Tackling the Negotiation Process at 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.

Because MCA maintains such a large share of the debt collection industry, it is able to purchase delinquent debt for ridiculously reduced rates. This comes about when creditors are unable to collect money owed to them by their debtors and, subsequently, decide to sell the delinquent debt. When MCA purchases this delinquent debt, it will then go to work to try to collect the outstanding debt. Letters, phone calls, or possibly even legal action may be attempted by MCA collectors.

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.

If you default with regard to this repayment condition, you will begin receiving letters and telephone calls demanding satisfaction, i.e. payment of the outstanding debt. If you are unable to make payments to bring the account back up-to-date, the creditor may tire of trying to collect the debt and decide, instead, to sell the delinquent debt to a collection agency. This will allow the creditor to obtain at least partial payment on the outstanding debt. This will cause your credit score to begin to spiral downward. To add insult to injury, MCA will most likely purchase your delinquent debt for pennies on the dollar.

The letters and phone calls will begin again, this time from MCA collection agents who will want to negotiate a settlement or arrange a payment plan with you. At this point, you may be taken aback by the amount you actually owe as interest, over-limit fees, and late fees have been added to your original debt amount.

It is best to meet this challenge head-on and attempt to negotiate some sort of agreement with the MCA collection agent. If you cannot come to an agreement of some sort, your credit rating will take another big hit, causing even greater financial hardship.

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.

Do not complete your negotiations without making sure that the delinquent debt will be erased from your credit record. If the MCA collection agent is unwilling to do this, then make sure that the delinquent debt will at least be changed to a debt which was “paid.” Debts which are reported as “unpaid” can remain on your credit history for up to seven years. Additionally, lenders are wary of people with unpaid debts on their credit reports. Home loans, vehicle loans, or credit cards can be denied because of these reported unpaid debts.

Midland Credit Management Ruined my Life. Here is what I Did to Get Revenge. www.MidlandCreditDebt.com

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