Internet's first get-out-of-debt community - 135,000 members

Posted: Mon Jan 29, 2007 9:22 am Subject: Letter from Collectcorp

Debt with AE and I stopped sending payment in 9/2006. Last week I got a letter from COLLECTCORP as below:

Dir Sir/Mme.,

You account has been placed with Collectcorp Corporation, a collection agency. This communication from a debt collector is an attempt to collect a debt and any information obtained will be used for that purpose.

Unless you notify this office 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days after receiving this notice, this office will: obtain verification of the debt or obtain a copy of a judgement and mail you a copy of such judgement or verification. If you request this office in writin within 30 days after receiving this notice, this office will provide you with the same and address of the original creditor, if different from the current creditor.

Do I have to response this letter? Please help.
I would like to settle, but just don't want have the lump sum of money right now. Hopefully I can do it when they decided to sue.

Thanks!

Posted: Mon Jan 29, 2007 9:40 am Subject:

This is a letter they send notifying you that they are now collecting on your account. You can write them back only if you are disputing that you owe any money. But since you do owe the money you can contact them and ask them to send you statement showing the balance of what you owe. Maybe they will be willing to accept monthly payments from you. Even if they don't want to agree with the monthly payments you can still send them payments anyway and they are required to apply it to your account. Even if it's only $5 or $10 a month, you should try to send a little something.

Posted: Mon Jan 29, 2007 9:40 am Subject:

You could still possibly handle this with oc which is probabaly better to do.Accounts usually dont go into to chargeoff until 180 days past due.Chances are this debt hasnt actually been sold yet.
I would sent out a dv letter to this collector 1st. You can find sample letters in the do it yourself section on this forum.Then call the oc to see if you can work something out with them.
Believe me you dont want to wait until they decide to sue. It will just add more worries you dont need.

Posted: Mon Jan 29, 2007 10:02 am Subject:

Forgot to tell you that this debt is from my parents's CC. They retired and left the country. I would like to settle it with lowest amount possible since my parents don't care about their credit score/history anymore. I don't want to get into lawsuit with this myself, so I would like to settle them when I got the money. I have heard that I can just ignore this debt since they have nothing except an checking account with social secuity direct deposited into it. They can't garnish that even there's a judgement. But I just don't want to go thru this myself, so I would like to settle. Pls let know what is the best advice for my situation.

Posted: Mon Jan 29, 2007 11:46 am Subject:

You don't legally owe this debt until you have jointly signed for it. Paying now will make you responsible for the account and will be reported in your credit file.

Since this is your parent's debt and if you have not jointly signed it, collection company cannot report anything in your credit file. After knowing the facts, do you still feel like paying the account?

Posted: Tue Jan 30, 2007 9:50 am Subject:

Hi Flying Cats,
But like I said, they still have a checking account with the SS direct deposited into it. I don't want the Collectig Agency to freeze it and start garnish it if I choose to do nothing. So is it better to settle with the American Express or the Collecting Agency? I think I can get better deal with Collecting Agency. Heard that OC won't go below anything like 50%. Assume they won't be sueing me. Sad

Posted: Wed Jan 31, 2007 4:42 am Subject:

SS is exempt from garnishment for unsecured cc debt.So no worries there.In order to freeze ones checking account a judgment would still have to be entered.The only way you may get a better deal with the CA is if the debt was actually sold to the 3rd party collector, if not and the collector is simply collecting for the oc they still have to have approval from oc for any settlement amount.

Posted: Wed Jan 31, 2007 9:34 am Subject:

Hi Taksmom476 and all,
I know SS is exempt from garnishment, but you will need to file a paper on court or something. My parents wont' be here to do that and I can't do it for them, right? I've heard that if you open a net account or Paypal, the CA can't find any info on those type of account hence can't garnish. Is it true? I don't think I can ask the SS to direct deposit the SS to Paypal, right? Thanks a lot!

Andrew Williams · Posted: Tue Mar 13, 2007 3:21 pm Subject: Collections

I am a legal counsel and deal with matters such as this on a regular basis. If you have been sent to a collection agency there are a number of options, without knowing the full depth of your case it would be hard for me to comment or legally advise you, merely because you might end up deeper in a creditors risk; but most of the time they can be sorted out. My office in Ontario is (905) 563-****

Phone number removed as per forum rules- Mike

Ole WW

How can they find it? What state's laws govern the garnishment? Thank you!!

*Name:
*Email:
*Phone:
*Zip:
*Debt

	* denotes required field

Internet's first get-out-of-debt community - 135,000 members

Letter from Collectcorp

Members Area

Free Debt Counseling

Ask the community

Also See

Featured Discussions

Featured Articles

Recent Forum Discussions

Recent Blog Post