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kcadams1980

Got a settlement offer!! Please advise!!

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I've posted other topics regarding my collection account with MCM - on my report it shows that they're reporting I owe $537, but I received a letter today from them saying my current balance is $1354.98 (don't know how that happened, but read on).

 

They sent me a settlement letter saying I can settle the debt for $135.50!! This is extremely attractive to me (obviously), and my instinct is just to call right now and pay it, but I've read that there are better ways of settling this debt to minimize impact to my reports. The payment due date for this offer is 3/28/10, so I need to act quickly.

 

If I send a "pay to delete" letter, could I conceivably pay the lesser settlement amount they're offering? Or would that require me to pay more than the $135 (potentially a lot more, which would put this out of range for me).

 

Is it smart for me just to take this offer and run? This is an amount I could pay RIGHT NOW and have this account paid. It is the only baddie on my CR. Maybe there are some actions I can take post-settlement to take off the bad spot?

 

Thanks in advance!

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FYI... I have a few years to repair my credit before our goal of getting our first mortgage... My husband's credit is pretty bad and it will take some time to fix. Also we'll need some time to save more money for a down payment. No plans to make any major purchases btw now and then.

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Here is the PFD letter I wrote today - it also includes some stipulations re the TX Finance Code that lets people request validation outside the 30 time period. Do yall think it's wise to bring up that the SOL is near on this debt? Is that too confrontational, or does it just let MCM know that I know my rights and won't be jacked around? This is the FIRST time I've responded to anything of theirs in 1.5 years, so I think that maybe I have some leverage there (they know I will just ignore them again if I want, and SOL will run out, doubt they will sue for such a small amount). Anyhow, here's my letter:

 

Midland Credit Management

8875 Aero Drive, Ste. 200

San Diego, CA 92123-2255

 

March 19, 2010

 

Re: Account Number XXXXXXXXXX

 

Dear MCM Collection Manager:

 

This communication regards the settlement offer letter you mailed me on February 26, 2010 related to the debt listed above. I have enclosed a copy of your letter for reference.

 

This is not an acknowledgment or acceptance of the debt, as I have not received any verification of the debt. Please be aware that the Texas Finance Code, Chapter 392.202 allows all residents of our state to obtain debt validation as long as it is being actively collected. Nor is this a promise to pay and is not a payment agreement unless you provide a response as detailed below.

 

MCM has the ability to report this debt to the credit bureaus as you see fit. Therefore, you also have the ability to change the listing since you are the one providing information to the credit bureaus.

 

I would like to save us all a lot of time and trouble and settle this debt. I am willing to pay the $135.50 you offered in your settlement letter in return for your written agreement to remove all information regarding this debt from the three credit reporting agencies within ten calendar days of payment. I also request your agreement in writing that, upon payment of the $135.50 settlement, MCM will not sell or assign this debt to any other collection agencies, nor share this information with any other parties. Once I receive your agreement to these terms in writing, I will immediately send certified payment in the amount of $135.50 payable to Midland Credit Management.

 

If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you would like to receive payment from me, please prepare a letter on your company letterhead agreeing to the terms I outlined above. This letter should be signed by an authorized agent of Midland Credit Management, and will be treated as a binding contract and subject to the laws of Texas.

 

As granted by the Fair Debt Collection Practices Act and the Texas Finance Code, I have the right to dispute this alleged debt. We both know that the statute of limitations is approaching on this debt, so it would behoove you to accept my terms and resolve this matter. If I do not receive your postmarked response within 15 days, I will withdraw the offer and request full verification of this debt.

Please forward your agreement to the address listed above.

 

Sincerely,

 

 

 

Thanks! Kelly

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Here is the PFD letter I wrote today - it also includes some stipulations re the TX Finance Code that lets people request validation outside the 30 time period. Do yall think it's wise to bring up that the SOL is near on this debt? Is that too confrontational, or does it just let MCM know that I know my rights and won't be jacked around? This is the FIRST time I've responded to anything of theirs in 1.5 years, so I think that maybe I have some leverage there (they know I will just ignore them again if I want, and SOL will run out, doubt they will sue for such a small amount). Anyhow, here's my letter:

 

Midland Credit Management

8875 Aero Drive, Ste. 200

San Diego, CA 92123-2255

 

March 19, 2010

 

Re: Account Number XXXXXXXXXX

 

Dear MCM Collection Manager:

 

This communication regards the settlement offer letter you mailed me on February 26, 2010 related to the debt listed above. I have enclosed a copy of your letter for reference.

 

This is not an acknowledgment or acceptance of the debt, as I have not received any verification of the debt. Please be aware that the Texas Finance Code, Chapter 392.202 allows all residents of our state to obtain debt validation as long as it is being actively collected. Nor is this a promise to pay and is not a payment agreement unless you provide a response as detailed below.

 

MCM has the ability to report this debt to the credit bureaus as you see fit. Therefore, you also have the ability to change the listing since you are the one providing information to the credit bureaus.

 

I would like to save us all a lot of time and trouble and settle this debt. I am willing to pay the $135.50 you offered in your settlement letter in return for your written agreement to remove all information regarding this debt from the three credit reporting agencies within ten calendar days of payment. I also request your agreement in writing that, upon payment of the $135.50 settlement, MCM will not sell or assign this debt to any other collection agencies, nor share this information with any other parties. Once I receive your agreement to these terms in writing, I will immediately send certified payment in the amount of $135.50 payable to Midland Credit Management.

 

If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you would like to receive payment from me, please prepare a letter on your company letterhead agreeing to the terms I outlined above. This letter should be signed by an authorized agent of Midland Credit Management, and will be treated as a binding contract and subject to the laws of Texas.

 

As granted by the Fair Debt Collection Practices Act and the Texas Finance Code, I have the right to dispute this alleged debt. We both know that the statute of limitations is approaching on this debt, so it would behoove you to accept my terms and resolve this matter. If I do not receive your postmarked response within 15 days, I will withdraw the offer and request full verification of this debt.

Please forward your agreement to the address listed above.

 

Sincerely,

 

 

 

Thanks! Kelly

 

 

Good luck with it.

Please let us know how this goes !

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MCM has been on me since 2008 for my first CC, you know the one they throw at high school graduates to play with and suck them into the CRA's!

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I am anxious to hear the answer too. I live in Texas and have a similar situation with a CA. I have been reading through the boards to figure out my next step. Good luck to OP!

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