Consumer complaint received 2016-07-14
Product: Debt collection — Payday loan
Issue: Disclosure verification of debt — Not given enough info to verify debt
Company: Midwest Recovery Systems (VA)

This is being submitted with help by the XXXX. 
I took out a loan in XXXX with XXXX. It was XXXX XXXX when I took the loan out according to my records. I borrowed {$710.00} and repaid, I believe every two weeks, in the amount of {$210.00}, through XXXX of XXXX. While I do n't remember everything from that far back, I do have an email from XXXX in XXXX XXXX saying I had to call them to complete a new loan request, however, I never received any subsequent notifications that I actually obtained a new loan with a new loan amount and new payment amount, as I had for the XXXX loan. At the time, I was advised by my bank to close my account and open another one because they thought it could be possibly be illegitimate, which I did, as my records show. I received XXXX email from XXXX after the account change, but I never heard from them again. I have later realized that the loan I had was considered void in my state of Virginia. 
I received a some crazy debt collection calls several months ago, but the debt buyer just kept saying I owed money, but never provided any proof, even when asked. 
On XXXX XXXX, I received another set of calls. I returned the missed calls, to a woman, XXXX XXXX, who told me I owed them, for an XXXX. She was actually with Midwest Recovery Systems. I asked her to provide proof for the debt, because I had received calls several months earlier from a different company. She emailed me a debt collection letter as the proof I had asked for, but there was no actual proof or any documentation from XXXX, as to what was borrowerd, how much was paid, or how much was left on the loan before and after going to collections with them. The letter they sent as proof of the debt also disclosed that the owner of the debt was XXXX XXXX XXXX, XXXX, a company I had never heard of or heard from. I did n't receive any other contact or proof documentation that I had asked for, but I had received notifications from my credit monitering service on XXXX different occasions that Midwest Recovery Services had negatively reported on all XXXX credit bureaus. I was still waiting for the proof I requested, but it never came, so today I called back the initial number from XXXX XXXX, and talked to a XXXX XXXX, with Midwest Recovery Services. He said they are not the ones that have to provide proof, that I was the one who need to prove to them that I did n't still own on the XXXX account. I was shocked by that statement. I really did n't want to deal with this without any documentation, but I asked if I was to try to pay, how much would hey be willing to take. XXXX said that the owner of the debt, XXXX XXXX XXXX would n't be willing to take anything less than 50 % of the {$1500.00} they say I owed. I asked if I paid that amount ( 50 % ) would that take it off my credit. XXXX said no, the only way they would take it off my credit is if I paid the full amount of {$1500.00}, in essence he was extorting me out of the other 50 % for themselves to take it off of my credit reports. 
Also when I look at XXXX XXXX, it shows the open date of the loan as being XXXX XXXX of XXXX. The loan was clearly from XXXX, and until I received documentation from the original loan, with proof of exactly what was owed, an accounting, and proof that the loan is n't void in Virginia, I do not think they should be putting it on anyone 's credit. 
I am also puzzled why no proof is necessary on the part of the debt collector to show why so much was owed, and where any fees were added along the way. By my own records and calculations, I paid at least {$1500.00}, likely more on the loan before XXXX of XXXX, more than would XXXX required, as the loan is void in Virginia. The most troubling thing to me is the lack of proof on what was owed.