Hello, Everyone!! I took a little vacation from credit repair for awhile, but I'm back. I cleaned a few more things up on my credit so my score does not look to bad, but I still have somethings to do. Anyway in the interim I'm helping my sister out with her credit as well. I have a situation right now that I'm not sure what would be the best route to go. Received a letter from a CA couple of weeks ago, but the account was settled with another CA (Paid). I'm guessing they turned around and sold this account to the current CA bugging me. I have a letter all typed up to send them, but wanted to check with you guys first. I'm sending a C&D / Validation combination letter to the current CA. Now granted, this is not showing on my Credit Report yet. What do you thing? Also, I notice when I made the agreement with the first CA to pay this account they pulled 3 hard inquiries on my credit report the day I was making the deal with them over the phone ??? kathy
Ok, I'm not a pro here, but don't 3 unauthorized hard inquiries = 3 $1000 penalties payable to your sister?
Ok, read a little closer this time. So what you are saying is that you settled an account and the CA turned around and sold the account to another CA. Well, I seem to remember a letter in the sample letters gallery about that type of situation. It is directed to the new CA and basically tells them "hey, you just bought a bad account, return it to the other CA since you can't collect on it anyway" or something like that. Good luck!
...Actually, its the first letter! This post was originally contributed by Butch --odessa I've posted much about CA's selling or assigning a debt to a subsequent (unsuspecting) CA because you demanded validation that they cannot provide. This issue affecting a lot of people. Assuming you demanded validation that never came, or was inadequate, I suggest you take it upon yourself to "notify" the subsequent CA of the debts FROZEN status. Send CA2 &3 &4 & whatever, the following letter. Obviously you'll want to customize it to fit your situation. Dear CA#2, It is a well settled legal principle that all opportunity for resolution must be extinguished before legal action can take place. This notice should be considered constructive notice. Ca#1 has sold/assigned ("dumped upon") you a NON-performing, illegitimate debt, the collection for which has already been frozen by my demand for validation, via FDCPA. My demand was sent xx/xx/xxxx and signed for on xx/xx/xxxx by John Smith, at [insert address]. Follow-up letters were sent, blah, blah, blah. Your ignorance of this fact is no excuse. Both you and CA#1 are in violation of Federal Law for (but not limited to) continued collection activity on an alleged debt, the collection for which MUST CEASE until valid proof sent, pursuant to FDCPA § 809. Validation of debts [15 USC 1692g] (b) May I suggest you return this account to CA#1 and demand your money back, or compensation for your wasted time, pursuant to the "qualifying RECOURSE accounts provisions" of your purchase/assignment contract. I further demand that you immediately delete the trade-line you have inappropriately inserted on my credit report. YOU HAVE REPORTED INCORRECT INFORMATION! You have 5 days to cure. OR ... If you report this derogatory item to any credit reporting agency after the tracked and verified receipt of this notice, you may be sued. Any further communication from you before I receive the demanded proof of this alleged debts validity via federal and case law and I will instruct my atty. to begin drafting a formal complaint. Regards, Enclosures: 1) Copy of original and all subsequent val demands 2) Copy of return receipts & green cards 3) My atty. staff Let us know what happens. Butch, And this additional info was contributed by LKH Good letter Butch. In the situation when the acct is assigned rather than sold, you might consider sending the same letter to the oc with a statement that the oc can also be held liable for any violations committed by an assigned ca in attempting to collect the alleged debt.
Thanks so much for answering my post. Actually that is what I'm trying to figure out. Technically the account was still open. Had'nt paid it off yet. The deal was being made that same day. So I'm guessing that they still had permissible purpose to pull the hard inquiry because of it not being paid yet. I not sure. Any and all opinions welcomed. Trying to get letters out today. Because I want to try to get the CA letters in before the 30 days is up from the first letter that was sent. Kathy
Runaway, You know, I was just reading this letter last night. I have been doing research for the past 5 days on the board, just to get myself refreshed with all the information and to see if anything new has surfaced. I think you may be right. Would be a good letter to send in this situation. Considering that they have not put it on the CR yet. I like the one line that states "if they put it on the CR after receipt of this letter" statement.. Kathy
Are the following statements correct? The CA is also not allowed to proceed with collection after recieving the dispute untill they can valadate the claim. This includes reselling the account. rikers ><- <>- ><- <> Right they can not resell it however, it is usualy turned back over to the Original creditor and then re-sold by the OC or assigned to another collection agency ..this is legal. Jerabathga ><- <>- ><- <> Anyone know?
Kathy, I'm not sure if they can pull if you still owe the money, but I think not. Especially 3 hard inquiries in one day!? Perhaps somebody can chime in on this one. Also, just to clarify, you paid the account with the first CA. Is the second CA claiming you still owe the money to them now that you already paid? Or did you settle for a smaller amount with CA1 and CA2 is asking for the difference? Jim
Runaway, Regarding the hard inquiry pulls, I thought it to be a little much as well, but there were 3 collection accounts that were being settled, so my guess is that they pulled a hard on each one. See, right now I'm working on my sisters credit report. Some of the stuff that she has on her CR I never had to deal with on mine, so I'm like a fish out of water on some of the situations that are showing on her report. From what she tells me they were going for a re-fi on her mortgage. The loan officer told them that they had to settle on the collection accounts. So they cut deals with all the Collection accounts to settle for less then what they were asking. Of course there was no deal made for deletion because my sister and her husband did'nt know their rights when it came credit. The loan officer actually had the audacity to tell them that once paid that they would drop off after 3 months. So it goes... I told her I wish I had caught this before they paid there collections acct's. Anyway, considering that they settled for less, it is possible that this collection agency is picking up what remains. I will have to check with my sister to make sure of exactly what they paid and see the difference. I will check that tonight. I do have a letter ready to go to them. Essentially a validation letter. I considered using the letter regarding a illegitimate account being sold to them, but that's not going to work for this situation. because the debt was never originally disputed with the first CA. Please excuse my reference of "I" and "my" accounts. when I'm trying to explain one of these situations on a thread. These problems that I'm questioning on the board, for right now are all from my sister's CR and not mine. Just wanted to make sure everyone knew that.
Hmm, I agree with your validation letter because whether they are asking for the whole amount or for the difference from the settlement, they are asking for something, which points to validation. Good luck and I hope they screw up the validation!
