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Charge Offs, Closed Accts, Debt Validation - HELP!

Date: Wed, 09/13/2006 - 13:17

Submitted by greasykorean
on Wed, 09/13/2006 - 13:17

Posts: 6 Credits: [Donate]

Total Replies: 30


Hi. I'm new to the forums here. I've been researching fanatically the past couple of days and have found a lot of helpful information on the web. Because of this I have been able to formulate a rudimentary plan of action for squashing my debt and rebuilding my credit. I just have questions now, about the finer points concerning debt validation, and what some of the account types on my credit report mean.

I understand that with Collection Accounts, I can request that they validate the debt with an actual paper trail and, if they cannot demonstrate this, the debt goes away. This would be the first step. If they can validate the account, I can begin negotiating with them on paying off the debt. It is also to my understanding that collection agencies often buy debts from the original creditors at pennies on the dollar and that my negotiations should start at about .10 cents per dollar of actual debt and should also be calculated to the original amount and not the current amount with all the fees, etc. This negotiation process should NOT be done over the phone but rather through written correspondance and everything I send should be registered/return receipt mail with copies of all letters kept in a file in my home. I will also include in that my full payment of the date is contingent upon the collection agency removing the entry from my credit report. Please correct me if I am wrong on any or all of this.

One point where I am confused on are accounts on my credit report that are marked as being Charged Off and either, sold to another lender or closed. The ones listed as being sold to another lender, I can't seem to correlate the account number or the dollar amount of debt to any other listing on my credit report. The credit reports that I am using are the freebies and I have them from all three agencies. I'm not sure how to approach these Charged Off accounts or how to negotiate an agreement to pay in full on a percentage of the amount.

Any help on this is greatly appreciated.

Greasy


You have got the baseline. It depends upon the companies you are negotiating with. Most of the times, collectors claim that they are not supposed to work with your proposals. When you face such problems, try working with the original creditor because they are quite easier on working with these kinds of proposals.

collection agencies will not remove their remark from the credit report after the debt is paid off. They are allowed to report for seven years under the FCRA laws. If your file has reached the collections, be prepared that your credit will be affected negatively and the accurate negative information is allowed to stay in your credit.

Your charged off debts might have been sold off by the original company to some outside collection agency. If someone is contacting you for these accounts and you figured out some errors in it, dispute the item with the CA. They will put your account on hold and get the correct figures.


lrhall41

Submitted by Flying Cats on Wed, 09/13/2006 - 13:50

( Posts: 479 | Credits: )


I didn't clarify in my original post ... What I am confused about concerning the Charge Off accounts is who to get in contact with. It is my understanding that once an account is "sold to another lender" or a collection agency, the original creditor is by law not allowed to discuss the account with you since they are no longer the owner of it. And, oftentimes, they do not have the necessary files to discuss the account with you anyways since the account was transferred.

What I am confused about is this: If an account is Charged Off and marked on my credit report as "Closed by credit grantor," do I contact that original creditor to begin negotiating a settlement? And, if a Charged off account is marked as "sold to another lender," or "purchased by another lender" is that second lender really just a collection agency? If they are, I can contest the validity of the debt. If they are not a collection agency, what exactly are they and what is the protocol for dealing with them?

Thanks for the reply Flying Cats. Much appreciated.


lrhall41

Submitted by greasykorean on Wed, 09/13/2006 - 14:54

( Posts: 6 | Credits: )


You are welcome, greasykorean

Quote:

I didn't clarify in my original post ... What I am confused about concerning the Charge Off accounts is who to get in contact with. It is my understanding that once an account is "sold to another lender" or a collection agency, the original creditor is by law not allowed to discuss the account with you since they are no longer the owner of it. And, oftentimes, they do not have the necessary files to discuss the account with you anyways since the account was transferred.


You are absolutely right. The previous company has nothing about your account to discuss with you. You will have to collect all the info from the one who has your file now.

Quote:
What I am confused about is this: If an account is Charged Off and marked on my credit report as "Closed by credit grantor," do I contact that original creditor to begin negotiating a settlement? And, if a Charged off account is marked as "sold to another lender," or "purchased by another lender" is that second lender really just a collection agency? If they are, I can contest the validity of the debt. If they are not a collection agency, what exactly are they and what is the protocol for dealing with them?


