I'll try to make this brief and to the point. In Nov. of 2001 I recieved a credit card from Direct Merchants Bank with a very high limit ($7500) not even sure how I recieved a card with that high of a limit anyways since my credit was not established for very long. Anyhow I began to become VERY foolish with this card, I was always making payment but of course not paying off the account in full. I had some very unexpected car problems and it had to be fixed, I didnt have enough in savings so I put it on my DMB credit card. Basically with me being EXTREMELY foolish (and 19) I racked my CC up to $9000 . Horrible I know. I fell behind a little bit and I recieved a call from Cust. Serv. from DMB services and they offered me a full settlement if I were to pay $5000 on the account, they would call it even. (this was back in October of 2002) So I pondered on it and though Ok..I went into my mutual funds (which was decresing VERY fast) and took out $5000 to pay this card and fullfill the settlement which would then show my account paid by settlement (yes not a good thing, but at least this card was taken care of and I can move forward). Now fast foward to August of 2003. I recieve a call from a collection Agency on August 8th, 2003, stating he is handling my DMB credit card account and I owe $4000 WTF! I almost started to cry. I explained EVERYTHING to him (not like he cares but I told him everything that happened) He said do you have the settlement papers....I thought about it, I do remember recieving I believe what shown was a settlement paper back in October of 2002, but stupid me I have no idea where I put it). I asked him what else I could do, we pulled bank records from my bank the bank printed off a copy of the check that "CardMember Services" pulled for $5000 on a certain date, and that proves the $5000 was paid, but of course it doesnt prove settlement. He told me to have the bank fax him those forms so he could look over them and send those in. So....we leave for vacation the next day and I had told this gentleman on the phone that if he needs ANYTHING to call me and LEAVE a message, I even gave him DH's cell phone since that will be with us on vacation. I said call me no matter what, (especially if this wasnt suffice enough to him for payment made) I never recieved any calls back from this gentleman. I was hoping it was the end and everything was settled. I just recieved a letter in the mail from ANOTHER collection company stating they are now handling my account This was yesterday (saturday Sept. 27) they are only open on weekdays so I am livid now and cannot get ahold of these people. They say in the letter that I am able to dispute this within 30 days of recieving this letter, and you better belive I am disputing this. I have no idea what that will do. I know that at one point I was liable for paying the remaining $4000 but we had an agreement in October of 2002 that it would be taken care of with that $5000 payment as a settlement agreement. I am worried that even if I dispute this I am going to be screwed in the end with having to pay for this. (I know I did this to myself and everything but why this is not surfacing after close to 1 year later? That boggles my mind) I called DMB for weeks after I settled to make sure my account was clear, and on each time they said YES your account shows you paid that $5000 as a settlement and your account will show clear in a few weeks when they update the records. I called DMB today with cardmember services and talked to a very nice man about this (he actually gave me the time of day, back in August whenthe collection guy told me to contact DMB they 3 reps I talked to basically told me I am screwed and they will not speak with me contact the collection agency, even though the agency is having me call them) So this gentleman today was extremely helpful and took the time of day to actually listen to me. He suggested that I write into the Cardmember Services explain to them the situation and have them look into it further. He says he doesnt even see my account with them anymore. So I guess my only hope for now is disputing this charge with the collection agency, and giving it a go at the address he gave me and explaining my situation with them and sending them the documents I am reciving now from the collection agency and hoping they can pull files and see that I settled on my account. Could this be a case of DMB trying to screw me, taking the $5000 payment TELLING me they are goign to settle, and then wind up NOT settling the account? I sure hope not, but we'll see. I apologize for this being so long winded, and if you made it through this, I give you credit. Any advice on this would be wonderful. Sheri
Did your settlement papers say DMB would not sell the remaining debt? The man you talked with was from DMB or a collection agency? It is likely his CA sold it to another CA because they can't prove the debt. Send the seconf\d CA a validation letter. Other than being a pain it shouldn't be tough to deal with.
