Settle Your Debt With Merchants Credit Association

Merchants Credit Association (MCA) is contacting you about a debt. You need to know your rights before you respond.

MCA is a third-party collection agency based in Washington State. They collect debts for other companies, not for themselves. Many consumers face harassment, threats, and violations of federal law from MCA.

You have legal protections against abusive debt collection practices. The Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA) limit what collectors can do. Understanding these rights helps you fight back.

If MCA sued you, you can respond with our partner Solo to protect yourself from wage garnishment.

What Is Merchants Credit Association?

MCA has operated as a debt collection agency since 1937. They claim to provide debt recovery services to businesses and communities.

The company serves multiple client types:

• Financial institutions
• Commercial and retail businesses
• Municipalities
• Homeowners’ Associations
• Landlord/Tenant accounts
• Insurance companies
• NSF Check collections
• Courts
• Utilities
• Educational institutions

MCA claims exceptional recovery results for their clients. Consumer complaints tell a different story.

Merchants Credit Association Contact Information

• Phone: (425) 643-2613 and (800) 755-1107
• Address: 2245 152nd Avenue NE, Redmond, WA 98052
• Fax: (425) 643-8546
• Website: merchantscredit.com

Merchants Credit Association Complaints and Reviews

MCA has poor ratings across consumer review platforms. The Better Business Bureau shows an average rating of 1 out of 5 stars. Yelp reviews give MCA only 1.1 out of 5 stars.

The Consumer Financial Protection Bureau (CFPB) has received dozens of complaints against MCA. Consumers report that MCA collects invalid debts and uses questionable collection methods.

Common complaints include:

• Attempting to collect debts already paid
• Harassing disabled and elderly consumers
• Ignoring requests to communicate through legal representatives
• Misrepresenting debt amounts
• Sharing information improperly

One BBB complaint states: “MCA is trying to collect double payments from me. They keep ignoring my requests to deal with Lexington Law Firm. I am disabled and over 60. MCA is violating Federal Law by contacting an elderly disabled person in an attempt to falsely collect funds.”

Your Rights Under Federal Law

Debt collectors must follow strict rules when contacting you. The FDCPA protects you from abusive collection practices.

FDCPA Violations by Merchants Credit Association

MCA cannot legally do the following:

• Call you repeatedly to harass you
• Threaten you with lawsuits they don’t intend to file
• Call you at work after you tell them to stop
• Discuss your debt with family, friends, or coworkers
• Use profane or abusive language
• Call before 8 AM or after 9 PM
• Misrepresent the amount you owe

TCPA Protections Against Robocalls

The TCPA restricts how collectors can use automated calling systems. MCA violates the TCPA when they:

• Robocall your cell phone without prior consent
• Continue calling after you tell them to stop
• Use automated dialers to call your phone

Document every violation you experience. Keep records of call times, messages, and conversations. You may have grounds to sue MCA for damages.

What to Do If Merchants Credit Association Sues You

Ignoring a lawsuit will not make it disappear. MCA will win by default if you don’t respond.

A default judgment allows MCA to garnish your wages. The court may award additional money for collection costs, interest, and attorney fees. Judgments appear on your credit report and make it harder to get loans, housing, jobs, and insurance.

You can avoid these outcomes by taking action immediately.

Step 1: Answer the Complaint

The Summons and Complaint list allegations against you. You must respond to every allegation within your state’s deadline.

Most states give you between 14 and 30 days to respond. Check your Summons for the exact deadline in your case.

You have three response options for each allegation:

• Admit: You agree the allegation is true
• Deny: You dispute the allegation and make MCA prove it
• Deny due to lack of knowledge: You don’t have enough information to admit or deny

Never admit all allegations. Doing so hands MCA an automatic win. Deny claims you dispute and force MCA to prove their case.

Our partner Solo helps you respond to debt lawsuits quickly and correctly.

Step 2: Assert Your Affirmative Defenses

Affirmative defenses are legal reasons why you shouldn’t be held liable. You must include these defenses in your Answer. You typically cannot raise new defenses later in the case.

