Complaint Review: Midland Funding - Midland Credit Management - California

I had a small loan with a lending institution in 2002. I defaulted on the loan with the original creditor in 2003. After missing 3 or 4 payments, the lender informed the account would be transferred to its collections department. Then a series of collection agencies contacted me to pay the debt. Each time I was not financially able to pay them as I was in school and unemployed. When the last collection agency contacted me, I was gainfully employed and was eager to pay the debt. The representative and I came to an agree on a settlement amount to settle the debt in March of 2006. Immediately following the transfer of my account information, I received a fax indicating specifics in regards to the payment, account name, and other pertinent information.

Several days later, I recieved another letter in black and white with the account number, the date, and all pertinent information for me to keep on file again stating the debt was settled and the credit bureaus would be notified to update their records reflecting the said debt was settled.

Then all of a sudden in December of 2006, I get a letter from Midland Funding/Midland Credit Management with the same account information, dollar amount owed, indicating the original creditor's name, etc. Remember, this debt was paid in March 2006, more than ten months ago.

I was thinking this is an error, it'll be easy for them to correct their mistake. So I contacted them and spoke with a representative. I gave him specific detailed information about the debt and offered to fax a copy of the settlement letter. He declined and indicated that would not be necessary. Okay, I had not heard anymore from them.

October of 2007, my husband and I attempt to refinance. Then I discovered Midland continues to report that debt which was paid March 2006. So I contacted Midland again requesting their fax number again to fax a copy of the settlement letter which I recieved in March 2006 to prove this was not an outstanding debt.

I matter of factly repeated the fax number, requested his name, employee code, physical address of Midland, etc. After he repeated the name of the company he refused to divulge any other information. He informed me according to his records the debt was transferred to Midland a few months ago and remains outstanding. I explained to him in very detailed terms, I had paid the debt in March of 2006 and have the papers to prove it. Very simply, I told him I don't owe you or your company any money. Too bad so sad, you guys bought an account that had already been settled.

Then he instantly became rude and unprofessional, threatening to garnish my wages. He refused to confirm nor deny who would get the fax, identify anyone with a title who would be responsible for this type of situation, and whether or not other telephone calls would be necessary to resolve the issue. I requested he mail correspondence validating the debt. He stated this matter would not go away until it was paid. I told him it had been paid. In a very nasty tone, he stated I would be getting the letter validating the debt in a few days. It is November 29, 2007 and I have yet to recieve any letter validating any debt owed.

This is not fair and I don't owe you. Another company was paid that same debt before it was transferred to Midland. I am going to report Midland to the Federal Trade Commission because what your representatives are doing is agains the law. There are laws against this behavior and I want justice. For all other consumers who have had this experience, Stand up, don't let these people bully you. When does this end for consumers? These companies should be punished and the law should be enforced!! Do your part to start making it enforceable by reporting Midland and its agents.

I_dont_ o_ u

Suffolk, Virginia

U.S.A.