Anyone Know Merchants Credit Guide Co

[ablessin]

The single biggest concern to consider when working with MCG (or any other collection) is how it will affect your credit. If the account shows up on your credit report, it may become more difficult to deal with later. The Fair Credit Reporting Act requires the collector to prove that the debt is valid. By sending MCG a demand letter, you are requiring them to prove the debt. The will likely be unable to prove the debt and the problem will be solved. If the debt is truly 10 years old (and past the SOL) it would not matter if they could. Accounts can only be listed on the credit reports for 7 years and any legal action can be dismissed. MCG (and others) by really old debts in a sort of collections after market. They may buy tens of thousands of old collections at a time for literally pennies on the dollar. They will then add interest to the debts and attempt to collect, often by sending letters or calling if they have the number. Some people just get a letter, assume the debt is theirs, and reply to one of their offers to settle the debt. The reality is that MCG can often not prove the debt. While they may have some legal justification to attempt to collect, they often have no access to documentation to prove they debt, and therefore cannot continue collection activities when confronted.

I too have not heard of resetting the SOL by sending a letter, though I am not an expert. I have spent lot of time online and working with a law firm to take care of my own stuff. However, it would be wise to check out the laws in TX just to make sure. Also, when you send them the letter make it clear that contact can only be made by mail. This will ensure that they do not call, as there may be later attempts to get your number.

I have a question... per the new law, I have obtained my credit report from TransUnion and Experian.

There is an entry on each report from Zenith Acquisition Corp - for $740 -stating the "original creditor" is Sheridan Elmwood Cap Co.
I have NO idea who that is - - On 9/12/05 - I sent a validation request to them using a template I found on the internet.
I have a couple of questions - If I don't get a reply from them in 30 days or so proving this debt is mine, HOW do I get it removed from my credit report?
On my TransUnion report, it says placed for collection 5/2002, and that it is "open" and "individual"
It looks like this is an Attorney office according to the loan type.

I am trying to clean up my report so that I can buy a house next year, but I certainly am NOT willing to pay a debt that is not mine!!!

There is also an entry from Metris Companies, updated 6/2001 for $679 - charged off as bed debt - individual and revolving account it says.
I have not sent them a validation request yet.

Thanks

 

[Ladynred]

The Fair Credit Reporting Act requires the collector to prove that the debt is valid.

Actually, the FCRA says nothing of the sort. The right to demand validation (proof of the debt) is in the FDCPA, NOT the FCRA which only has to do with the REPORTING of information to your credit reports.

- If I don't get a reply from them in 30 days or so proving this debt is mine, HOW do I get it removed from my credit report?

Unless you're in a state, like TX, that requires them to reply within 30 days, they don't HAVE any time limit. In fact, they are not required to reply AT ALL. If they haven't validated then go ahead and dispute the debt with the CRA's. If they verify with the CRA's before they validate to you, they're in violation. If they can't or won't prove it to you, how are they claiming is valid to the CRA's ???

On my TransUnion report, it says placed for collection 5/2002, and that it is "open" and "individual"

The COLLECTION is open - not the account.

It looks like this is an Attorney office according to the loan type

Probably still just a collection agency.

 

[Psyched]

I have a question... per the new law, I have obtained my credit report from TransUnion and Experian.

There is an entry on each report from Zenith Acquisition Corp - for $740 -stating the "original creditor" is Sheridan Elmwood Cap Co.
I have NO idea who that is - - On 9/12/05 - I sent a validation request to them using a template I found on the internet.
I have a couple of questions - If I don't get a reply from them in 30 days or so proving this debt is mine, HOW do I get it removed from my credit report?
On my TransUnion report, it says placed for collection 5/2002, and that it is "open" and "individual"
It looks like this is an Attorney office according to the loan type.

I am trying to clean up my report so that I can buy a house next year, but I certainly am NOT willing to pay a debt that is not mine!!!

There is also an entry from Metris Companies, updated 6/2001 for $679 - charged off as bed debt - individual and revolving account it says.
I have not sent them a validation request yet.

Thanks

I am in CA and I agree with the other follow-ups on this, but there is a few other things to consider. Yes, it is true that the creditors can take all the time they want to validate your account. If the account is valid, and it is a repeatable collection agency, you will get a reply in a few weeks. If you do not get a reply, well then it is likely they don’t have proof of the account. You can also dispute the validity of the account with TransUnion and Experian. By the way, I would also request an Equifax report and check it too. When you dispute with the CRA's directly, they have to respond in a "reasonable amount of time," which is considered to be about 60 days. They will send a notice to the creditor, and the creditor must reply back to them within 30 days. With the turn around back to you, it will generally take 45-60 days. If the CRA is unable to validate the account, it will be removed.

