1st steps to negotiate???

Im not the board vet... if its at a CA and they want the balance... Ask them if you pay in full if they will remove it from your credit reports.. be aware that since its from 01 it gonna be within the SOL to sue you if ya owe them a bunch of moonie be sure ya get everthing in writing ...
and a friendly bump for you

 

SOL= Statute of limitations. It's basically the timeframe a creditor has to sue you before they are legally barred from collecting on a debt.

Yes there is a difference between a collection account and a judgement (being sued).

A collection account is when the OC has sold or transferred an account to a collection agency (3rd party) to be collected on because their methods (the OC's) have failed so far. A collection account will appear in the "derogatory information" section.

A judgement is when the OC or CA files a lawsuit against you, and if you do not show up, they receive what is called a "default judgement", if you do show up and lose, they still get a "judgement". A judgement I believe, is listed under public record on your credit report.

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Have you sent a validation letter to the CA? Are they reporting the account on your reports?

Is it a large debt? If not, can you pay it all off at once?

 

If they have threatened to sue then they BETTER!!! It is a violation to threaten sue and NOT (CA's can't threaten like that)!

 

You could either check on your credit report, and it would say one or the other. Or, if you still have the original letter the CA sent you, if the letter says "This account has been referred to our..." that should mean they do not own the debt, they are simply collecting on it.

No. Do not just sent a C&D letter, unless you're referring to a simple "no longer contact me by phone, only be mail" C&D letter. If you send a full C&D letter the CA is only allowed to contact you one more time, and that is to let you know what they plan to do with the account. Only do a C&D if they're harrassing you on the phone.

You wouldn't get a request for validation from them. It's the other way around. It's you that requests validation of the account from them. There are several validation sample letters in the sample letter section of the board. You could use one of them, customize it to your situation, and send CRRR. Allow the CA 31 days to respond. If they do not, you follow that letter up with the estoppel by silence letter, which also can be found in the sample letter section.

The SOL is determined by the DOLA from the OC, not when the account was placed with the CA. You would need to find the DOLA from BofA.

Yes, there is always the chance you can deal with the OC only and leave the CA out in the cold. However, if you request valdiation from the CA, do not start making any deals with them nor the OC before that 31 day timeframe I explained above runs out. You want to start catching the CA on violations of the FDCPA and FCRA. Once you start creating your paper trail of violations, then you have more leverage against them.

Can the OC see what you have in your bank account? Well I'm not sure. Is your bank account with BofA as well? If so, then probably yes, even though they shouldn't have the right to do so.

Negotiations comes later. First see if the CA will validate the debt. If they can, then it will be time to negotitate, otherwise, if they can't, the ball will be in your court.

Here is section 807 of the FDCPA:

Take a look at subsection (5). It applies to your situation if the CA has threatened to sue, and it's in writing.

§ 807. False or misleading representations [15 USC 1962e]

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.

(2) The false representation of --

(A) the character, amount, or legal status of any debt; or

(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.

(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.

(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.

(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.

(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to --

(A) lose any claim or defense to payment of the debt; or

(B) become subject to any practice prohibited by this title.

(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer.

(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.

(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.

(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action.

(12) The false representation or implication that accounts have been turned over to innocent purchasers for value.

(13) The false representation or implication that documents are legal process.

(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization.

(15) The false representation or implication that documents are not legal process forms or do not require action by the consumer.

(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act.

 

You can't borrow your way out of debt.

Be firm on the amount you are able to afford according to your current means, without obligating yourself further to anyone.

 

jerseyboy,

Not quite sure if they own the debt or if BofA still does. But don't worry too much about that now.

The C&D letter will not slow a CA down at all. In fact, if you're looking to send the full-C&D you're pretty much leaving the CA with no other option but to sue you.

Requesting validation is your right, and no it's not better to just avoid them, because by doing so you're not exercising your rights, nor are you giving them much choice other than to sue.

As a collection agency, they are required to validate a debt if you request it. If they do not, they can no longer continue collection activity. Also, during that 30-day time frame I was referring to, they cannot continue collection activity during it as well. This includes filing a lawsuit against you.


From the FCRA section 605:

(c) Running of reporting period.

(1) In general. The 7-year period referred to in paragraphs (4) and (6) ** of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

(2) Effective date. Paragraph (1) shall apply only to items of information added to the file of a consumer on or after the date that is 455 days after the date of enactment of the Consumer Credit Reporting Reform Act of 1996.


As far as settling goes, you're jumping the gun here. You don't want to have to settle just yet. Catch the CA on some FDPCA and FCRA violations, then you'll have a bargining tool against them.

 

Yes. All correspondence between you and a collection agency should be done in writing. Request validation. If they're harrassing you on the phone, then yes you could send a mini-C&D, otherwise don't bother with it.

No, do not start negotiating now. The whole point of validation is you're saying you do not recall incurring this debt, and you want solid proof that this debt is in fact yours.

There's no long shot about it. Validating a debt is a requirment of the CA if requested by the consumer. However, it does not "force them to bend my wishes and lower the amount I have to pay in settlement as well as get teh bad mark erased from my CR". The reason being, CA's are not your friend. Even when they are wrong, they still will not admit it without a fight. To get them to go away, and delete the collection account, you need to keep hammering away at them.
Also, if this account IS on your credit report, (the collection account that is) the OC will not have power to remove it, thats the CA's job, and that's why you're dealing with them at this point.

Before you go and borrow money to pay back a debt, get the ball rolling on the validation process. You just may get the results you want.

 

Because if you come right out and say yes the debt is mine, you're less likely to get a favorable settlement, and also, you're basically destroying your chances of getting the collection account removed.

Yes it is. However CA's are not looking out for your best interest. You are. Unless their settlement included (in writing) full deletion, don't trust them, and do not take anything less.

Yes it is. However, unless you have the full funds to pay BofA off, you'll need to deal with the CA on some level. That's where the valdation process begins.

For example: If you have the full funds to pay off the debt through BofA, then you would want to pay it off, then dispute the account through the CRA's as not mine or account already paid.

Again, that depends. If both OC and CA are reporting the account then BOTH have to delete each derog account. The OC cannot remove the CA account and the CA cannot remove the OC account.

I'm one of them. OC never reported. It was the CA that does. They've since been deleted. How? I started my paper trail by sending valdation, then estoppel, finally an intent to sue along with several complaints to the BBB, FTC, AG and Dept. of Commerce in their state.