Hello All -- I've recently finished paying off a significant amount of debt that was legitimately my fault. I'm currently debt-free, with the exception of a student loan that never defaulted. And oh boy, does it feel good. During this multi-year process, I kept a close eye on my credit report and have seen nothing unusual or surprising. All of the agencies I dealt with were reasonably professional, with the exception of one who came around when I applied some pressure to the original debtor. However, I am now, almost monthly, receiving letters from agencies I've never heard of claiming debts I don't recognize. The first, which I (stupidly!) paid was for $100, but the next two are > $500 and, I think, fraudulent. All three were from different CAs With the second one I received in early December, I sent a basic verification letter and have not heard back (although I, again stupidly, sent it standard mail, so have no proof that they received it). I'm faced with a third letter from a new agency. This one, oddly, came to my parents address, which only shows up on my non-defaulting student loan and hasn't been my home address in over 20 years. Given this, I'm hoping for some advice. I've read enough here to know that the verification letters on the boards may or may not be effective (and the one I sent was much simpler, stating that I did not recognize the debt, and was asking for validation of the debt). Are these sorts of fraudulent letters common? I seriously doubt their authenticity. Should I send another certified mail verification letter to the CA I sent a standard mail letter to? And, should I send a second and third letter with demands? Thanks for your time -- I appreciate any help!
First, congrats on getting debt-free! That's a hard step these days. Second, do you think there's even a possibility of these debts being legit? The reason I ask is let's say you had a debt to (for example) Capital One, and you settled that with them. Through clerical error, they sell your settled debt as delinquent to a CA. CA then sends you a letter demanding payment. If the debt WAS legit but has since been settled, then tell the CA so, and invite them to kiss off. If they take you to court, use "accord & satisfaction" as your defense (you fulfilled the settlement; they can't reneg the terms afterwards). THEN go after the CA and/or OC for violations of the FDCPA (collection attempts after failing to validate, suing when no debt exists). However, if you're 100% certain these debts are in no way yours, wait and see. If they contact you again, send a second letter via CMRR: "In reference to your communication of __/__/__, be advised that you have not fulfilled the validation request which you received on __/__/__. In the interest of resolving this matter amiably, I am graciously making my second request for validation of this alleged debt." Don't assume they know your first letter wasn't sent certified. Make them doubt. Odds are good that they'll simply disappear. If they send back shoddy proof, send a C&D and wipe your hands. If they appear on your credit report, dispute with the CRAs. If the CRA investigates & keeps them on your report, send a CMRR to the CRA requesting copies of all documentation provided by the CA in reference to the account. Since you already know enough to keep your letters simple and ignore those so-called "example letters", you can probably see my strategy. I'm a firm believer in "let sleeping dogs lie" and "go with the flow". CAs and CRAs receive hundreds (if not thousands) of letters every day asking for research. If yours doesn't stand out, it's more likely to get processed.
Thanks Sparq -- great advice. So, here's my plan of action going forward: 1. Send my simple verification letter to the 3rd CA, ignore the 2nd until I hear back (and use my lost $100 from the first as a kick in the pants to always use the verification letter!), send certified return receipt. 2. If they send valid proof, check to make sure loan hasn't already been repaid through the original lender or another CA. 3. If they send invalid proof, send C&D. 4. Watch my credit reports and report anything bad to the CRA. Totally doable -- thanks. One follow up -- what points does a C&D have to hit? Any good samples out there?
Incidentally, it sounds like the 2nd CA gave up and sold it to the 3rd. I'd still send that DV out CMRR ASAP. Sounds good. A C&D only has to tell them not to contact you any more. It doesn't need to contain any specific language to be effective, but here's what I'd write: (your name & address) (CA's name & address) (any account info PROVIDED BY THEM) (today's date) Dear CA, I demand that you cease and desist all communication with me in relation to the above-listed alleged debt. Do not contact me again in relation to said alleged debt. Sincerely, (your name; do not sign) Clear and to the point. They shouldn't contact you again. If they do contact you again (unless it's to sue), consider yourself lucky (and $1000 richer). There's no way a judge will say that letter didn't clearly convey that you want them to leave you alone. However, let me clarify one thing from my post. Make absolutely, positively, unconditionally, 110% certain that the debt is either outside of the statute of limitations or not yours before you send that C&D. If you send a C&D on a legit debt or a debt that "could be" yours (and it's within the statute of limitations), you're pretty much guaranteed a lawsuit. A C&D is the nuclear option that should only be used once you are positive you're in the clear.
