Midland Credit Management Collection Account? Here's How to Dispute It

Background

Who Is Midland Credit Management?

Midland Credit Management, Inc. is a debt collection company in San Diego, California, owned by Encore Capital Group, one of the largest debt buyers in the U.S. The accounts it collects are usually owned by its affiliate Midland Funding, LLC, which buys charged-off credit card and other consumer accounts from banks and lenders, often long after the original default. Because Midland didn't make the original loan, it should be able to document who owned the account, the balance, and how it came to own it if you dispute.

Also known as: Midland Funding, LLC, MCM

What They Collect

What Midland Credit Management usually collects

• Credit card accounts
• Retail store cards
• Auto and other consumer loans

What To Ask

What to ask Midland Credit Management

Midland Credit Management bought this account, so it should be able to show you:

• the original creditor and your original account number
• when the account was charged off, and the balance then
• any interest or fees added since, and why they're allowed
• the paperwork showing it owns this specific account

A certified letter creates a record of exactly what you asked, and when.

Good To Know

If this is an old credit card or loan

In Texas, the time limit to sue over most debts is four years (Texas Civil Practice and Remedies Code § 16.004). A debt buyer can't sue over a debt that's past that limit, and making a payment doesn't restart the clock (Texas Finance Code § 392.307). That's separate from your credit report: most collections can be reported for up to seven years from when the account first went delinquent.

Your Rights

Your rights, in short

• Ask them to validate it. Under the federal Fair Debt Collection Practices Act, if you dispute a debt in writing within 30 days of the collector's first notice to you, it has to stop collecting until it mails you verification of the debt. You can still dispute in writing after that; it just doesn't require the pause.
• A disputed debt has to be reported as disputed. A collector can't report information it knows is false, and if it reports a debt you've disputed, it has to say it's disputed.
• Texas adds its own rules. The Texas Debt Collection Act (Texas Finance Code ch. 392) bans misrepresenting the amount or character of a debt, and third-party collectors have to be bonded with the Texas Secretary of State.
• Don't ignore a lawsuit. A collection account on your report is different from being sued. If you've been served, there's a court deadline; talk to a consumer protection attorney right away.

Whether an account gets corrected or removed depends on the account and how Midland Credit Management responds. No one can remove accurate, current, verifiable information.