Going to Collection Agency After Paying debt off

Has Midland Credit contacted you saying you owe this money. If and when they do, I would send a debt validation letter to them. They may not be able to even prove you owe the money. Secondly, I would put all your documenttion in a safe place because you may need them to prove you don't own on this debt.

The other thing I would do is dispute the listing with the credit bureaus.

No one has contacted me, yet. Last September I started using Equifax score watch to see when the debt was being report and to make sure that the companies I was dealing with were doing what they were supposed to do. I got an Email telling me that a new account had been opened in my name and I started doing research on the company it listed. I have tried to contact the original creditor and being the weekend all I can get is voicemail. Like I said, I have the statement of settlement and my bank has payment records.

Send the DV, I would also include a copy of the settlement letter. In the DV I would state that they have inserted a tradeline illegally, and if they can't prove it, they better remove it or you will haul thier butt to court.

Don't let this slime ruin all your hard work in fixing your credit. Take action.

I wouldn't send the SIF letter unless you are 100% sure that is what the item is about.

You need to contact the company you paid the SIF through and obtain a zero balance letter. It will state that your balance is settled or paid in full. Mail a copy to all 3 credit reporting agencies and the other collection agency should that be what this is about.

FYI has a great idea here, but there may be a problem there. You see, the CA that you made that agreement with took your payment, then sold the account to someone else anyways. It could have been a simple mistake, or it could have been that they didnt intend to honor the settlement offer. In that case, they would still have considered this debt to have a balance owed. It makes no sense to me how a CA can request that you pay a certain amount to satisfy the debt, then get the payment from you, then turn around and sell the debt to someone else as if you never paid. A lot of times, people dont think about this aspect of it, but they had to sell it. The present owner could not have come to own this debt unless the CA you paid either sold it, hired the new CA to collect it, or went into bankruptcy and dissolved, with the new CA buying up the old accounts. Either way, they took your money, then screwed you.

If you cannot get them to send the PIF letter, then get your bank records. The dates will help you--the date you made the payment would be around the same time as the date of their settlement offer letter.

Also, you need to know your rights pertaining to a new entry popping up on your credit report. You mentioned midland, and they have a horrible reputation for not following the law, so you need to prepare yourself by knowing the law yourself. When they report on your credit bureau, it is considered both a collection activity and a communication, as per the fdcpa. The FDCPA is the federal law that governs third party debt collection. According to this law, they must send you notification of your consumer's rights within five days of initial communication. So, you now have the date that this was placed on your credit file. If you dont receive the notice from them in the mail within five days, they just violated federal law. I would definitely send out a certified letter requesting validation, because as FYI said you need to make sure they are talking about the same debt that you settled already. this could be one you forgot about, or it could be one that actually belongs to someone else--you need to make sure.

I am going to post the letter I got from the place I had the dept with.

Dear Mr XXX

Please be advised that the above-referenced account was written off and deemed a loss to Keybank.

The Current payoff balance is $4,483.27, which includes interest.

After review of your account , we have elected to offer you a one time lump sum settlement in the amount of $2,867.73.

The amount must be remitted within fifteen (15) days of the date of this letter and will be considered settled in full of this obligation only. Failure to comply with this request may result in further action being instituted to collect the full balance.

Please contact us upon receipt of this letter.

Sincerely,

Blah

I had them Fax the letter to me. I call right after I had this letter in my hand and made the payment by phone. They even charged me a $20 processing fee.

I spoke with them on 2/8/08 and they took the money out on 2/13/08.

That isn't a zero balance letter though it is just the SIF agreement. Call them up and ask about the zero balance letter. Send a validation letter to the other company. If it comes back as showing the account you did indeed just settle then you need to send the a copy of the zero balance letter.

I called yesterday and was faxed this letter,

Dear Mr. XXX

This letter will confirm our receipt and acceptance of your recent payment, which was received in our office on 2/13/08. The above referenced accounts have been deemed settled in full.

Thank you for your assistance in the amicable resolution of this matter.

Sincerely,

XXX

I hope that this is enough.

is there anything in that fax that identifies the account or the payment amount? If not, then I would ask them for another one with those details included, just to cover your butt.

It gives the account number. Not the amount though.