Asset Acceptance LLC and Citibank debt question

Unfortunately yes, even after the reporting period expires per FCRA the debt is still valid. If I may ask were you served for the suit where they obtained this judgment? Also what state do you live in? I would like to see if garnishment is even valid or if there is a alternative cap for the judgment.

Another thing that I am curious about is that the federal cap of 25% is supposed to be 25% of your disposable income.

JCEMT,

I sent the debt validation letter, and I haven't heard a word from them since. When I checked my credit scores (which I do almost every tax season), my scores were really good. 700+ on both agencies I checked.

So, I still need to contact someone about the debt? It doesn't even list any negative information on my report.

Thanks!

Eric

You may not hear back from them on the validation as they may not be able to validate it. Since your wages are being garnished you may need to contact your county courthouse to see if a suit was filed against you first. Let us know what you find out and we will take it from there.

Actually, my wages have never been garnished. I imagined my credit score would be lower, but I am making my student loan and house payments. I also have the $ to pay the credit card off, I just didn't want to get scammed. I'm not sure what to do next, honestly.

Any help appreciated. I'm looking at buying a new car soon, and I'm sure I can afford it, but I might not qualify with this on my record, no matter how old it is.

Eric

How old is the debt Eric? Is it on your credit report? If so, is the original creditor still on there?

I just got a letter threatening legal action. I did not know about this company until it showed up on my credit report. I monitor my credit and got an email that changes had be posted to my report. I was surprised when I went onliine and found this company. I disputed this because the original debt is also listed on the report as charged off. I then got a letter saying they will take legal action. Should I contact them? According to the report, the original creditor listed the acount as being opened in 1997 and charged off in 2005. This is the only negative thing on my credit report. It is only listed on two of the three reports.

Thanks,

Pam

Hi Pam, and welcome to the community.

If I were you, I'd hit them with a validation letter so quick it'd make their eyes water. There's a good template here. Be sure to include the enclosure, and send the whole works certified mail, return receipt requested, so you can prove they got it.

Per federal law [fdcpa], after they receive that letter they cannot pursue collection activity against you until they validate the debt. That incluides filing suit.

Let me ask a few questions, if I may... What kind of debt is it, what state do you live in, and when was the last time you made a charge or a payment on this account?

Thanks so much for your help. The debt is a store credit card - Rooms to Go. I live in Georiga and I think I made a payment in 2005. Are you speaking of the enclosure with the letter above?

Thanks,

Pam

Yes. The enclosure is an FTC opinion letter that talks about what the collector is supposed to do re: validation. It's lnked in just below the letter proper on that page.

Store credit cards are considered open accounts. Statute of limitations on thos in Georgia is four years, so it likely hasn't run out just yet.

Get that validation letter out in tomorrow morning's mail. It should not only forestall legal action [unless they've already filed], it should get you the information you need to address this intelligently.

Thanks, I will get it out tomorrow. This is not the first agency to try to collect on this debt. How is the debt passed from one company to another?

It can be assigned, as when one company contracts another to collect a debt. In this case, the first company retains ownership of the account. They grant the second company whatever level of authority over the account. The second company then does the leg work, and collects a fee or a percentage of the recovery for their trouble.

Or the debt can be sold outright. This is more likely if the debt is older, and has been through several collection agencies. Basically, the first company [which may be the original creditor or a CA] collects on an account for a while, until it looks like there's nothing to gain. Then, assuming that there's a balance outstanding, the acount can be sold to Company B, for them to work. Company B then owns the account, and can do pretty much as it pleases with it, subject to law.

That account can be resold again and again, if conditions warrant. The going rate for purchased debt varies by the age, type, and condition of the portfolio. An original creditor's portfolio offering, containing debts up to maybe a year old, might fetch $.20 on the dollar of face value. After the same accounts have been worked by several CAs, and are out of statute, they might only bring half a cent on the dollar.

It listed no negative comments on my report at Equifax, and my experian listed them closed. One says paid satisfactorily, and one said transferred to another office. What every that means? I'm just confused as to what to do next.

Eric

Strange, did you pay this off in the past? Not sure why one would say paid while the other says that it is in collections.

I'm trying to log on to my experian report again. I guess I could have a dispute on my hands, not sure. I still haven't gotten a copy of my TransUnion report, which I am working on now.

Eric

Okay, after review of all my materials, AA LLC did send me a letter, but it looks far from what I requested. It's just two pieces of paper stating what I owed Citibnak originally. Not what they bought it for, or anything else. I thought the debt validation letter required that they do this.

The debt to Citibank was less than $1400. I can pay that right now. Should I call them, or do I have to deal with AA LLC? And if they paid pennies on the dollar for the debt, what amount should I pay them?

Thanks!

Eric

Debts are negotiable instruments, they can be sold for whatever amount but it does not change the amount of the debt. However in the case of debt buyers it can give you leverage to ask for a discount.