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So confused. BofA, FMA Alliance, MCM help


cloudyinwa
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I'm not sure what to do here.

 

I am sitting here looking at my credit reports and letters from fma and mcm.

 

So back story...Opened a business, in 2008 had to use CC to keep it afloat during the downturn.  Things started picking up in 2009, but never enough to keep up with min payments on CC's.  Racked up 13k on one, and about 4k on another.  Tried paying what I could, but got WAY behind.

 

Story...

BofA (13k) last payment was Sept '08...went to FMA alliance sometime after that.  I got a letter in front of me now from FMA dated 8/10 saying BofA is willing to work with me to substantially reduce the amount owed. But it says to make check payable to FMA., not BofA.  I can do not have records showing I asked for a validation, so I can't say if I asked for one.  Silence for a while, then in Apr 2011 is when Midland FUNDING showed up on my CR.  Not sure when I got my first letter from them, but I do I have a DV letter on my computer to them dated Jan/2012.  However, I can not find my cert of mailing to them (my kiddo accidentally threw away what he thought was garbage).  

 

Chase (4K)  last payment was May 09.  According my CR it looks like it went to Midland FUNDING on March 2011.  

 

I think there may have been someone in the middle there because I have a few DV letters between that time (one to Northstar Location Services dated 11/09 coming from a phone call at my work, but don't know who the debt was from, 2 for LTD financial for calls and letters dated Aug 09 and Nov 09 and IC systems in Aug 09  I have nothing telling me what these debts are for, but they all called around the same time).

 

Nothing was ever sent back to me.

 

Now, MCM (mcm not midland funding) called me (I did not answer, they did not leave a message) last week and just sent me a "Congratulations (yes, it said that! ha!) because you have multiple accounts with us you qualify for this this super low payoff rate."

 

Now do I am getting close to our SOL in WA (6 yrs) apparently for CC debt.  

 

But what I'm troubled about is the confusing into on my CC report.  One  CR (experian) it calls Midland Funding a "Debt Buyer" but the other (trans) says they are a "Factoring Account".  I don't know what the difference is.  I'm going to post here what's on each CC.

 

What do I do?  I am a homemaker, so I don't have a paying job.  These are my individual accounts, my husband is not on them (we keep our finances separate, even though we are a common law state).  This is my mess not his, so I refuse to have him pay these.  Especially since I don't have any record of a DV from them.

 

I need all of this broken down in laymans terms.  I think that MCM bought at least one of these from another (fma) so do they even have any way to validate?  Do I send another DV and hope they don't try to sue me with a certain scumbag lawfirm here in WA (been through that already).

 

Larger debt info....

Experian report....

 

BANK OF AMERICA
Address:
PO BOX 982235
EL PASO, TX 79998
No phone number available
Account Number:
      (deleting for privacy)
Address Identification Number:
     (deleting for privacy)

 

Status: Closed. $13k written off.
Date Opened:
09/2001
Reported Since:
02/2002
Date of Status:
02/2011
Last Reported:
02/2011
Type:
Credit card
Terms:
NA
Monthly Payment:
$0
Responsibility:
Individual
Credit Limit/Original Amount:
$14k
High Balance:
$13k
Recent Balance:
$0 as of 02/2011
Recent Payment:
$0
Creditor's Statement: Purchased by another lender.
 
Account History:
Charge Off as of Apr 2009, Mar 2009
 

 

 

 

Midland for this account..

MIDLAND FUNDING
Address:
8875 AERO DR STE 200
SAN DIEGO, CA 92123
(800) 825-8131
Account Number:
 (deleting for privacy..although it's a different number than the CC number)
Original Creditor:
BANK OF AMERICA
Address Identification Number:
  (deleting for privacy)
Status: Collection account. $19k past due as of Feb 2013. Status Details: This account is scheduled to continue on
record until Jun 2015.
Date Opened:
02/2011
Reported Since:
04/2011
Date of Status:
04/2011
Last Reported:
02/2013
Type:
Debt Buyer
Terms:
1 Months
Monthly Payment:
$0
Responsibility:
Individual
Credit Limit/Original Amount:
$13,k
High Balance:
NA
Recent Balance:
$19,k as of 02/2013
Recent Payment:
$0
Account History:
Collection as of Dec 2012 to Feb 2013, Jul 2012 to Oct 2012,
Mar 2012 to May 2012, Apr 2011 to Jan 2012
Balance History - The following data will appear in the following format:
account balance / date payment received / scheduled payment amount / actual amount paid
Jan 2013: $18,k

 

Trans union  same account...
BANK OF AMERICA #CHANGED FOR PRIVACY
Phone number not available
PO BOX 982235
EL PASO, TX 79998-2235
Date Opened: 09/27/2001
Responsibility: Individual Account
Account Type: Revolving Account
Loan Type: CREDIT CARD
Balance: $0
Date Updated: 02/09/2011
Payment Received: $0
Last Payment Made: 09/30/2008
High Balance: $13k
Original ChargeOff: $13k
Credit Limit: $14k
Pay Status: >Charged Off<
Terms: Paid Monthly
Date Closed: 12/04/2008
Date Paid: 09/30/2008
>Maximum Delinquency of 120 days in 01/2009
and in 03/2009<
Remarks: PURCHASED BY ANOTHER LENDER; >UNPAID BALANCE CHARGED

