Tackling the Negotiation Process at Midland Collection Agency

Midland Collection Agency (“MCA”) is one of the United States’ largest collection agencies. Also known as Midland Credit Management, Midland Collection Agency has its headquarters in San Diego, California, and offices in Phoenix, Arizona, and St. Cloud, Minnesota.

As MCA holds such a large percentage of the debt collection industry, it is common practice for MCA to buy delinquent debt for a fraction of the original debt amount. Delinquent debt is offered for sale when creditors are unable to collect the debt from their debtors. After MCA has obtained the delinquent debt, it will proceed to try to collect from the debtor using all manner of collection techniques, such as contacting you by mail and telephone or even, in some cases, by initiating legal action.

If you haven’t read the fine print, when you are approved for a line of credit, you agree to a myriad of terms and conditions. Within these numerous terms and conditions will no doubt be a condition that you agree to pay your minimum monthly bill by the due date each month.

If you do not live up to this repayment condition, you will be assailed by phone calls and letters demanding payment on behalf of the creditor. If you do not comply with these demands, the creditor may become tired of trying to collect the debt and decide to write it off as uncollectible and close your account. After doing this, the creditor may sell to a collection agency the outstanding debt. Be forewarned that this will affect your credit history immeasurably. Often, a colection agency, such as MCA, will purchase the delinquent debt for cents on the dollar.

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.

When negotiating a settlement, you should make sure that you can hold up your end of the bargain. You should keep in mind that MCA purchased the delinquent debt for pennies on the dollar and, as such, you shoudl begin your negotiation low, probably 40% of the original amount. When negotiating, you can take one of two approaches – you can offer a lump sum payment or you can offer a payment plan. Always be sure to keep copies of all correspondence to and from MCA while negotiating in the event you should need it in the future.

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.

Learn How to Stop Midland Credit Management in its Tracks. Free advice to Escape Debt in Less than Seven Days at www.MidlandCreditDebt.com.