What to Do After an MCM Call

Receiving an unexpected phone call from a number you don't recognize can be unsettling, especially when the person on the other end says they are from MCM. This experience can be stressful and confusing, leaving you with many questions. Understanding who is calling and what your rights are is the first step toward handling the situation effectively and regaining control of your financial well-being.

Who Is MCM and Why Are They Calling?

MCM stands for Midland Credit Management, which is one of the largest debt-buying companies in the United States. They purchase past-due debts from original creditors, such as credit card companies, banks, or auto lenders, for a fraction of the original amount. Once they own the debt, they have the legal right to collect it. If you receive a call from them, it's likely because they have purchased an old account that they believe belongs to you.

Know Your Rights Under the FDCPA

When dealing with any debt collector, it's crucial to know your rights. The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from abusive, unfair, or deceptive collection practices. According to the Federal Trade Commission (FTC), this act outlines specific rules collectors must follow. For example, they cannot call you before 8 a.m. or after 9 p.m., use threatening language, or mislead you about the amount you owe.

What You Can Do Immediately

Your first move should be to gather information, not provide it. Do not confirm personal details or agree to any payment plans on the initial call. Instead, state that you need everything in writing. By law, they must send you a written debt validation notice within five days of first contacting you. This notice must detail the amount of the debt, the name of the original creditor, and how you can dispute the debt.

Steps to Take After the Initial Call

Once you've ended the call, the real work begins. It’s important to stay organized and proactive. The way you handle the follow-up can significantly impact the outcome. Don't ignore the situation, as it could lead to more serious consequences, such as a lawsuit or negative impacts on your credit report.

Verify the Debt is Yours

When you receive the validation letter, review it carefully. Does the account information look familiar? Is the amount correct? Check your own records and credit reports to see if the information matches. Sometimes, debt collectors have outdated or incorrect information. According to the Consumer Financial Protection Bureau (CFPB), you have 30 days to dispute the validity of the debt in writing.

Communicate in Writing

From this point forward, it's best to communicate with the debt collector in writing. This creates a paper trail of all your interactions. Send your letters via certified mail with a return receipt requested so you have proof they received your correspondence. Whether you are disputing the debt or negotiating a settlement, having everything documented is a powerful tool. Handling a stressful mcm call is much easier when you have a clear record of communication.

Building Financial Resilience for the Future

Dealing with debt collectors is often a symptom of underlying financial stress. Unexpected expenses or a gap in income can quickly lead to missed payments. Building a stronger financial foundation can help you avoid these situations in the future. This involves creating a budget, building an emergency fund, and having access to flexible financial tools when you need them.

Modern financial apps can provide a safety net without the high costs of traditional credit. For instance, some apps offer fee-free cash advances or Buy Now, Pay Later options to help manage expenses without falling into a debt cycle. Exploring tools like Gerald can provide the support you need to cover bills or make necessary purchases, helping you stay on track and avoid the kind of financial shortfalls that lead to collection accounts in the first place.

Disclaimer: This article is for informational purposes only. Gerald is not affiliated with, endorsed by, or sponsored by Midland Credit Management. All trademarks mentioned are the property of their respective owners.