The thing to keep in mind about the account is this, if you pay the collection account, it will stay on your report for seven years from the date of payment. Review your TransUnion report, as it will often state when the estimated date the item will be removed. If the account is valid, you can negotiate with the collector to have it removed. Ask them upfront to send you a letter stating they will completely remove the item upon payment, Make sure and get this first before payment. After the item is paid, you have no power and the item will be there for seven more years.

Clearing credit can take some time, and often requires a lot of follow-up. I personally use a law firm to do it, and it still has taken some follow-up on my part. However, I have been very happy with the results. You can do it yourself too, but you have to be persistent with sometimes several letters to the CRA and collection firm.

 

[Ladynred]

If you do not get a reply, well then it is likely they don’t have proof of the account.

Quite true, and most of the time on really old accounts they've got SQUAT.

You can also dispute the validity of the account with TransUnion and Experian

AND Equifax.. lets not forget there are THREE CRA's, you can dispute with all of them.

When you dispute with the CRA's directly, they have to respond in a "reasonable amount of time," which is considered to be about 60 days.

Wrong. The FCRA specifically states they have 30 days to investigate and respond. In some instances, they can extend an additional 15 days.

If the CRA is unable to validate the account, it will be removed.

CRA's don't VALIDATE - they only VERIFY. If they can't verify with the furnisher of the information, they delete.

The thing to keep in mind about the account is this, if you pay the collection account, it will stay on your report for seven years from the date of payment.

And if it does you'd better be ready to SUE THEM ! The 7-1/2 year reporting period is NOT tied to the DOLA. Per the FCRA it is tied directly to the 'date of first delinquency' and that is the ONE date that the furnishers are REQUIRED by the FCRA to report. Paying a collection 6 years later will NOT keep it on your reports an additional 7 years, that would be illegal as the DOFD can NOT be changed. If they do, its a violation of the law. Paying an old collection will, however, screw your score because it updates the DOLA making it look recent and FICO will penalize you for it.

After the item is paid, you have no power and the item will be there for seven more years.

NO, it will NOT.

 

[ablessin]

Thanks for all of the info. I have not requsted my third report yet on purpose. I wanted to wait a few weeks and then get the 3rd one.

Experian and Transunion pretty much say the same things.

I wrote a letter to that Zenith place, and I got my CRR post card back the other day....so I know that they have it.......time will tell what - if anything - they do with my request.

I'm just wanting to get things cleared up and paid for before I apply for a mortgage next spring.

This stuff can be confusing - the DOLA's, the CRA's - this that and the other thing.......

Anyway, thanks for the input.... My next step will be to fight the listings on my report directly with the TransUnion, etc......... to get them removed.
I really don't think that Zenith account is mine.....I'd remember an original creditor named Sheridan Elmwood Cap!!!!!!

Thanks

 

[Shayb42]

One more

I received a letter from Merchants' on Saturday. I tried calling the number and it kept disconnecting. I decided to look them up online and hello, here this site is. I spoke to Mr Steve Kinnety and he informed me that the debt was written off 11/4/94, but Verizon/GTE had SOLD them my debt information. Including my SS#, is that legal??? They have my SS# and address but the name is an ex's...Not mine. He basically told me that if I do nothing I will continue to get letters but that the info would NOT go back on my credit report. Honestly I'm not remembering it ever being on my credit. Is there any recourse out there? I dont like the idea of my SS# being accessible 11 years after soemthing is done and over.

Thanks for any info!!
Shay

 

[Ladynred]

but Verizon/GTE had SOLD them my debt information. Including my SS#, is that legal???

Yes, unfortunately, it IS legal.

He basically told me that if I do nothing I will continue to get letters but that the info would NOT go back on my credit report.

That is true, they cannot put it back on your reports. If they did you could sue them.

You can stop the letters too. Send them a cease and desist letter telling them never to contact you about the debt again as it is time-barred. Send the letter certified RRR and keep copies of everything.

 

[Psyched]

I received a letter from Merchants' on Saturday. I tried calling the number and it kept disconnecting. I decided to look them up online and hello, here this site is.... He basically told me that if I do nothing I will continue to get letters but that the info would NOT go back on my credit report.

This sounds all too familiar. In my experience, Merchants will do little (if anything) by phone, other than offer you some type of payment arrangement. You will need to send a cease and desist letter and demand that they verify the debt. I sent them one about two months ago and I have heard nothing (no surprise). I have forward the info to my attorney, and he is sending a follow-up letter. Read the other posts on this thread (and others) as there is a lot of good advice that will save you a lot of time and money.

 

[ablessin]

And if it does you'd better be ready to SUE THEM ! The 7-1/2 year reporting period is NOT tied to the DOLA. Per the FCRA it is tied directly to the 'date of first delinquency' and that is the ONE date that the furnishers are REQUIRED by the FCRA to report. Paying a collection 6 years later will NOT keep it on your reports an additional 7 years, that would be illegal as the DOFD can NOT be changed. If they do, its a violation of the law. Paying an old collection will, however, screw your score because it updates the DOLA making it look recent and FICO will penalize you for it.


