About 5 years ago, Pacific Bell hit me with a 1200 dollar phone bill. Since I was out of the state at the time this bill was accruing I had some investigation to do. Well, I found my little cousin (7 years old at the time) was using my phone line to get on the internet and was not signing off after going online. It also turned out that America Online's software was not automatically signing off after a period of inactivity (which it was suppose to do, but occasionally didn't). Anyways, the bill was in my name and I wasnt about to hit my cousin with a 1200 dollar bill. I tried to take this up with America Online and I tried to take this up with Pac Bell, but with no positive results. Since I had moved out of state, and had some pressing issues on my mind, our correspondence dwindled down to zero eventually. Until 2 years ago, I got a letter from a company that had purchased the debt from Pac Bell, and was now looking to get 1700 dollars from me for accumulated interest and fees, etc etc. I called the company to see if I could negotiate something but they didn't have my account on record. They said they would contact me when they found it. I asked them if this would be on my credit. They said it would. So I waited a month, and then I checked my credit from Equifax and it wasnt on there. It was also not on Experian. I never checked Trans Union. Well, I got denied some credit and and they said because I had a serious delinquency. I then went online and ranmy Trans Union report. It says I owe this second company (who bought the original debt from Pac Bell) 2100 dollars now. I really screwed up by only running two of the three reports, but I never had a problem getting apartments, and I have had the same three credit cards for a few years now, so I hadn't really applied for much credit. This delinquency really hit me by suprise. I admit, I have much of the blame on this one, but I do not want to pay some company 2100 dollars for a debt that was originally 1200 dollars. Is there any way I can negotiate with this company? Can I call Pac Bell directly and negotiate with them, instead of this other company? Should I challenge the credit report through Trans Union first, and hope it gets wiped off? I hear there are some adverse consequences to this if the challenge comes back as confirmed. I will be looking to buy a house in two-three years and this is the ONLY black mark on my credit. Can anyone give me some perspective on this? I always pay my bills on time and my credit scores from Experian and Equifax are not great but decent. The two Credit Companies say the only thing wrong with my credit is that I have a short credit history and a few too many inquiries (I was recently looking for an apartment and I just financed an engagement ring) and I have too many credit cards with balances (which is wrong information since only one credit card of the three I have has a balance, but I am not concerend with that right now because that is easily taken care of) Any advice out there would be appreciated.
I'm only a wannabe annointee, he he he, and I happen to be up late, but I'd sure request validation as a first step. Have you reviewed the sample letters on this site?
To answer one of your questions, PacBell sold the debt so you can't deal with them. You said the account was from "about 5 years ago". You need to know EXACTLY how old it is. 5 years may put it over the statute of limitations, you will have to check the SOL for your state. If it has past the SOL, they can't sue you. Well they could, but you would have an absolute defense. Send the current CA a validation letter. They will likely have a hard time providing a copy of a contract for a debt that old. After 30 days send the estoppel letter. If nothing else, if the SOL has passed, you can negotiate with them from a position of strength. Offer them a percentage in exchange for deletion. Make sure you get it writing though. HTH Gib
OK.. this is my first time doing something like this, so I need some follow ups and would like to elaborate on the timing. -The original delinquency was posted on the credit report on 06/1997 by Pac Bell -I live in California, so I will look up the statute of limitations - the company that bought the debt reported me on 09/2001... which date is the date I should use to calculate the SOL? - what is an "estoppel letter"? Thanks for the help! s
Use the 1997 date - the date you first became continuously delinquent, CA SOL is 3 yrs., letters are here: http://consumers.creditnet.com/straighttalk/board/forumdisplay.php?s=&forumid=25 First send the validation letter, then estoppel (the same as C&D). Tell them to get lost, they aren't getting any money from you.
They MAY have "BOUGHT" you debt for $120...THEY SURE WOULDN'T HAVE PAID $1,200!!! Offer them $1,200 for PAYMENT IN FULL AND FULL DELETION OFF CREDIT REPORT(S)... (IF S.O.L. IS NOT PAST) Get it in writing!!!!!!!!!!