READ THESE: Pay close attention to the ones about validation and those concerning CAs. New Member Must Reads.--------------------------- http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=350770#post350770 http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=314910#post314910 http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=352826#post352826 Sample letters http://consumers.creditnet.com/straighttalk/board/index.php?s= WhyChats statute of limitations http://community-2.webtv.net/Y-chat/WhyChatsCredit/ http://community-2.webtv.net/Y-chat/WhyChatsCredit/ statute of limitations http://www.edebtnetwork.com/content/collection_laws.asp """"```--~~~~~~~~~--```'""'''
First off thank you so much for replying with some info for me, I really do appreciate it. Since I was foolish and misplaced the settlement papers that were sent to me. I shouldnt assume anything but the way I am thinking is since we agreed this account would be paid if full with the $5000 as settlement the account will be clear and they will report to my CR as we agreed. But like I said I should not assume anything. So you are saying I should send the 2nd CA a letter stating this was cleared? If so there isnt much I can do about that, when I talked to that 2nd CA about a month ago my financial Instutition faxed this gentleman all the forms showing the payment was made, they also sent a copy of the check that was pulled from CardMember Services, (granted this does not prove Settlement) But I cant send any type of proof to the 2nd CA that it was paid as a settlement since again me being foolish I dont have those papers to prove. I am going to contact the 3rd CA tonight since they are open only on weekdays and dispute this charge, and then try to pull together a letter to send to the OC and have them send me forms regarding this matter a year ago. I hope this works. Sheri Thanks again!
Re: Re: Help! I thought I settled... 1*So you are saying I should send the 2nd CA a letter stating this was cleared? Sheri ====================== No do not and I repeat do not send them a letter explaineing anything. The only thing you need to send them is the following Validation Letter. Here is the Validation Letter you want to send by CRRR. Don't make any changes on it and don't hand sign it. Your Name Address City State Zip Company Address City State Zip Date RE: Account #_________/Original Creditorâ??s Name Dear Sir/Madame: Thank you for your recent inquiry. This 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. Be advised that I am not requesting a "verification" that you have my mailing address, I am requesting a "validation;" that is, competent evidence that I have some contractual obligation to pay you. You should also be aware that sending unsubstantiated demands for payment through the United States Mail System might constitute mail fraud under federal and state law. You may wish to consult with a competent legal advisor before your next communication with me. Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees. Sincerely, Your Name don't sign - - - Include the following on a separate sheet of paper - - - CREDITOR DISCLOSURE STATEMENT Name and Address of Collector (assignee): _________________________ Name and Address of Debtor: ____________________________________ Account Number(s): ____________________________________________ What are the terms of assignment for this account? You may attach a facsimile of any records relating to such terms. Have any insurance claims been made by any creditor or assignee regarding this account? YES/NO Has the purported balanced of this account been used in any tax deduction claim? YES/NO Please list the particular products or services sold by the collector to the debtor and the dollar amount of each: Upon failure or refusal of collector to validate this collection action, collector agrees to waive all claims against the debtor named herein and pay debtor for all costs and attorney fees involved in defending this collection action. ________________________________ Authorized signature for Collector Date_______/_______/_______ Please return this completed form and attach all assignment or other transfer agreements that would establish your right to collect this debt. Your claim cannot be considered if any portion of this form is not completed and returned with the required documents. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. If you do not respond as required by this law, your claim will not be considered and you may be liable for damages for continued collection efforts. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''
