A collection agency (CA #1) has an ancient alleged credit card debt from me that is way past SOL. According to their paperwork, the old alleged debt is worth roughly $18,000. This same CA has recently acquired a new debt from me. The new debt is worth roughly $60, and is valid. What's interesting is that this new $60 debt is from a company that doesn't normally use this CA. I've had debts in the past with this new OC (they get paid, just a few months late) and they've always used the same CA (CA #2; not the one who just contacted me). The debt is valid, but it's strange that they went with this particular CA instead of the same one they've been using for the last ten years. What's even more interesting is that this CA has enclosed a settlement offer of $20. That's an initial settlement offer of 33% (!!!) on a debt that's barely a few weeks old. So to review: 1) CA #1 holds an alleged $18k debt that has gone past SOL 2) CA #1 acquires a new $60 debt 3) CA #1's initial contact with me is a 33% settlement offer on the new debt A 33% offer is not only extremely rare, but it's NEVER heard of on a new debt -- let alone on initial contact. Call me paranoid, but the red flags are flying up left and right here. It sounds as if they are attempting to get me to send in a payment which they will then apply to the oldest debt on my account, thus bringing that $18k back into play. To summarize: 1) CA #1 holds an alleged $18k debt that has gone past SOL 2) CA #1 acquires a new $60 debt 3) CA #1's initial contact with me is a 33% settlement offer on the new debt 4) CA's ridiculous lowball offer is just too good to pass up 5) I pay CA #1 the requested $20 6) CA #1 applies the $20 to my oldest debt, bringing the $18k back into SOL 7) Lawsuit I don't dispute the validity of the $60 debt - it's 100% legit and I was ready to pay it until I saw it coming from this CA. But there's no way I'm going to come within ten feet of touching that alleged $18k monster. Both entries have different account numbers on them. I can mark on the check "ACCT # 12345" (the account # for the $60 debt), but aren't they able to apply payments to the oldest debt first? I'm currently digging through caselaw in my state, but I'm curious to hear from anyone else who has experienced this. It's one thing to say "just sue them if they don't apply it to the correct account", but it's another thing to pay those legal costs. Thanks.
Hmmm - sometimes reading the FDCPA is a big help: "§ 810. Multiple debts If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumerâ??s directions." I'm still keeping up on the caselaw review in case there's any screwy precedent, but it looks like my best bet might be something like: 1) Send a CMRR disputing the alleged $18k debt 2) Wait 10 days 3) Notarize a check for the $60 payment with the new account # clearly marked, send CMRR
