Consumer complaint received 2018-08-15
Company: Midwest Recovery Systems
State: CA
Product: Debt collection
Sub-product: Other debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
I am writing about a incorrect COLLECTION item which was falsely reported to my credit file from a DEBT COLLECTOR in XX/XX/XXXX ( more than a year ago ) and has damaged my credit and reduced by credit scores. I was not aware that this item had been reported to my credit report until today. XX/XX/XXXX. No attempt to collect the debt was made. No calls. No letters. Midwest Recovery Systems claims that they sent an email to an old address of mine to collect the debt. Since when are debt collectors, collecting debts via email. 

I spoke to a supervisor at Midwest Recovery Systems named XXXX XXXX at XXXX xXXXX. During the conversation, it became clear that they had no intention of resolving the issue in a fair manner. They had no desire to verify whether this was a valid debt reported by the ORIGINAL CREDITOR ( XXXX XXXX   XXXX XXXX ). All they cared about was me paying off the debt without confirming and letting me at least confirm if it was a debt that I owed.

I am being held hostage by Midwest Recovery Systems because they state that they will delete the negative collections entry from my credit report, if I make the payment of {$93.00}. I asked the debt collector to provide this to me in writing but they claim that they can not do that. They claim that I have to trust them and that they have a A+ rating with the XXXX. This fraudulent debt collection practice needs to stop and Midwest Recovery Systems should be taken to task for holding people hostage in this manner. It is a well known fact that Collection items once paid are just marked as " paid '' in the credit report but remain on the credit report for 7 years. 

The original debtor XXXX XXXX XXXXXXXX XXXX, a theme park, is also in serious violation of consumer rights. I have been a member at XXXXXXXX XXXX   XXXX XXXX since XXXX. I spoke with their membership department to cancel my membership on XX/XX/XXXX. At the time, they convinced to stay on as a member by offering me a rate of {$15.00} per month ( a big discount from the original amount of $ 45+ per month ) and convinced me to stay on as a member stating that I could always cancel anytime. On XX/XX/XXXX, I realized that I was barely using the membership and sent them an email asking that my membership be canceled. They responded stating that I owed them a termination fee {$45.00} because I had signed a 12-month membership. This was completely untrue. I asked them to send me proof of me signing such a membership. To which they sent me an EMPTY membership agreement, and said that I had digitally signed it. I never digitally signed any such membership agreement when they offered me this attractive rate of {$15.00} per month and stated that I could cancel anytime. I would challenge XXXX XXXX XXXX XXXX to provide the Membership Agreement which they claim I signed digitally or otherwise. 

In closing, I never owed the amount in dispute. And I was never given a chance to dispute the collection attempt. I did not even know that the collection item had been on my credit report and had damaged my credit for over 18 months. 

I request you to help me resolve this issue. This invalid and incorrect COLLECTION REPORT on my credit report should be removed. Please also have XXXX XXXX XXXXXXXX XXXX provide you with a signed membership agreement which claims that I owed them 12 monthly payments of which 3 were not paid. If they are unable to provide such an agreement then they should remove this debt from my account. 

I will leave any punitive decisions for you to make. 

Regards, XXXX XXXX XXXX XXXX membership number : XXXX Midwest Recovery Systems credit file number : XXXX ( that is all I can see on my credit report )

Company response to consumer: Closed with explanation