Midland Credit Management, Inc. is a third party debtor headquartered in San Diego. If you are receiving letters or calls from this company and want the calls and letters to stop then you have come to the right place. This article explains exactly how to deal with this collection agency and how to remove an MCM collection from your credit report. Communicating with collection agencies can create a stressful situation, so it helps if you know how to communicate with them effectively.
How to remove MCM from your credit report
Follow these three steps when dealing with MCM:
Step 1: Request written communications only
Dealing with MCM over the phone is not advisable. While many collection agencies follow ethical business practices, some make promises over the phone and then have no record of them. In this case, the consumer has no proof of the agreement. It is much safer to limit communications to letters sent and received via US mail. You can register your email if you want an even more reliable method.
With that in mind, your first step is to send a letter to MCM asking them to only communicate with you in writing. As a consumer, you have the right to make this request. The Fair Credit Reporting Act (FCRA) promotes the fairness and accuracy of information in consumer reporting agency files. Under the rules set forth in the FCRA, you have rights, one of which is to request written notice.
Aim to send this letter within 30 days of the first message from MCM. It’s important to act quickly because your chances of having a negative entry removed from your credit report decrease after the first 30 days.
First, access a free copy of your credit report at AnnualCreditReport.com.
Step 2: Request confirmation of the claim
MCM collects debt purchased in bulk from original creditors such as credit card companies and personal lenders. Midland Funding buys that debt for pennies on the dollar, and then MCM begins collecting that debt, breaking even and typically turning a profit by collecting outstanding debt from consumers. MCM only makes money by collecting the debt, so its representatives can be stubborn.
To have MCM removed from your credit report, you should write another letter, called a debt validation letter, within 30 days of your initial communication with that collection agency. The letter should ask for confirmation of your debts. The company must prove that the debt in question actually belongs to you. When the company responds, look at the data they send you. Are there any inaccuracies? If this is the case, the company must stop contacting you and remove the negative record.
FCRA terms require MCM to investigate the claim against you. If you can show that the claim is not valid, you must remove it from your credit report. It is possible that MCM representatives will prove the validity of the debt. If that’s the case, you need to try something else.
Step 3: Make a deal with Midland Funding
It’s usually possible to haggle with collection agencies and pay less than what you owe in exchange for having the credit entry removed from your credit report. This type of negotiation is common. Debt collectors pay less than the usual interest rate on the debt they buy, so they can afford to take less than the total debt and still make a profit. Anything you pay above their low purchase price is profit from their point of view.
With this in mind, if MCM validates your debt, you should make every effort to negotiate. If you don’t, the negative impact of debt on your FICO credit score can become a permanent drain. This can affect your ability to get credit, such as a car loan, new credit card, or mortgage, in the future. And, of course, you continue to receive calls and letters from MCM’s account managers about this overdue debt.
Step 4: Negotiate a pay-for-delete
Your next step is to write a third letter proposing a deal. Offer to pay a set percentage of the total debt, e.g. B. 30 to 50% in exchange for MCM being removed from your credit report. Remember, never conduct this type of negotiation over the phone.
If the company agrees to your terms, write them a check, mail it, and avoid giving the company access to your bank account. Wait 30 days, and then write a final letter asking the company to confirm that they’ve removed the negative entry from your credit report.
When setting up a payment plan, get the terms in writing and make sure you follow them. Written agreement is important as MCM could cash your checks and not confirm your deal. It would still appear on your credit report, and the original creditor may appear as well.
Step 5: Let a professional take care of your debt
The four steps above are easy enough, but you may prefer to have your credit problem taken care of by a professional credit repair company. Contact Credit Saint. It takes care of you and can usually remove data much faster.
Midland Funding or MCM?
Two different company names may appear. Midland Funding, LLC is a debt buyer. It buys old debt from the original creditors, usually for pennies on the dollar. When Midland Funding buys your old debt, it hands over the account to MCM to collect the debt from you. Midland Funding might show up on your credit report if you’re actually dealing with MCM. If you contact the credit bureaus directly about your debt, be sure to include the identity of the company.
What will MCM do if you fail to pay an old debt?
As with any debt collection agency, MCM’s debt collection practices are based on persistence and a degree of implicit fear. It won’t break the law, but many account holders still consider the agency’s practices to be harassing behavior. The Better Business Bureau (BBB) receives hundreds of complaints each year about MCM’s debt collection practices.
The Fair Debt Collections Practices Act (FDCPA) prohibits MCM and other debt collection agencies from calling you at unusual times, e.g. B. late at night or early in the morning, especially after you have asked them in writing to do so. The FDCPA also allows you to control which phone number MCM calls. Be sure to request a change of phone number or other contact information in writing. Contact the BBB or your state regulator if MCM does not comply with FDCPA regulations.
Will MCM take legal action against you?
If you fail to pay the debt, MCM may take legal action against you to collect it. If so, check the statute of limitations in your state for the type of debt you owe. If the law expires, you can dismiss the case without legal advice. These regulations vary from state to state. For example, New York State has a six-year statute for all consumer debt; California law is four years for most types of debt.
To be clear, statutes of limitations on debt only relate to a collection agency’s ability to take legal action against you. You would still owe the debt after the law expired, but they couldn’t hold you liable in court. If your first contact with MCM was recent, your debt is likely within the statute of limitations.
Should you pay MCM or wait?
If MCM can validate your debt, and if you can negotiate an amount you can afford to remove Midland Funding or MCM from your credit report, you can take advantage of the three-step approach above and get the debt off your report fairly quickly. However, you must obtain MCM’s written consent before paying for anything. The benefit of this approach is that you put a negative mark on your credit report, allowing you to get better interest rates on loans and regain control of your finances within months.
But there’s another strategy to consider: waiting until the debt no longer shows up on your credit report, which would take at least seven years. If you cannot afford a negotiated settlement and have no other way to pay off the debt, you may choose to wait it out. If you do so, you should immediately stop communicating with MCM. Any notice could reset the statute of limitations to the first day and extend the time that Midland Funding/MCM will hold your credit report.
Does MCM offer COVID-19 hardship assistance?
Student loan servicers, most mortgage lenders, and some credit card issuing banks have programs to alleviate financial hardship due to COVID-19. They may allow you to skip payments or enter an extended period of forbearance during the economic fallout from the pandemic. MCM has added a notice to its homepage expressing its willingness to work with account holders to keep accounts current.
As with anything debt collection related, be sure to get any new agreements you make in writing, especially if you have an agreement with MCM to remove a claim from your credit report.
You can contact MCM using the following contact details:
- Call MCM Toll Free: 877-653-4161
- Or write to MCM at: PO Box 939069, San Diego, CA 92193