Paying on a CA account?

No probably not "paying as agreed" since it is simply a collection account.

About the ONLY thing she could do to make this look more positive is to close that checking account, and stop paying the CA. NOT that I recommend doing that, but the only leverage she COULD have over the listing, is the money she owes the CA, and regular payments with accruing interest are a CA's best friend Then she could negotiate with the CA, validate, or maybe even work with the OC to help remove the listing. The way things are now...she is sort of stuck with it the way it is.

How much is the debt? I assume it must be fairly large or she could have paid it off without the regular payment plan. Have you helped her to understand the difference in % interest with small monthly payments vs. paying it off in one lump sum? Not only could this be affecting her credit, but also her wallet.

-Peace, Dave

 

The FDCPA states that when postdated payments are setup, they ca must notify the debtor prior to the withdrawal of funds. Are they doing this prior to every payment? If not, I agree with Nave, stop the payments, advise them they are in violation of the FDCPA, and work out a deal for deletion in return for the remaining balance.

 

Well it is a tough call to make regarding stopping the payment process. It will be a tooth and nail fight any way you look at it. I guess FIRST and foremost if she was going to do anything like this you should tell her to check out the Statute of Limitations in her state for this debt.

Then I would have her close her bank account (because they already know the transfer #'s) and re-open another account. She can keep this one open and simply deposit money she needs for any outstanding checks but a new account number is probably a good idea.

Then she has to decide how to tackle this...through validation, negotiation etc...

If she were validating, then she would have to send validation letters to the CA claiming that she believes this debt is incorrect. I would demand proof of all fees and interests and balances owed through the term of the debt and the collection as well as statements throughout. They will or will not comply with her validation request and if they comply will probably not send proper validation anyway. Then she would send the estoppel letter demanding that they remove the listing because they have not complied with the validation. Maybe court.

If she tried to settle with the CA for the remainder of the debt, they may update the listing for the balance owed or even a percentage of it if she claims the interest and fees were not part of the contract she signed with the OC and therefore are not valid. She has actually paid most of the balance on the debt. This may be her best avenue to start with. She should do it in writing and consult this board on what to say/not to say.

If she were to deal with the OC, then she may be able to pay off the debt or settle on the balance they believe she owes (all depends on the agreement with the CA sold/transferred really). If they accept payment she can claim the CA is illegally collecting on a debt that has been satisfied with the OC and then sue them for removal of the listing or even a return of the money paid.

Just a few suggestions. It will be a bit of hard work on her part...she must be ready to work on it. AGAIN I am not recommending she stop paying the CA, I am only suggesting some options. Don't forget, by stopping the automatic payments to the CA, they will NOT be happy but that is ok...a happy CA is not always a happy consumer.

-Peace, Dave

 

Hi
If she starts the validation process though can't she stop payment w/o causing a problem ? Making payments on a debt DOESN'T prove its yours. At the point of asking for validation if they take money from her account wouldn't that be considered contuniued collection activity which is a violation ? Starting the validation process will at least buy her some time to decide how she wants to proceed w/o being out money right now and if she demonstrates she knows her rights theres a chance they will report it properly. If she pays it in full the leverage is GONE to get anything done liek removal etc.
Just a thought
Jamie

 

Here is the section of the FDCPA that governs this/


§ 808. Unfair practices [15 USC 1692f]

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.

(3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.

(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.

(5) Causing charges to be made to any person for communications by concealment of the true propose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.

(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if --

(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest;

(B) there is no present intention to take possession of the property; or

(C) the property is exempt by law from such dispossession or disablement.

(7) Communicating with a consumer regarding a debt by post card.

(8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.

 

Thanks LKH, your a peach!!
kathy
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Yup a little fuzzy

L O L

 

Kathy, telling the CA not to withdraw any more money isn't enough. neither is telling the bank that company X isn't authorized to make any more withdrawals. Unless the CA is ethical, they'll just take the money anyway, and assume all you'll do is yell about it after the fact. That happened to me (OSI). The CSR at my bank told me that "these people are scum," and that they will get the auto withdrawal through some other way. She told me that they don't really have any way to block a particular company. They can block the AMOUNT (i.e., no auto withdrawals for $26.63 or something), but CA's, she said, will just change the amt by one penny or something, and get past the block that way. The bank told me to never allow anyone, most especially a CA, access to your account number. My advice, FWIW, is open a new account, and don't let them have the numbers.