ASSET ACCEPTANCE AND MY CREDIT REPORT

Good Morning, Forum. My name is James. I would like to get some feedback on the info that I am about to provide. In less than a year I have paid out 4 accounts that came up to a total of around $1500. That took a lot of sacrifice and discipline. I am currently paying out my Dell Computer Account. Every couple of months I get a updated credit report with all 3 bureaus to make sure everything is going fine. Well last year Asset was showing on my credit report and I didnt communicate with them because I was paying out my smaller accounts first. I just recently got my credit report with all three bureaus and Asset is nowhere to be found on there. As a matter of fact, Asset hasnt been shown on my credit report for the past six months. They call me and send letters but I never respond because I am still paying an account as of right now. Also, I went thru all of my old credit cards and I cant account for the credit card that Asset says I had. I just need them to verify because I had alot of credit card paperwork at my mother's house and most of it was destroyed by Hurricane Katrina. I have heard some disgusting stories about Asset and I am kind of nervous. What should I do? Should I disregard the calls and letters? Or should I communicate with them to get them to stop the calls and letters?

Why not send them a DV letter? Personally I've never had any problems dealing with Asset Acceptance. I've read several stories about those who have had problems with them.

Why not send them a DV letter to find out what they have and why they are contacting you. If they can't provide the paper work then legally they can't contact you anymore. If it is a legit problem then they should have no trouble in getting it validated for you.

What is a DV letter?

It is a letter demanding validation of the account, in other words, you are asking for the statements, a signed agreement or contract, and paperwork proving they are legally able to collect this debt.

By law they are required to provide this information. If they can't, they can no longer continue to collect from you. You can find a template in the 'do it yourself' section.

Ok. I just found a template letter for debt validation. Thanks 4 the help. Any comments are greatly appreciated.

Welcome, James--

as a general rule, you should never ignore these kinds of calls. It could be a legitimate debt, and if you do not communicate with them about it, they may take you to court over it, thinking that you do not have any intention of paying your obligation. If it isnt legitimately your debt, they can still take you to court and try to force you to pay money that they dont deserve to get from you.

The best thing to do is ALWAYS request validation, unless you have verified the debt as being yours, and you have verified through your own records that the amount they are claiming you owe is legitimate. If you are certain that they are collecting your debt, trying to collect the right amount, and that they have the legal right to be collecting on this particular debt, then you can move forward with resolving the issue. But in most cases, the debts are a bit older, or the amount cannot be verified, so I recommend requesting validation if there is ANY question.

Also, when you send this letter to them, or when you send any letter to a collection agency concerning a debt, your best bet is so send it by certified mail, return receipt requested. That way, you will have a written record of them receiving your request. I would not recommend sending any letter to a CA by regular mail. If, in the future, you would need to prove that you sent them this request, you will be able to.

Finally, congratulations on clearing up these other debts! It's always great when someone steps up and takes care of business. Way to go!

Thank you, Sky. I appreciate it. The next time they call I will most definately tell them I want to request a validation. I was just kind of nervous because I was looking at the letters they were sending me and the debt is at a total of $7000 right now and it seems every letter I get it keeps gaining interest. I didnt want to put myself in a position where I had to start paying them right away. I wanted to do it on my own terms because I know that was the highest debt account I had. So, as of right now all the smaller accounts are paid out. Asset is the last on the list after I pay out my Dell Computer Account which has a balance of $350 as of right now. So after I pay that out I will focus all of my energy on getting the matter with Asset settled.

Hi James--

be careful about asking for validation over the phone, as most CA's will simply ignore your request. The federal law that governs debt collection is called the Fair Debt Collection Practices Act. And in that law, it specifically states that if the consumer requests validation in writing, that they must stop all collection efforts until they provide the validation.

What I would do, honestly, is send them that DV letter, by certified mail return receipt requested, right now. Once they get it, you will get a green card in the mail from the USPS, showing the date they signed for your letter. Keep that card, it is evidence that they received your request. That way, if they ignore it, you have proof that they are ignoring a request and you can use that.

Personally, I also prefer to handle all communication with collection agencies in writing, because so many of them will lie, break the law by using harassing tactics and deception, and so on over the phone. This is because the average debtor does not know their rights, and doesnt record phone calls in the states where it is legal to. I would let them know in that same letter that they are no longer allowed to contact you by any other means except for mail. Tell them that no communication is to take place by telephone. That will make them either put everything in writing or break federal law, at which point you would be able to then sue them for that. Make them put it all in writing.

