If you have discovered Midland Credit Management is showing up on your credit report, that means they claim you have an unpaid debt with one of their clients. Or perhaps you’ve been called by Midland Credit and don’t know what to do. Facing debt collectors can be daunting, but this article will equip you with top strategies to resolve Midland Credit Management collections and improve your credit score. Read on, take some notes and get prepared to fix your credit.
Who is Midland Credit Management
As one of the oldest debt collection agencies in the United States, Midland Credit Management Inc., or MCM is a large and well-known collection agency, owned by a public company called Encore Capital Group. Founded in 1953, the company is based in San Diego, CA and has over 4000 employees.
But don’t let their size or history intimidate you. You can take steps to manage this and any collections accounts with knowledge and persistence.
Who Does Midland Credit Management Collect For?
Midland Credit Management collects debts on behalf of credit card companies, healthcare providers, telecommunications firms and retailers. They collect for many kinds of consumer finance companies. They also buy outstanding debts from individuals who have filed for bankruptcy. With Midland Credit Management on your credit report, it means they have acquired your debt and are now actively seeking payment from you.
Should I Pay Midland Credit Management?
If Midland Credit calls you and insists you owe money on a past debt, you may be wondering if you need to pay them immediately. Before you commit to paying this or any collections debt, do your homework. There are a few steps below that you should take. Do not commit to paying a debt before you are certain that the debt is yours and that the amount is correct.
Read on, and we’ll show you how to do this.
How to Validate the Debt
1. Validate the Debt: Request written validation of the debt from Midland Credit Management. Under the Fair Debt Collection Practices Act (FDCPA), you have the right to receive verification that the debt is indeed yours. This documentation should include details about the original creditor, the amount owed, and any relevant account information. To make it simple, use this debt validation letter template from CambioMoney.
You should send the letter to Midland Credit Management at this address:
P.O. Box 939069
San Diego, California 92193
Overall, debt collection companies are not able to validate over 40% of the accounts under 3 years old. So there is a good chance the Midland will not be able to sufficiently validate your debt.
Make sure Midland Credit Management validates the debt according to the law, within 30 days of the first contact. If they are not able to do this, they don’t have a legal right to collect the debt.
Dispute Inaccurate Information
2. Review your credit report for any inaccuracies related to the Midland Credit Management collection account. If you identify any incorrect information, such as incorrect balances or dates, you can dispute these errors with the credit bureaus. File a dispute in writing and provide any documentation you have such as account statements or canceled checks.
Here are a few things to look for when checking for errors:
Did the debt belong to you?
Was the account already paid off?
Is the amount owed correct?
If any of these things are inaccurate, you can file a dispute. Use this dispute template and send the letter with details of why you believe there is an error to all three credit reporting agencies: TransUnion, Equifax and Experian. If the agencies cannot prove your dispute is wrong, the item must be deleted from your credit report.
Negotiate a Settlement with Midland Collections
Provided that you own the debt, it’s time to think about negotiating a settlement to resolve the debt. They may be willing to accept a lump sum payment or a structured payment plan for an amount less than the total debt owed.
Bear in mind that collections companies purchase the debt for a percentage of the actual amount owed, often for pennies on the dollar. In many cases, collections agencies will negotiate an amount between 40 and 60% of the total debt owed. Use this knowledge to help you decide on a settlement amount and payment plan that works for your budget.
Ensure to get an agreement in writing before making any payments.
Conclusion
A collection account from Midland Credit Management on your credit report can significantly impact your credit score and future financial opportunities. By becoming an informed consumer, you can make sure that you have the best chance at resolving an issue with this debt collector. Know that they must operate within the law to prove the debt is yours. And remember to dispute any errors before agreeing to pay any amount of the debt. By taking control of your debt, and your credit report, you can begin to repair your credit and solidify a healthier financial future.
