Unifund Corp listed in my credit report

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.

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?

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.

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.

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.

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.

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 :-) This is the link to my AG for NYS

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

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.

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?

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.

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.

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.

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.

Hi Billyknep

I guess, your sixth sense is very strong :) Have a good luck in getting everything straightened out with the debt collector and keep in touch with us. :)

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.

Two questions:
1. What does SOL stand for
2. Where do I go to find out the SOL of Illinois?

Thanks

Found this on the web for Illinoise.

Duplicate Content removed as per forums rules - Mike

SOL stands for statutes of limitations. This is the legal timeframe within which the creditor or the collection agency can take actions to recover the debt. Once the debt is past the SOL period based on the date of last payment, you are under no legal obligation to pay them. You can escape the debt without getting into any lawsuit. The SOL in Illinois is 4 years from the date of last payment. Check your account when the last payment was done and confirm the SOL limitations.

the people of unifund and the lawyers that represent them are no more than common criminals that prey on poor people.now don't get me wrong i beleive in people paying their debts when they can but sometimes you just can,t.and thats when some slime ball company like unifund steps in.they don't pay any attention to request for debt validation they will not send it to you the only thing that they send you is somthing that looks like it came off the computer.which is not proper validation.and the next thing you know you have a summons where they are sueing you.and if you complain to the attorney general in your state most of the time they take the lawyers and unifunds word for whatever they say so to me it's a no win situation.i know because it is happening to me.

Same issue here. for years there was nothing on my credit report and all the sudden. after 2 years they show up with a 2000 interest charge! for a 2800 balance. can they do that. how am i supposed to know i had a balance with them.?

You write to them and request that they send you information proving that the account is yours.

And yes, depending on state laws and contracts signed you can continue to be charged intrest.

This is for fyi:in case you don't know some collection companies,and their lawyers just will not send you validation letters.they just will try to sue you for an large amount of money when 9times out of 10 you don't really owe them anything because they are noting but trashy debt buyers.as i have said it happened to me and i had to file for ch 13 bankruptcy in order not to go to court for a lawsuit now i am really ruined.in more ways than one.and i know i had responsibility to pay this debt but the payment got so huge i just couldn't and when i didn't the first company sold it to unifund so the rest is history.i am up the creek without a paddle..somuch for debt validation.unifund don't care to give you one. :cry:

hi billy...

Ok, there are some things you need to know here. First, federal law(the fdcpa) prohibits any collection activity without the proper disclosure to you. When a CA begins attempting to collect on a debt, they are required by law to provide the consumer a statement in writing that explains your rights--the right to dispute the debt or any portion of it, the right to request validation of the debt, the right to request the name and address of the original creditor. The law gives CA's five days from the date of initial contact to provide this, or they are in violation of the law. By not contacting you at all, and going right to reporting on your credit file, they have broken this law. Reporting to a credit bureau is considered "collection activity". That's one violation.

Ok, as for the amount, they are only allowed to charge you interest and fees that you agreed upon in the original contract or agreement. This is where you need to check over the original agreement to see what fees and interest are applicable. When you send a validation letter, be sure to request that they explain the amount they claim you owe.

Now, as far as reaging goes, it is illegal. There is only one way that they can legally restart the SOL, and that is if you communicste to them that you agree it is your debt. Making a payment or a payment arrangement will do this.

i just recieved a credit monitoring alert from equifax and there is unifund for $12k They are from capital one. My father and I have the same name and this debt is not mine. It is my fathers and they mailed a letter last month saying that it was 11k and the origional debt was 5k it was supposibly opened in august of 05. I know that I am going to get them to remove this but my question is can I sue them for messing with my credit report since It is not me. I did owe capital one 900 bucks and settled it with northland group. about a month ago. Thanks

This may sound strange. Unifund bought some old sears card debt that I had around 2005. I was in the middle of writing a validation letter to send to them. When I checked my credit report. It wasn't there anymore. It disappeared from all three credit files. It's not like I'm complaining or anything, because that was my biggest debt, but how is this possible? Did someone finally file a class action lawsuit against them? My Sears card was at 1200 before they took it over. It was almost 6000 before it disappeared from my credit file. Should I be worried?

This may sound strange. Unifund bought some old sears card debt that I had around 2005. I was in the middle of writing a validation letter to send to them. When I checked my credit report. It wasn't there anymore. It disappeared from all three credit files. It's not like I'm complaining or anything, because that was my biggest debt, but how is this possible? Did someone finally file a class action lawsuit against them? My Sears card was at 1200 before they took it over. It was almost 6000 before it disappeared from my credit file. Should I be worried?