Letter from MCM "Notice of New Ownership & Pre-Legal Review"

[bigcreditmess]

Just a note:

I've already opted out, I've requested old addresses to be removed, I've ordered paper reports - I do have a TU from online as a 'summary' for now.

 

Today I received a letter from Midland/MCM that they are the new owner of my Credit One credit card with a balance of $648.17. I'm about 120 days

behind and I guess they sold it. I do owe the money.

 

That said....the letter states they are the new owner and considering forwarding this account for possible litigation. If they don't hear from me by 12/15 they'll proceed.

 

To stop from continuing I need to mail $300 or call to see if I qualify for discounts or payment plans.

 

Then at the bottom it says "we will not report your debt to the credit bureaus if you set up a payment plan, make a payment by 1/31/15 and make all payments as agreed."

 

 

Thoughts??

[funkiehouse]

I find this odd since LVNV and Credit One are in the evil Sherman group.

 

Has it been charged off? Threatening legal action before its charged off seems like scare tactics that may be illegal, although if charged off and they intend to take legal action that wouldn't make it illegal.

 

Can you post this letter without your personal information? Block out your name, address, account numbers, and so forth.

 

Is credit one reporting on your reports?

 

This sounds scammy to me.

Edited November 14, 2014 by funkiehouse

[bigcreditmess]

I don't have my paper reports yet, but TU shows charged off, Credit One reporting.

 

I think since I'm new it won't let me share a picture of the letter. But it looks legit to me

and I googled the phone number - comes up as MCM.

[bigcreditmess]

Copying the letter word for word:

 

Dear bigcreditmess:

 

On 10-22-14, your Credit One Bank, N.A.account was sold to MIDLAND FUNDING LLC, which is now the sole owner of this debt. Midland Credit Management, Inc. (MCM), a debt collection company, will be collecting on, and servicing your account, on behalf of MIDLAND FUNDING LLC.

 

Midland Credit Management, Inc. is considering forwarding this account to an attorney in your state for possible litigation. However, such forwarding will not occur until after the expiration of the time period described on the back of this letter. Upon receipt of this notice, please call to discuss your options.

 

If we don't hear from you or receive payment by 12-15-14, we may proceed with forwarding this account to an attorney.

 

What do you need to do to stop this process from continuing?

 

1) Mail in $300.00 or

2) Call us to see how to qualify for discounts and payment plans.

 

LET US HELP YOU! If the account goes to an attorney, our flexible options may no longer be available to you. There still is an opportunity to make arrangements with us.

We encourage you to call us: 800-939-2353

 

Sincerely,

Recovery Department

Midland Credit Management, Inc.

 

This account may still be reported on your credit report as unpaid.

 

We will not report your debt to the credit bureaus if you set up a payment plan, make a payment by 1-31-15, and make payment as agreed.

[mizliz1011]

I would contact CreditOne and try to get them to buy it back if you can pay it off. Otherwise its 7 years...

[bigcreditmess]

I just called CreditOne to make sure this is legit. They won't discuss the account with me at all. :/

[ICANHASMUNY?]

The Sherman group is in a class action over Rico Claims. - so I suppose they want to keep credit one bank out of it.

[Sandscrit]

Just a note:

I've already opted out, I've requested old addresses to be removed, I've ordered paper reports - I do have a TU from online as a 'summary' for now.

 

Today I received a letter from Midland/MCM that they are the new owner of my Credit One credit card with a balance of $648.17. I'm about 120 days

behind and I guess they sold it. I do owe the money.

 

That said....the letter states they are the new owner and considering forwarding this account for possible litigation. If they don't hear from me by 12/15 they'll proceed.

 

To stop from continuing I need to mail $300 or call to see if I qualify for discounts or payment plans.

 

Then at the bottom it says "we will not report your debt to the credit bureaus if you set up a payment plan, make a payment by 1/31/15 and make all payments as agreed."

 

 

Thoughts??

Does your state have laws that require a CA to be bonded or licensed to collect a debt? if so go to your state Secretary of State website to ascertain their status.

[LKH]

Was this the first letter you received from them? If so, did it have your right to dispute aka mini miranda on it?

[bigcreditmess]

Yes, Maryland requires it and they do have a license here to collect.

 

There is a bunch of verbage on the back of the letter, I'm pretty sure it has the mini miranda - but I will check.

 

So should I DV now to be within the 30 days? I don't want to deal with a CA, but since they bought it and the letter

states they won't report it if I pay or make payment arrangements, I thought, well, it's within SOL, I really do owe it,

and I need to get it paid - planning on buying a home in a year and they'll want to see it paid. I don't want a CA item

on my credit for this - CreditOne is already reporting it as a charge off and sold to Midland Funding. I just don't want

it to get 'worse' as far as reporting goes.

[funkiehouse]

I just want to make sure you are reading between the lines when it comes to their letter. It's very unusual for a CA that just bought a debt to come to you to settle. This is not a settlement letter. I imagine you understand that and that they are looking for the entire amount and probably more.

 

You could consider sending a PFD (or pay for not reporting) after you send a DV and get a breakdown of the debt. If you send in $300 before that they will know that they can get money out of you and try to take complete advantage of that. If you do decide to pay this, you need to write a letter in your terms for not reporting this for payment. You want someone there to write back to you directly and clearly state that they will not report if you pay $___. They are very good at wording things so the consumer believes they are getting what they want. Post any letters you want to send here first for help.

 

You also need to make sure that credit one is reporting a zero balance since it was sold.

[bigcreditmess]

Oh I know it's not a settlement letter. They want me to send in $300 or the whole amount or call them to make payment arrangements.

I don't think they will want to settle anytime soon.

 

I guess my question is - do I DV them right now and see what they come back with or do I contact them, make payment arrangements,

and just get it paid off (since they are offering NOT to report it if they hear from me/receive a payment arrangment by a certain date).

 

I owe the money, and honestly, there wasn't really any extra fees tacked on. I just want to be done with them.

[Momof5]

I don't trust Midland as far as I can throw them, but their letter did say that if you made arrangements, they would not report it to the credit bureaus. I would make arrangements post-haste or you will see that acct on your report for the next seven years. KEEP that letter!

[bigcreditmess]

It's the first letter. CreditONe JUST charged it off and immediately sold it to them.

Oh believe me, I am keeping the letter!

[bigcreditmess]

So - since I know for a fact I do owe this, which would not really have any need to dv them,

should I respond in writing and asking for a payment arrangement, with first payment before that 'deadline' they give

or should I call? (yes I know....never call, but I've got a letter saying they won't report it...)

 

I want to take care of this asap but I don't have the cash to pay it all off at once.

[ICANHASMUNY?]

get any settlement agreement in writing

 

there is a sample one in the sample letter forum

[bigcreditmess]

Thanks for all the advice and suggestions. The OC tradeline is already hurting me, so I don't want additional marks on my report.

I'll let you know how it all pans out....crossing my fingers that Midland won't be a pain...but not holding my breath! LOL