Consumer complaint received 2018-01-29
Company: Midwest Recovery Systems
State: TX
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
This year on XX/XX/XXXX I decided to restart paying debt. I reached out to the names on my credit report to settle. Midwest Recovery System happened to be one of them. I called and spoke to XXXX XXXX. I explained to him that I wanted to settle a debt that was sold to them from XXXX XXXX. XXXX read to me the information and confirmed the last four of my social. He let me know that we are in a recorded line. To confirm the account more he stated the open date of the account and the time the account was sold to them. He stated the account was opened since XX/XX/XXXX. Because on my credit report it states that the account was open XX/XX/XXXX I said well that doesn't sound accurate. But I didn't know much about statue of limitations nor did I realize til after the fact that I had paid Midwest recovery system {$300.00} to settle this account. XXXX had also mentioned to me that the account was charged off XX/XX/XXXX. After we hung up and I received receipt that may payment had gone through I called the original creditor XXXX XXXX to confirm some information. I spoke with XXXX out of XXXX Texas. I asked her who the debt was sold too and when. I also asked her that date of delinquency. She told me I opened the account at hand XX/XX/XXXX and that it was sold XX/XX/XXXX. She said she was not aware of the delinquency date. She provided me with my original account number and the information to the credit agency it was sold to XX/XX/XXXX. The name she provided was not Midwest recovery system but was actually called " XXXX XXXX XXXX XXXX ''. I then thought to myself why is it showing that I owe {$850.00} to XXXX  XXXX in the first place and why is this on my credit report secondly why is this account reporting XX/XX/XXXX as an open account still today. When it should be closed account with the date as XX/XX/XXXX which is the original date of the loan. I am very disappointed with Midwest recovery systems. Not only did they take advantage of me. They failed to report the correct information to the credit bureaus. For 2 years now this account has been reflected in my credit report as being open. I decide to do what's right and pay my debt and get on the right path, trusting that the information provided on my report was accurate but it wasn't and they knew that they had no right to take money from me knowing the original date that should have been reflected would have made this account over the statue of limitations and the account should have been off of y account two years ago. They tricked me and should not get away with this. I don't believe this is a real agency and i know for a fact they are reporting false information. Had I known before about statues of limitations I would have questioned and disputed this as to why it was still on my account for a total of 8 years. I live in Texas it should have been removed after 7 years and should have stopped reporting. It reported last XX/XX/XXXX. This account is holding my credit score down and although it is now payed and considered settled it will only update to just that. This account should be moved from my profile immediately! This is against the law and I will not let this happen to me and I will let others be aware of what's gone on. Agencies are by law supposed to report accurate info. The credit bureaus have gotten a dispute and I am waiting on an answer. I demand this account be removed! And I demand Midwest be honest when collecting debts because some people only try to so the right thing like myself. I am a single parent and XXXX XXXX XXXX XXXX and I work part time. It is hard as it is and when I decided to be responsible I get taken advantage of. Shame on them!

Company response to consumer: Closed with explanation