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.

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.

In the event you do not do so, you will be contacted by mail and phone by debt collectors on behalf of the lender. In time, if you cannot accommodate these debt collectors, the lender may decide to write the account off as a bad debt and suspend or close your account. If this is done, the lender may decide to sell the debt to a collection agency, like MCA, in order to recoup at least a portion of the debt owed to them. This will most assuredly affect your credit score. Chances are, MCA will purchase the debt for perhaps a few cents for each dollar you owe.

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.

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.

As part of your negotiations, make sure that the debt will be removed from your credit record. At the very least, be sure that the debt will be revised to a “paid” debt. Unpaid debts which show up on your credit report are severely frowned upon by lenders and can remain on your credit for seven years. If this happens, it can cripple any chance of obtaining a home loan, car loan, or credit card.

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

Tags: Credit Score