To begin with, I've been going thru posts, found an example of a validation & estoppel letter to send out, but I want to make sure I wont be setting myself up for drama if I do. Basically, I had a credit card from 1998, 1999 that basically got written off. It shows up on my credit report w/a balance of about $473. Last month a collection agency (Arrow Finanical Services) sent me a letter (after like 40 calls per day) stating that I owe about $1100. I called the original creditor (1st National Bank of Marin) who stated they no longer have my info since the acct was "sold" to Arrow. I called Arrow to find out how it basically almost tripled in balance & the rep informed me of late charges/interest. I told them I dont see how it accumulated to that amount & told them I would get back to them. Of course they still call me 40x a darn day showing up on my caller id like a stalker!! So finally I called & said i'm not paying that amount of money, especially since that wasnt my ending balance. They agreed to settle for about $561 & set up a "payment plan" for the money to be withdrawn from my checking account. Since setting up the arrangements, I had to close & reopen another acct w/my bank b/c of issues w/a former spouse. Now I totally forgot about the direct payment 2 the collection agency until I got a letter "confirming" the arrangement (mind you it stated past due balance) the other day. But since reviewing this information, I'm wondering if I should attempt to get this removed, especially since I attempted to make arrangements for payment..but thus voided it b/c I had 2 cancel the checking acct. Now this acct is almost 7 yrs old, isnt it against the law to try & collect after that amount of time (statue of limitation)?
SOL doesn't prevent them from attempting to collect, and a payment could reset the SOL. (and in some places, even making a promise to pay, or a payment arrangement could reset the SOL.) Validation, requesting that they completely account for every penny in what they are claiming is owed; including a complete break-down of any charges that they have attempted to add to the account. And request that they only contact you in writing from now on.
I would also be VERY leery of giving them ANY banking information - I've read horror stories on this board of CAs wiping out an entire bank balance. The fact that you've already set up a new account is good - but I would contact the former bank and cancel any automatic withdrawals - if that bank lets them go through, you'll end having that mess to deal with. Good luck and keep us posted.
I was thinking that any arrangement I made with them would push the SOL. So I'm regretting that! Ok so I should send a validation letter, & if they dont reply after 30days...should i send the estoppel letter, or is there another letter that you suggest. I appreciate your help!
i WAS JUST THINKING ABOUT THE BANK SITUATION. I'm going to call now to see if i'm going to be responsible for any fee b/c of them attempting to go in there. So far I havent received anything in the mail, but that doesnt mean anything.
I screwed up. I mailed the 1st letter, but since moving & starting school in addition to work, I cant find the certified mail receipt. So I'm just going to start the whole process all over again (UGH). Just so I have not confusion. which letters EXACTLY should I send the agency (& in what order). thanx for any input!!
