Sometimes It’s Good to Be a Lawyer

Some years ago I went through a rough financial period and had to compromise my debts. One place came to an agreement with me that I would pay $250 per month for a few years and get about $3000 forgiven from my debt.

Over the years things have improved for me. But the payments to that company continued to be made through my debit card.

They insisted on a debit card, by the way. They would not accept my checking account.

All was well up to July, the month before the last payment. I got notice that I had one last payment and all was forgiven.

So when the familiar blue envelope came in August, I opened confidently, knowing it would say I’d paid off the debt. There was money in the bank and there had never been a problem.

Surprise! They said my last payment had been “declined” and that I now owed the extra $3000.

When I called this company–Midland Credit Management–they said they ran my debit card and that the expiration date was 7/22. So the payment was declined.

Oh, I said. I’ll give you an updated card.

No, they said. You owe the whole amount because we couldn’t clear your payment.

Why didn’t you call me and tell me there was a problem? I asked. Every other creditor I have will do so when they can’t clear my card.

It’s not our duty to call you, they said. It’s your duty to keep the information current.

So I called the bank. Yes, the money was there. No, Midland Credit Management never tried to run your card in August.

I called MCM back. Oh, the representative said, the computer probably saw that the expiration date was out of date and didn’t bother to run the card.

So I went into lawyer mode.

Listen, I said. I am offering you the last payment on an updated card. You have a duty to mitigate. Further, by not running the card, you have breached your contract to me. Finally, I said, if we go before a judge and he learns that you have this policy of not calling to tell me there’s something wrong, that will show bad faith on your part and the entire contract will be rescinded–which means you’ll have to pay me every penny I sent you.

No, the MCM agent said. That’s not how we do business.

Are you a lawyer? I asked. What law school did you go to? When did you pass the bar?

I am not a lawyer, the MCM guy said.

Well, I am. I am telling you that California contract law says you have to attempt to mitigate your damages. When I offer mitigation, you’d better have a damned good reason to refuse. “That’s not the way we do business” is not a good reason. So go ahead and sue me. Bring in your lawyers. Let’s see who knows the law better.

Call us next week, the guy said.

When I called next week, the MCM representative tried to give me the lie that the card had been declined, but then said they are going to accept my last payment.

Lesson, children. Sometimes it’s good to be a lawyer and tell these unethical bastards you will hang them out to dry if they try to pull their bullshit on you.

Class dismissed.