I have been trying to help my boyfriend clean up his credit, so for the past few years we have gotten regular credit reports from all 3 bureaus. Several were collection accounts and we contacted them and got all of them paid off. Just recently, a new one shows up. It is from a credit card that was sold/transferred to a new lender. It showed the new buyer had reported for 3 years with the bureau...He has gotten reports for the last 2 years, they were never on there before, so he contacted the bureau. We said we didn't know they bought the account and they have never contacted us to work with them. I guess that was a mistake because last night someone from that place...Credigy...called and threatened him. Said if he didn't pay 13,000 now, they would take him to court and garnish his wages. The original account that transfered was for around 6,500.00. This account is from 1999. They said he owed interest and penalties. Should he wait until they chill out and see if they will work a deal? What do you think they can do? He was trying to do the right thing to clean up his credit report and contact them, because they made no attempts in the past. Any thoughts?
When was the last payment made? What is the SOL on this type of account in your state? When was the first payment missed from which the account was not brought current? (original date of delinquency) Are you sure this is actually the account you think it is, and that the amount they are claiming is due, is correct?
You maybe outside the statute of limitations on this more then 7 years old.. If so they can try to collect unless you let them know that you know it is outside SOL
Looks like the last payment was made in 2001. According to credit report, they closed the account in 2002. Says account tranferred or sold, paid charge off with a zero balance. The Credigy account lists the original company by their account with the old company's exact High Limit amount and says they are factoring company account (debt purchaser). My boyfriend was in a dirtbike accident in 2001 and couldnt work while he recovered. He made arrangements with his other creditors. Everyone worked with him, except the original owner of this account. He got upset with them and didnt pay them, but kept paying the other creditors. He knows he owes, but dont think we owe double the amount. They should just charge him for the original amount they showed at the charge/off time, right?
I dont know what Ohio's statute of limitations is on this particular type of account. I looked at A chart once with all those numbers for each state and Ohio is the only one with a flippin question mark beside for their year under written contract statute. Would this be considered a written contract type of loan? The original being a credit card?
I am not sure if any dates are correct because he didnt keep any old statements from that time period. He and I have talked and agreed that if Credigy calls again, he will demand validation of the debt from them. We want them to send the account activity and agreement from the OC and anything that involves the buy out to Credigy. Is this what we should do? Should we wait for them to call back or send a letter? We thought maybe since this is an old account that they might not call back and give up on the issue....wishful thinking?
It does nothing to ask them on the phone to send anything. You should do it in writing, CRRR. Under FDCPA, they should have sent you a letter within 5 days of their initial contact, notifying you of your right to dispute the debt. They are not acting as a "factoring company" in attempting to collect a defaulted debt from you. A factoring company buys performing accounts. They are a debt collector under FDCPA, whether they were assigned the debt, or they purchased it.
Should we wait to see if they send us something? I don't want to "stir the pot" by sending them the letter demanding verification unless they seem serious about the situation. How can they not attempt contact with him for so many years and now they care? I read other posts on here about credigy and they seem like they dont really try until the debtor finds out about them on their reports. Anyways, it hasnt been 5 days since they called, they called this past Monday. Do we wait to see if they push? By the way, thank you for your help.
What did you mean about them not being the factoring company? According to the credit report, it states it as a collection account but in the "type of loan" box it states factoring compnay account (debt purchaser). Is their different ways to deal with who they are? I am sorry if I seem "stupid" about some of this stuff. I read other accounts on here to educate myself, but there are so many.
Is your SO absolutely certain he actually had a credit card account from 1999 that's being reported now? "Ontrack" is correct, once you/your SO were contacted by the CA, the CA had *five* days to contact you via mail. Since the CA didn't send you any written communication regarding your right to dispute the debt, that's a FDCPA "violation" which could be $1,000 - or more. This is what the law states: § 809. Validation of debts [15 USC 1692g] (a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing -- (1) the amount of the debt; (2) the name of the creditor to whom the debt is owed; (3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector; (4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and (5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. -------------------------- This is the reason why you need to keep good records *now*. Consumer advocate and credit expert Bud Hibbs has an entire website dedicated to exposing Credigy/Stewart, whom he names as the second worst debt collector in the United States. Just FYI: from an attorney who has good links on FAQs for consumers. http://fairdebtcollection.typepad.com/fair_debt_collection/faq_re_fair_debt_collection/index.html
Yes, he is certain this is a legitimate debt. He remembers the credit card and what happened. He isnt disputing he owes the debt. Friday will be the 5 day period from which they first contacted him. If we dont recieve anything, then what? I just want to know if we should send them the letter requesting all the info pertaining to the debt now or wait until they make another attempt? The link you gave me has some great information, thank you. Also, the only address I have for credigy is on the credit report. If I do need to send them anything, would that address be correct?
