Midland Handling Debt Accounts Left Midway!
Midland Handling Debt Accounts Left Midway!
How does the company operate?
Midland Credit Management approaches credit card companies, banks as well as non banking financial institutions to buy their "charged off" or the bad debt accounts. These defaulting debt accounts are usually bought for a very small amount. By doing so, the credit card companies as well as the banks are given guarantee that they would be getting the debt money back. These companies who had almost lost hope about these accounts readily agree to the proposal ofMidland Credit Management, Inc with the hope of getting back some money.
What are the different categories of debt accounts bought by the company:
The company has bought the following categories ofdebt accounts. They are:
Credit card receivables, which are charged off
Auto loan deficiencies
Consumer receivables
Consumer loans in general.
What are the collection strategies adopted by Midland Credit Management, Inc:?
The company employs various strategies to collect charged offdebt accounts. Some of them are as follows:
The company has several collection attorneys working nationwide to handle legal cases whenever applicable.
The in-house marketing group of the company conducts direct mail campaigns.
The company employs many third party collection agents.
Accounts are also sold whenever the need arises.
Statistics showing debt collection activities of the company:
The company has invested approximately USD$387.3 million for buying as many as 8.9 million default consumer debt accounts. The face value registered was USD$16.2 billion.
Reports indicate that during the first quarter of the year 2007, Encore Group (including Midland Credit Management) made gross collections of USD$90.5 million. The company recorded as profit of USD$5.7 million.
Violation of the Fair Debt Collection Practices Act:
Recently, there have been few scams involving this company. Several reports suggest that this company has been harassing consumers for shelling out money even though they did not have any due amount. This essentially indicates that the company has violated the FDCP Act.
What should a consumer do if harassed by such collection agencies?
In case a consumer is harassed by such collection agencies, it is best to opt for a debt validation. If it is proved that the claim, which they are making is authentic then a repayment plan has to be worked out or the consumer may take legal action, if deemed necessary. As a rule, unless a collection agency or a lender is able to prove that an individual has to pay an unpaid amount, the borrower is not required to pay any money to the collection agency or the lender.
About Midland Credit Management:
Encore Capital Group has Midland Credit Management Inc, as one of its subsidiaries. Midland Credit Management is basically a financial services company. It deals with information management as well as debt collection. It is also engaged in improving strategies for debt collection.
The company's motto is "Buy right and collect right". It claims that it employs some of the most competent people in the industry and adopts proper methods to collect debt.
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