 

 

 

 

MIDLAND FUNDING LLC #PRIVATE
(800) 825-8131
8875 AERO DR
SUITE 200
SAN DIEGO, CA 92123
Placed for collection: 02/25/2011
Responsibility: Individual Account
Account Type: Open Account
Loan Type: FACTORING
COMPANY ACCOUNT
Balance: $19,k
Date Updated: 02/19/2013
Original Amount: $13k
Original Creditor: BANK OF AMERICA
Past Due: >$19,k<
Pay Status: >In Collection<
Remarks: >PLACED FOR COLLECTION<
Estimated month and year that this item will be removed: 08/2015

 

-----------------------------------

 

Smaller Debt Info...

 

Experian info...

 

CHASE BANK USA
Address:
PO BOX 15298
WILMINGTON, DE 19850
(800) 955-9900
Account Number:
  deleted for privacy
Address Identification Number:
   deleted for privacy
Status: Closed. $3,k past due as of May 2010. Status Details:
This item was updated from our processing of your dispute in Oct
2009.
Date Opened:
07/2007
Reported Since:
08/2007
Date of Status:
05/2010
Last Reported:
05/2010
Type:
Credit card
Terms:
NA
Monthly Payment:
$0
Responsibility:
Individual
 
Creditor's Statement: Purchased by another lender.
 
Account History:
180 days past due as of Nov 2009 to Apr 2010
 

 

MIDLAND FUNDING
Address:
8875 AERO DR STE 200
SAN DIEGO, CA 92123
(800) 825-8131
Account Number:
   private
Original Creditor:
CHASE BANK USA N.A.
Address Identification Number:
    private
Status: Collection account. $4,k past due as of Feb 2013. Status Details: This account is scheduled to continue on
record until Feb 2016.
Date Opened:
04/2010
Reported Since:
06/2010
Date of Status:
06/2010
Last Reported:
02/2013
Type:
Debt Buyer
Terms:
1 Months
Monthly Payment:
$0
Responsibility:
Individual
Credit Limit/Original Amount:
$3,k
High Balance:
NA
Recent Balance:
$4,k as of 02/2013
Recent Payment:
$0
Account History:
Collection as of Dec 2012 to Feb 2013, Jul 2012 to Oct 2012,
Mar 2012 to May 2012, Jun 2010 to Jan 2012
Balance History - The following data will appear in the following format:
account balance / date payment received / scheduled payment amount / actual amount paid
Jan 2013: $4,k / no data / no data / no data
 

 

 

Transunion info...

 

CHASE/BANK ONE CARD SERV #private
(800) 945-2006
PO BOX 15298
WILMINGTON, DE 19850
Date Opened: 07/30/2007
Responsibility: Individual Account
Account Type: Revolving Account
Loan Type: CREDIT CARD
Balance: $0
Date Updated: 05/12/2010
Payment Received: $0
Last Payment Made: 04/24/2009
 
Pay Status: >Charged Off<
Terms: Paid Monthly
Date Closed: 12/13/2009
Date Paid: 04/24/2009
 
Remarks: PURCHASED BY ANOTHER LENDER; TRANSFERRED TO ANOTHER OFFICE
Estimated month and year that this item will be removed: 04/2016

 

 

 

MIDLAND FUNDING LLC #private
(800) 825-8131
8875 AERO DR
SUITE 200
SAN DIEGO, CA 92123
Placed for collection: 04/28/2010
Responsibility: Individual Account
Account Type: Open Account
Loan Type: FACTORING
COMPANY ACCOUNT
Balance: $4,k
Date Updated: 02/19/2013
Original Amount: $3,k
Original Creditor: CHASE BANK USA N A
Past Due: >$4,k<
Pay Status: >In Collection<
Remarks: >PLACED FOR COLLECTION<
Estimated month and year that this item will be removed: 04/2016
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Did Midland funding send you a letter telling you they are the owners of the new account?

 

Factoring is an accounting term.  I didn't think junk debt could be used as factoring accounts, but I see alot of JDB's using them.  It basically means they are saying to a lender "hey look, I have all these accounts that I am going to collect on.  See? they are in my name.  I need time to collect on them, but will you lend me money until I do?"  So in essence they are using your accounts that they own to borrow more money so they can buy more junk debt.

 

I think it lets them charge more interest too.  I would do some research here.  I am not sure if they are allowed to add on interest if they didn't tell you they now own your account, or if they can, I think their starting balance needs to be what the charge off amount is, when the original creditor stopped charging interest.

