You all are going to love this one. In October notice a pull by Midland Credit, coded as a collection account. Call TU â?? sure enough, Midland pulled my file, according to TU Midland is a CA and they certified the pull as trying to collect on an account from West Capital Finance. Have no idea who West is, neither does TU. Write a nice-nicegram to Midland, asking why the pull, no response. Follow-up with a nastygram, no reponse. Finally ITS and copy of compliant, NOW I HAVE THERE FULL ATTENTION! I get the following letter: ************************************************************* From Midland Credit Management, Inc. December 11, 2003 BY FIRST CLASS MAIL (emphasis thereâ??s) Mr. Enigma My address City, St Zip Dear Mr. enigma, Thank you for request for information concerning the permissible purpose of Midland Credit Management, Inc. (Midland Credit) to access certain information from your credit file. Some background regarding the nature of business conducted by Midland Credit might be helpful. Midland Credit specializes in the purchase and collection of non-performing receivable portfolios [theyâ??re a collection agency] and uses proprietary data as well as authorized consumer-credit information provided by Trans Union in the determination of the value of potential portfolio investments. Consumer-credit information is provided under Permissible Purposes of Consumer Reports, Section 604(a)(3)(E) of the Fair Credit Reporting Act (FCRA), â??potential investmentâ??. Since the consumer does not initiate these transactions, Trans Union makes the information available to consumers in the â??Inquiries Not Displayed To Anyoneâ? section of consumer credit files. Obviously, Midland Credit does not invest in each portfolio it evaluates. Such was the situation in your case [they make it sound like they are doing me a favor]. On October 20, 2003 Midland Credit reviewed a large portfolio of accounts containing your name and used data made available by Trans Union to make the determination of potential investment. After evaluation, the Midland Credit decision was to not purchase the file [never sent me an adverse letter]; however, Trans Union did post the Midland Credit information to your credit file. Again, this information is available in the â??Inquiries Not Displayed To Anyoneâ? and is not available to others who may access your credit file. It is Midland Creditâ??s policy and our practice to conduct its operations in full compliance with the FCRA and other applicable federal state statutes. We have done so in this instance. Please contact me at 800-825-8131 extension 5338 should you have further questions. Very truly yours, Midland Credit Management, Inc. /s/ Lyle Mathews Director, Compliance and Quality Control ******************************************************* When I first read the letter, I thought this really sucks. They found a loop hole to pull anytime they wanted. Section 604(a)(3)(e) states: § 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b] (a) In general. Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other: (3) To a person which it has reason to believe (E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or I am not quite sure how to interpret this section. Is it saying that Midland is investing in me? If so, this is there loophole, correct??? But subsection (a) say it is subject to subsection (c), which states: (c) Furnishing reports in connection with credit or insurance transactions that are not initiated by the consumer. (1) In general. A consumer reporting agency may furnish a consumer report relating to any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) in connection with any credit or insurance transaction that is not initiated by the consumer only if (A) the consumer authorizes the agency to provide such report to such person; or (B) (i) the transaction consists of a firm offer of credit or insurance; (ii) the consumer reporting agency has complied with subsection (e); and (iii) there is not in effect an election by the consumer, made in accordance with subsection (e), to have the consumer's name and address excluded from lists of names provided by the agency pursuant to this paragraph. (2) Limits on information received under paragraph (1)(B). A person may receive pursuant to paragraph (1)(B) only (A) the name and address of a consumer; (B) an identifier that is not unique to the consumer and that is used by the person solely for the purpose of verifying the identity of the consumer; and (C) other information pertaining to a consumer that does not identify the relationship or experience of the consumer with respect to a particular creditor or other entity. Now this was not a firm offer of credit or insurance. In this case 603(i) defines a firm offer as: (l) Firm offer of credit or insurance. The term "firm offer of credit or insurance" means any offer of credit or insurance to a consumer that will be honored if the consumer is determined, based on information in a consumer report on the consumer, to meet the specific criteria used to select the consumer for the offer, except that the offer may be further conditioned on one or more of the following: (1) The consumer being determined, based on information in the consumer's application for the credit or insurance, to meet specific criteria bearing on credit worthiness or insurability, as applicable, that are established (A) before selection of the consumer for the offer; and (B) for the purpose of determining whether to extend credit or insurance pursuant to the offer. Look at (B), I was never offered credit or insurance by Midland.. Now go to 603(m)(2), m) Credit or insurance transaction that is not initiated by the consumer. The term"credit or insurance transaction that is not initiated by the consumer" does not include the use of a consumer report by a person with which the consumer has an account or insurance policy, for purposes of (1) reviewing the account or insurance policy; or (2) collecting the account They cannot pull my report for the purpose of collecting an account! Am I off base here, or is Midland stretching things really far here.??? What would be a good response to the letter?? Just go ahead and file?? Iâ??ve already sent an email to the FTC for there thoughts.
The FTC probably won't give you a personal response, they'll probably file it away in case they get a lot of complaints against MCM, if they haven't already... When I asked a question about a CA, I received a stock publication on the FDCPA & FCRA, and was told to contact the state AGs office with any questions; or complaints. Companies do it all the time when they are portfolio shopping... But just because they do it all the time, doesn't mean that they are right. You don't want to tip your hand. I think that they would stand a good chance at trying to pass one over on a judge (the same way you responded; "SHOOT they found a loophole".) But you would be able to point out that there is no permissable purpose because you were not the investor; you were technically the proposed asset; they didn't purchase the portfolio, they weren't collecting on the alleged account; they didn't make any firm offers; and you did not initiate the transaction.
No they aren't investing in you! They are investing in a credit portfolio! They don't get to pull all the individual reports involved in that credit portfolio. If they are investing in you bud, show me the money! Where is the existing credit obligation? Notice they left that information out. However, they are about to invest 1k in you Look at (B), I was never offered credit or insurance by Midland.. Now go to 603(m)(2), m) Credit or insurance transaction that is not initiated by the consumer. The term"credit or insurance transaction that is not initiated by the consumer" does not include the use of a consumer report by a person with which the consumer has an account or insurance policy, for purposes of Midland thinks the FCRA is a rubber band. They don't even like to admit they are a CA. In fact there is an FTC opinion letter addressed to THEM that says they are LOL. [/QUOTE]What would be a good response to the letter?? Just go ahead and file??[/QUOTE] I would be getting my ducks in a row first. Be sure you don't have an account with the company was it West Financial? Small claims judges might buy into their story.