If he's certain that he had a credit card account, then stay off the telephone with the CA. Have no conversation with the CA and make *no* affirmation regarding the cc account. Stay off the telephone with them. Don't say a word to them. The CA has five days, that's Friday. Wait to see what shows up in the mail -- if anything. IF you receive any dunning letter, don't send a variation of the form letters floating around the web. They're foolish. Keep it simple. ----------------------------------------------------- This is really the best approach:Keeping it brutally simple is not only the key to success, but it prevents your DV from surpassing your collectors attention span. Here's the validation letter from the Spears v. Brennan case; Date (within 30 days of receipt of Dunn) ABC Collections 123 West Street Anytown, USA 12345 Regarding alleged account # 123456789 Cert Mail # xxxx xxxx xxxx xxxx xxxx Sirs, This alleged debt is disputed in it's entirety, and strict proof is demanded immediately! Thanks Regards, You ----------------------------------------------- The CA must account right down to the penny and that's why the above letter is so good. Send the letter certified mail, return receipt requested because you want proof-positive that a response was sent within the 30-day time frame. Keep their letters and the envelopes they arrive in, along with copies of your letter and any green card or postal receipts. Right now, you wait to see what shows up in the mail. (and be sure to include the word "alleged" from the letter.)
"What do you mean about them not being factoring companies?" (credit to TowerRat of AOC fame, who wrote....) Your account is not in default because it was charged off. Your account is in default because it was delinquent. The fact that it is charged off only guarantees or provides proof positive that your account was in default. Junk debt, by defintion, is defaulted debt. Junk debt buyers are not factoring companies. Any statement that is false or is misleading or is a misrepresentation violates the FDCPA 1692e(10). Since Unifund knows the are not a factoring company and knows it purchased the debt in default, it violates 1692e(. Since a factoring company is a holder and a junk debt buyer by statute and case law is not, it violates 1692e(12). Since it misrepresents the legal status of the debt, it violates 1692e(2)(A). Since it misrepresents the character of the debt, it violates 1692e(2)(A). It doesn't get any clearer than that. Factoring companies are finance companies. Suppose you had a business as a wholesaler. You import products like clothes, then sell them to hundreds of independent and chain store retailers. One day, you are in a Banana Republic Outlet store and note that they sell women's pants for $99. Your thinking, golly gee whiz, I import these same pants from Italy, the Ukraine, Romania and the UAE for $0.12 a pair. Then you realize that the CEO for the GAP (which owns the GAP, Old Navy, Banana Republic and their respective outlet stores) makes $1.6 million a month because their profit margin is obscene. So you want to be like them and make earn more money in one month than 99% of the people on the planet make in a lifetime by charging prices that will result in obscene profits. You need to open your own retail stores. To do that, you need money. They bank won't give you any because while they believe that you are a great wholesale manager, you lack retail experience and besides, your line of credit would not only be maxed out, it would be over the limit and they are not willing to increase your line of credit at this time. You could bring in investors, but then they will want to have a say in how the company is managed etc., so you don't want to do that. You could go public with a stock offering, but then more than likely you would be fired and replaced with someone more experienced in retail or for some other reason. You could use cash, but you don't have enough. So what do you do? Well, you can turn the accounts over to a factoring company. Someone will come in and review your accounts and make an offer. Basically, they will collect the accounts for you in exchange for money up front, and you can use this cash to open up a couple of retail stores. But, they aren't going to buy accounts in default or accounts that are charged off, and even if they did, they would only give you a few cents on the dollar, which wouldn't help you any. -------------------------------------------- IOW, violation..violation...violation ....violation...well, you get the picture.
