) Duty to Provide Notice of Delinquency of Accounts

(A) In general. A person who furnishes information to a consumer reporting

agency regarding a delinquent account being placed for collection, charged

to profit or loss, or subjected to any similar action shall, not later than 90

days after furnishing the information, notify the agency of the date of

delinquency on the account, which shall be the month and year of the

commencement of the delinquency on the account that immediately

preceded the action.

These are the FDCPA statutes I will use for the illegal accounting practice:

§ 807. False or misleading representations [15 USC 1692e]

(2) The false representation of --

(A) the character, amount, or legal status of any debt; or

( any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.

§ 808. Unfair practices [15 USC 1692f]

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

You have 10 days from the date of receipt of this letter to send me confirmation that you have sent notice to the 3 major credit bureaus to delete all traces of this account and consider this matter closed. Oh yeah, I’m going to check the judgment filed in October, for the alleged Spiegal account you railroaded me on. If I find any information that I can use to sue for that, I will be contacting you again to see where to serve the summons.

[MadinKS]

No one else thinks it's weird she got sued without a summons?

I surely did. I'm going to the courthouse tomorrow to see the method of service. If it's wrong, I'm filing for motion to vacate.

[MadinKS]

Did you ask them to put that angle in writing?

Sorry, just noticed I didn't answer. No. I only have the conversation with the rep for the $602. If you notice though, I kinda told a little white lie and said "per the recorded conversation with Ms A$$bag". Maybe it'll plant a seed of doubt in their head. Does he really have that on tape? Hmmmm.

[MadinKS]

Anyone have some constructive criticism? Please.

[Big Time]

The non-nutcase version would look something like this:

I am in receipt of your agreement to settle this alleged account for $589. I have enclosed a copy of that agreement so that you may refer to it.

However, there is still some confusion. Per my husband’s conversation with Donna Fernandez on [DATE] at [TIME], you have recived $602 in payments on this alleged debt already, but the original balance, as reported by you on all three credit bureaus, is not consistent. You have reported the original balances as: $1049 on Experian, $1050 on TransUnion, and $1231 Equifax. This is a clear violation of the FCRA § 623 (15 U.S.C. § 1681s-2.)

How am I supposed to know how much I allegedly owe?

I also notice that you have reported the dates to the credit bureaus that correspond to the month and year you allegedly bought the alleged debt, not the required date of first delinquency as reported by the original creditor, which is also a violation of the FCRA § 623 (15 U.S.C. § 1681s-2.)

Per the FACTA act, I am demanding that you correct your errors on my credit report, or report them all as "disputed by the consumer." No further payment will be made until I have received written confirmation from you that you have done so.

Also, this is a good time for the 1-2 punch.

[MadinKS]

Yeah, I'm tettering toward non-nutcase but at the time I wrote it I was pretty pissed. I still want it to be alot more sword to the throat though. I want them to be seriously considering dropping everything and running. In my letter to them yesterday, before the phone call, I told them if it's not PFD, then I am taking advantage of my Federal and state statutes and want a complete validation. I told them that I won't pay the charges until they validate the debt. That should cover the DV thing. I'm just concerned since they coerced her into paying they will disregard the DV and go straight for suit. They should be receiving that tomorrow or Fri. We'll see what they say then. As far as the 1-2, I already have disputes in with TU and EQ. So, if they validate all the same info, I got 'em on all 3 bureaus for the 623 violation at minimum. Then there's the FDCPA statutes. I tried to talk to my wife about this and she's pissed, just not at them. She is deathly afraid of the courtroom so I may just end up paying and moving on with my life. Who knows.

[Big Time]

You should just tell them to go pound sand, then motion to vacate the judgement they already have on your wife based on lack of proper service.

FACTA kind of made it hard to just sue for misreporting, now you have to point their mistakes out to them first, and give them a change to fix their mistakes. It's the FDCPA that is a strict liability statute, meaning they can't undo any violations by any subsequent action. But misrepresenting the amount would certainly qualify there.

[MadinKS]

Yeah. I think I will call a lawyer on this one. I don't want it to spiral out of control and end up with more problems. I don't know. I will try to see if the wife is up for the challenge. Initial reaction this evening doesn't bode well though. Gonna sleep on it for clarity of thought in the morning. After coffee of course. Thanks.

[Big Time]

Convinceing her be agressive may be hard, but causing Midland all kinds of grief by having to deal with two lawsuits with her might make them more agreeable to your settlement terms.

[CantCU]

Convinceing her be agressive may be hard, but causing Midland all kinds of grief by having to deal with two lawsuits with her might make them more agreeable to your settlement terms.

I despise Midland. What a pain in my posterior. Good luck!

I'm waiting out my 5 days right now to report them to the BBB and AG's.

[stancil1]

MadinKS,

I feel your pain brother. I live in Texas but you may try a search and look for something like this in Kansas so that you don't get caught off guard again. I check it all the time just to make sure I don't get suprised. Anyway, here's the link. http://www.cclerk.hctx.net/coolice/default.asp?Category=CCCourtAtLaw&Service=cc_inquiry just click on defendant and type in your last name.

D