Merchants Credit Association Calling? Here's What They Can and Can't Do

Merchants Credit Association (MCA) has been collecting debts since 1937. They pursue accounts for utilities, landlords, medical providers, and homeowners associations. If they've contacted you, they're trying to collect money—and they may be breaking federal law while doing it.

The Consumer Financial Protection Bureau shows dozens of complaints against MCA. Common issues: demanding payment on debts consumers don't recognize, calling after being told to stop, and threatening lawsuits they never file. You need to know what MCA can legally do and what crosses the line.

Who Merchants Credit Association Collects For

MCA is a third-party debt collector. They don't own your debt. Instead, companies hire them to pursue accounts that are typically 60 to 180 days past due. Their clients include:

• Electric, water, and gas utilities
• Homeowners associations and condo boards
• Landlords seeking unpaid rent
• Medical offices and hospitals
• Municipal governments (parking tickets, fines)
• Banks and credit unions

Based in Redmond, Washington, MCA operates nationwide. The debt they claim you owe could be from a utility bill in Florida or an HOA fee in Texas. Geographic distance doesn't change your rights.

How MCA Typically Contacts You

You'll usually get a call first. MCA's main numbers are (425) 643-2613 and (800) 755-1107, though they use other lines too. Early calls tend to be polite. The collector will ask you to confirm your identity and discuss "an important financial matter."

If you don't respond, expect the tone to shift. Calls become more frequent. You might get voicemails implying urgent legal consequences. Some consumers report MCA calling their workplace or relatives,both potential FDCPA violations if done improperly.

After phone attempts, MCA sends letters. These should include a debt validation notice within five days of first contact. The notice must state:

• How much you allegedly owe
• The name of the original creditor
• Your right to dispute the debt in writing within 30 days
• Your right to request verification if you dispute

If MCA's letter lacks this information, they've violated the Fair Debt Collection Practices Act.

Common FDCPA Violations by MCA

Debt collectors must follow strict rules. MCA has a documented history of crossing boundaries. Based on consumer complaints and public records, here's what to watch for:

Calling After You've Told Them to Stop

Once you send a written cease-and-desist letter, MCA must stop calling. They can only contact you to confirm they're stopping or to notify you of specific actions (like filing a lawsuit). If they keep calling, each violation can cost them up to $1,000 in statutory damages.

Threatening Lawsuits They Don't File

Some MCA collectors warn that you'll be sued "within 48 hours" or that a court date is already scheduled. Unless they're actually preparing to sue, this is illegal. Debt collectors cannot threaten actions they don't intend to take.

Discussing Your Debt With Others

MCA cannot tell your coworkers, family, or neighbors about your debt. They can contact third parties only to locate you,and even then, they must keep the reason vague. If a collector tells your boss why they're calling, that's a violation.

Calling Outside Permitted Hours

Debt collectors can only call between 8 a.m. And 9 p.m. In your time zone. If MCA wakes you at 7 a.m. Or calls at 10 p.m., document it. That's an FDCPA violation.

Verify the Debt Before You Pay Anything

You have 30 days from MCA's first written notice to dispute the debt. Use that time. Send a debt verification letter via certified mail asking MCA to prove:

• The original creditor's name and account number
• The amount owed, including a breakdown of fees and interest
• Documentation showing you owe this specific debt
• Proof that MCA has the legal right to collect

Until MCA provides verification, they must pause collection efforts. They can't call, send letters, or report the debt to credit bureaus. Many consumers find that once challenged, MCA either provides no response or sends incomplete documentation. If they can't prove the debt, you don't owe it.

If MCA Sues You

Debt collection lawsuits follow a predictable pattern. MCA files a complaint in your county's court, then serves you with a summons. You typically have 20 to 30 days to respond with an Answer,a legal document admitting or denying their claims.

Most consumers don't respond. That's a mistake. When you ignore a lawsuit, the court enters a default judgment, giving MCA the right to garnish your wages or freeze your bank account.

Your Answer should raise affirmative defenses like:

• Statute of limitations: Most states bar debt collection lawsuits after 3 to 6 years. If the debt is older, you may have a complete defense.
• Lack of standing: MCA must prove they own the debt or have authority to collect. If they can't produce a valid assignment agreement, the case fails.
• Incorrect amount: Challenge inflated balances or unexplained fees.
• FDCPA violations: If MCA broke collection laws, that can be a counterclaim.

