How To Deal With MBA Law

What Is MBA Law?

MBA Law’s official name is The Law Offices of Mitchel D. Bluhm and Associates. MBA is located in Sherman, Texas. MBA Law is different from the typical debt collection company in that it’s a law firm that has creditors as clients. It’s also unique because its primary focus is medical debts, not other consumer debts, like credit cards.  

According to its website, MBA Law doesn’t purchase medical debt. Instead, they represent third-party creditors who purchase medical debt from original creditors such as healthcare providers. While it sounds complicated, this is a fairly common practice. Many consumer debt collection efforts aren’t made by the original creditor. MBA Law encourages consumers to pay them directly. It has an online system in place to receive payments.

Why Is MBA Law Contacting Me?

MBA Law is reaching out to you because you may have an unpaid medical bill. A medical provider likely sold an unpaid healthcare bill to a debt collector who then hired MBA Law to help them 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 of these complaints allege that MBA Law tried to collect a debt that’s already been paid or isn’t owed.

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

Note to reader: These reviews and complaints highlight relevant issues, but they may not represent all consumers’ experiences. 

If these claims submitted to the BBB and CFPB are true, they could be violations of the federal Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from a broad array of harassing and/or misleading debt collection actions. If a debt collector such as MBA Law violates this federal law while trying to collect a debt from you, you can file a complaint and possibly sue MBA Law for monetary compensation.

One final note: Though MBA Law is a real debt collector, scammers may use this or other real company names to try to scam you or get you to send them money.  This is why it’s important to always validate debts (more on this below) if a debt collector contacts you.

Do I Have To Pay MBA Law? 

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

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

Step 1: Send a Debt Verification Letter 

When MBA Law contacts you, they may include a debt validation letter (or validation notice). If they don’t send you this letter before they contact you, they must send it to you within five days of initial contact. If you never receive a debt validation letter, you should 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, you can tell MBA Law to stop contacting you. You should check your credit score and credit report to make sure there aren’t any errors that may relate to MBA Law trying to collect a debt from you that isn’t yours.

If MBA Law can verify the debt, then the next steps depend on how you want to proceed. 

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 (though this is not recommended)

Option 1: Dispute the Debt 

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

If details of the debt are wrong, you’ll probably want to check your credit report to see if there’s a mistake there as well. The Fair Credit Reporting Act (FCRA) allows you to dispute credit report errors by sending a 609 letter. This is the letter you use to ask the credit bureaus Experian, TransUnion, and Equifax to remove the incorrect information. 

Due to recent changes in federal law, medical collection entries shouldn’t show up on your credit report unless they’re 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. Though if you could do that, you probably wouldn’t have heard anything from MBA Law offices in the first place. 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. This is possible because debt collectors buy a debt for pennies on the dollar. So they don’t have to collect the full amount to profit. 

If the debt collector is working on behalf of a creditor, the debt collector will usually receive its fee only if it can recover money from you. This fee is often a percentage of the recovered amount. While the debt collector wants to recover as much as possible, they understand that accepting a lower amount allows them to get paid more quickly and 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 probably reject that offer, but after some negotiating, they may agree on an amount around the 50% mark. If you want to learn more about successfully negotiating a debt settlement, check out Upsolve’s Guide to Beating MBA Law. 

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 for that.

Unfortunately, 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) 

This is an option you should avoid at all costs. Of the many disadvantages to ignoring MBA Law, one of the most prominent is that 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. Also, you may end up owing more in the long run if/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 since 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. And this won’t stop MBA Law from trying to collect from you or suing you if the debt isn’t past the statute of limitations.

As bad as all 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 of fighting MBA Law or settling your debt for less than the full amount. To learn more about your options, you can read Upsolve’s Guide to Beating MBA Law.

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 that’s 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, you can 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. To learn more about how to deal with a lawsuit from MBA Law, please read Upsolve’s Guide to Beating MBA Law. If you need legal advice, reach out to a local consumer rights or debt attorney. Many offer free consultations.

Let’s Summarize…

MBA Law is a legitimate debt collector that focuses on recovering unpaid medical bills on behalf of third-party creditors. If you get a letter or phone call from MBA Law, don’t panic. Validate the debt, then decide what to do. If the debt is valid, MBA Law may be willing to negotiate a debt settlement.