Hi all! I disputed a few things on my credit report, and now I'm getting letters from the companies telling me that the debt is valid. Even the Book-of-the-Month Club! I got a letter from a Finance Company who I paid some time ago for my auto insurance. After just a month or two, I found a much better deal, and cancelled the policy. Never heard from the company again. Now they are listing a bad debt on my credit report. The letter states that interest continues to accrue, the account has been reported to Credit Bureau, and demand is being made for immediate payment. However, there is no disclaimer listed at the bottom of the note regarding "This is an attempt to collect a debt"...etc...don't they HAVE to list that?? I refuse to pay these people a dime, and just want them to take their junk off my report. Thanks for any advice!
Is the alleged debt for insurance after the point when you cancelled? Do you have records showing insurance cancellation, or at least showing when your new policy started? If your state has an insurance commissioner, or similar state agency that regulates insurance companies, file a complaint with them. You may also be due a refund, if you prepaid for coverage, but cancelled before the end of the covered period. If they are not a debt collector, defined as collecting a debt originally owed another, they may not be governed by FDCPA which requires that disclosure language. They still must report accurately, and if the debt is not valid since the insurance was cancelled, that is where you push.
It is common that after you dispute things on your CR that it wakes up others and then you start to get phone calls and letters. Take ontrack's advise. Also, keep good records. When something like this comes up, you may need to find something to support your side of the story. Also, letters saying the debt is valid is not the same thing as "validation", I don't think. Read around for exactly what is validation of an account (in the sticky's here, and from other resources) Generally, they have to prove to you that you have a contractual obligation to pay them, for example, a contract with your signature. Sometimes they might try to send you a typical agreement where it might state in general language they have a right, but if that agreement does not have your signature, you don't know that is what YOU agreed to. You need the one with your signature, the one you agreed to. Terms can change over time, you need the terms you signed off on. If you feel sure you do not owe the debts that the letters say you do, consider writing a DV letter, send it CM/RRR. (samples are here and other places, and I have one posted in another thread here - ask if you need it - I think it's an ok letter) If you think you do owe the debt, double check things SOL. Don't let the letters and calls rattle you. Your file just showed activity when you disputed and it woke some people up - they want to try to get theirs now. This is where you need to be informed more, so you can handle each the best way possible. Know the SOL. Have your files organized. Read to learn more. Hope this helps.
