In the process of getting pre-approved for a home loan, the mortgage person informed me of a collection account on my credit report. This apparently has been in collections since 1997. I have bought several vehicles, rented apartments and even worked with Consumer Credit Counselors on a couple of other accounts I had in collections several years ago. How it's been missed all these years, I have no idea. Anyway, I contacted the collection company to find out exactly what it was for. It was a service that I used very briefly back in the late 90's. Upon requesting a copy of the contract, I was given a lot of flack and attitude, which of course, wasn't necessary, especially since I was the one that contacted them. From what the collection company says, my original amount owed was in the $800 range. Now, with 6 years of interest, it's almost $2000... yeah right! I called back to speak to a supervisor, who was completely nice and agreed to submit a request for my contract. It has been 2 weeks and no contract has surfaced. I believe this company is probably out of business at this point, but I don't know for certain. Does anyone know what steps I should take next? While I don't have a problem paying what I actually owe, I'm wondering, without a contract or if the company is out of business, could they still make me pay?
Well the first step you should take is to request validation from the collection agency. This forces them to either come up with the documentation or cease collection activity. This includes reporting to the credit bureaus. Once you have sent your request for validation to the collection agency via CRRR and have gotten your green card back then you dispute the account with the CRA's. If the collection agency verifies the account before providing you with full validation then they are in violation of the FDCPA and you can sue them for $1k. If they verify you can then send them the estoppel/intent to sue letter referencing their violation. At this point they would usually go ahead and delete the account from your credit reports. Also if they fail to mark the account on your credit reports as "in dispute" this is another violation and another $1k for you. Now you are at 2k plus court costs, missed work, etc. This should be enough incentive for them to delete.
Glad you came to this site, I know they can give you all the advice you will need here. If you don't get a response soon and your question goes over to page 2, 3, etc. "bump" it back to the beginning by replying to your own message with <bump> in this section and it will rerun it so that it can once again be addressed. They get so many new questions each day, before you know it you're on page 5!! From what I learned on this board, it looks as though you will have to send a letter of validation re this charge. Look up questions here relating to same, there are hundreds! Hang in there, someone will help you. Again, good luck LRM216
When you say request validation, is there a form to fill out, or do I just need to draft a letter to mail to them?
What state are you in? What kind of debt is it? Open or installment? This is extortion. They know that you cannot close on a home loan with an unpaid collection on your report - the mortgage company will make you pay it. There are appropriate letters to get this off quick, just tell me the state and the type of debt, and I will give you the letter. I just had to help this person.
It's in the letters section. Go to page 1 . Scroll down to other forums bottom left. Click on it select sample letters. Click on Debt validation. ------------------------------------------------- Don't make any changes or additions to the letter except where it says signature. Delete that and only type or print your name where it says your name. You don't want a CA to have a copy of your signature to forge. The END ************************* LB 59
Re: Re: Collection account out of nowhere Go to page 1 . Scroll down to other forums bottom left. Click on it select sample letters. Click on Debt validation.
Is it a credit card? An auto loan? A medical bill? an old utility account? I wouldn't send any letters just yet, if I were you. You will be caught up in a process that takes a long time. I can give you the short way out if I have the right information. You just said it was "a service" what kind of service?
Did you have a written contract for a certain period of time? Or was it a month to month revolving account? Believe me, it makes a difference. And when (what month if you can recall) did you stop paying?
See, that's the thing, I don't remember. It was in 1997. That's another reason I've requested a copy of the contract.
OK. If you remember or you get a copy let me know. If this is a written contract ($xx.00 a month for xx months), and you stopped paying on it after 2/13/97, it is within the statute of limitations, and they can make you pay it. Validation is a longer process, and will take a couple of months - it might get you out of paying if they can't produce the required info, but it will screw up closing on a house. If you knew for sure it was beyond the SOL, I had a letter that would get it off the day they got the letter. Without that info, I wouldn't want to advise you to do what I had in mind.
Re: Re: Re: Collection account out of nowhere OK, I've written the letter. There are two signature lines at the bottom of the Disclosure Statement. One is for the collector, the other for the administrator... who is that?
Re: Re: Re: Re: Collection account out of nowhere PBM used to be administrator of this board. Just delete that.
Re: Re: Re: Re: Collection account out of nowhere PCH, YOU'RE NOT LISTENING! Breeze asked you some questions about the nature of this account. The first thing you need to do is answer them. If you have to dig through old records or paperwork, old checks, old credit card statements, then do it. Do some research if you need to. Track this place down and see if they're in bus. or not. If they are, call them and ask how their contracts for payment works, (Don't tell em you're an old client). Taking the time to do this step properly may determine your level of success. The question is: Was it a fixed monthly amount for a number of months certain? Or was it a revolving account where the monthly amount due might change and you received monthly statements? You obviously don't know the difference between a revolving account and a closed contract. I understand you're in a hurry but you need to be a little patient. If you're going off half cocked and not listen to the pro's on this board then, good luck. You'll need it. Oh - Welcome to the board.
Re: Re: Re: Re: Re: Collection account out of nowhere I have tried to locate them via internet. The only company I can find that remotely resembles them is located up north somewhere. I can't see where they have a location in Phoenix, which is where this all occurred. As far as finding any documentation from my end, I highly doubt I kept anything and if I did, it would be virtually impossible to find at this point, as all this happened in my mid 20's and I've moved, easily 10 times since then. Who knows where it would be. I am trying to take in all the advice that's given here. I am reading it daily and comparing different answers from others. It seems that many people have different suggestions as to the best way to handle this situation. Thanks for your input... thanks for everyone's input. And by the way... I am LISTENING!
Re: Re: Re: Re: Re: Collection account out of nowhere pch_ga Don't sign the letter. Just type or print your name. The END ************************* LB 59
