Collection Agency trying to collect written off debt

I have an adverse entry on my credit report, dated May 05 for a AT&T wireless discputed balance. Per AT&T Customer service Rep this disputed balance was written off in October 04.
How do I deal with the collection Agency to get them to reverse their entry?

Hi Christina

Welcome to the forums.

Collection agency will attempt collections even if the account is charged off. They can even take legal actions against you as it is within the SOL period.

Once the debt collector has sent you the details of this account in writing, ask them to verify it with your original creditors since you think the balance is disputed. You also need a proof of this dispute so that the collector can take quick actions. After receiving your request, they will contact your lenders and update your accounts.

You have to consider paying this account as soon as possible otherwise the collection entry will keep hurting your ratings negatively. Moreover, the collection entry is a derogatory remark and this is lowering your scores.

Talk to them and send a letter also explaining your problem. Send all your letters certified with return receipt requested. This will leave a proof of all your actions taken from your side.

I hope they will arrange a possible remedy for it.

Regards
Roxette

As per the section 611(a)(1)(A) of the Fair Credit Reporting Act, the collector has 30 days to verify with the original lender. This date starts from the date you placed it on dispute. They have to legally report the accounts to the bureaus as it stands now and cannot misrepresent it.

Few months back, I received a notice from my video store about a late fee of about $80 and some other charges for the video I had rented few months before. I remember it very well that I was only one day late. So, I called the hotline number and the representative told me that he will take care of this account. No one ever informed me of any actions taken in this matter. Now, I have a collection agency that is collecting money for this account. I have checked my credit report and the account is listed in collection. I am not sure to pay them, can you advice me what to do now? I can't see them in my credit report with this account. Thanks

Hi Henry

Welcome to the forums.

If you don't pay the collection agency, they won't remove the negative remark from your file. As a result, this will hurt your credit ratings in the long run. Try to file a dispute with the three credit bureaus. If it works, you will get the positive results shown in your credit report. If it doesn't, settle this account with the collector for $30. Since verbal communication can't be relied, you should correspond only in writing with them through certified mail with return receipt requested. Do not send them any money until you have got a settlement amount in writing. If you don't get the proof and send them money, they might not do the update in your accounts and you can't be able to prove your side. You will see the results within 90 days otherwise, you can dispute with them.

Keep all the copies in a permanent file. The settlement letter, the return receipts and the payment receipts are very important proof of this account being paid. You will have to send copies of these if there is a need to dispute it later. You can not afford to let this account hurt your file negatively even after you paid the collection agency.

Regards
Roxette

Since this entry is sitting on my cr, I am not able to get any mortgage. I must get everything sorted out. I have been often checking your website and found the information available here to be of great help. Thanks for the suggestion and the website. It is an invaluable source of information.

Thank you Henry, do stay in touch and keep us posted on this matter.

We will appreciate you joining this community. The registration is free here. You will remain updated with all of us.

Regards
Roxette

Charge off does not mean you do not owe the bill, it means the company charged it off to bad debt, they could have 0 the balance on the co. books but either placed or sold the debt to another company. You still owe it.
I see questions about SOL
There are several areas of SOL
1. The sol is the time frame legal action can be brought against the debt. Each state has diff laws for the time frame

2. The SOL for FDCR is 7 yrs from the last date of payment, that means your statue for legal action has expired but not the time frame to report it to the credit agency. And understand when you pay it, it renews the date for reporting. People think they can get it removed because the debt is 7 yrs old, check and you will see the SOL runs from the last date of payment, so if the debt is 6 yrs old, you pay it off in 2005, it can be on your report until 2012. Once a valid debt is placced on the cbr it stays 7 yrs from the last date of payment. Always get it in writing the collection company who reported it, will remove it if you pay it.

3. SOL to stop calling 10 yr old bill, a collection agency can call you till H--- freezes over unless you notify them in write not to. there is no SOL to call on a bad unpaid debt or send you letters. Its called purchased paper.

Thanks Larry, that info has helped me too.

Just because a account is written off, doesn't mean they can no longer attempt to collect the debt. They can continue to attempt to collect the debt, even taking legal action to do so until the statute of limitation has expired. The Statute of limitation is determined by the date of last account activity, usually when the last payment was made. The SOL varies by state, so you would need to check your state law to find out what the SOL in your state is.

Even after the SOL expires they can TRY to collect, however they cannot sue or take any legal action to collect it. Basically all they can do is call and write and try to intimidate you and hope you'll cave and send them money. Often collectors who are collecting on Time Barred debt buy the debt is portfolios for two to five cents on the dollar, so if they buy a hundred dollar debt for a buck, and can get you to pay face value, then they just realized a 90% profit.

After the SOL has expired, you need to be very careful what you say or do so as to be certain you don't inadvertently restart the statute of limitation.


After thought:

The SOL on reporting the debt is covered by the FCRA, and that SOL is not changed by virtue of selling the debt (that would be considered re-aging the debt which is illegal). 180 days from the initial default date is used to determine when a debt can continue to be reported or not.

It is also important to remember that Just because a Agency (for example Asset Acceptance) buys a old debt, they are STILL considered a "Collector" under the fdcpa. This is clearly stated in FTC staff opinions to Arbuckle/Midland Credit Management available on the FTC website. Because they purchase a debt does not mean they are considered an original creditor.

Clay,

You would make a great collector!! We would first have to do something with your name. It's kinda... you know, american idolish..