At anyrate, for accounts this high, my personal feeling is they will try and file a suit against you before the SOL runs out.  They like to sit on them and let the interest build.  Some states have laws that they cannot charge all that interest, or they can only charge your states statue interest unless your credit card agreement allows for more.

 

If you disputed either one of these accounts with midland, they should be listed as disputed, and I would dispute with the CRA.

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Ugh, I don't have anything that says they own it other than this last letter telling me congrats because they have 2 accounts with my name i qualify for 40 and 70% off.  My kid threw away a bunch of my papers a while back, so I have no idea if I got anything. (he thought it was all recycle).  

 

If they can say "we never got a DV letter from so and so" if they try to sue, then how can they prove they sent anything to us?  I've never gotten anything certified in the mail from any of them.  

 

I don't have the payoff letter in front of me right now, but I think I saw on there that I have 30 days to accept the payoff otherwise more interest could accrue.

 

Do I send them a DV now certified return receipt?  It's obvious from my cr they've had the big one since they bought it from fma/bofa in april 2011.  I've never received any validation.  

 

And what if I send the DV letter, and they go straight to a lawsuit?  Can they do that or do they have to send me validation first...then lawsuit.  

 

I'm so confused, I see all these things that say we have to respond in 30 days to their requests, but nothing the other way around???

 

Also, how can on one CR Midland says "Type: Debt Buyer" and the other is says "Loan Type: Factoring Company Account"

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First off I do not live in WA., but I have been in a similar situation. Like everyone else here I am not a legal professional, but this is what I would do in your situation.

 

Stop worrying about what it says on your credit report. At this point it really doesn't matter if they report it as a factoring company or debt buyer. Later on you may want to look into this, but I think your main concern right now is avoiding a lawsuit. More than likely they are now the "owners" of your account. Encore, Midland Funding & MCM are all the same company. More than likely they will use MCM to try and collect from you since that is supposedly their only "active" entity in most states.

 

If it has been more than 30 days since they sent your first letter I wouldn't worry about sending a DV letter. You can send one, but if you are not in the first 30 days the risk/reward is not worth it. In my opinion all you will be doing is letting them verify your location if they decide to sue. Considering the high amount of the BA account they are very likely if they are sure of your location. Just because they are calling and sending you letters doesn't mean they are sure it is you.

 

I would just lay low at this time and hope the SOL runs out. I would not do anything that causes new activity to show up your credit reports until the six years is up. If you have any activity on your credit report they will receive an alert. This includes disputing anything on your credit reports and even some future employment activity.

 

From this point forward save any letters they send you including the envelopes. Keep any messages they leave for you recorded in a safe place. Keep a log of all activity, including when they hang up, and throw away your shredder. I would not talk with them and instruct everyone in your household to do the same. This information may come in handy in the future in the event you are sued. Probably your biggest problem at this point is the amount of business related charges vs personal charges. Most of us here are just dealing with personal credit. This could be a problem in the future concerning your rights under the FDCPA. This is an issue I would reserve speaking with an attorney about if the situation every results in litigation. 

 

Last of all I would round off any numbers you post here and never list any personal information. You can hit the edit button on the post above and round off the numbers listed.

 

I repeat that I would not worry about your credit reports at this time. People can debate the CR issues back and forth, but its not going to improve your situation. Waiting out the SOL may be your best move. If they decide to litigate before it expires then you change your strategy. The following is just my unprofessional opinion and others here may have different and even better opinions.

 

Good Luck!

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Thanks for the advice.

 

I edited my amounts.  I'm not worried about my credit.  It's shot.  I was just wondering if they were doing something fishy.  I have no intentions (nor could I) of getting anything on credit.  I have nothing in my name.  My husband buys everything for the household under him and only him.  I'm only on insurance and if he dies I get this stuff kind of thing.  We have no joint accounts of any kind.

 

I have nothing from anyone saying who owns anything.  I have copy on my computer of a dv to them (dated) but it's several months after it shows on my reports, I don't know if it's the first I heard from them (it's been too long), but my other creditors I have been good about dving and things just keep moving around, so I'm guessing I was on top of this one also.  The only thing I have from MCM is this congrats letter (which totally amuses me, like I'm so happy that they have multiple accounts, yea me!).

 

They leave no messages.  Ever.  (I google all random numbers that show up, so I know I've had at least one call from them) We never answer our phones anyways (we get a TON of scam calls from India/Nigeria for some reason), so I'm not worried about anyone talking to anyone.

 

Honestly, if they do try to come after me and can prove they own this, I will just file bankruptcy.  My credit is already bad, I was just hoping this would fall off and I could begin repairing my credit.  I have nothing to gain/lose.  It would cost them more money coming after me.  Can't squeeze blood from a turnip.  I have no paying job, no money, credit is already shot, no property in my name.

 

As for personal/business stuff.  Because my company was (it is dissolved) an LLC, I'm personally liable.  All things for the business were bought on my personal card and in another state.  It is all stuff I no longer have, so there is no property either.  

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