Can't settle during debt validation process?

[Guest will5577]

I will summarize what has happened then type out the information. I got a letter from MidLand Credit Management stating that if I didn't start paying they would forward my account to an attorney in my state for possible litigation. I went to a lawyer and he sent out a validation/verification letter so we had time to get money from our tax returns to settle.

This letter was sent on December 23, 2011. We did not hear anything back from them. We got the funds together and gave it to the lawyer to do the settlement. The debt is $4800.00 and he said he could settle it for 2400-2600. I gave him $2700 and he sent the letter out on February 28, 2012. They replied back and said they could not settle because of his previous request. Can I not settle because I requested debt validation and they couldn't prove it yet? I will now type out what was sent. Keep in mind the format is a little different then what I am typing here.

The letter threatening me.

NOTICE OF NEW OWNEWRSHIP AND PRE-LEGAL REVIEW

Dear XXXXXX XXXXXX(my name)

Midland Funding LLC recently purchased your CHASE BANK USA, N.A account and Midland credit management, a debt collection company, is the service of this obligation.

Midland Credit Management, Inc, is considering forwarding this account to an attorney in your state for possible litigation. However, such forwarding will not occur until after the expiration of the time period described on the back of the letter. Upon receipt of this notice, please call to discuss your options.

If we do not hear from you or receive payment by 01-17-2012, we may proceed with forwarding this account to an attorney.

What do you need to do to stop this process from continuing?

1.) Mail us $500.00 and call to set up your remaining payments

2.) Call us today to see how to qualify for discounts and payment plans.

LET US HELP YOU! If the account goes to an attorney, our flexible options may no longer be available to you. There still is an opportunity to make arrangements with us. We encourage you to call us today.

Now the reply from the lawyer.

Decemer 23, 2011

Dear Sirs:

I am writing on behalf of Mr. XXXXXX, whom you are pursuing on a debt collection. On behalf of Mr. Weisz, I am contesting the validity of the account. I am also requesting that you forward all the information mandatorily required by the Fair Debt collection practices Act including,but not limited to, verification of the debt and the name and address of the original creditor.

I must tell you that XXXXXX has given me information leading me to conclude that he was not dealt with properly in this matter. He intends to fully exercise his legal rights.

Please respond directly to me. Thank you for your courtesy.

After this letter all phone calls and letters have completely stopped. They were calling me 3-4 times a week. Now for the reply to this letter.

1-4-2012

Dear XXXXXXXXX (name)

We have opened an investigation concerning your recent request and have requested the appropriate documents.

A consumer support services representative will provide a response to your request in the near future. We can be reached at XXXXXXXXX (number) should you have further questions.

Please understand this communciation is from a debt collector. This is an attempt to collect a debt. Any information will be used for that purpose.

Calls to and/or from this company may be monitored or recorded.

Sincerely,

Consumer support services

Now for the debt settlement offer from my lawyer

Dear Sirs:

On December 23, 2011, I wrote a letter to Midland Credit Management responding to a dunning letter they sent to XXXXXX. Enclosed are copies of the dunning letter, my letter in response thereto, and then a letter in response to my letter. I called recently to cut through the red tape because XXXX has acquired some funds and wishes to compromise the claim. I was told you could not do that because of my previous letter. That doesn't make sense to me, but let me cut to the case.

XXXXXX has now authorized me to propose to settle the aboe MCM account fo rthe sum of One Thousand Seven Hundred Fifty Dollars.

Then he gives instructions on how he will pay it and requesting the papers for the settlement.

Now I called my lawyer on 4-2-12 and could only talk to his secretary about any updates. He relayed a message to her that they have not answered back and that he is going to send out another letter. I want this thing settled so I can get crap paid off and move on. Are they not allowed to settle during the validation/investigation process? Is that illegal to them? Whats going on?

Oh and I can't talk to my lawyer because he doesn't have time (I don't mean that in a bad way) which is understandable. He is working on other big cases so that is why I am posting on here. Although when we first saw him he said he has dealt with debt collectors alot before.

And also he has a receipt for all the papers sent and received. It was certified mail. And all this was done far after the 30 day initial period. Once again I want to settle so why are they saying I can't?

[1stStep]

Well, they are being very careful with your account...you've got a lawyer who obviously knows the FDCPA...

They know if they slip up, you're gonna sue.

[Coltfan1972]

Well I have to admit, this is a new one. A consumer mad because Midland won't take their money.

If you ever wondered if Midland was full of b.s., read this. They turned down money because they admit, even when faced with an offer of cold hard cash, they can't validate the debt.

Will,

Has the thought crossed your mind to save your money? I'd read again what you posted. Then ask yourself if throwing cash at these clowns is really a smart move.

The threshold to validate a debt is pretty much we checked our records and the original creditor says the amount we are asking for is correct. And they are admitting they can't even do that??????? :shock:

Step back my friend and give this another look and ask yourself if this is a wise choice on your part.

[jody26]

I think they are not sure about your atty and with the FDPCA being referenced to in the letter they are nervous that they are gonna be sued! They cannot validate the debt since they are not the original creditor. Even when a company is asked to validate a debt they do not have to respond. If it were me I would not pay them, you owed the original creditor NOT the debt collector, they purchased the debt and most of the time pay pennies on the dollar, I would not be surprised if they only paid about $400 for your debt, but they are after you for the whole amt. There is nothing in the validation process that would keep them from accepting payments.

If they cannot validate that I owe THEM which I would not since I never had a contract with them they will not get a dime from me!

Good luck to you, I hope it all gets settled!