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Attorney re-aged original debt

Date: Tue, 02/13/2007 - 03:29

Submitted by splantamura
on Tue, 02/13/2007 - 03:29

Posts: 7 Credits: [Donate]

Total Replies: 3


Does anyone know how to handle a creditor that is suing for a debt that was placed in a debt consolidation program in 2001-2002. My credit report is showing no payments were made on their acccount. Last payment made on account by me was August 2001. Last payment made by debt consolidation company was August 2002. The account was bought by an attorney's office in 2004. Now they are taking me to court for payment of entire balance plus late fees. Can anyone help.


When a junk debt buyer buys a bad debt, they are buying the account history with it. They bought the original piece of paper that you signed creating the debt, and along with that comes the account ledger that shows all charges/payments ever made. For a debt to be valid, its owner must be able to prove how they derived the balance. The formula is simple: Original Balance PLUS charges/interest MINUS payments/credits EQUALS amount owed. They can't simply make up a number and then sue you for it ... the proof is in the pudding, so to speak; and the pudding is your account history.

You should be able to request ledger detail of your account, showing all payments that you made and all charges. If they haven't given you credit for payments, the problem becomes that you need to prove you made a payment (ie cancelled check, money order receipt, etc.). Since you say the debt consol company made payments for you, you should be able to get a list from them of what checks/amounts they sent on your behalf. Compare your actual payments, to what they've given you credit for; if they haven't posted your payments then you have a valid defense to their claim.


lrhall41

Submitted by DebtCruncher on Tue, 02/13/2007 - 18:12

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