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hangloose

Can Midland attempt debt collection on a deleted TL?

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I had a ~$1,300 CO from Capital One that had errors, I disputed on all 3 CRA's and was deleted. This was several months ago and it was never re-inserted. This CO is no longer listed on the big 3 CRA's.

 

Received a letter today from MCM stating this;

 

Original Creditor: CAPITAL ONE BANK

Charge-Off Date: 6/6/2019

Charge-Off Balance: $1,309.75

Current Creditor The sole owner of this debt: Midland Credit Management, Inc.

Current Servicer: Midland Credit Management, Inc.

Principal Balance: $1,309.75

Last Payment Date: No Payment On Record.

 

Dear (name),

This letter is to inform you that MCM is considering forwarding this account to an attorney in your state for possible litigation. Please pay us or call no later than 11/4/2019

If we don't hear from you or receive payment, MCM may proceed with forwarding this account to an attorney.

 

The top of the letter has very large font saying, "PRE-LEGAL NOTIFICATION"

 

 

(NOTE: there is currently no collections on any of my credit reports)

 

These are my questions:

 

1) Can they legally attempt to collect a debt on an account which was deleted by all 3 CRA's? If so, do they even have a good chance at succeeding?

2) Does their letter show threatening litigation, and if so, am I able to sue them for this if THEY don't sue me? (I've seen this action in a few threads)

3) What does "No Payment On Record" mean? (I bolded the text to stand out)

 

Thank you all for any input

 

 

 

 

 

Edited by hangloose

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Absolutely.  For all you know, the deletion simply occurred as CrapOne was in the midst of selling the account as part of a portfolio.  Simple removal does not negate the prospect, even of an OC, placing the account back in a reported status.  Nothing in this thread suggests that the dispute was of a nature which would result in a permanent suppression of the data...

 

The letter, as described, is not a violation of any law.  It clearly advises you that, if arrangements were not made, then the account MAY be referred to counsel. 

 

What IS a surprise is the claim that the account is such a fresh charge-off and was already sold.  If that date is correct, then the sad thing is that a phone call just a few months ago would have gotten you a payment arrangement with CrapOne that could even have removed all of the negative reporting.  They are one of the few lenders that does the Rule5000 re-aging, which is a consumer-friendly move. 

 

As things stand now, you can probably get Midland to agree to close the matter for about fifty cents on the dollar.  Properly negotiated, this would also preclude reporting or, alternately, get a deletion if any reporting HAD taken place prior to the settlement.

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They can collect; reporting does not have any effect. They said they are "considering" legal action; there goes your FDCPA suit. Send them a cease and desist and see if they violate it. One good FDCPA violation will just about wipe out the debt. Right now, you don't have one; nor do you have the arbitration card. You'll have to beat them the old fashioned way.

They probably paid forty or fifty bucks for the account; anything above that is a profit. If the account "had errors," that may be something you could use as a defense and a POSSIBLE violation, mischaracterizing the amount of the debt. You need solid evidence that has an effect on the balance, then prove they knew about it or should have known about it but went ahead and tried to collect the higher amount.

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6 hours ago, legaleagle2012 said:

Send them a cease and desist and see if they violate it.

Or see if the next communication you get from them is a knock at your door from the process server.

 

That's a risky game.

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@shifter

I’ve never been served before, and my current address listed on my CR’s is my parents house that I only use to get mail from. I’m currently in a homeless veteran transitional housing program for the foreseeable future. 
 

Do I need to be served in person from a process server?

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no, if they can't find you, they can still get a default judgment.

 

your general line of questioning indicate that you are looking for a way to beat them at their own game. that is very risky even for experienced individuals and is unlikely to be successful.

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1 hour ago, hangloose said:

@shifter

I’ve never been served before, and my current address listed on my CR’s is my parents house that I only use to get mail from. I’m currently in a homeless veteran transitional housing program for the foreseeable future. 
 

