So confused...

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.

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.

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.

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:
??????? the total amount of money you owe
??????? the name of the original creditor to whom you owe the debt
??????? a notification that if you do not dispute the debt within 30 days, the debt will be taken as valid.
??????? 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.

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.

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.

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.

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 =(

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.

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?

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.

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?

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

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.

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

Be careful with the words "verify" and "validate". They probably already have "verified" the account, (ie, that they have an alleded debt with your name and address). They must show that the account is valid, and that you are contractually obligated to pay it. Don't admit to even a portion, or you might be held to the full amount. I've heard of this happening in court.

Yeah I'm disputing the debts I have because of all the added on fees it doubles what I really owe, I don't think that's right so I'm disputing these debts because of that. I didn't really tell them why I was disputing the debt just that I was lol. However with this company FMA before I came to this site or even knew I had rights I had agreed to a settlement over the phone they were supposed to send me papers to sign, however that same day I started doing research.

The guy I was talking to on the phone seemed like an alright guy and we were trying to work out a settlement then his supposed supervisor gets on the phone and was just a total jackass so I basically told him to shove it. He said he was sending court papers and wanted to know if I had counsel and where to fax them to, anyways after I got off the phone I got all worried and scared called them back setup this settlement. (gave them my checking account number for the post dated checks stupid I know). Anyways I do some research find out I have all these rights I knew nothing about so I call them back at the end of the day and tell them I'm disputing they say they are going to have to cancel the checks I said fine.

Now I'm worried I reset the SOL on that debt and I'm also worried that they'll try to take money from my account anyways. I'm pretty sure it would be illegal for them to do that but I'm no attorney. I didn't sign anything but did agree over the phone that can't be good.

Anyways I get back another one of my validation letters today and it's not even credit card statements just a piece of paper with account info on it, I'm pretty sure that doesn't count =)Do these CA's do this crap on purpose or do they really just not know the laws that well?

Thanks for all the replies I'm starting to feel a whole lot better about all this and hopefully I can get these debts taken care of without overpaying.

bebauch go to your bank and tell them to not allow ACH debits or close your account. Most likely they are still going to take money from your account. They will also more than likely reset the date for SOL.

You may have to close your account and re-open another. I'm no attorney either but in my opinion u agreed to this settlement under duress!! They scared u into making payment arrangements as they do with lots of people! Doesn't seem fair!!
Good Luck,
Ang

I don't know where you can find out exactly where it will tell you about your state laws and intrest on credit cards. You could try with the fdcpa site first then your state site.

Well my bank basically said they can't do anything on their end because I gave out my account info and they have no idea how the payments would go through, they said they could do a stop payment on them but still dont know if it's a check or what.

FMA keeps calling me even though I stated in my DV letter that they only contact me in writing, I dont answer my phone but they've left two message on my voicemail in the past two days. Just because they beleive they Validated my debt fully do they get to continue collecting right after or do they have to wait the full 30 days?

They violated the fdcpa by saying that they are litigating. By doing this they also committed fraud (ie.,actions or words (including failure to act or remaining silent) designed to trick or deceive a person into giving something of value, whether money, property or legal rights, to another).

I just realized something on this other letter I got from Bureau of Collection Recovery well actually I got it from Atlantic credit and finance, but it has the info that BCR is trying to collect on, are these two companies the same? I'm not sure which one to respond to BCR or Atlantic, because they sent me a verification letter not a Validation of Debt heh so I need to send them another letter explaining to them what the law states I'm entitled to.