I've been dealing with an old debt (not valid - more on that later) that's really screwed up my credit, and I'm trying to figure out a way to fix it. Basically, in early 2001 my wife left me and simultaneously wrote about $800 worth of hot checks - mostly small, which means mostly with accompanying $25 overdraft fees - totaled up to $500 of those before it was all said and done - then chasing the ones the bank didn't cover took another year of tracking and paying exorbitant amounts... But anyway, I got behind (of course) on everything. If I'd have known then what I know now I would have bit the bullet and filed bankruptcy, but I was *determined* to pull out on my own. Eventually, I did pull out, and I'm slowly climbing my way back up (credit score was at one time in the 520 range, it's now 605-650 depending on the bureau) BUT In the midst of trying to recover, my Providian credit card, with about $2800 on it, was shut down. Providian called me and offered to shut down interest and close the card if I would make monthly payments of no less than something like $60 and more when I had it. I agreed, and breathed a big sigh of relief. About 6 months or so later, they sent me a letter offering to settle the account if I could pay $1000 of it (leaving, at that point, around $1400). I wrote them back and politedly declined, since as I noted before, I was determined to pull this out. A few more months go by and I'm doing MUCH better, so I start paying big chunks of it, several hundred a month. By December of '02, I've paid another $1000 or so to them... (do you see where this is going??) So in January of '03, I send another monthly payment - the standard $60 one this time, and they send me back a statement saying I now had a $60 *credit* with them..????????? After a few calls I *FINALLY* figured out they had settled my account as per the agreement they sent me. I argued and argued trying to get it reinstated, but the answer was that a settlement was absolute. FINE. I decided I could probably use that other $1400 to pay off other debts, and did so. I got a tax form from them a few weeks later, too, saying they'd taken it as a loss. Fast-forward to September '05. I get a letter from Atlantic Finance & Credit trying to collect that $1400 PLUS about $450 in interest! the first thing I did was DUG AND DUG for either that statement showing me having a credit, or the tax form, but I could find nothing. I was in pretty bad shape at the time, so I have no documentation. But I *KNOW* that was settled, and I know tax documents are kept on their end, so I thought I'd call and just explain that it was a clerical error on their part. The first call (in September) seemed to go well. I gave them the details, they said "Hm... Ok, we'll look into it and call you back if we need anything further". Now, fast-forward to November. I get a letter from some law firm basically threatening to SUE if I dont' get them money. at this point I start doing a bit of research. Turns out Arkansas state law time-bars an account after 3 years. So, with that in mind, I thought it might be best (considering my lack of documentation) if I just lay low for a few months. So, now the debt is time-barred, so they can't sue. but I just pulled my credit report and they're re-reporting it as a charge-off *EVERY SINGLE MONTH!!!* It's tearing me up, I'd bet So, more research, and I think a "one-two-punch" is my best option, but I wanted to post the letters I've come up with and see if they seem pretty appropriate?? I don't want to say or do anything stupid and screw this up... SO - I'll post each letter in a reply
First, to go to ACF: Richard Slaughter October 5, 2006 712 Walnut Little Rock, AR 72205 Atlantic Credit & Finance, Inc. 3353 Orange Ave. Roanoke, VA 24012 Re: Acct # xxxxxxxxxxxxxxxx - Providian Bank Dear Sir or Madame: I am writing in regard to the earlier mentioned account which I have recently found on my credit report. As I have no knowledge of any such outstanding debt, I was surprised to learn that you are reporting this one to multiple credit reporting agencies. This letter is not a refusal to pay, but a notice that your claim is being disputed. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. Please complete and return the attached disclosure request form along with any relevant documentation. Please be advised that I am not requesting "verification" that you have my mailing address, I am requesting a "validation" - meaning, reasonable and reliable evidence that I have some contractual obligation to pay the debt in question. It should also be made clear that sending unsubstantiated demands for payment through the United States Mail System may constitute violation of federal or state mail fraud law. Further, even if the claims as stated were correct (which is in dispute), Arkansas state time-barred debt law would prevent the use of litigation in the collections of this debt; as such, prior threats of litigation are without merit. Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act may be construed as your absolute waiver of any and all claims against me, as well as your tacit agreement to compensate me for costs and attorney fees that would be incurred should any illegal collection efforts - including violations of the Fair Credit Reporting Act - take place thereafter. Sincerely, Richard Slaughter Creditor Disclosure Statement 1) Name and Address of Collector ________________________________________________________________________________ 2) Name and Address of Debtor ________________________________________________________________________________ 3) Account Number ________________________________________________________________________________ 4) What are the terms of assignment for this account? You may attach a reproduction or facsimile of any relevant documents relating to such terms. ________________________________________________________________________________ 5) Have any insurance claims been made by any creditor or assignee, present or past, regarding this account? ________________________________________________________________________________ 6) Has the purported balance of this account been used in any tax deduction claims by any creditor or assignee, past or present? ________________________________________________________________________________ 7) Please list the particular products or services sold by the collector to the debtor, listed by transaction, and the specific amount and date of each such transaction ________________________________________________________________________________ Upon failure or refusal of collector to validate this collection action, or upon providing any false or incomplete information, collector agrees to acknowledge the invalidity of all debt against the debtor named herein and pay debtor for all costs and attorney fees involved in defense of this collection action. ________________________________________________________________________________ Authorized signature for collector __/__/__ Date
