How To Deal With MBA Law: Your Complete Guide

MBA Law is a debt collection business that focuses on medical debt. They start the process by mailing letters or notices to individuals with unpaid medical bills. If you receive a letter from MBA Law, validate the debt before anything else. If the debt is valid, you can pay it, contest it, negotiate a settlement, or ignore it (not recommended). Your finances depend on choosing the right option.

What Is MBA Law?

MBA Law’s official name is The Law Offices of Mitchel D. Bluhm and Associates. The firm is located in Sherman, Texas. MBA Law differs from typical debt collection companies. It’s a law firm with creditors as clients. It focuses primarily on medical debts, not credit cards or other consumer debts.

According to its website, MBA Law doesn’t purchase medical debt. Instead, they represent third-party creditors who purchase medical debt from healthcare providers. Many consumer debt collection efforts aren’t made by the original creditor. MBA Law encourages consumers to pay them directly. The firm has an online system to receive payments.

Why Is MBA Law Contacting Me?

MBA Law is reaching out because you may have an unpaid medical bill. A medical provider likely sold an unpaid healthcare bill to a debt collector. That debt collector then hired MBA Law to help collect the debt.

Is MBA Law Legit?

Yes, MBA Law is a legitimate debt collection agency. However, many consumers have reported issues with their collection practices. The Better Business Bureau (BBB) gives MBA Law a 1.23 star rating out of five stars. Consumers have filed more than 600 complaints about MBA with the BBB over the past three years. Many complaints allege that MBA Law tried to collect debts already paid or not owed.

The Consumer Complaint Database on the Consumer Financial Protection Bureau’s (CFPB) website shows more than 650 complaints submitted since December 1, 2011. Many CFPB complaints also allege that MBA Law attempts to collect debts not owed. Some consumers allege repeated telephone calls and false statements.

Note: Reviews and complaints highlight relevant issues. They may not represent all consumers’ experiences.

If these claims are true, they could be violations of the federal Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from harassing and misleading debt collection actions. If a debt collector like MBA Law violates federal law while collecting from you, you can file a complaint. You may even sue MBA Law for monetary compensation.

One final note: Though MBA Law is a real debt collector, scammers may use this name. Scammers try to get you to send them money. Always validate debts if a debt collector contacts you.

Do I Have To Pay MBA Law?

It depends. First, confirm that the debt they’re collecting is yours and the amount is correct. Debt collectors like MBA Law are a volume-driven business. The more debt collection accounts they churn through, the more money they make. Since they work with many accounts, mistakes happen.

To confirm the debt is legitimate, you need to validate it. If MBA Law can’t prove the debt details, you probably don’t have to pay them. If MBA Law can prove the debt is yours and they can collect it, decide what to do next.

Step 1: Send a Debt Verification Letter

When MBA Law contacts you, they may include a debt validation letter. If they don’t send you this letter before contact, they must send it within five days. If you never receive a debt validation letter, send a debt verification letter to MBA Law.

When you receive a debt validation letter, you’ll have 30 days to dispute the debt. During this 30-day window, MBA Law can’t continue their debt collection efforts against you.

If MBA Law doesn’t verify the debt within the 30-day dispute period, you don’t need to pay it. In this case, tell MBA Law to stop contacting you. Check your credit score and credit report to make sure there aren’t any errors. MBA Law may be trying to collect a debt that isn’t yours.

If MBA Law can verify the debt, then the next steps depend on your preferences.

Step 2: Decide What To Do Next

As you decide what to do next, you have three choices:

• Dispute the debt
• Negotiate and settle the debt
• Ignore the debt (not recommended)

Option 1: Dispute the Debt

Even if a debt is real, if aspects like the amount are wrong, you can file a dispute with MBA Law.

If details of the debt are wrong, check your credit report for mistakes. The Fair Credit Reporting Act (FCRA) allows you to dispute credit report errors. Send a 609 credit dispute letter to ask the credit bureaus Experian, TransUnion, and Equifax to remove incorrect information.

Due to recent changes in federal law, medical collection entries shouldn’t show up on your credit report. Exceptions include debts more than a year old or more than $500.

Option 2: Negotiate the Debt and Make a Settlement Offer

A surefire way to get rid of a debt is to pay it off in full. If you could do that, you probably wouldn’t have heard from MBA Law offices. Instead, you can try to negotiate a debt settlement. In some situations, you can settle your debt for 40% to 60% of the original amount. Debt collectors buy debt for pennies on the dollar. They don’t have to collect the full amount to profit.

If the debt collector works on behalf of a creditor, they usually receive a fee only if they recover money. The fee is often a percentage of the recovered amount. While the debt collector wants to recover as much as possible, they understand that accepting less gets them paid more quickly. It saves them time and effort.

You can start debt settlement negotiations by offering to pay 25% or 30% of the original debt. MBA Law may reject that offer, but after negotiating, they may agree on an amount around the 50% mark. Our partner Solo can help you negotiate a settlement and respond to collection lawsuits.

Can You Negotiate Every Past-Due Debt?

Common consumer debts that can be negotiated include medical bills and credit cards. Tax debts with the IRS may also be negotiable, although the IRS has a special process.

Not all past-due debts are negotiable. Debts that aren’t normally negotiable include secured debts like car loans and home mortgages. Additionally, federal student loans aren’t negotiable. If you’re struggling to pay yours, check out student loan forgiveness programs.

Option 3: Ignore the Debt (Not Recommended)

You should avoid this option at all costs. Of the many disadvantages to ignoring MBA Law, one stands out. It can lead to more stress about money. Remember, debt collectors don’t give up easily.

What Happens if I Ignore MBA Law Offices?

Several bad things could happen if you ignore MBA Law offices. It may harm your credit score, for one. You may end up owing more in the long run as interest and fees add up. Finally, you may get sued for the debt. If you lose the lawsuit, you risk having your wages garnished.

You may have heard that ignoring debts and debt collectors is fine. The debt will be removed from your credit report after seven years. While the debt will probably drop off your credit report, the underlying debt may not go away. MBA Law can still try to collect from you or sue you if the debt isn’t past the statute of limitations.

As bad as this sounds, don’t give up. You have several options for dealing with your debt. By reading this article, you now have the knowledge to improve your chances. You can fight MBA Law or settle your debt for less than the full amount.

Can MBA Law Sue Me?

Yes, MBA Law can sue you for unpaid debt. That said, it’s not always in their best interest to file a lawsuit.

Any debt collector thinking about suing you will probably consider several factors, including:

• If the statute of limitations has run
• If they can recover court costs and attorney’s fees
• How favorable your state’s wage garnishment laws are
• The amount of the debt
• How easily they can prove the validity of your debt
• If you have any other unpaid debts

If MBA Law takes legal action against you, expect them to serve you with a complaint and summons. You might receive these documents by mail or in person. Either way, you should respond to the complaint to avoid losing by default.

In many cases, you can respond to the complaint yourself. If you’re worried about responding on your own but can’t afford a lawyer, our partner Solo can help you draft an answer letter for free or a small fee. They’ve helped 234,000 people respond to debt lawsuits. They have a 100% money-back guarantee.