NEWBIE: I need help tackling the worst beast on my CR's. I had an account with Nextcard which was 120 days delinq before it was sold to Merrick. Both are showing on EFX. How can they show 2 derogs on my CR for the same acct. I'm about to start sending the validation letters to Merrick, but what can I do with Nextcard acct? Nextcard show's 0 bal but showes 120 days late and sold to another lender. Merrick showed a balance of $8800 and reporting it as a CO and 180 days late. I almost settled before I found this website; and now I need help to devise a plan to have the CO removed from all my CRA's. Can anyone provide any insight to this problem. I need to apply for a mortgage and this is going to be my worst nightmare!! messedup
First off, yes Nextcard can still show the negative. They're showing it legally the only way they can. They sold the account, they're showing that they sold the account, and it shows a $0 balance. Since they are no longer legally owed the debt, you can demand validation / dispute them without fear of retribution. Now most on here will say that an Original Creditor (OC) is not required to respond to a validation request. While that is true, your only goal here would be to ask for validation from them, and then hit the CRA with a dispute, to see if it might be able to just fall off without any work. Since they can't collect any money from you anyway, you have a better chance of having that one removed without any work. Second, is the debt past the SOL for collection in your state. SOL is Statute of Limitations and it defines, by state, how long after a debt goes delinquant that you can (in theory) be sued for the amount. If the amount is within the SOL, tread carefully. $8,800 is quite a bit of money, and they're probably more willing to sue than if it is just for a few hundred. You can demand validation from them. And if you do, they can not perform any collection activities while collecting this validation. Since they bought the debt, it's probably 50/50 or so that they got all the paperwork with it when they bought it. If they didn't get the paperwork, then depending on how long ago NextCard sold it to them, there may be a good chance they can't come up with the validation. Do you know, before it was sold, what the balance had been? Does it look like the $8,800 is an artifically inflated balance, or does it sound in line (ex: If it was a $4000 balance 2 years ago, $8,800 would signify definite illegal interest / fees being charged, but if it was around $7,500 a year or two ago that might be well within the laws) Here's the fatal flaw in validation demand on a within SOL account. They can go to the courthouse and file a lawsuit without sending validation to you. They better have validation when they get to court, and your attempt to get a validation being unanswered might aid your defense, but unfortunatly a lawsuit isn't technically considered a forbidden collection activity during the days after a demand for validation. Note: The Validation / dispute process must be taken in the correct order for full effect. Send a letter CRRR to the CA (even thou they "Bought" the account, they are still not the original creditor, they have to follow the laws of a collection agency) demanding validation of the debt. When you get the green card back from the post office, get a fresh copy of your credit report and then dispute it with the CRA. The fresh copy of your credit report is needed to show if they place an inquiry (collection activity) between your demand for validation and their compliance with the demand. The hope here is that one of two good things will happen. First possability is that they will not have the validation information that you requested, and will follow the laws and not respond back to the CRA on the dispute, thereby having the CRA delete the entry. The second possible good thing would be that they acknowledge back to the CRA that it is your account, do not ask for it to be marked as "in dispute" which is a violation of the FCRA for not marking it as in dispute when they've recieved a dispute from the consumer. So the hope here is that you might be able to get several violations of the FCRA which would allow you to sue them for $1,000 per violation. This ammunition might be enough to offer them a settlement that would be mutually beneficial. If it's within the SOL, this might actually be you paying a few hundred dollars, and they delete the tradeline, and if it's outside the SOL it might be them paying you a few hundred dollars and delete the tradeline. Again, and I cannot stress this enough. If the debt is still within the SOL for your state TREAD LIGHTLY! You don't want to wake any sleeping giants. Especially if this is one of those on the report that don't really harass you with phone calls / letters all the time. ChrisB
Chris - Thank you for your help, Couple questions: For Nextcard, I'm from Calif. & I believe the OC's are also required to validate the debts - If I'm reading the other treads right. After I send Nextcard the validation request and receive the CRRR green slip; how long after do I dispute with the CRA and using what from of dispute. 2nd. In CA what is the SOL for credit card debt; I'm also looking to see if I can find it. I was first delinq with Nextcard in 04/02 and Merrick bought the account in 12/02. I've been reading the treads for quite some time; but what does "tread carefully" mean. The balance is the same it was from Nextcard before they sold it to Merrick. Once I request a validation, how long after do I get a fresh copy of my credit report to see if they are in compliance and when do I dispute with the CRA's. Your reply was a great help regarding my situation and Thanks again.
Re: Re: Tackling my last CO!!!!! I thank you for this post and reply. Very interesting. I'm sorry I have so many questions about it, but it sounds so hopeful, and I'm really starting to feel overwhelmed!! Thanks in advance for your reply!!
Re: Re: Tackling my last CO!!!!! You got that right, Chris ... Well, I have to admit this is a good strategy. Since, as you said, Nextcard is no longer the owner of the account, they can no longer validate the account. And, again as you said, their not responding or not validating would be a good ammunition when disputing it with the CRA. The reason I reply is actually a question that comes to my mind ... what would happen if Nextcard somehow does validate the account? Yes, they would be in a violation, but since they were sold, who's to blame? There could be another good thing - since Nextcard was sold, the new owner could have real trouble locating the original agreement to even attempt to collect the debt.
Re: Re: Tackling my last CO!!!!! Still questions on: In Calif. are OC required to validate: Anyone know the SOL for CC debt in Calif. After I send Nextcard the validation request and receive the CRRR green slip; how long after do I dispute with the CRA and using what from of dispute. Greatly appreciate any feedback. Messedup
Re: Re: Re: Tackling my last CO!!!!! Right here ... P.S. I only have an old phone number of NextCard - 888-974-2265 ...