Seriously, the thing is this--the longer you wait, the bigger this problem gets. They will keep increasing the balance. They might even try to take you to court. Better to get the ball rolling on this now, before it gets to that point. They are claiming you owe $7000--that is a sufficient amount for basically any CA to sue over. I am not trying to scare you--I just want to give you the best information. If you send that letter now, that doesnt mean you have to pay it now. It means that they have to prove their claims first. THEN, while they are doing that, it gives you the time to finish paying off Dell.

Hey, Sky. I totally understand where you are coming from. This week I plan on typing up a letter. So, with my debt validation letter I can also put in a section for cease and desist contact towards for only mail contact. This is great info.

Yes you can put in the limited cease & desist right into the validation letter. If they do send you validation, make sure it is something that can explain why they keep tacking on charges, because if they can't provide anything with your signature showing you agree to interest or fees, they can't tack on one cent. The only other way they could charge interest is if your state has a percentage rate, like Texas has a default interest rate of 6%.

So, Golden. What would happen if they cannot provide all the information that I request for in the debt validation letter?

One of three things will happen, James.

1--they will validate the debt, and then continue collection efforts.

2--they will either send incomplete validation or none at all, and keep trying to collect anyways.

3--you will hear nothing from them again on this debt, in which case it will probably be sold to another collection agency and the process begins again.

Of these choices, #2 is illegal. The minute they receive your DV request, they are to immediately stop ALL collection efforts until such time that they provide you with the validation of the debt. This means they cant call you asking for money, they cant send you letters demanding payment, they cannot file a lawsuit, they cant do anything. Not until they get you validation. And the law is clear on this--validation is documentation that comes FROM THE ORIGINAL CREDITOR. If they send you back some statement on their letterhead, or something other than the original signed contract, then they did not validate the debt. If they do that, you need to send them a second certified letter and tell them that pursuant to the fdcpa, validation must be original documentation from the original creditor and not their internal paperwork....therefore, they still have not validated the debt and any continuing collection efforts will thus be illegal under federal law.

Also, you asked about a cease and desist letter. The templates that most of us use for DV letters include such a statement. The last one I sent read like this:

You are also hereby informed that you are to communicate with me regarding this matter only in writing, through the mail. No communication related to this matter is to take place by telephone, to any phone number where I may be reached. Should you continue to attempt to contact me by telephone in reference to this matter, it will constitute a violation of the Fair Debt Collection Practices Act and will be met with a summons to appear in court, where you will be promptly sued for violating federal law.

A little strongly worded, perhaps, but the morons I wrote it to didnt seem to understand english very well. In fact, they called after they received that. thats the CA that we are suing for 9 independent violations of the FDCPA within a span of one week.

Ok, Sky. So if they do not send the right validation for the account its against the law, right? What should I do if they do this? Should I file a complaint with the FTC? What are my options if they cannot validate the debt?

dont anyone even bother replying to that comment, it is a sad attempt at best, and thats giving too much credit as it is.

FIRST OF ALL, NO NONSENSE COLLECTOR. IM NOT TRYING TO BACK OUT ON THE DEBT. IF I WAS I WOULDNT HAVE EVEN MADE A TOPIC ABOUT IT. IM NOT TRYING TO GET OUT OF PAYMENTS. I JUST WASNT KNOWLEDGEABLE ABOUT CREDIT CARDS WHEN I WAS IN SCHOOL AND ALSO I WAS TOLD THAT MY FATHER USED MY CREDIT INFORMATION WHILE I WAS IN SCHOOL. SO IM JUST TRYING TO MAKE SURE. SINCE I BEEN WORKING I BEEN PAYING CREDIT ACCOUNTS TO CLEAN UP MY CREDIT. HOW DARE YOU QUESTION MY MANHOOD. DONT COME IN THIS POST ANYMORE IF YOU DONT HAVE ANYTHING POSITIVE TO SAY.

James--it is only a violation if they dont send proper validation, but continue trying to collect on the debt. You can file a complaint with the FTC, or your state's attorney general's office, or you can sue them. But they are not bound by law to validate the debt--they are only required to validate the debt if they intend to continue trying to collect it from you. They can simply stop all contact and sell the debt off to some other junk buyer for something like 3 cents on the dollar...and that would be legal.