Re: Re: Help! I thought I settled... 1*So you are saying I should send the 2nd CA a letter stating this was cleared? 2*when I talked to that 2nd CA about a month ago my financial Instutition faxed this gentleman all the forms showing the payment was made, they also sent a copy of the check that was pulled from CardMember Services, (granted this does not prove Settlement) 3*But I cant send any type of proof to the 2nd CA that it was paid as a settlement since again me being foolish I dont have those papers to prove. 4*I am going to contact the 3rd CA tonight since they are open only on weekdays and dispute this charge, 5* then try to pull together a letter to send to the OC and have them send me forms regarding this matter a year ago. I hope this works. Sheri ====================== 1*No do not and I repeat do not send them a letter explaining anything. The more you try to explain something to a CA the deeper you are sinking in quicksand. 2*Rule number one is never talk to CAs on the phone more quicksand. 3*The CA has do any proving not you. 4*Do not call this CA tonight remember the quick sand. 5*Don't recommend doing this: Why help the OC assist the CA in nailing you? Send the V.L. letter I gave you in the other post to the CA and let it work for you. Don't do any thing that might mess up the effectiveness of the Validation Letter. THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''
Re: Re: Help! I thought I settled.. Here's a thought. Have you looked at your credit reports lately? If not, you may want to have a recent copy of your credit report. Look at it searching for the original creditor in this situation. See what it's status is, does it show paid in full or some other notation indicating that you've paid it off. I believe that even "Settled for less than the full amount" still legally would indicate that it was settled and that no further payments can legally be collected. But I agree with everyone above, you should be able to just send validation letters to each and every skumbag collection agency who buys this paid debt, there is NO way that they will be able to validate. I would also try this. Send a nice leter to the OC (don't talk to them on the phone) explaining that you agreed to a settlement on XX date, and now a collection agency is trying to illegally demand payment for the forgiven portion of the debt. Ask them to send you a copy of your settlement agreement to "Verify the information they've sent to the CA matches the settlement agreement you have on file" Don't admit that you misplaced the settlement papers, bluffing is probably your best hope here. Send it CRRR and notate on it that you're CCing it to your state AG, the BBB, and the FTC. You don't actually have to send a copy to those other three, but an indication that you sent a copy to your AG, the BBB, and the FTC will put a bit of a scare into them to get them to comply with your request. If you let them know that you feel your rights are being violated, and you have recieved actual monetary damages, they may very well get the impression you're ready to file suit against both them and the CA. Chances are that you will get sent a copy of the agreement (it's been just a year, they definitly still have that information on file) and they will pull it from any CA's and never send it out again. Hope it all works out for you. ChrisB
Here's a thought. Have you looked at your credit reports lately? If not, you may want to have a recent copy of your credit report. Look at it searching for the original creditor in this situation. See what it's status is, does it show paid in full or some other notation indicating that you've paid it off. I believe that even "Settled for less than the full amount" still legally would indicate that it was settled and that no further payments can legally be collected. But I agree with everyone above, you should be able to just send validation letters to each and every skumbag collection agency who buys this paid debt, there is NO way that they will be able to validate. I would also try this. Send a nice leter to the OC (don't talk to them on the phone) explaining that you agreed to a settlement on XX date, and now a collection agency is trying to illegally demand payment for the forgiven portion of the debt. Ask them to send you a copy of your settlement agreement to "Verify the information they've sent to the CA matches the settlement agreement you have on file" Don't admit that you misplaced the settlement papers, bluffing is probably your best hope here. Send it CRRR and notate on it that you're CCing it to your state AG, the BBB, and the FTC. You don't actually have to send a copy to those other three, but an indication that you sent a copy to your AG, the BBB, and the FTC will put a bit of a scare into them to get them to comply with your request. If you let them know that you feel your rights are being violated, and you have recieved actual monetary damages, they may very well get the impression you're ready to file suit against both them and the CA. Chances are that you will get sent a copy of the agreement (it's been just a year, they definitly still have that information on file) and they will pull it from any CA's and never send it out again. Hope it all works out for you. ChrisB
Re: Re: Help! I thought I settled... Thank you again for all the information! This is all VERY new to me so I apologize if my questions seem silly. I will send that letter out to CA #1 that called me about a month ago, should I also send the same letter to CA#2 that has just contacted me last week? I will not make any calls at all to either CA. I will do this all in writing. Thank you again for everything. Sheri
