In 2005 I let a US Bank credit card payment slip, and was sent to collections with an agency called Client Services. After having to get US Bank involved because Client Services wouldn't accept a payment plan, they agreed to a monthly plan. I paid a monthly fee (always on time) for a few years until I negotiated an amount to payoff in 2007. I received a letter from Client Services saying that they would accept the negotiated amount as payment in full for the debt. I sent them a check, and they cashed it. After this, I occasionally received a note from random agencies saying I owed $500 or so, but they would disappear after I sent a verification request. A few weeks ago I received another one from an agency "representing" (they're one of those agencies who presents as lawyers without claiming to be lawyers) another agency. I asked for verification, and they sent a letter listing the account number from the US Bank account I paid in full through Client Services. Worse, they've reported on my credit score as a collection account, and it looks as if my US Bank account is listed as a charge off. I'm trying to track down what happened here, and plan a course of action. Any advice would be appreciated. Specifically: the verification letter I received listed account numbers, but no actual verification from US Bank. Should I push back for more verification? What's the best way to track down what happened here? What's the best way to sort this out and make sure I can get my credit score repaired? If this is legitimate debt, I'll pay it, but it seems to me that somebody is scamming me, and that riles me like nobody's business.
After reading through all the various threads on this board over the past many years, I have come to the conclusion that collection agencies can't be trusted. They (Client Services) agreed to a lump sum as payment in full. They then went and gave the "remaining" balance to other scumbag collection agencies to try and weasel some more money out of you. As long as you have the documentation from you making the payment that they (in writing) agreed is payment in full, I would tell the new agency that the account they are trying to collect on is paid in full, and that if they attempt to re-assign it you may take actions allowed by law. Also have you disputed with the CRA that that particular tradeline is an account that is paid off? Document - document - document. Keep a good paper trail, this smells like something you should be able to get some violations on.
I hope you have a copy of the letter and the canceled check. If so, you might have case of fraud against the original CA, the one with whom you made the agreement) and the one who is currently attempting collection. If not, you are in a tough spot.
Thanks for the replies. I've uncovered a bit more information in the past few days. My original debt with US Bank was $2200 or so at the time of the pay off. Client Services accepted my money, but didn't pass along to US Bank that it was a full payoff (that's the generous version, although I'm not inclined to feel generous towards the banks I've dealt with, we'll pretend for the moment). The $500 or so balance was listed as remaining debt, but Client Services was done with me, so it was sold to various other companies. I've been in touch with US Bank, and faxed them a copy of the letter and cancelled check (which I kept, thankfully). They'll report it to the credit bureau, but they sold the debt in 2008, so I'll have to sort this out directly with the company that now owns it. My moral? I should have followed up with US Bank after sending in the payout. So, with all that information, any advice for courses of action or ways to make sure my behind is covered? Do I have a case against US Bank in small claims?
Some times things do get reported in error (for example they may report it as a payment instead of a settlement in error). Are you sure it's a sold account or is it just referred to collections? Who has the account now? I'd request validation, a print screen from their system is not VOD.