(more from TowerRat.....) For those of you who have "factoring company" accounts, most likely on TU, since TU will not permit collection accounts to be reported as anything other than a collection account, here are the violations: #. Defendant violated 15 USC 1692e(2)(A) by falsely characterizing the account as a "factoring company" account. #. Defendant violated 15 USC 1692e(2)(A) by falsely reporting the legal status of the account as not in default. #. Defendant violated 15 USC 1692e( by communicating credit information which is known or which should be known to be false, by reporting the account as a "factoring company" account. #. Defendant violated 15 USC 1692e(10) by using any false representation or deceptive means to collect or attempt to collect any debt by reporting the account as a "factoring company" account. #. Defendant violated 15 USC 1692e(12) by alleging that the account was a "factoring company" account resulting in the false representation or implication that accounts have been turned over to innocent purchasers for value. #. Defendant violated 15 USC 1692f by using unfair or unconscionable means to collect or attempt to collect any debt by reporting the account as a "factoring company" account to deceive current and potential creditors and to negatively impact Plaintiff's credit scores. A factoring company purchases accounts receivables at less than face value. However, the debts (accounts receivables) are not in default at the time of purchase, a major distinction. An account receivable is, by definintion, not in default, otherwise it would be a charge off, the definition of which by Rule 5000 is no hope for collection. Plaintiff Platinum Funding Corporation ("Platinum") is a factoring company. Compl. P 8. A factoring company purchases accounts receivable from its clients for less than the value of the receivables. Bertie Depo. vol. 1 at 16; Weinberg Depo. at 10. Typically, when purchasing accounts receivable, factoring companies verify the accounts receivable with the alleged debtors. Additionally, factoring companies such as Platinum follow up on debt verification by sending letters known as "no offset" letters to the debtors. Lee Aff. P 7. United Brands, L.L.C. ("United Brands") was a client of Platinum. Platinum purchased accounts receivable from United Brands, and subsequently, [*3] as assignee of the accounts receivable, attempted to collect on debts owed to United Brands. However, as part of a broader scheme, United Brands apparently sold bogus accounts receivable to a number of factoring companies, including Platinum. Wimmer Aff. P 9. --------------------------------------------------------
What's all the info mean for *you*? Go to www.naca.net, look for an attorney who has advanced knowledge of the FCRA & FDCPA and remember that many offer initial consultations for free. If you live in Ohio, there may also be state consumer statutes being violated by the CA, too. You'd need to bring a history of your credit reports, plan to have the older versions and current reports that show this CA listing itself as a "factoring company" etc. etc.
This site is a godsend for us. We were really confused as what to do with this. We are going to give them until Saturday to send us anything. If we do not recieve anything, we are going to start turning them in for violations. I guess we figure if they are going to play dirty, we will show them that we are not going to lie down and take it. By the way, this account never showed up on the TU report. On the EXP report, it is showing as just collection account, with date opened 12/2002...reported since 9/2001??? How can that be that they reported before it was opened? I just caught that. Equifax is the only one showing that it is factoring company...but no date opened...just N/A. Only has date reported 1/2006. Also has under Creditor Classification: Retail. This was a credit card...why would they put retail there? This isnt the Credit Bureaus fault? They just list the info given to them by the creditors? Because I dont understand all the differences on these reports.
When the law says, "five days" that means five days and what's good for the goose, is good for the gander. IOW, use the law to *your* advantage because knowledge is power. Find a good attorney at www.naca.net but when you go to see them, go prepared. Make sure you have paper copies of the reports, get them from the CRAs so you can have the evidence of the reporting. And the violations. Every Credit Reporting Agency *is* a seperate business entity and they are independent of each other. The law does not require that cc accounts, or collection accounts, must all be reported. Keep reading what you have, write out questions for the NACA attorney because that way you won't forget anything you wanted to ask - and kick yourself on the drive home. When you go in, ask if you can tape the meeting because you don't want to lose - or forget - what they tell you. They should be agreeable. Play hardball, they will.
Is it absolutely necessary to obtain a lawyer now? Can't we do this on our own? If we do need a lawyer, would it be a Debt Collection or a Credit Reporting Attorney? I saw those 2 types on the NACA site and didnt know which to choose. How much do they charge to take on a case?
Most lawyers will give you an initial consultation for free and you could go to more than one attorney to ask questions. You would want an attorney who is experienced in the FCRA and FDCPA because they're the ones who'll know the violations ($1,000) currently on the reports. It may have just been a writing error on your part, but you don't "turn them [CAs] in for violations." You would file a lawsuit. Some people are experienced and have filed pro se but if you've never filed a lawsuit -- go to an attorney. You would need to look at the big picture, if you obtain competent legal advice and you're shown that there are multiple federal and possibly state violations in this situation - is it worth filing suit for a $500 retainer? And if you win, the CA pays the lawyer fees. If you're broke, most court systems allow you to file a case "in forma pauperis", that is, as a pauper, or someone who can't afford the court fees and pay for living expenses such as food and rent. The local court clerk isn't going to volunteer that it can be done. In some states, the clerk may be required to give out this information for free to anyone who asks, or your lawyer asks for you. Is a possible $500 retainer worth leveraging this TL off all the credit reports? If you've never done it before, it's possible it could be the best investment you ever made and depending on the details on the reports, you could settle for a permanent removal of the TL from any credit reporting agency, that the account could not be sold, and a few thousand. If you've got mulitple violations, especially with the reports, it could be leveraged in your favor. Tell him/her about the initial first contact, that the five day window has expired, and show them copies of the current reports with the "factoring company" notations etc. etc. You've got nothing to lose with a lawyer looking at the case.
