How to Negotiate With MGM Debt Collectors and Win Your Case

MGM Collections, also known as MGM Capital Management, operates from Temecula, California. The agency specializes in medical debt collection but pursues other consumer debts too. You might see MGM Collections on your credit report as a collections account. Maybe you forgot to pay a bill or never knew it existed. Either way, your account landed with this debt collector.

Remove MGM Collections From Your Credit Report

Collections accounts damage your credit score significantly. They stay on your credit report for up to seven years. Paying the debt doesn’t remove it from your report. Every collections account can lower your score further. You need to know your rights and resolve MGM Collections cases quickly.

Respond to the Debt Lawsuit Immediately

You must respond when MGM Collections sues you. Failing to respond results in a default judgment against you. Even if you can’t pay, you still need to respond. Default judgments let debt collectors garnish your wages or freeze your bank accounts.

They can also add attorney fees and interest to your balance. These additional costs can triple what you owe. Our partner Solo helps you respond correctly to debt collection lawsuits.

Draft and File Your Answer Document

Once MGM Collections files a lawsuit, they become the plaintiff. You can no longer resolve matters by phone. The court requires a legal Answer document from you. Never admit liability for the debt in your Answer.

Force the creditor to prove you owe the debt. File your Answer with the Clerk of Court. Request a stamped copy for your records. Send that copy to MGM Collections via certified mail.

Know Your Response Deadline

You must respond within the timeframe stated in your summons. Most states give you 20 to 30 days from the notice date. Missing this deadline carries the same consequences as ignoring the lawsuit. Once a judgment enters, disputing the debt becomes nearly impossible.

Challenge MGM Collections’ Right to Sue

Challenging their right to sue offers your best defense strategy. Your debt has likely been sold multiple times. MGM Collections must prove they legally own your debt. They need documentation showing they can sue you.

Judges won’t search for this information without your prompting. Your silence appears as an admission of guilt. Send your Answer and demand proof of ownership.

Types of Proof MGM Collections Must Provide

• Documentation proving you’re responsible for the debt
• Legal evidence they own your debt
• Verification of the exact amount owed
• Credit agreements bearing your signature
• Complete chain of custody documentation from original creditor

The collection agency needs to show how your balance increased. They must provide purchase records or fee documentation. Chain of custody proves all paperwork came from the original creditor.

Use the Statute of Limitations as Your Shield

Old debts might fall outside your state’s statute of limitations. These laws limit how long creditors can sue you. Each state sets different timeframes for different debt types. Statutes range from two years to twenty years.

The clock typically starts on your last account activity date. Activity means making a payment or withdrawing funds. Calculate when you last used your credit card or accessed your loan.

Consider Filing a Countersuit

Debt collectors violating the Fair Debt Collection Practices Act face consequences. They must pay your legal fees and damages. Only pursue countersuits for serious violations. You can also receive compensation for related damages.

Negotiate a Settlement With MGM Collections

Negotiating with MGM Collections can reduce what you owe. Follow these proven strategies to settle for less.

Use Bankruptcy as Negotiating Leverage

Mentioning bankruptcy creates powerful negotiating leverage. Creditors prefer settling over receiving nothing in bankruptcy. Only mention bankruptcy if you’re seriously considering it. False threats damage your credibility.

Make Realistic Settlement Offers

Avoid unrealistically low initial offers. Lowball offers can end negotiations immediately. Don’t offer too much initially either. Find a balance that keeps negotiations moving forward.

Prepare for Multiple Counteroffers

First offers favor the party making them. Expect MGM Collections to counter your offer. Negotiations typically require several rounds. Stay patient and persistent throughout the process.

File Bankruptcy as Your Last Resort

Bankruptcy might help if you’re drowning in multiple debts. Filing creates an automatic stay on collections. Creditors must stop pursuing you immediately. However, bankruptcy carries serious long-term consequences.

Bankruptcy impacts your credit for seven to ten years. You’ll face challenges securing loans, housing, and employment. Evaluate your unique situation before choosing bankruptcy. Speak with a bankruptcy attorney for free to explore your options.