What Is Midland Credit Management and How Do I Remove It From My Credit Report?

FT Contributor  | 

Midland Credit Management is a San Diego, California-based collection agency. Also referred to as MCM, it’s the largest buyer of bank, credit union, and telecom debt in the country. You may also see MCM or Midland Credit Management on your credit report as:

  • MCM Credit;
  • MCM Midland Credit Management;
  • Midland Collections;
  • Midland Credit;
  • Midland Credit Mgmt inc;
  • Midland Fund;
  • Midland Management.

The collection agency buys debt that lenders charge off when they believe they won’t be able to collect on the money due. Midland Collections is one of the most aggressive debt collectors — since MCM invests in buying your debt, their goal is to make their money back by remaining persistent and collecting on the balance due.

If you’ve started receiving calls and notices from Midland Credit Management, it’s important that you understand your rights as a consumer and take the appropriate steps to resolve the matter and repair your credit.

Why Is This Collections Agency on My Account?

If you’re seeing any of Midland Credit Management’s names on your credit report, it’s likely you became delinquent on a loan or revolving credit line, such as a credit card, phone plan, or personal bank loan. At some point, your lender or credit card provider gave up on collecting from you, closed your account, and charged off the amount. MCM most likely stepped in to purchase the debt for less than it’s worth and now must collect from you to make its money back.

How Does Midland Credit Management Affect My Credit Score?

Unfortunately, your credit score was affected long before Midland Credit obtained the debt. Not paying the original lender for several months before they considered the money they lended to you a bad debt and gave up on trying to collect the amount you owe damaged your credit score.

The original lender most likely reported your late payments, delinquent account status, closed account, and charge off to the credit bureaus — and it will remain on your credit report for seven years, regardless of whether you settle with MCM.

How to Remove Midland Credit Management from Your Credit Report

Although removing the collection agency from your credit report may not necessarily improve your credit score as much as you’d hope, it would at least stop the constant debt collection phone calls and letters. Here’s how to remove Midland Collections from your credit report:

  • Ask for the debt to be validated: You have a right to request in writing within 30 days of the debt collection agency’s first contact with you that the debt be validated, meaning MCM must prove it’s yours. Read the validation letter they send you carefully — if any information is incorrect, such as payments missing or not listed, a misspelled name, or the wrong dates, you have a right to ask them to remove it from your credit report because it’s incorrect.
  • Negotiate a settlement for removal: MCM wants to make their money back on the purchase of the debt. You can negotiate to pay a certain amount of the debt in exchange for them to delete their entry from your credit report. It’s crucial you get an agreement in advance in writing from the agency before you pay them or they may go back on their word.
  • Hire a credit repair agency: It may come with a fee, but a credit repair professional with more experience than you at settling debt could represent you against MCM.

Is Midland Credit Management Legit or Is it a Scam?

If the name on your credit report matches one of the many that Midland Credit Management goes by, the attempt at debt collection is legitimate. Regardless of how legitimate it may be, MCM may make the situation or debt appear bigger than it actually is. You should request they verify the debt in writing and prove it’s yours — there may be a chance the debt is incorrect and therefore, must be deleted from your credit file.

Know Your Rights

Dealing with debt collectors is never easy. Knowing your rights is crucial. Some rights you should remember include:

  • Phone conversations: As soon as they call, notify them that you wish to communicate in writing only as per the Fair Debt Collection Practices Act. They will have to comply by sending you written communications by mail, essentially eliminating any abusive or intimidating phone calls. If they don’t comply with your writing-only request, you could report them to the government’s Consumer Finance Protection Bureau (CFPB).
  • They can’t collect more than you owe: Don’t let them try to charge you collection or payment fees.
  • The debt must be validated upon request: Some debt collectors may give you the runaround, but they’re required by law to provide you with proof of your debt in writing if you request it.
  • They can’t inform others about your debt: If a debt collector attempts to threaten you with telling your boss, neighbors, or family about your debt, you can report them to the CFPB for unfair debt collection practices.

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