Next, 5 days later, one to experian, one to equifax: Richard Slaughter October 10, 2006 712 Walnut Little Rock, AR 72205 Experian P.O. Box 2104 Allen , Texas 75013-2104 Dear Experian: Please provide evidence that the following account belongs on my report and that my rights as outlined by the Fair Credit Reporting Act and the Fair Debt Collection Practices Act have not been abrogated. In the event that none can be provided, please delete this damaging account. Washington Mutual / Providian / Atlantic Credit & Finance, Inc. Acct # xxxxxxxxxxxxxxxxxxxx Thank you, Richard Slaughter
Next, to EQ/EX upon reciept of a possible denial from EQ/EX Richard Slaughter September 10, 2006 712 Walnut Little Rock, AR 72205 Equifax P.O. Box 740241 Atlanta , GA 30374 Dear Equifax: In regard to my earlier dispute of the following item: Washington Mutual / Providian / Atlantic Credit & Finance, Inc. Acct # xxxxxxxxxxxxxx On October 10, 2006, I disputed the above listed account. You claim to have verified the account, but I recently spoke to Robert at Atlantic Credit & Finance, 1-800-888-9419. They were unable to verify such an account to me, and additionally have no record of your alleged attempt to verify such an account. Please forward to me the name of the person you called to verify this account, the number you reached them at, and any documentation sent by or received by you during the verification process. You are required to furnish this information within 15 days. Alternatively, deleting this account as originally requested would be an amenable solution. If you fail to respond, I and all other parties to this matter, both present and future, will be forced to assume that you never verified this account as you are required to do. I will be compelled to proceed accordingly. Sincerely, Richard Slaughter
Finally, same time as the above, but to ACF Richard Slaughter September 10, 2006 712 Walnut Little Rock, AR 72205 Atlantic Credit & Finance, Inc. 3353 Orange Ave. Roanoke, VA 24012 Re: Acct # xxxxxxxxxxxx - Providian Bank Dear Sir or Madame: On October 5, 2006, I sent you a letter (see enclosed copy and certification) requesting you validate the above mentioned account you are trying to collect from me. You were also made aware that I had never been contacted by you previously about this account. I have received no reply to this letter, but it was delivered to your office on October XXXX, 2006, as is shown in the enclosed certified mail delivery confirmation. Still, this account remains unvalidated and you are reporting it to one or more credit reporting agencies in violation of the law. This will not be tolerated. If you fail to remove this account from my credit file, until such time as you can provide suitable validation that the debt is legitimate, I will be forced to pursue alternative methods to ensure your compliance with the law in this matter. I am willing to allow you fourteen (14) days from the receipt of this letter to rectify this situation by performing ALL of the following: 1) Remove any and all derogatory items relating to this invalid debt from my Equifax credit report. 2) Remove an y and all derogatory items relating to this invalid debt from my Experian credit report. 3) Provide notification to me, in writing, that these actions are agreeable and have been performed. 4) Provide written assurance that no further actions will be taken in regard to this account. If the time expires with no response, I will be forced to take legal action to enforce a reasonable remedy. Sincerely, Richard Slaughter
Now, I know that I have acknowleged that I was informed of the account when I talked to them - BUT, since the last communication I sent was basically telling them why I thought it was not valid, I think the statement that "...I have no knowledge of any such outstanding debt, I was surprised to learn that you are reporting this one to multiple credit reporting agencies..." ... Well, 'surprised' may not be entirely accurate, but still.. That should be OK to say, right? And my interpretation of things is that this should start the clock giving them 5 days to inform me of my rights, correct? So is there anything I'm saying or doing in any of the above letters that would get me in trouble? Obviously the dates will be set properly as is appropriate... Anything obvious that I'm doing wrong?? Thanks!!!
Most of the long generic letter can be reduced to "I dispute this debt, and request validation." Items 5, 6, and 7, in particular, are probably irrelevant. You might still assert that Providian settled this account in full in xxxx, and issuing a 1099, and that in addition, SOL in Arkansas has passed, as the last payment, settling this account, was made on xx/xx/xx. What do your credit reports show? Do they show it as settled in full with Providian? Do you have copies of your tax return for the year settled, showing the balance included as income in that year? Are copies of filed 1099s from past years obtainable from IRS? This might be a question for a tax accountant or enrolled agent. Can you obtain copies of the $60 Providian check deposited to your bank? That would show that Providian considered the account settled with no further amount due.
"Now, I know that I have acknowleged that I was informed of the account when I talked to them - BUT, since the last communication I sent was basically telling them why I thought it was not valid, I think the statement that "...I have no knowledge of any such outstanding debt, I was surprised to learn that you are reporting this one to multiple credit reporting agencies..." ..." You talking to them did not meet their legal requirement to notify you of your right to dispute, in writing, sent in 5 days. You dispute anyway, in writing, CRRR. Your letter should refer to your contact with them, on what date, based on information you found on your reports, and that this was your first contact with them, to establish that your validation request was within 30 days. Look at how this is likely to play out. Providian sold a debt they had already settled with you. As such they breached the contract they claim they had with you. This outfit is reporting an erroneous amount as still due, on a debt they should have never legally bought, as it was settled and forgiven, with issuance of a 1099 and refund of your overpayment to show that an agreement was reached. That agreement may have been breached by sale of the debt. Or, if they find your letter, it is still past SOL. Send your validation request, CRRR, to make sure it is sent timely and preserve your rights. But you might just want to run this by an attorney specializing in FCRA and FDCPA litigation, to see how to handle this if they continue collection efforts or sue.
