Collections Questions

Discussion in 'Credit Talk' started by bp1169, Oct 3, 2001.

  1. bp1169

    bp1169 Member

    Just found this board today, I think its a wonderful.

    I was working with a collection agency last year regarding a past due account around $5000. I wasn't able to pay anything at that moment, but had agreed to work out something in several months (informally). Since then it has been sent to a different collection agency. I just received a letter stating I now owe $10000 on that same account, itemized as $5000 principle and $4900 assigned interest. I find this hard to believe because just 9 months ago it was 5000 with one agency, it moved to another agency and its now $11000. I had no warning of interest charges, this letter was my first communication with this company. I am just curious if collection agencies are allowed to charge interest on accounts for which they haven't notified the consumer. Any advice on how to pursue this situation? I have contacted the company and they say it is 'assigned interest', whatever that is. Any help is much appreciated.
  2. SofaKing

    SofaKing Well-Known Member

    Most of the time the interest and "fees" they can charge are governed by your state laws and your original agreement for the credit.

    Many CAs will tack on whatever they can get away with. Get educated here and learn your rights.

    Send them a request for a debt "validation". This "validation" has been discussed at length here. Just search for it. There is even some examples here.

    The validation will force them to itemize the debt and bring everything out in the open.

    Since this is an actual "first" communication from them, they have 30 days to validate the debt.

    Is it showing on your reports?

  3. bp1169

    bp1169 Member

    Thanks for your reply. I have found a ton of great info on this site (I've spent all morning here). To answer your question, yes it is showing on my reports and has been since June of 2001.
  4. breeze

    breeze Well-Known Member

    How old is this debt, and what state are you in?
  5. SofaKing

    SofaKing Well-Known Member

    Yes, good point, breeze...

  6. bp1169

    bp1169 Member

    The debt is about 3 years old and in OH. I have also seen some posts stating that creditors have agreed to completely remove the entry in exchange for payment? Are there any recommendations on how to do that? Thanks again!
  7. breeze

    breeze Well-Known Member

    Well, you are SOL on the SOL, hahahaha!! Negotiate for removal is a better idea in this case. Or talk to bb.
  8. SofaKing

    SofaKing Well-Known Member

    Another way to say it:

    Unfortunately, you are in a state with a lonnnnng Statute of Limitations for collecting debts.

    They appear to be well within the limit (6 years) to initiate legal proceedings on this account.

    This means you must be careful how you deal with it. It's much easier to negotiate when it's beyond the SOL.

    Your best position is the fact YOU have the money... and THEY want it. They don't want to sue if they don't have to.

    The only thing I stress is to get everything in writing! Verbal negotiations and agreements are worthless! Send all certified/return receipt.

  9. breeze

    breeze Well-Known Member

  10. bp1169

    bp1169 Member

    So it is more difficult to negotiate a deletion when the account in question has met its SOL? Should I just suck up my losses and pay this. My big worry is the huge chunk of interest which seems to have been assigned within the last year. Since this is a CA, would I be better off working with the original Company, Citibank in this case?
  11. breeze

    breeze Well-Known Member

    Lots of things to consider - you will probably get more input later when some other people have checked the board. If the message gets pushed down just bump it back up.

    First, I would send the validation letter. Make them prove this debt is yours. Then check your state's statutes and see if there is an interest rate cap. They are tacking all kinds of crap onto this, I imagine. Ohio is very much pro big business, anti consumer, but good luck.

    Citibank may work with you, I don't know, but there are others on this board who can tell you.

    If the debt is past the SOL you can tell these jerks to buzz off and leave you alone, if it isn't, you have to figure out something else, that's all.

    All in all Citibank may be your best bet, but wait for some other experts to chime in, like I said.

    I am not a Citibank expert. Not any kind of expert, LOL. Well insurance I guess, been an agent for a long time.
  12. SofaKing

    SofaKing Well-Known Member

    "So it is more difficult to negotiate a deletion when the account in question has met its SOL?"

    No, just the opposite, if I'm understanding you correctly.

    Since the debt is well within the SOL for a lawsuit, they are in the position to take legal action. And, since they *can* take legal action, it is a very strong action (leverage) to use against you.

    However, if the SOL had passed, the threat of a lawsuit theoretically wouldn't be there. You could freely negotiate without the fear of being sued.

    *Note- A CA can still sue beyond the SOL. The defendant would have to raise the SOL passing as an affirmative defense.

    So, unless you can get out of it using some technicality, trick, or bluff, it seems negotiating the debt to it's lowest payoff would be an option.

  13. bbauer

    bbauer Banned

    As always, my advice is don't pay them a crying dime under any conditions.
    You have no contract with them and they have provided you with no services whatever, therefore you don't owe them a crying dime.

    If you pay them off you lose all chance of getting it off your credit reports and you will live with it until the 7 year statute of limitations for reporting is over with.

    Make them prove that you owe them anything at all.
    They might try to make you think you owe them something, but if you know how to handle them, they can't do a single thing about it.

    Above all, never talk to them on the telephone.

    Make them validate the debt and make sure it is a legal validation if you ever get one.
    Make them prove they have a contract with them or that you have a contractual agreement with you and what services they provided you with.

    You don't have a logical reason in the world to pay them one crying dime.
    Don't let them defraud you
  14. lbrown59

    lbrown59 Well-Known Member

    No deleat no pay and stick to it!
  15. lbrown59

    lbrown59 Well-Known Member

    Very importnt point.

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