Do you have a past-due account that was purchased by Midland Credit Management (“MCM”)? If so, you should definitely make yourself familiar with their updated credit reporting practices. As of October 11, 2016, it should be easier for consumers with debt that is owned by MCM to improve their credit.
Based in California, Midland Credit Management (also operating as “Midland Funding LLC”) purchases delinquent accounts in every state. In fact, many Michigan residents have accounts that were purchased by MCM. And given the fact that debt collection issues rank high on the Attorney General’s annual list of top consumer complaints, this information will probably be useful to a lot of folks here in the Mitten state.
What You Need to Know about Midland Credit Management’s New Policies
According to a letter sent out by MCM, the agency will stop credit reporting on accounts that meet certain criteria. This is good news for many consumers, because some collection agencies will continue to report delinquent accounts even after they’ve received full payment for the debt.
However, MCM has clearly stated that they will stop reporting trade lines to the credit bureaus as long as:
- The account has been “paid in full” or “paid in full for less than the full balance” (the latter is the memo added to an account on a credit report when the payoff amount is less than the original account balance).
- More than two years have passed since the account became delinquent. This is less than the 7 years from the date of first delinquency for which they have a right to report.
Please note that BOTH of these requirements must be met for MCM to cease reporting on an account.
In the same letter, MCM also announced that it would not start reporting new accounts if two conditions are met:
- The consumer must start making payments within three months of receiving their initial notice from MCM, and
- All expected payments must be paid in full and on time each calendar month until the account is considered either “paid in full” or “paid in full for less than the full balance.”
Again, in order for a consumer to take advantage of what MCM is offering, they have to adhere to BOTH parts of the agreement.
What this Means for Michiganders Who Want to Improve their Credit
On average, Michiganders have been working hard to improve their credit over the past few years. And the numbers don’t lie – overall, credit scores in the Great Lakes State have been gradually improving. Now, with these new policies from MCM in place, you might have an easy way to bump up your rating a little more, but you’ll need to be proactive.
If you’ve ever dealt with Midland Credit Management, you should check your credit reports. You are entitled to a free copy of your report from each of the primary reporting bureaus, and you can request copies from all three agencies at www.AnnualCreditReport.com.
Once you have your reports, you should check for accounts that you know have gone to MCM. If an MCM collection account is marked as “paid in full” or “paid in full for less than the full balance” and it’s been more than two years since the account became delinquent, this item should come off your report. However, you should know that you do not have a right under the Fair Credit Reporting Act to remove this collection account. MCM’s policy to remove accounts that meet its criteria, is by its grace. Still, you should send in a dispute letter to the credit reporting agency that is reporting such MCM collection items.
Even if you’ve never made a single payment to MCM on a debt that they own, check the date on the account. If it has been more than seven years since the original delinquency date, then it’s time for this item to be removed from your record, under the Fair Credit Reporting Act (“FCRA”). This is the kind of case for which you can file a lawsuit to have an item removed.
While you’re at it, you should check every item on all three of your credit reports, and if anything looks incorrect or outdated, make a note of it. The Fair Credit Reporting Act was enacted by Congress to ensure that the information contained in consumer credit reports is fair and accurate. Therefore, if there’s anything on any of your reports that shouldn’t be there, you have a legal right to get it removed. If there is anything on your credit report that you are uncertain of, call us at Credit Repair Lawyers of America. Lets work through it together.
How to Get Your Credit Repaired Legally and for FREE
Don’t let mistakes bring your credit score down. At Credit Repair Lawyers of America, we can fix errors on your credit report at no cost to you. Or, if any debt collection agency fails to stand by its own policy, we can make them honor their claims.
Let’s talk about what we can do for you by setting up a free consultation today. Just call Attorney Gary Nitzkin at (248) 353-2882 or emailing him at [email protected].