Do I need to be served in person from a process server?

You need to learn something about ALTERNATE SERVICE.

 

Further, as to the game playing...you could also google up Craig Cunningham for a prime example of when game playing goes wrong. 

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2 hours ago, centex said:

You need to learn something about ALTERNATE SERVICE.

 

Further, as to the game playing...you could also google up Craig Cunningham for a prime example of when game playing goes wrong. 

I looked him up, what about him? He seems to be successful at suing collection agencies so why’d you bring him up?  This isn’t my prerogative. Just trying to get helpful information, I’ll continue trying to find that. 

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11 hours ago, legaleagle2012 said:

They can collect; reporting does not have any effect. They said they are "considering" legal action; there goes your FDCPA suit. Send them a cease and desist and see if they violate it. One good FDCPA violation will just about wipe out the debt. Right now, you don't have one; nor do you have the arbitration card. You'll have to beat them the old fashioned way.

They probably paid forty or fifty bucks for the account; anything above that is a profit. If the account "had errors," that may be something you could use as a defense and a POSSIBLE violation, mischaracterizing the amount of the debt. You need solid evidence that has an effect on the balance, then prove they knew about it or should have known about it but went ahead and tried to collect the higher amount.

The charge-off date is just ONE of the errors... I’m trying to find the deleted item information. 

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@centex the charge-off date of 6-6-2019 is just ONE of the errors.. I’m not trying to play any game, I’m just trying to rebuild my life.

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15 hours ago, legaleagle2012 said:

They can collect; reporting does not have any effect. They said they are "considering" legal action; there goes your FDCPA suit. Send them a cease and desist and see if they violate it. One good FDCPA violation will just about wipe out the debt. Right now, you don't have one; nor do you have the arbitration card. You'll have to beat them the old fashioned way.

They probably paid forty or fifty bucks for the account; anything above that is a profit. If the account "had errors," that may be something you could use as a defense and a POSSIBLE violation, mischaracterizing the amount of the debt. You need solid evidence that has an effect on the balance, then prove they knew about it or should have known about it but went ahead and tried to collect the higher amount.

Why don't I have the arbitration card? I've tried reading your other posts about arbitration but I'm not able to gather a definitive answer

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11 hours ago, hangloose said:

I looked him up, what about him? He seems to be successful at suing collection agencies so why’d you bring him up?  This isn’t my prerogative. Just trying to get helpful information, I’ll continue trying to find that. 

He got his ass handed to him when firms started fighting back...or did your google-fu miss the multiple financial sanctions he was hit with? 

 

He was a fraud engaging in patterns of fraud to be a professional deadbeat.  He tried to game the system and lost. 

 

Many a good time were had with counsel in the Dallas area discussing that particular asshat..

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I only read the first few results and the most recent was from 2019, hadn't read anything like that. You seem irritated at me, and I've noticed that same "tone" on many other of your posts to other people as well, regardless, I am appreciative of your time!

 

BUT!!!! BIG NEWS!!!

 

Because I was steadfast in my resolution to FIGHT Midland instead of laying down and accepting it, I was successfully able to get MCM to not only CEASE collection efforts but to CANCEL the account! It was a 10 minute phone call.

 

I will be getting mailed a confirmation letter stating that my collection account is cancelled, that they will not be pursuing the debt. The CO is deleted already, and MCM never put anything onto my credit report. 100% GONE AND DONE. Didn't pay a red cent. Midland states on their website that they DO NOT sell their debt off, so this debt is bye-bye forever. I'm happy to answer any questions sans snarkiness.

 

 

 

Edited by hangloose

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36 minutes ago, legaleagle2012 said:

Just so you know, arbitration is not an option with Cap One because they removed it from their agreements in 2010.

 

Thanks LE, I have read that in depth and will keep that in mind for the future as well! I actually "won" this one though in a different way! CMC is cancelling the collection account

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