Consumer complaint received 2020-07-16
Company: Midwest Recovery Systems
State: VA
Product: Debt collection
Sub-product: Payday loan debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
Here we go again. Back in XXXX, this same company, Midwest Recovery Systems, pulled this same stunt about a debt they alleged that I owe on a payday loan that I supposedly took out over 10 years ago. Here is the details of the original complaint : Complaint number:XXXX. : I filed a complaint on XXXX with XXXX Credit Reporting and also with XXXX  for a collection that was recently placed on my credit reports by a collection agency named Midwest Recovery Systems . Allegedly, the collection agency, Midwest Recovery Systems, claims that I have a unpaid Payday loan with a company called XXXX XXXX in the amount of {$1200.00}. 

In the Commonwealth of Virginia, it is against the law to obtain internet Payday loans and it is also against the law to provide payday loans to Virginia residents if your are not a licensed business in the Commonwealth of Virginia. With those laws in effect, how would it be possible for me to take out said loan. 

Also the Payday loan laws in Virginia state that the maximum amount you can borrow at one time on a loan in Virginia is {$500.00} so how would it be possible for me to take out a loan in the amount of {$1200.00}. 

I was not notified by mail or by phone by Midwest Recovery Systems of this alleged Debt Collection prior to it being reported to the credit bureaus. Midwest Recovery Systems. I'm not even sure if Midwest Recovery Systems is a licensed to do business in the State of Virginia. 


We have followed our dispute policy and haven't had any further communication with the consumer. No future follow up is planned. Our dispute policy is once we have received a dispute we immediately stop all collection efforts and send a record of dispute to all three credit reporting agencies. Then we request validation of the debt from our client and once that is received we forward that on to the consumer for review. This account will be closed. If validation is unobtainable then we immediately send a record for deletion to all three credit reporting agencies and then close and return the account to our client. 

As stated in my original complaint below, Midwest Recovery Systems is ruining my credit by placing false information on my credit report. Not only are they reporting the negative information to all three credit bureaus, the same account is now showing up TWICE on all credit reports so I now have duplicate false information on all three reports for the alleged same false account. They said they were going to delete the information from all of my reports but instead it is now showing up twice. 

Here is the original complaint : I filed a complaint on XXXX with XXXX Credit Reporting and also with XXXX for a collection that was recently placed on my credit reports by a collection agency named Midwest Recovery Systems. Allegedly, the collection agency, Midwest Recovery Systems, claims that I have a unpaid Payday loan with a company called XXXX XXXX in the amount of {$1200.00}. 

In the Commonwealth of Virginia, it is against the law to obtain internet Payday loans and it is also against the law to provide payday loans to Virginia residents if your are not a licensed business in the Commonwealth of Virginia. With those laws in effect, how would it be possible for me to take out said loan. 

Also the Payday loan laws in Virginia state that the maximum amount you can borrow at one time on a loan in Virginia is {$500.00} so how would it be possible for me to take out a loan in the amount of {$1200.00}. 

I was not notified by mail or by phone by Midwest Recovery Systems of this alleged Debt Collection prior to it being reported to the credit bureaus. Midwest Recovery Systems. I'm not even sure if Midwest Recovery Systems is a licensed to do business in the State of Virginia I want ALL NEGATIVE INFORMATION REMOVED FROM ALL MY CREDIT REPORTS IMMEDIATELY OR I WILL SEEK LEGAL ASSISTANCE.

Company response to consumer: Closed with explanation