Re: Re: Re: Tackling my last CO!!!!! Here it goes: John V. Hashman, CEO NextCard, Inc. 595 Market Street, Suite 1800 San Francisco, CA 94105
Re: Re: Re: Re: Tackling my last CO!!!!! NEXT CARD went BK I DOUBT THAT ADDRESS WOULD WORK They were closed by the O.C.C. and F.D.I.C.
Re: Re: Re: Re: Re: Tackling my last CO!!!!! I know, George, I lost a $10,000 LOC when this happened, but this is what PFB has on them ...
OK, I remember seeing those links, I thought they were on the forum here somewhere. Where do you find the SOL info for your state. (BTW, some very good info in this thread!)
Re: Re: Re: Re: Re: Tackling my las Well that would be good, so if you dispute an account with the CRA, and the account is with a company that went BK and is no longer in business, and they verify the debt and don't remove it, instant $1,000 violation from the CRA. There is NO WAY that a company that is out of business will be replying to a valid dispute from a CRA, hence the CRA (if they don't delete it) obviously didn't verify the disputed information. Since NextCard isn't around anymore, I say just dispute it with the CRA as "Not Mine" and be sure to do it at a different time than you dispute the CA account, don't want them looking and saying "Well since the CA verified that it's his account, then the original account that was sold to the VA must be valid" ChrisB
SOL on Credit Cards can be found at WhyChat's board. Credit cards fall under the Open Account. Go to http://community-2.webtv.net/Y-chat/WhyChatsCredit/ and look for the STATE'S STATUTE'S OF LIMITATION link a page or two down in the middle. I'm not sure exactly what it's meaning, but it shows California as 2 years for open account without writing and 4 years if the open account is reduced to writing. I can only suggest that you speak with a competent lawyer in California to find out for sure. Assuming thou, that since it was delinquant in 4/02 it MUST still be within the SOL so you should tread lightly. You must be careful not to wake the sleeping giant so to speak. If you start slamming the CA with validation requests and disputes, they might just decide to not validate, not respond, and just sue you for the money. It's true, that since they bought out this old debt, probably in the BK, that they possibly might not have any of the original documentation to proove that there even is a debt, and that they are legally allowed to collect it. On the other hand, they might just have all that information. If you've been hounded with phone calls or letters quite frequently from them, then I might say do the validation request. At least then you can have some peace and quiet. However, if you aren't really hearing from them, and it's just the annoyance of it being on your credit report, I say do nothing until it's passed it's SOL (and if the info from the link above is correct, that may be April 2004) The only reason to wake a sleeping giant of a $8,000 debt, especially if you know that it's probably correct and the CA might be able to validate it, is if you have plans that you can't change for a huge purchase, like a house, which won't let you have any unpaid charge offs on your account. Other than that, I say let the sleeping dog lie. You can easily go after deletion of the NextCard account, because since they've gone BK that one should be pretty easy to make fall off. Just a thought. ChrisB
Making sense, on the CR the last DOLA was 12/01 but that is incorrect because I made a payment in 03/2002; I will not complain. Since they are not hounding me, I've only heard from them twice by settlement letters, I will wait until their next correspondence. I disputed with EQF that the Nextcard was not mine and they verified it and also changed it to "Account closed by consumer" and still shows as 120+ days late. EXP & TU removed the Nextcard account. Any suggestions on what I should try next with Nextcard. I can't send Nextcard a validation request, since BK I haven't found a tel# or address for them and I sure not know how EQ verified the information. Thanks, messedup
Making sense, on the CR the last DOLA was 12/01 but that is incorrect because I made a payment in 03/2002; I will not complain. Since they are not hounding me, I've only heard from them twice by settlement letters, I will wait until their next correspondence. I disputed with EQF that the Nextcard was not mine and they verified it and also changed it to "Account closed by consumer" and still shows as 120+ days late. EXP & TU removed the Nextcard account. Any suggestions on what I should try next with Nextcard. I can't send Nextcard a validation request, since BK I haven't found a tel# or address for them and I sure not know how EQ verified the information. Thanks, messedup
Re: Re: Tackling my last CO!!!!! Just scroll up and you'll see the address. When you ask a question, read all answers ...
Re: Re: Tackling my last CO!!!!! Since the BK, i don't think the address is valid. Should I mail them the validation letter at that address anyway? I will definitely reply back to the CRA who validated the TL. Should I mentioned they violated FCRA already since they didn't validate properly; Or should I request the contact info of the person that verified the TL? Can anyone clue me in to what "Thread Lightly" mean. I apologize for my ignorance. Also, has anyone signed up for the Nextcard? I applied online & don't remember signing any agreement, but like I mentioned I don't remember. The reason for asking "If I signed up online and they have no written agreement does the SOL run out in 2 years from the first date of delinquency." which would be 04/2004. "CRA must report negative items for 7 years from the final date of the action that commenced a charge off, profit and loss or similar action." STATE: CALIFORNIA STATUTE OF LIMITATIONS (IN YEARS) Open Acct.: Reduced to writing-4 Open Acct.: No writing-2 Written Contract: 4 Domestic Judgment: 10 (renewable at 10) Foreign Judgment: 10 (commencing with judgment debtor's commencement of CA. residence.) Just curious of when the SOL might be over. As far as Merrick, if the SOL run out in 2 years for them to collect debt then I sit tight for about 5 months, If it runs out in 4 years then I need wake the GIANT and resolve this matter, as I need to apply for a mortgage mid next year. Once again, everyone has been a great help, I appreciate everyone's support & suggestions. messedup "Not afraid anymore" "Knowledge is POWER"