Thanks so much ChrisB. I appreciate all the information. I have learned so much through this and I thank you all for being patient with me through this. Tonight I will get my letters typed up and ready to be sent out. Is there any website that I can get a FREE credit report? All the ones I have tried you have to pay for. Thank you SHeri
Re: Re: Help! I thought I settled.. Anything that you get for free isn't likely of any good use to you. It's worth the $ to get a good tri merged. There was one site that had a good $1 90 day trial which goes to I think $89 a year. I don't remember what it was called, someone can help out with that, but you can look at the tri merged, and then keep checking it daily through the 90 days. ChrisB
Re: Re: Re: Help! I thought I settled.. The website you are talking about is www.privacyguard.com. paw67
Re: Re: Re: Re: Help! I thought I s Yes, that's it. I use paper copies from each of the three, I know it's more expensive and isn't able to be updated daily, but I prefer to have all the info clear as mud there on paper. I get a fresh set (one from each) every 6 months or so. From what I've heard, PrivacyGuard would probably be the best thing for the original poster to use for affordable listing of tri merged report. ChrisB
sherihoppe, first thing STOP talking to CA on the phone. everything should be in writing from now on so you have a paper trail. that settlement letter or whatever from DMB that you can't find, since DMB isn't blowing you off, call them and see if they can send you a copy. also, please remember CA make their money through commissions so don't even think any of them are your *friend* so don't expect any help; they are only interested in your money. do not send a CA any documents.
I have a few more questions and I am sure someone can help clarify some things for me... After getting more aquainted with this board and looking over other posts, I want to see if I am getting the hang of the "validations" and everything, please feel free to let me know if I am way off base on any of this. (keep in mind I am VERY new to this) So what I get from other posts is....I need to send out validation letters to these CA's that are calling/mailing things to me to clear my accounts for them to PROVE to me that they indeed have the right to be collecting payment from me for these accounts. Correct? If they cannot prove that they have legal right to be handling these accounts they MUST clear my record of these and cannot collect payment? (here is where I might be way off). Now if they cannot prove that they have these for a reason do they just get taken off of my report? In general when an account goes to a CA if someone were to send a validation letter how often can these CA prove they have right to collect on these debts? Also...if I have an account for $250 that is past due (I know I may as well pay it) would it be better to send a Validation letter out or to just pay the ammount in small monthly installments? Thanks and sorry for the length. Sheri
If they can't validate they have to remove it from your report and also they can no longer collect. They can, however, sell it to another CA. Just keep sending the validation letters. Along with the validations, tell them to contact you only in writing, no telephonic communications. You don't EVER want to talk to them. They make you say things you don't want to say and they twist them to their own use. It won't hurt to send a validation on the new one. Maybe they don't really have any paperwork. At least it gives you a little time.
Thank you so much! I will be sending the Validation letters out to both companies tomorrow I believe. I hope to hear back from them. I was reading over the letter I recieved from CA 2, and they said they are handling my account now that was passed from CA 1....ugh! Thanks again! Sheri
Question: When sending my Validation letters out....it has my maiden name on the letters I am recieving....do I put it as my maiden name or do I use my Married name now? Thanks
This is my Validation Letter that is being Sent out... Should I change this in any way? Sheri ***** ********** ********** National Asset Management Enterprises, INC. PO Box 723367 Atlanta, Georgia 31139 October 1, 2003 RE: Account # ***************/Direct Merchants Bank Dear Sir/Madame: Thank you for your recent inquiry. This 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. Be advised that I am not requesting a "verification" that you have my mailing address, I am requesting a "validation;" that is, competent evidence that I have some contractual obligation to pay you. You should also be aware that sending unsubstantiated demands for payment through the United States Mail System might constitute mail fraud under federal and state law. You may wish to consult with a competent legal advisor before your next communication with me. Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees. I also request that you no longer contact me by means of telephone, that all communication further must be done in writing. Sincerely, Sheri *******
