My wife got a letter in the mail a couple of weeks ago from Midland Credit Management saying that she old about $1,000 from a previous credit card. The letter stated that they have been trying to reach her several times and if we don't pay now, they make seek legal action. This got my attention so I pulled her CR from TU and Equifax. Midland is listed on both of these along with two or three other negative marks. Eventually, I want to get all of them off her account, but for now, I'm just pursuing Midland. Should I send Midland a demand validation letter, then a week or so later, send all three of the CRA's dispute letters for this company? If Midland can verify the account or any of the CRA's verify the account, should I then offer a pay for delete settlement? Also, if neither the CRA's or Midland can verify this info will the tradeline half to come off and will it stay off or can it be put back on? Sorry for being so long. I'm just trying to start the long battle of clearing her credit. Thanks, --w
Do you think it is in fact her account? Do you think the amount due is correct? When was the last payment made?
Well, she doesn't think that it is hers. However, it does match up with a Citi account that was on her CR about a year ago when I last pulled it. However, that Citi card is not on either of the reports I have pulled in the past couple of weeks. The weird thing is that Midland was not on the CR I pulled a year ago. The amount due is about $600 above the credit limit that showed up on the CR last year. According to the CR that was pulled a year ago the last payment on the account was 04/02. Thanks, --w
According to: http://www.cardreport.com/laws/statute-of-limitations.html it is 3 years. According to the charge-off date on the CR of 4/02 this is almost four years old. What should I do from this point? Thanks, w
Make sure you are looking at the right statute, some states have different statutes for different types of debts. If it is in fact three years old, tell them to pound sand. If if they sue you, which they probably wouldn't do anyway due to the small ammount, if you raise the SOL issue they can't win. It gives you an affirmative defense in court. You have a couple of options here, one, you could send a full C&D telling them to not contact you again. The only way they can contact you after recieving the letter is to let you know they are going to sue you, but if the debt is out of SOL, they can't win. They can still lurk on your reports for the next several years. You could let them know you are one of the informed consumers that knows their rights, knows about SOL, and knows the paper they hold isn't worth shi$%. You could then try to get a PFD by paying them a fraction of whay owe. Say two hundred fifty, in order to get them to delete their TL. Just make sure you don't do anything to restart the SOL clock. And get anything in writing.
What types of things would restart the SOL? Should I send them a PFD letter now, or should I go through the process of having them verify the account, and if verified sending them a PFD letter? Also, if I send them a C&D letter, how long will it be before it comes off the CR...7 total years from the charge off date??? Thanks, w
The SOL clock can be restarted by a variety of actions, it depends on the state. Is the Citi card that was on your wife's report a year ago in default? Is that particular cc current and in good standing? If it is/was in default, when was the DOLA? [date of last activity] If this isn't your debt, and it's outside the SOL, you have an affirmative defense. Tell them to go pound sand. Was the letter you received just a few weeks ago the *first* contact you've had with them? If it is, answer it within the 30 day window that should be predominately displayed on the letter, tell them to C&D, and send CMRR. Tell them it is "inconvenient" for them to telephone you at work or at home and that all contact must be through USPS letters. Use the specific word "inconvenient", and be sure to retain their letter *and* the envelope too. You want evidence of when their first contact arrived.
If you think it isn't your account, and you suspect Midland has misidentified you, you can also call Citi, and they may be able to determine that you don't have any delinquent account with them. They may not have all the account information immediately on-line if it went delinquent a while ago, but they probably can ensure they don't open new accounts with someone they already charged off, regardless of what the credit reports say.
Yes, the CR that was pulled a year ago showed the Citi card was in default and was charged off in 4/02. However, the Citi card is not even on the current CR's that were pulled in the past week or so. Yes, the letter she received was the first time that we have heard from them. They have never called or sent us anything else. Even though they say they have been trying to reach her for some time now. So is a C&D letter the best thing to do in this case? Or should I start with a demand verification letter? If a C&D letter is best, what should the content of that letter state?
It's not strange that the Citi card is not currently listed on the recent report. If you can confirm that the SOL on cc debt in your state is three years, then send a C&D letter via CMRR regarding the account. Tell them their *first* contact, dated xx/xx/xx on their letter, was received on xx/xx/xx and the debt is denied. Keep records of everything. They *could* attempt to sue you, but if the SOL *is* three years, accept summons, go to court and raise the SOL defense. They can't collect if you raise the SOL defense in court but *you* must be the one to raise it.
Thanks for all of the help. I am a newbie to all of this. Since this is my first one that I'm really dealing with I think I want to stay away from a C&D letter right now, because I don't really want to be involved with a lawsuit this early in the process of clearing her credit. If it comes down to it, I don't mind paying for a deletion of this on her CR. Would you suggest that I send a DV letter to Midland and follow it up a week or so later with disputes of this account with all three of the CRAs? If things come back verified within 30 days, then request a PFD? Thanks, w Oh yeah, kind of off topic, but if a lawsuit ever did happen, would it be where I reside or where the CA resides?
"Well, she doesn't think that it is hers. However, it does match up with a Citi account that was on her CR about a year ago when I last pulled it. " If it is not hers, it is not hers. Don't just guess. CA's attempt to collect debts from the wrong party all the time. They will happily take your money. You don't get brownie points for paying someone else's debt. You get poorer, and you get bad credit.
What does the actual letter say? If this is the *first* letter, then you must respond and clearly state that this is the *first* contact from Midland and that you dispute the debt. You must have a record that you told them this is the first contact you have had with them, that you dispute and deny the debt. If this is out of the SOL, then you have every legal right to tell the CA to pound sand. You must respond, do it CMRR, dispute, and keep careful records of the letters and envelopes from Midland.
The letter does not say this is the "first" contact that they have had with me. It says thay have made several attempts to contact me regarding this account. However, this is the first that my wife or I have heard from them, by phone or letter. I think I will send them a DV. Should I also send a dispute to all 3 CRA's several days later or just deal with the CA only? Thanks, w
Sending a DV letter is not a bad idea, it usually never is. You have the advantage of having some leverage in this situation, and that is being informed. Keep in mind that they do not have to respond to your DV letter in 30 days, courts have said they have up to 90 days to get you validation. The 30 day limit is for a dispute with the CRAs If this was me I would send a letter laying out the situation. Tell them you know the debt is out of SOL and they can not legally win a jedgement if you raise this issue in court. Tell them you would like it off your reports and offer how much you are willing to pay. Watch your wording in the letter very closely. Tell them if they refuse the offer you will send them a full C&D letter and they will get nothing. I believe if they know you know about SOL and know it is past the WILL NOT sue under any circumstances, because they know they can't win. The SOL might give you the leverae you need to get a deletion. If they refuse to delete, which Midland might do, they do not like to delete, send them a C&D and be done with them. But, thats just me. I'm not big on suing either or going to court, but even if they were stupid enough to sue you I don't think a judge would appreciate them suing you over a debt that is past SOL, espically since you pointed out that fact to them. Good luck brian Good luck
Midland may be claiming that they had made several attempts to contact your wife, they can claim *anything*, but it may be prudent for you to state in *your* letter that their letter of xx/xx/xx is the *first* contact you have had from them. It's just a matter of documenting, in black & white, to lay a trail of evidence that may, or may not, need to go before a judge.
Ok, I now have a DV letter typed up that I'm going to send out. Once I send this letter, should I then send a dispute letter to all three CRA's? Thanks, w