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bebauch · 06-24-2007, 12:06 PM

I've been reading the forums for awhile now and learning bits here and there on how I can handle my debt. I currently have 4 different credit cards that I haven't paid on for at least 2 years and I want to pay these off, but I don't want to over pay and I specially don't want to give the money to the wrong people. I sent out DV letters to three of the companies that have been contacting me and I've looked at my credit report.

FMA Alliance LTD says I owe them around 2000 dollars the limit on this card is 1000 dollars and in my report it says closed by creditor also says charged off as bad debt. Now the original creditor was Providian who was bought out by Washington mutual, I havent paid Washington mutual at all only sent payments to providian. I dont know what account closed by creditor means so I'm confused there, and I got back what FMA calls validation it's just a computer printout of past bills it looks like but they only go back to 07/2006 there's no charges on the bill anywhere yet the balance keeps going up, there's no signature no contract, I'm just confused by this I dont know if that counts as validation or not.

The other two I havent heard back from yet, one is Burreau of Collection recovery, and the other Kramer and Frank P.C. which is less than 10 miles from where I live.

any help or understanding would be greatly appreciated.

WHEREAMI? · 06-24-2007, 12:09 PM

Account closed by creditor means that they closed the account, usually due to default/non-payment. Alot of times junk debt buyers will purchase the account and attempt to collect, that is when you will see interest accrue and collection costs tacked on to the bill, which explains why the price goes up. I know that some collection agencies will blatantly inflate that bill to outrageous amounts, that is not to say all CAs do that.

bebauch · 06-24-2007, 12:13 PM

okay that's what I thought then, I just wasnt sure. I'm pretty sure all these accounts have been bought by CA's because they've all been closed and even a few say purchased by another lender. Although it's funny because when they call me or send me letters they say they're collecting on behalf of such and such when really the account was sold.

Law Student · 06-24-2007, 07:32 PM

As a matter of validation there is case law stating that they must show how they claculated all these tacked on fees as well. Otherwise it is a violation of the fdcpa under the "least sophisticated consumer" clause. It causes confusion, because the balance keeps changing.

good.nelly · 06-25-2007, 03:59 AM

The collection agency should send you a validation of debt notice, in writing. This notice should reach you within 5 days of its first contact with you. The notice must include:
â€¢ the total amount of money you owe
â€¢ the name of the original creditor to whom you owe the debt
â€¢ a notification that if you do not dispute the debt within 30 days, the debt will be taken as valid.
â€¢ a notification that if you dispute the debt within 30 days, the collection agency will provide you all the proofs they have that you owe that money.

RIP FYI · 06-25-2007, 06:48 AM

Just because an account on a credit card is closed it doesn't mean that it doesn't still gain intrest. After the account first closes it will staill gain intrest and late fee's and over limit fee's up to a ceratin point to where it completely charges off. After the charge off an account will still gain intrest depending on the contract you signed and/or your state laws.

bebauch · 06-25-2007, 08:52 AM

Thank you all for the replies it helps alot.

LawStudent there's nothing listed on these papers they sent me about any fees it dates back to 07/2006 and they just look like old credit card statements but there's nothing in the activity area yet the balance went up. There's nothing about original purchases explaining how the balance is even what it is, would this count as validation in court? Guess I was just expecting more detail on the account =/

RIPFYI All these cards have been charged off or at least I think they have that's how they are reported in my Credit Report. How or I guess where can I find out what the interest laws are in my state? I expected interest and charges just these cards are basically double the limit due to these fee's and whatnot and the CA's (well FMA anyways) isnt giving me any info on where the fee's are coming from, just seems a little fishy. I dont mind paying what I owe I just dont trust any of these people enough to just give over 2000 dollars to them.

cajunbulldog · 06-25-2007, 10:02 AM

Has your validation passed the test yet?
1. Does it identify you as the consumer?
2. Is the amount on the final balance the same that they are collecting for?
3.Are the credit card statements from the original creditor?
Please note there is caselaw backing up myself & lawstudent's claim. The amount they are dunning you for must match the amount listed in validation paperwork.Collection agencies are only allowed to tack on interest and fees if your original contract allowed for it & it must be documented.

bebauch · 06-25-2007, 10:24 AM

it has my name on it, the original creditors name, and I beleive the amount is the same they are trying to collect for. That's all they need though to validate the debt? It just seems really easy to abuse that heck I can send someone a letter with their name on it original creditor and some amount on it and say hey pay me this amount, with no explaination of where it all came from =(

cajunbulldog · 06-25-2007, 10:48 AM

That is not validation because it did not originate with the original creditor.The statements must show that they came from original creditor so you know it is a valid account.Write them again certified mail and demand that they either validate or cease collection.Send it certified mail return receipt.

bebauch · 06-25-2007, 11:22 AM

I think maybe I'm confusing you now heh, what I got in the mail was a printout of what I would have recieved from Washington Mutual as a bill for each month, so from what you are saying that is Validation because it's from the original creditor. Where I'm confused is that there's nothing on there explaining how the balance got to the amount where it is now, I thought they had to give me that information as well. Also does this validation count as proof that they can legally collect this debt or just that I the amount they claim. Maybe I'm over thinking this whole thing or getting ahead myself?

cajunbulldog · 06-25-2007, 11:34 AM

Ok the statements come from the oc.That is good.Now they need proof that the interest fees etc match what they are collecting on.Basically the amount due on validation paperwork should match their dunning letter.

bebauch · 06-25-2007, 11:50 AM

So then I wait for more information to be sent or send them another letter requesting that information? I mean is that part of the validation request I sent or is that a seperate issue?

cajunbulldog · 06-25-2007, 11:55 AM

You would still have to send an additional letter informing them that account has not been validated completely yet.

bebauch · 06-25-2007, 12:05 PM

Ok I think I'm less confused now. So I got a partial validation now I just have to get the rest. In the next letter I send them, I just say that the charges on the account hasnt been verified but the account has been? I'm not sure how to word that exactly.

Ang · 06-25-2007, 02:59 PM

I'm not exactly sure beb but someone may come behind me and correct this but don't admit anything! Just leave that part out completely and ask for validation of the charges. In other words, u are disputing this debt because of the added on fees. Is that a little more clear? Or clear as mud? lol
Good Luck,
Ang