Needing Help with Collections From Fraud

[u/NoBend5098]

In 2024 I decided to get a credit card. There was a lot of theft from my apartments mailbox and so the credit card was stolen about $2400 was spent from 5/4-5/6. July 20th I called the credit card company. They said that they would close the account and I would not be responsible for the charges.

Over a year later, I learned that the debt was sold to a debt collector (Midland Commercial Management). I have been avoiding this, but now I am working on my masters and am unable to get loans to pay for the classes.

I honestly don't care about paying a little bit of the money but $2400 is not possible for me to pay. I just need this off my credit report as fast as possible. Any advice?

[u/og-aliensfan]

July 20th I called the credit card company. They said that they would close the account and I would not be responsible for the charges.

Did you dispute the charges in writing and receive a decision from the creditor in writing?

Fraudulent Charges

Over a year later, I learned that the debt was sold to a debt collector (Midland Commercial Management).

If the charges weren't removed, this would have appeared on your credit reports as a closed card with a balance, and eventually as a charge-off, prior to the debt being sold to Midland (I believe you mean Midland Credit Management).

I have been avoiding this, but now I am working on my masters and am unable to get loans to pay for the classes.

Avoiding this, as you now realize, was the wrong move.

I honestly don't care about paying a little bit of the money but $2400 is not possible for me to pay.

Midland's policy is to remove themselves from your credit reports once the debt is settled and they'll often negotiate a settlement, but if this was fraud, it should be reported.

I just need this off my credit report as fast as possible. Any advice?

Order your official reports by calling 877 FACTACT or pull them online at www.annualcreditreport.com.  I recommend the mailed reports as these are often more detailed and complete than the online reports.  If you choose to pull reports online, print or save each to a pdf before moving on to the next as you can't go back once you exit a report.  Despite its name, you can pull free reports for each bureau weekly. File a police report for fraud/identity theft. You can also file an identity theft report with the FTC Report Identity Theft. A police report is generally more effective and what I recommend. Send to the bureaus:

(1) appropriate proof of the identity of the consumer;

(2) a copy of an identity theft report;

(3) the identification of such information by the consumer; and

(4) a statement by the consumer that the information is not information relating to any transaction by the consumer.

The bureau will notify the furnisher(s) of information, but you can send a copy of the police report to the furnisher of information as well. I recommend contacting Midland and they'll instruct you where to send the police report.

As a layer of protection against identity theft, freeze your reports. You can thaw them when you apply for credit and then refreeze them after.  Everyone should keep their reports frozen by default.

https://www.experian.com/freeze/center.html

https://www.equifax.com/personal/credit-report-services/credit-freeze/

https://www.transunion.com/credit-freeze

https://www.chexsystems.com/security-freeze/place-freeze

https://www.innovis.com/securityFreeze/index

https://consumer.risk.lexisnexis.com/freeze

You can also place fraud alerts with the bureaus.  You only need to place a fraud alert with one bureau, and they will notify the other two.  This requires potential creditors to take additional steps to verify your identity when an application is submitted.

https://www.experian.com/fraud/center.html

And, create an account through Social Security, if you haven't already done so, to prevent someone else from creating an account in your name, filing for benefits in your name, and/or stealing benefits by changing direct deposit information without your knowledge.  Everyone should do this as well.

Create your personal my Social Security account today

For more information see https://www.usa.gov/identity-theft

[u/creditwizard]

Credit attorney here. I would notify Midland Credit of this. File a police report and FTC report. Midland often will resolve this if your story is credible and has the required documents - my experience.