Help! Allied Interstate

Ok,
Lets see if we can get this sorted out.
1. Since this is a checking account,your bank has probably already put you in chexsystem(credit bureau for banks) which will make it difficult to open a checking account. We will worry about that later.
2. If allied has any financial info of yours close or freeze that account.
3. Send them a dv letter.
http://www.debtconsolidationcare.com/forums/about216.html

Include in letter a paragraph that your employer prohibits calls at work and that calls at home are inconvenient.Demand all communications be sent through us mail. Send this letter certified return receipt.
4. Read this law and understand your rights when dealing with dirtbags like this cause they do not like to follow the law.

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#809
5. What this letter will do is preserve your rights and force them to prove debt.You probably know it is your debt,but you want to make sure they have legal right to collect on it.
6. Call the original creditor and see if they are willing to accept payments for this debt.This would be ideal and cut allied off completely.
7. If allied continues to threaten you,keep an eye on them but don't let it worry you because in my opinion that debt is pretty small to go to court.Just keep close eye on them so they don't pull any sneaky stuff.
8. Once you debt is paid in full,get your letter saying it is paid in full and visit us in credit repair section so we can try and fix damage on credit report.

Thanks you for your advice, I really appreciate it. My only other question is, can they really close my other existing bank account that I have open?

The only one who can close a bank account without court order is you or your bank. Allied would have to get a judgement against you after filing suit and winning. If you are in chexsystems you would remain for 5 years.

We have a mod that can fix that so like I said ignore their threats.Follow the letter of the law and force them to follow it also.

allied interstate talks big, but does not do anything on accounts other than harass. According to their lawyer, they are only a third-party debt collector and they DO NOT FILE LAWSUITS. This is important because their threat to take any specific legal action is in violation of the law because they do not intend to take such action. If legal in your state, record the calls to gather evidence of their illegal conduct. Then turn the tables on them.

Regarding your credit report. Accurate negative information can stay on your credit report for 7 years. Time does heal a bad credit report.

I forgot to mention. Do NOT take out a payday loan to pay allied interstate. That will put you in a much deeper hole that is much harder to climb out of especially with your limited income.

I wouldn't even borrow the money from my parents unless the debt is validated and they served me with a lawsuit.

Tex is right,whatever you do stay the heck away from them payday loan vultures.

Thanks, I really do appreciate the advice. I don't feel quite so panicked about it now. I will send a validation letter, because I belive they are trying to charge me double what the account was closed out at. I belived that the originial amount that the account closed at was $700-800 and it seems an exorbinante amount of fees are now attached to it. I should have done this before but when they first called me I jsut wanted to get it payed off and did't ask too many questions.

Your welcome and if you need any more,we are here!