Internet's first get-out-of-debt community - 129,000 members

So recently I was looking at my credit report and saw a collection agency listed as unifund corp. First off credit card company did a charge off awhile back of 2500 dollars. Now according to Unifund they have it listed at 4600 and it rises on my credit report each month. I have yet to be contacted by this company via any mail. I have not heard one phone call from a company called Unifund. I have received a few recording calls from an agency asking me to call back but never a live person. I have two outstanding debts left one I believe the SOL is up shortly on and I was thinking thats the agency thats been calling.

Whats the best way to deal with this on my report? Both the credit card company and the collection agency are listed on the report. I'd be willing to settle this account for 2,000 total but I don't know how to go about handling it.

Posted: Tue May 23, 2006 11:07 am Subject:

Hi Billyknep

Your credit card company might have sold off this account with a zero balance to this CA called Unifund. When did you last make the payment towards this account? If you have not paid within the SOL period of your state, no company can force you to make the payments.

Ask the collection agency to validate the account. They should have sent you a written statement about this account by now. It will help you in knowing that the company is making a legitimate collection.

Have everything in writing before committing to pay the debt. Send letters through certified mail so that it can serve as a proof of your efforts. And keep everything documented in a file for your records.

Posted: Tue May 23, 2006 11:19 am Subject:

I haven't made a payment to this account since sometime in 2003. The Unifund has never sent me any mail concerning this whatsoever. The recording that I got is for a different company TrueLogic and not Unifund like I thought. So to this day I have not had a single contact with them. Also on my credit report it seems like they have reaged this debt somehow.

Are they allowed to keep adding interest yet not contact me? Because if I didn't look at my credit report I would never even have known about this.

I should call them any ask them to validate the debt? Or just wait for them to take the first step?

Posted: Tue May 23, 2006 3:48 pm Subject:

Collections are a derogatory remark in your credit file. If the company does not have a legal reason to hit your file, the item should be disputed immediately with the bureaus. You should send a debt validation letter to Unifund and get the account info in writing. Send your request through certified mail with return receipt requested. This way, you will have proof with dates specified on it. The company must give you the details or else the item should be disputed with the bureau reporting them.

Do check the SOL of the state where this account was opened. If you have not made a payment within the SOL period, you can't be forced to pay towards this account.

Posted: Tue May 23, 2006 3:51 pm Subject:

Adding to my previous post, if the CA is making a legal collection on your account, they should be licensed in your state. Also, the original creditor must authorize them to add interests and fees towards the account. This should be clearly mentioned in the contract you signed with the original company. The rates of interests and fees should be in accordance with the permissible state laws.

Posted: Tue May 23, 2006 6:30 pm Subject:

I have not paid on this account since around june 2003. When it was charged off from Chase it was 2562 high balance. According to my credit report Unifund Took it over in 8/2005 Date Opened 8/2005, Date of Status 8/2005, Reported since 8/2005, How can you tell if someone reages an account? Since 8/2005 They have added nearly 2000 in interest. Something just doesn't seem right to me.

I live in NY SOL is 7 years. but I want to pay off this account but not at the 4500 they are asking for all of a sudden on my credit report.

Posted: Wed May 24, 2006 3:25 pm Subject:

Billyknep

I will like to check the contract signed with your creditor and know the permissible interest and charges after sent to collections. Besides, it must be within the permissible state laws. You can verify that information from your local AG's office.

Posted: Wed May 24, 2006 3:35 pm Subject:

Even though I never got a letter from Unifund. I should probably send a validation letter? It is something I owe and I'm willing to settle for a resonable amount up to my credit limit on the original card or less much less Smile

This is the link to my AG for NYS

http://www.oag.state.ny.us/consumer/tips/debt_collectors.html

Posted: Wed May 24, 2006 4:12 pm Subject:

I will never make a commitment until I have the complete details of the debt in writing. You need to review it first and if you agree to it, then only make a payment proposal. Debt validation is the legal weapon against the shady collection agencies attempting false collections. Be aware of your legal rights mentioned in your state AG's website.

Posted: Thu May 25, 2006 3:51 am Subject:

Yeah I am going to send them a Validation letter. I just don't want to see this amount keep going up and putting a damper on my credit report more and more. Is it best to find a validation letter on the net or something to send so it is worded right?

Posted: Thu May 25, 2006 3:33 pm Subject:

Hi Billyknep

Do a google search on "debt validation sample letters" and you will get many results. Besides, you can pick from the ebooks section or from the letters section in this site also.

Posted: Thu May 25, 2006 3:56 pm Subject:

Great I will do that. "Are Junk Debt buyers" usually more willing to settle for a lot less then normal collection agencies? How would I figure out what a good settlement amount is?

I love this board. The fast responses, the friendly willing people.

Posted: Thu May 25, 2006 4:03 pm Subject:

Let's take it the other way. Most of the junk debt buyers have age old debts. There have large number of debts that are often disputed. Besides, major percentage of the debt goes out of the SOL period. On all these thoughts, the consumer can legally refuse any payment, but since the junk debt buyer has put in his money, he will like to settle it for any amount. People who do not have enough information about the federal laws fall into their collection tactics.

A company making genuine collection will have the complete details about your debt in the first place. Then your negotiations will bag the results for you.

Posted: Thu May 25, 2006 4:07 pm Subject:

Yeah I'm going to followt he normal steps, validation, etc. Just kind of wondering at the same time about other things. I always think ahead although many times it puts me too far behind in other things.

Posted: Thu May 25, 2006 4:13 pm Subject:

Hi Billyknep

I guess, your sixth sense is very strong Smile

Have a good luck in getting everything straightened out with the debt collector and keep in touch with us. Smile

Posted: Thu May 25, 2006 4:51 pm Subject:

It's refreshing to see that you aren't wanting to hide behind the SOL to avoid your obligation. If the debt was sold off changes are you can SIF the account at 50-40% which might even take off some of the original intrest and late fee's that were applied before it charged off.

There are many agencies who also report paid in full on creidt reports even when they are settled.

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

	* denotes required field

Internet's first get-out-of-debt community - 129,000 members

Unifund Corp listed in my credit report

Members Area

Free Debt Counseling

Ask the community

Community Photos

Featured Discussions

Featured Articles

Question of the Month

Also See

Recent Forum Discussions

Recent Blog Post