When a creditor marks the account as charged off, 90 out of 100 cases, the debt is purchased by collection agencies or attorneys who try to collect the balance within the SOL timeframe. In rare cases, the files are left unattended until a junk debt buyer purchases it for pennies on dollars. Each of them is required to follow the laws put in the fdcpa. When your file reaches the collection, try calling the original company and figure out if they can give you any info about your account. If they do, you are lucky enough to work out payment arrangements with them. If they don't have your info, get the debt validated by the CA before sending your money.


lrhall41

Submitted by Flying Cats on Wed, 09/13/2006 - 15:16

( Posts: 479 | Credits: )


Ok. It's all starting to get a little bit clearer to me now. Thank, Flying Cats. Man, three days ago I had no idea how the world of credit worked. Realistically, I'm still in the dark about a number of issues but i can see a light at the end of the tunnel ...

So, it's been quite a while since all of these credit card accounts were closed. So, factor that in with the combination of loud music and louder motorcyles and I am left with a shoddy memory. I can't remember who the original creditors actually were, plus, I have no documentation or statements from them either. I'm going to list the companies that are on my credit reports that may either be a firm of lawyers going after debtors, a collection agency, or a legitimate credit card company. It may be possible that some of you fine people could identify who is who in the following list:

Capital One Services
Emerge/FNBO
Merrick Bank Corp.
Infistar/Nextcard Inc.
Providian Financial

Thanks!


lrhall41

Submitted by greasykorean on Wed, 09/13/2006 - 15:42

( Posts: 6 | Credits: )


Make sure that you have checked the SOL of your state before making any payments on these accounts. Every state has a fixed statute within which the debt is to be paid or else legal actions can be filed by the company. The statutes are calculated from the date of last payment done on your debts. From that date of last activity and the SOL applicable in your state, you will figure out if there are any chances of legal actions against you. After the statutes expire, you can simply and legally refuse to pay anything towards the debt. You get the legal rights to refuse payments on the particular debt account. Even if the company tries to file a case against you for not paying the debts you have, the judge will rule out the case after getting the fact of expired SOL. The collection agency must put the last payment date on the account in their debt validation process so that you know the latest status of the account.


lrhall41

Submitted by Flying Cats on Wed, 09/13/2006 - 15:52

( Posts: 479 | Credits: )


Quote:

is it true that i shouldn't send any money to this collection agency until they respond?


Yes, yes and yes. Sending money is the last thing you do. Also, DO NOT sign anything that you send to them as your signature may end up transposed onto a document that you never actually signed.

Quote:
What if they never respond? What happens?




So, if a creditor can't verify a debt:
* They are not allowed to collect the debt,
* They are not allowed to contact you about the debt, and
* They are also not allowed to report it under the Fair Credit Reporting Act (FCRA). Doing so is a violation of the FCRA, and the FCRA states that you can sue for $1,000 in damages for any violation of the Act.

Read this article. It is very informative and easy to understand:
Link deleted as per forum rules - Mike

The method I am employing to systematically erase my bad debt is by no means the rule. All advice I give should definitely be taken with a grain of salt as I am no professional in the field of finance management. Search around and talk to other people in the forums.

Here is a sample of a letter I am about to use:
--------------------------
Quote:
Your Name
20000 ???????? 214th St.
San Francisco, CA 94110

CREDIT KILLERS & CO. LLP
PO BOX 123456
SAN DIEGO, CA 92193

September 19, 2006

Re: Acct # 851375XXXX

To Whom It May Concern:

I just pulled a copy of my credit report and noticed that your agency is reporting that I owe you a debt. I was not aware of this debt until now. Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

This is NOT a request for ???????verification??????? or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.

Please provide me with the following:

What the money you say I owe is for;
Explain and show me how you calculated what you say I owe;
Provide me with copies of any papers that show I agreed to pay what you say I owe;
Provide a verification or copy of any judgment if applicable;
Identify the original creditor;
Prove the Statute of Limitations has not expired on this account;
Show me that you are licensed to collect in my state;
Provide me with your license numbers and Registered Agent.

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau????????s (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:

Violation of the Fair Credit Reporting Act;
Violation of the Fair Debt Collection Practices Act;
Defamation of Character.
If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist.

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.

If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.

