DerbyCity

Midland...posting pmt I didn’t make!

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I’m brand new here. Never been sued before for anything. Got a summons from Midland, logged into their website and looked up the account. This is for a Walmart card charged off 2 years ago with a balance of $1200. I have made NO PAYMENTS to Midland whatsoever but they are showing TWO PAYMENTS for $150 each credited to my account last month, after the summons was issued. What can I do with this? Can I use it against them? 

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Is the whole account bogus (i.e. you never had a walmart/synchrony debt that charged off), or just the two payments? If it's just the two payments, chances are very good they were just posted to the wrong account. If you were to call them to dispute the $300 credit, I'm sure they would be glad to remove it and add that in to the amount they are suing you for.

They have sued you already well within the statute of limitations, so there's no benefit to them to nefariously add a payment you never made, let alone two payments totaling $300.

I'm sure they will eventually figure it out when the person whose account was supposed to have been credited $300 calls and asks where their money went, but if this were me I would keep my mouth shut about it and just use arbitration.

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Are they reporting the payments to the credit bureaus?  If so, this is a blatant attempt to damage your FICO score and force you to settle/pay up.  A collection with no activity for 2 years has a lower negative impact than the same account with a recent payment.The payments re-age the account and extend the reporting period for an extra 2 years, which is a violation of both FCRA (605(c) running of the reporting period) and FDCPA (807(2)(A) misrepresenting the character, amount or legal status of a debt). 

They can use the bona fide error defense (FDCPA 813(c))and then you have to request discovery to find out exactly how "reasonable" are their procedures to avoid such errors.

As Harry suggested, your best bet is to file a motion to compel arbitration. 

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Just now, cjtx2 said:

This is a blatant attempt to damage your FICO score and force you to settle/pay up.  A collection with no activity for 2 years has a lower negative impact than the same account with a recent payment.

The payments re-age the account and extend the reporting period for an extra 2 years, which is a violation of both FCRA (605(c) running of the reporting period) and FDCPA (807(2)(A) misrepresenting the character, amount or legal status of a debt). 

They can use the bona fide error defense (FDCPA 813(c))and then you have to request discovery to find out exactly how "reasonable" are their procedures to avoid such errors.

As Harry suggested, your best bet is to file a motion to compel arbitration. 

The payments do nor extend the reporting period for another 2 years.  The 7-year reporting period is based upon the date of first delinquency.   Once an account is charged off, nothing can change that date.  

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4 minutes ago, BV80 said:

The payments do nor extend the reporting period for another 2 years.  The 7-year reporting period is based upon the date of first delinquency.   Once an account is charged off, nothing can change that date.  

True. But it is not uncommon for a JDB to claim they do not have records of the original date of first delinquency and report it based on their business records reflecting payments.

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3 minutes ago, cjtx2 said:

True. But it is not uncommon for a JDB to claim they do not have records of the original date of first delinquency and report it based on their business records reflecting payments.

We do not know that what you have stated is “common”.  

Charge-off occurs 90 to 180 days after a defaulted account is not brought back to a current status.   Therefore, the JDB’s records would have to show the date of charge-off which would allow the DOFD to be determined.   Payments that did not bring the account back to a current status or that were made after charge-off would have no effect on the DOFD.  

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59 minutes ago, cjtx2 said:

If so, this is a blatant attempt to damage your FICO score and force you to settle/pay up.

They don't need to lie about two different $150 payments if this was their objective. A single $10 payment would suffice.

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