Need advice on possible scavenger collector
Date: Wed, 07/08/2009 - 16:13
Hopefully someone can help me out. I received a letter from "Performance Capital Management" requesting that I pay a debt to them. The debt is for less than 200 dollars. They offered me 2 options: pay half now and be done with it or make interest free payments for 12 months.
The debt appears to be from a very old account that I thought was closed. Apparently I must have still owed this small amount on it.
I checked my credit report and this company does show up under "Closed Accounts," with the dollar amount also stated. The account type is 'open.' Date opened was 7/2008 and date reported was 06/2009. Also under the date of first major delinquency is 09/2008. Type of loan is Factoring Company Account(debt buyer). Under comments is says 'collection account.'
Does anyone here think this company is legit? Should I pay this off? I would greatly appreciate any input..
Thanks
Rich
First I would send them letter requesting validation of the debt
First I would send them letter requesting validation of the debt. DO NOT send anything and DO NOT call them. Wait and see if they can validate the debt first, if you believe the debt was paid.
Thanks, If this does turn out to be a legit debt, how should
Thanks,
If this does turn out to be a legit debt, how should I go about it? Im in Florida and I believe the SOL is 4 years, which would have already passed for this account since the first delinquency date is 6/2004.
Would it help out my report if it is paid, or will it just reset for another 7 years?
If the SOL is up tell them this and demand it be removed from yo
If the SOL is up tell them this and demand it be removed from your dredit report. You can also contact the credit agencies and tell them as well. It WILL NOT help your credit score if the account is not deleted. Good Luck. Remember everything must be sent certified/proof of mailing ONLY. DO NOT SEND A PAYMENT, IT WILL START THE COLLECTION EFFORT OVER. THEY MUST STOP COLLECTION ACTIVITY DURING YOUR DISPUTED PHASE PER FEDERAL LAW!!!
Thanks for all your help. How do I know for sure whether the
Thanks for all your help.
How do I know for sure whether the SOL has passed? It says on my report that the date of first delinquency was 6/2004 and I am in Florida. It list this account under closed accounts, but it was opened in 7/2008. I dont get it...
The back of the letter also mentions that I have 30 days to request a letter validating the debt. Otherwise "We will assume this debt is valid."
The next paragraph is also kind of confusing:
"As of the date of this letter you owe the "Current Balance" as stated on this letter. However, the total amount due may increase from time to time because of your obligations, including interest. Accordingly, the "Current Balance' on the day you pay may be greater than the amount stated on this letter"
Does this mean the balance could actually be more? Or even less?
Im guessing my first course of action should be to send the DV letter.
Which leads me to my next question. If the debt is validated, yet it is passed the SOL, should I still pay it? It isnt a lot of money- but I seem to be getting the idea that this would still cause more harm then good.
Thanks for all the help everyone!!
SEND THEM THE DV LETTER!!! More than likely you will never hear
SEND THEM THE DV LETTER!!! More than likely you will never hear from them again. You might also tell them that this debt is beyond SOL.
Quote:Would it help out my report if it is paid, or will it just
Quote:
Would it help out my report if it is paid, or will it just reset for another 7 years? |
No and yes. No, it would not help out your report because the time from default to present lowers your score the closer they are together. If it has been over 4 years since the Default Date, that is more than halfway through the reporting SOL. So if you paid it, it would likely lower your score.
Make sure you send that DV letter by Certified Mail, Return Receipt Requested. Do not give them ANY information that says you have any idea about the debt, let them provide complete verification. Note any times they call you (even if you don't answer and they don't leave a message) and log it, including the time. When you get the green card back, mark your log with the date that they received the DV letter. They cannot engage in any further collection activity until they validate.
If it's past the SOL, it's usually better to let it go...
Quote:
Does this mean the balance could actually be more? |
Thanks. I am going to send the DV letter. So what happens to
Thanks. I am going to send the DV letter.
So what happens to this debt after the 7 years have past? Does it get wiped off my report?
Update..
Hi everyone..
Just wanted to update everyone on this. I got a reply from PCM, saying that that they received my DV letter. It says that they have ordered the account documents from the original creditor and will complete the investigation within 30 days. It also says that they will notify the credit reporting agencies that I am disputing the account. Does all this sound OK so far?
Now something else happened today.. I got a letter from Chase saying that they are closing current account I have with them. Ive had this account for about 2 years and I have never paid late and always paid above the minimum. Ive searched around and it says that Chase has been closing a lot of accounts that were previously Wamu accounts, which mine was.
I have read that they are either increasing the rate on cardholders account to rediculous rates or just closing them all together.
The letter I received says that I can continue to pay the balance and will remain subject to current terms and conditions.
Since they have closed my account, do you think they will also increase the rate on me? I am also wondering if this has to do with my dispute I just send in for PCM.. could this be?