Filing an Answer doesn't mean you admit owing anything. It means you're defending your rights. Courts side with debt collectors who face no opposition. Once you respond, MCA must prove their case with actual evidence.

If going to court feels overwhelming, bankruptcy may stop the lawsuit immediately. An automatic stay halts all collection activity the moment you file.

Settlement Options With MCA

If the debt is valid and you can't pay in full, MCA will negotiate. Debt collectors buy accounts for pennies on the dollar, so they profit even on partial settlements. Typical settlement ranges:

• 40% to 60% of the balance if you can pay a lump sum
• 60% to 80% if you need a payment plan

Before you agree to anything, get the settlement offer in writing. The agreement should state:

• The exact amount you'll pay
• The payment schedule (if applicable)
• That this payment settles the debt in full
• How MCA will report the account to credit bureaus

Never give MCA electronic access to your bank account. Pay by money order or check. Once they have your account information, some collectors attempt unauthorized withdrawals.

What If You Can't Afford to Settle?

If MCA's settlement offer is still out of reach, you're not out of options. Debt collectors can't squeeze money you don't have. At some point, they'll either close the file or sell it to another collector.

But if MCA has already sued and won a judgment, ignoring them gets harder. Wage garnishment takes up to 25% of your paycheck in most states. Bank levies can drain your account overnight.

That's when bankruptcy becomes the practical choice. Chapter 7 erases unsecured debts like credit cards, medical bills, and old utility accounts in about four months. Chapter 13 lets you repay debts over three to five years at amounts you can actually afford,often much less than the full balance.

The automatic stay stops garnishments immediately. Even if MCA has a judgment, they must stop collecting once you file. Check if you qualify for bankruptcy in under two minutes.

How MCA Reports to Credit Bureaus

Collection accounts damage your credit score. MCA reports to Equifax, Experian, and TransUnion. A collection can drop your score by 50 to 100 points, and it stays on your report for seven years from the date you first missed a payment with the original creditor.

If you settle, MCA should update the account to "paid" or "settled." But a settled collection still appears on your report for the full seven years. It's better than an unpaid collection, but not by much.

If you dispute the debt and MCA can't verify it, they must delete the entry. That's why verification matters. Once removed, your credit score can recover within weeks.

When MCA Might Be Breaking the Law

The FDCPA gives you the right to sue debt collectors who violate your rights. If MCA:

• Calls you repeatedly in a single day
• Uses profane or abusive language
• Threatens arrest or legal action they don't take
• Continues calling after receiving your cease-and-desist letter
• Reports inaccurate information to credit bureaus

You can file a lawsuit in federal or state court. If you win, the court can award up to $1,000 in statutory damages per violation, plus actual damages (lost wages, medical bills for stress-related issues) and attorney fees. MCA pays your lawyer, not you.

Most FDCPA cases settle before trial. Debt collectors don't want public records of their violations. A consumer attorney can often negotiate a settlement that pays you and removes the debt from your credit report.

How to Deal With MCA Right Now

Start by organizing your records. Gather any letters from MCA, records of phone calls (dates, times, what was said), and documentation related to the original debt. If you don't recognize the debt at all, that's important information.

Next, send MCA a debt verification letter. You can find templates online. Mail it certified with return receipt. This forces MCA to prove the debt is yours and stops them from harassing you while they gather documentation.

If MCA provides verification and the debt is accurate, decide whether you can settle or need to explore bankruptcy. If you can pay 40% to 50% in a lump sum, negotiate. If not, the debt may eventually fall off your credit report, or you can discharge it in bankruptcy.

If MCA has sued you, respond immediately. You likely have less than 30 days. Miss that deadline and the judgment is automatic. An Answer buys you time and forces MCA to prove their case in court.

Resources and Next Steps

Dealing with debt collectors is stressful, but you have more power than MCA wants you to believe. The law protects you. Courts require proof. And debt collectors would rather settle than fight a prepared consumer.

If you're juggling multiple debts and MCA is just one of several collectors calling, bankruptcy might clear the board. Talk About Debt offers a free evaluation tool that shows you what filing would actually do to your debts, your assets, and your monthly budget. See if bankruptcy makes sense for you.

You don't need to figure this out alone. Whether you negotiate a settlement, fight a lawsuit, or file for bankruptcy, the key is taking action before MCA takes it for you.