Common affirmative defenses include:

• Statute of limitations expired: Each state limits how long collectors can sue for old debts. After the deadline passes, collectors cannot win in court.
• Improper service: The Summons and Complaint must be served correctly to you or an adult household member.
• Identity theft: Someone else created the debt using your information. You must report the theft and notify the collector.
• Debt already paid: You paid the debt but the collector’s records don’t reflect the payment.
• Wrong defendant: The collector sued the wrong person with a similar name.
• Breach of contract: The original creditor violated the agreement terms.

Step 3: File Your Answer With the Court

Submit your completed Answer to the court clerk before your deadline. Courts may accept filing by mail, email, or electronic filing system.

Expect to pay a filing fee unless you qualify for a fee waiver. Some courts require additional forms with your Answer. Check your court’s specific requirements.

You must also serve a copy of your Answer on MCA’s attorney. Send it by certified mail and keep proof of delivery. Make copies of all documents for your records.

Many debt collectors drop cases once they receive a response. At minimum, filing an Answer buys you time to negotiate a settlement or payment plan.

How to Negotiate a Settlement With MCA

You can often settle your debt for less than the full amount. Collectors buy debts for pennies on the dollar. They profit even when accepting reduced settlements.

Settlement Negotiation Tips

Start with a low offer, around 25% to 30% of the debt. Work your way up slowly if they reject your initial offer.

Get everything in writing before you pay. Never send money based on verbal promises alone. The settlement agreement should include:

• The settlement amount
• Payment terms and deadline
• Agreement that payment settles the debt in full
• Promise to stop collection activity
• Agreement to remove negative credit reporting

Never give collectors direct access to your bank account. Pay by money order or certified check instead. Keep proof of payment and the settlement agreement forever.

You can settle your MCA debt with our partner Solo to handle negotiations online.

Verify the Debt Before You Pay

You have the right to request debt verification. MCA must prove they own the debt and that you actually owe it.

Send a debt validation letter within 30 days of their first contact. Demand the following information:

• Original creditor name
• Original account number
• Amount of the debt
• Date the debt originated
• Proof that MCA owns the debt
• Copy of the original contract or agreement

MCA must stop collection activity until they provide verification. If they cannot verify the debt, they must stop collecting entirely.

Many collection agencies cannot produce proper documentation. They buy debts in bulk without complete records. Your debt validation request may end collection attempts.

Check the Statute of Limitations

Every state sets time limits on debt collection lawsuits. The statute of limitations varies by state and debt type.

Common limitation periods include:

• Credit card debt: 3 to 6 years in most states
• Medical debt: 3 to 6 years in most states
• Auto loans: 4 to 6 years in most states
• Personal loans: 3 to 6 years in most states

The clock typically starts when you miss your first payment. Some actions can restart the clock, like making a payment or acknowledging the debt in writing.

If the statute of limitations expired, you have a complete defense to the lawsuit. Assert this defense in your Answer and MCA should lose the case.

Never make a payment on old debt without checking the statute of limitations first. A single payment can restart the clock and give collectors more years to sue you.

Report Violations to Authorities

You can file complaints about MCA’s illegal practices with federal and state agencies.

Where to File Complaints

• Consumer Financial Protection Bureau (CFPB): Submit complaints online at consumerfinance.gov
• Federal Trade Commission (FTC): File reports at ftc.gov
• Washington State Attorney General: Contact the Consumer Protection Division
• Better Business Bureau: Post reviews and complaints at bbb.org

Document everything before filing complaints. Include dates, times, phone numbers, names, and descriptions of violations. Save voicemails and take notes during phone calls.

Agencies investigate patterns of abuse. Your complaint adds to the record and may trigger enforcement action.

Consider Legal Action Against MCA

You can sue Merchants Credit Association for FDCPA and TCPA violations. Successful lawsuits can result in:

• Actual damages for harm suffered
• Statutory damages up to $1,000 per violation
• Attorney fees and court costs

Many consumer protection attorneys work on contingency. They only get paid if you win. You risk nothing by consulting an attorney about your case.

Document every violation meticulously. Strong documentation makes for strong cases.

Protect Yourself From Future Collection Attempts

You can stop MCA from contacting you by sending a cease and desist letter. Once they receive your letter, they can only contact you to confirm they will stop or to notify you of specific legal action.

A cease and desist letter won’t make the debt disappear. MCA can still sue you. The letter only stops phone calls and letters.

Send your cease and desist letter by certified mail with return receipt requested. Keep copies for your records. Note that stopping communication may make MCA more likely to file a lawsuit.