NO, it will NOT.[/QUOTE]


The problem is, by not paying it I am hurting myself as well..... I was told when I applied for a mortgage this year, I either needed to have a 20% down payment OR make my old debt under $5000.
It sucks that I am busting my arse to pay this old stuff off just to have my score LOWERED - -next year they will want a freaking 30% down payment because my score will be so damn low.

Now, my old house, from my ex husband and I were married.... he stayed in it when we separated, and it was forelclosed on.... TransUnion recently deleted the item right off my file. Experian updated it to paid ( I sent them a receipt showing the balance was all paid in full by the VA).
I still have not heard squat from Equifax at all.... TransUnion is the quickest to reply in the recent inquires I have sent to them...... I have filed numerous receipts for things I have found "open" that should have been closed (at the very least) a year ago.
Experian replies, but TransUnion seems fastest..... I also noticed that of all 3 of the files, my Equifax file is the lowest score too.

 

[inspiringmind]

Maybe Me too!

I do have some debts...but in May or June of 2005 I got all 3 of my credit reports, as did my husband. Now I am getting those vauge calls...this is not a sales call, please call back about important business. Some woman with very broken english.

 

[formongo]

Pennsylvania/Massachusetts

I have two questions related to this thread:


1. I have an old credit card debt from a credit card I first opened in PA, then continued to use when I moved to MA. Which state's SOL applies? I would assume it's the SOL of the state I was living in when the account was "charged off." True?

2. I was contacted by Merchants' Credit about this debt, but given the ethics of the company I don't want to pay it back through them. How would I go about paying it back (assuming the SOL hasn't run out) without going through them?

 

[Ladynred]

1) Not necessarily. The SOL in PA is only 4 years. If you moved after that expired it would still be expired. SOL in MA is 6 years, so that could be expired too.

IF they were to sue, and that's apparently NOT their method, the SOL for the state you live in now would apply most of the time.

2) IF the debt is very old, paying it isn't going to do you any good and the original creditor will have washed their hands of it a long time ago.

 

[Psyched]

I agree with Ladynred, though I have read about sometimes creditors will try to use the SOL that is in their favor. MCG most appears to be a company that profits from collecting very old debts and settling... not suing. It appears to be more of a numbers game with them. If they pressure enough people, some will pay and not question the validity of the debt. It is much cheaper to send a couple of letters than to take action in court. As for item 2, several years ago I made an attempt to do this with another creditor. When I contacted them, they had no record of the debt or any interest in the account as it had been sold to another company. Best advice is to read all the threads and follow the advice posted on sending a letter directly to MCG.

I am still working through my dispute with them, but I am expecting a positive result.

Pennsylvania/Massachusetts

I have two questions related to this thread:


1. I have an old credit card debt from a credit card I first opened in PA, then continued to use when I moved to MA. Which state's SOL applies? I would assume it's the SOL of the state I was living in when the account was "charged off." True?

2. I was contacted by Merchants' Credit about this debt, but given the ethics of the company I don't want to pay it back through them. How would I go about paying it back (assuming the SOL hasn't run out) without going through them?

 

[shrubby]

How should the cease and desist letter be sent?

I'm in the state of Washington and also received one of these letters for an account with Sprint from 1996. (don't think I've ever had an account with them)

I want to send a cease and desist letter but wasn't sure how this needed to be sent. (i.e. registered or certified mail, etc)

Also, where can I find the SOL for Washington state?

Thanks!
Shrubby

 

[Not an MCG fan]

Just got a letter

Got a letter from these creeps tonight. $66 and odd change to Sprint Communications Com. Called the number before I got on here (wish I'd changed that order.) Lady claimed this was regarding a Sprint bill, and she had my SS# and a address that I haven't lived at for over 10 years.

I have Sprint now. Have had Sprint the entire time, have never NOT paid them and I know I'm not delinquent on anything...my credit rating hovers around 800. However, about 4 weeks ago I did get my annual FREE credit reports from all 3 providers. After reading many of your prior posts, it seems this is the trigger that activates these people to attempt to bill for old, inaccurate, or false accounts or debts.

I had already prepared my letter to MCG. I will now amend it to include a CC to my attorney, the Illinois State's Attorney, the Better Business Bureaus of Chicago and New York, the Illinois Attorney General, and the American Collectors Association.

I will also be sending another letter to all the aforementioned people, and will include the 3 major credit bureaus, calling their attention to the fact that something is very rotten in MCG land, and that someone is tipping them off that there's a live fishie on the line. Whichever one of the CBs has the security breach needs to fix it or be prepared to be the brunt of a class action suit.

Believe me, I will spend FAR more than the stupid $66 (or the $33.46 they were so graciously willing to settle for) to go after these slimebuckets.

If anyone here has heard of a class action suit, please post the info for all to see.

Thank you.