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Negotiating With Midland Collection Agency

One collection agency which is a force to be reckoned with is Midland Collection Agency, also known by Midland Credit Management. With offices in Phoenix, Arizona, and St. Cloud, Minnesota, and with their headquarters based in San Diego, California, Midland Collection Agency (”MCA”) is a major collection agency in the United States.

With its significant stature and presence in the debt collections arena, MCA is able to purchase, for severely discounted rates, delinquent debt from creditors who, unable to collect from their debtors, are willing to sell the debt. Once this debt is purchased, MCA then attempts to collect the debt from the debtor by initiating collection actions. Some collection actions include contacting the debtor by mail and/or phone or initiating legal action against the debtor.

As you probably know, when you apply for a line of credit, be it a home loan, car loan, or credit card, the lender requires that you agree to certain terms and conditions. One of these terms and conditions is invariably that you will pay at least your minimum monthly payment either on or before your due date.

In the event you do not do so, you will be contacted by mail and phone by debt collectors on behalf of the lender. In time, if you cannot accommodate these debt collectors, the lender may decide to write the account off as a bad debt and suspend or close your account. If this is done, the lender may decide to sell the debt to a collection agency, like MCA, in order to recoup at least a portion of the debt owed to them. This will most assuredly affect your credit score. Chances are, MCA will purchase the debt for perhaps a few cents for each dollar you owe.

You will begin to receive letters and phone calls again requesting payment. Most likely, the MCA collection agent will be looking to negotiate a settlement. Do not be surprised to find that your original debt amount has now multiplied as now you will see that late fees, over-limit charges, and interest have been applied.

It is wise to attempt to negotiate a settlement with MCA, if at all possible. If a settlement is not reached, you will see your credit score take a hit yet again.

However, this does not mean that you should agree to something that will be a financial impossibility. You should not agree to a financial obligation that you know down the road you will be unable to meet. Also, because MCA will purchase the debt for cents on the dollar, you should begin your negotiation by offering to pay 40% of the original debt amount. You could offer to pay a lump sum, which would show good faith on your part, or agree to make agreed upon monthly payments. Be sure to keep copies of all correspondence in the event you need it at a later time.

As part of your negotiations, make sure that the debt will be removed from your credit record. At the very least, be sure that the debt will be revised to a “paid” debt. Unpaid debts which show up on your credit report are severely frowned upon by lenders and can remain on your credit for seven years. If this happens, it can cripple any chance of obtaining a home loan, car loan, or credit card.

Midland Credit Management Ruined my Life. What I Did to Get Revenge. www.MidlandCreditDebt.com

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Written by Mark Newman on December 27th, 2009 with no comments.
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