Complain about a product or service

Collection Agency Agrees to Write Off Cross Country Debts Owed by West Virginians

August 23, 2005
A California collection agency has agreed to release West Virginia consumers from $3.5 million in credit card debt turned over to it by Cross Country Bank. It's the latest skirmish in a long-running feud involving West Virginia Attorney General Darrel McGraw and Cross Country.

Cross Country Bank • Consumer Complaints • Complaints about Applied Card Bank --- News • New York Fines Cross Country Bank $9 Million • Collection Agency Agrees to Write Off Cross Country Debts Owed by West Virginians • Cross Country Bank To Pay WV $1.5 Million • Cross Country Ends WV Stand-Off • Cross Country Bank Fined $450,000 by PA • WV, Cross Country Swap Charges • West Virginia Sues Cross Country Affiliate • New York Rules Against Cross Country • Pennsylvania Sues Cross Country • Texas Suit

McGraw said that Midland Credit Management, Inc. of San Diego purchased about 3,500 charged-off accounts from Cross Country Bank, based in Wilmington, Delaware.

Attorney General McGraw’s office began investigating Midland in 2004 after receiving complaints from West Virginia consumers who had been sued or contacted by Midland to collect debts originally owed to Cross Country Bank.

Cross Country Bank is a credit card bank that markets high interest credit cards to consumers with bad credit histories. McGraw’s office settled its lawsuit against Cross County Bank on June 21, 2005.

McGraw’s office questioned the propriety of collecting the accounts based upon the same concerns that led to his lawsuit against Cross Country Bank.

As a result of these concerns, the Attorney General requested that Midland close all of the accounts with a zero balance and notify credit bureaus to delete all references to the account from consumers’ credit records. Midland agreed to do so in the settlement announced by McGraw’s office.

"I commend Midland for promptly doing the right thing after we brought our concerns about these accounts to its attention," McGraw said. "As a result of our agreement with Midland, approximately 3,536 West Virginia consumers have been relieved of all further obligations to pay $3,548,539.80 in credit card debt. Because the accounts have also been deleted from credit records, consumers will no longer be denied access to new credit as a result of these accounts.”

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Back to the top |