Best Regards,
NO SIGNATURE!!!
Your Name
---------------------------


lrhall41

Submitted by greasykorean on Wed, 09/13/2006 - 19:29

( Posts: 6 | Credits: )


thanks a bunch! I know i owe them money...and i will revise some of the things said in this letter, but with the verbal harassments and increasing the fees to more than double, i need to make sure the amount is 100% correct (especially when they've changed their company name on me twice!)


lrhall41

Submitted by anonymous on Wed, 09/13/2006 - 20:10

( Posts: 202330 | Credits: )


We have 2 bills collectors are calling on, one is mine one is my husbands supposedly, we do not agree with that one esp. since hubby's credit report shows addresses of military units he's never been in and since we have always had a house he never lists his military unit that often as an address. We've asked for those wrong ones to be taken off but no luck so far. Anyway, my questions are (1) what determines the statute of limitations? (2) what do you do if the SOL is past? In our state (NC) I read it is 4 years...4 years from what? Thanks in advance for any help...I'm so lost


lrhall41

Submitted by digitalbitch29 on Thu, 11/16/2006 - 14:53

( Posts: | Credits: )


greasykorean--

Merrick Bank Corp is a credit card company. I have two addresses for them. The address for sending payments is:
Merrick Bank
P.O. Box 5721
Hicksville, NY 11802-5721
I'm assuming this other address is their main address for correspondence:
Merrick Bank
P.O. Box 171379
Salt Lake City, UT 84117-1379

The customer service department # is:
(800)-253-2322


lrhall41

Submitted by brownsugar on Thu, 11/16/2006 - 18:38

( Posts: 1389 | Credits: )


No, the debt validation does not renew the SOL period if you are asking it from a CA. You are just trying to know the facts from the company collecting on your file.

Keep in mind that debt validation is to be followed by collection agencies only. Creditors are not bound to follow the DV. You may request for an itemized statement of your account.


lrhall41

Submitted by mcranberra on Wed, 12/13/2006 - 11:31

( Posts: 524 | Credits: )


So if I sent out debt validation letters to all these CA on my credit report it will turn an investigation and could possibly remove alot of these old collections accounts on my credit report? And it won't add more time on my credit report?


lrhall41

Submitted by anonymous on Wed, 12/13/2006 - 11:56

( Posts: 202330 | Credits: )


Like I said earlier, debt validation can be asked anytime from the collection agency. It doesn't extend the reporting time in the credit report. Having said that, only legitimate collection entries should be reported. If there are multiple entries and the companies cannot validate the debt, it needs to be disputed with the CRA and should be taken off.


lrhall41

Submitted by mcranberra on Wed, 12/13/2006 - 12:09

( Posts: 524 | Credits: )


If a collection agency has a claim on your credit report and so does the original creditor can one of them be removed since it is the same debt? Could those be disputed as well? Your help is appreciated!


lrhall41

Submitted by anonymous on Wed, 12/13/2006 - 16:56

( Posts: 202330 | Credits: )


"Make sure that you have checked the SOL of your state before making any payments on these accounts. Every state has a fixed statute within which the debt is to be paid or else legal actions can be filed by the company. The statutes are calculated from the date of last payment done on your debts. From that date of last activity and the SOL applicable in your state, you will figure out if there are any chances of legal actions against you. After the statutes expire, you can simply and legally refuse to pay anything towards the debt. You get the legal rights to refuse payments on the particular debt account. Even if the company tries to file a case against you for not paying the debts you have, the judge will rule out the case after getting the fact of expired SOL. The collection agency must put the last payment date on the account in their debt validation process so that you know the latest status of the account. "

Thanks for that advice it was helpful


lrhall41

Submitted by bernieadams on Fri, 10/17/2008 - 10:42

( Posts: 143 | Credits: )


I sent the collection company a letter asking them to validate a debt that they are reporting. They responded and stated that they will no report the item any longer because they can not provide proof. The original creditor is still listing the debt as a charge off. Can I contact them and request a validation of the debt from them? If they can not provide anything can I then have the charge off removed?


lrhall41

Submitted by anonymous on Sun, 10/19/2008 - 09:17

( Posts: 202330 | Credits: )


The URL below will give a state-by-state SOL

fair-debt-collection.com/SOL-by-State.html#44


lrhall41

Submitted by anonymous on Tue, 03/24/2009 - 11:32

( Posts: 202330 | Credits: )


I just disputed a claim from an f.i.a. services attorney.
They sent me the next day... an affidavit of account for the wrong account number under my name.. BUT , the original statements they attached, stating that it was my name, was a different account number as well! they have also filed suit against me in court.
I'm gonna dispute it till the end!


lrhall41

Submitted by anonymous on Wed, 09/01/2010 - 21:55

( Posts: 202330 | Credits: )