Hi there. My wife had an account with FCNB that was charged-off. We had contacted FCNB about this account ~6 weeks ago to try to negotiate settlement for removal. We were waiting to hear back from a supervisor there when we received a notice from Plaza Associates (a CA) stating that they had purchased the debt and offering to settle for $975.26 (balance is $1,500.41). Now I'm not sure what to do. The SOL is not up on this acct. but we don't want a "settled for less" showing up on her credit report as we are preparing to purchase a home. We are prepared to pay the full amount owed (and were planning on doing so), but now I'm afraid she will have the charge-off from FCNB showing on her CR as well as a Collection entry from Plaza. Should we just pay the CA the full amount and then start disputing in hopes that it won't be verified? Should we try to negotiate with the CA to pay the full amount if they agree to not put an entry on her CR (leaving just the entry from FCNB)? Should we request validation? We tried calling FCNB to explain the situation but they wouldn't even discuss it since it has gone to a CA. I also thought about just sending a check for the full amount to FCNB and see if they would cash it, but I'm not sure where that would leave her CR in regards to the CA. BTW, the date on this notice from Plaza Associates is June 14 and it says that we have 35 days to accept the settlement offer and 30 days to dispute. Basically, I'm not sure what to do at this point and any advice would be greatly appreciated. TIA! Kirk
I have had a similar experience. My story started out when I notice a charged-off account from FCNB on my credit report for an account I have 6 years previous. I sent a validation letter to them. I received a response stating that this was now being handled by a collection agency/law firm and to contact them directly. Well I didn't. But 2 to 3 months later I receive a notice from Superior Court and stating they were attempting to sue me and obtain a judgement in the amount of approx. $ 7,000 for a $ 3,500 original debt. I got mad! Real mad!! I consulted every legal type I knew and counter sued. I file motions to have the their motion dismissed under the SOL. I also filed a motion to have this claimed dismissed because they failed to comply with my request for "Production of Documents" pursuant to the Fair Debt Collection Act. I requested copies of my signed contract, charge slips with my signature, payment history etc. After about 5 weeks I had my day in court, and guess what? FCNB's attorney didn't even show up. The judge dismissed their motion for a judgment and the $ 7,000 went away, never to haunt me again. I hope my saga has given you so encouragement.
When you pay off a debt the creditor/collection agency no longer falls under the Fair Debt Collection Act because he is no longer trying to collect a debt. That is a very bad position to be in when trying to get it off your history. You have almost no leverage at all. For that reason, you should never pay off a debt once it goes souur on you. You should send the new collection agency a validation letter immediately. Go from there. That puts the new collection agency in the position of having to validate the debt. And in most cases, they don't like to do that because they are now at least 2nd hand from the original creditor.
