Be aware of the scary trick used by collection agencies

Hello Ben,

Again, I can't begin to tell you how much I appreciate not only your prompt reply, but the informative information that you have given me. I hope that you won't mind one or two more questions so that I handle this matter correctly. In doing so, maybe I can prevent it, before it becomes a major headache. I am going to write the Credit Reporting Agencies about my situation and send a copy (registered mail) to asset acceptance llc. Hopefully, this will deter them from sending any other type of communication to me. Is there anything else that I need to know that would help me? I think that the Credit Reporting Agencies should not be allowed to put anything derogatory on an indivual until it has been properly validated before hand. It just does not seem fair that you are guilty, and now you are the one that has to prove otherwise. Thank you for all that you have done to ease my situation for me.

Art

Hi Art,

You are always welcome in the forums and post any of your queries here. We all go through hard times and it is a result of this interaction only, we get to learn about our rights.

You must have understood by now that the debt on which Asset Acceptance is pursuing collection is of no legal importance. But be careful from your side and not to activate its SOL period by making payment.

At every point when the CA is trying to collect the debt from you, you have to bring up the expired statute otherwise, a judgment can be forcefully entered on you. A collection agency is not barred from attempting any collection activities even after the expiry of SOL. You have reasons to defend yourself and this will prevent you from any kind of lawsuit.

Do explain this situation to the credit reporting agency and it is their responsibility to preserve your rights as per the FCRA.

Mention the CA to cease and desist all collection efforts as there is no further reason to contact you. They are required to stop all collection activities after receiving your letter. If they break and continue to call you, it is a violation of the federal rights and you are in charge of filing a class action lawsuit against the company.

Do not worry too much about this. It is the responsibility of the CRA to safeguard your credit identity and I am pretty sure, they will do so.

Take care and keep in touch often. You can join this forum and interact with us as a registered member. This membership is free and you will get many facilities over here. I am expecting to hear from you.

Ben

Hello Ben,

I have two final questions for you. Can the CA put this debt on your credit report if you don't reply to their written letter? Or if this debt has been on your credit report as a charge off already?

Many Thanks,

Art

P.S. I will be registering this afternoon.

Those collection agencies that legally hold consumers' debt have the right to report to the bureaus at any point of time. It is within the legal rights.

But a CA that is not holding your account and is reporting to the bureaus is doing serious crime here. It is a violation of consumer protection afforded by the fdcpa Section 809 ( b ) and you can sue them up to the extent of damages done to your file. They should not report to the bureaus even if your account is shown as 'charged off debt'. They have the rights to do so only if they have the debt with them in legal terms.

How can a charged off account by the original lender, become a 120 Day late entry by the Debt Buyer, Asset Acceptance? If it is charged off it can stay on CR for 7 years, but how can the balance keep changing upward. I have made no payments, and it is past the SOL. THanks

Timbo,

I find Asset Acceptance to be doing yet another illegal activity by re-aging your accounts. This is done with the intentions of keeping negative information in your file for longer period.

Asset Acceptance does not have the legal rights to convert a charged off debt into a 120 day late entry. Ask them to validate the debt in which they are required to specify the complete details. You should also check your latest credit report for this purpose.

I also understand that the said debt maybe out of the SOL period calculated from the date of last activity. However, please confirm the latest standing of this account before you make any communication with Asset Acceptance.

I've never heard of this tactic! What ever is it?

I recently got contacted by Asset Acceptance for a 10 year debt that was paid off. They want me to send them proof that the debt was paid off. I have no paperwork from 10 years ago and if I don't supply it, they will claim the debt as valid. IS THIS LEGAL? What can I do?

Nope! It's farcical.

You could contact the original creditor and ask for a statement of that account, just to cover yourself. Contact an attorney as well.

Look over this forum, my friend. You will read testimony upon testimony that Asset Acceptance is an organization of charlatans.

I was wondering, after reading some postings, some people stating that their credit card account is from 1989 (write-off) and the collection agency can not collect on that any longer due to the age of it. How old does an account have to be to make it invalid for collection?

Linda,

Collection of debt depends upon the statutes of limitations in a state. The SOL is a civil code and every state has its own statute. Check the state laws and know the SOL period in your state.

The statute of limitation is one of the most powerful tool by which any type of lawsuits and collection activities can be thwarted off. If a debt goes out of the SOL period, you can't be legally forced to pay the account.

However, one important thing about SOL is not to renew the date of last activity if it is past the period. If there is any kind of activity in the account, the clock is renewed from the beginning and all the collections activities will be enforced.

Regards
Roxette

What if you have moved and the debt is listed in another state at an hold address. Which state would I check?

[quote=Roxette]Collection of debt depends upon the statutes of limitations in a state. The SOL is a civil code and every state has its own statute. Check the state laws and know the SOL period in your state.[/quote]

Roxette

I know some students have their parents home address on their DL, but go to school in another state. So my question is does this go by where the debt took place, where we live, or the state we have our driver license in?

-Mike

Well, that is good news. I just saved two years of grief! There is a two year difference to my favor!

Mike

Quote:

Yes, that helps alot. In the state where they orginated it is 4 years. In the state I moved to, it's 6 years. I was just curious as I really want to pay these people anyhow. I am assuming that a late but paid account will bring my points up versus a write off or in collections account?

Yes Linda, the first preference is obviously better. Do not let any derogatory remark hit your file. You can pay them in the later period of time but you can't remove the negative info from your file and sadly, it stays there for 7 long years.

And looking into today's credit world, we need to have a good and impressive file.

My debt of 12K is past SOL, and has one year to come off CR. When my mother died, I was put in a financial nightmare, and now although I can afford to pay this many times over, I would be penalized in the credit system for 7 more years. If I ask AAC to validate it, they may sue me, so is it better to wait it out to come off credit report, or still ask for the validation. The account was charged off in 01/00 and they report on CRA as AAC, asset acceptance llc, and as Asset Acceptance. They have not changed the DLA, but adding interest and so forth I can not understand. Does asking for validation even way after the initial 30 days work, and does AAC automatically sue? I don't see how they calculate the interest either on a charged off account. thanks to all.

You can not be sued for asking for validation (though i guess it could be a little like poking a bear with a stick). It is your right under federal law. Asset Acceptance can only report once (though they may continue to update that report over time). You need to dispute with the Credit Reporting Agency (CRA) and have two of their reports removed. Otherwise it is a violation of the Fair Credit Reporting Act (FCRA). IF they refuse to delete the additional reports, then you should file complaints with the FTC, Your State Attorney General.

If you are certain these debts are all out side the statute of Limitations (SOL) then asset cannot sue you over them. However I am concerned, you state the last date of Action is 01/00. Most sates Statutory period is 7 years (coinciding with when negative reports must be dropped). Under the law negative reports can only remain on your report for 7 years, however they may be removed by the person or business that reported them at any time.

Now, ( assume it is also of the SOL), you may be in a better position than you think. From your post you sound as though you want to pay this debt, but are afraid of other consequences. You maybe in a position to strike a deal. You may want to offer a settlement (even if full value), make as a condition of that settlement within 30 days they must remove all negative credit reporting.

Get this agreement in witting so if they do not remove the reports, you can then dispute them and heave them legally removed based on their stated agreement in the letter.
An acceptable alternative may be to have the debt updated to show "Paid" or "Paid In Full" (though less desirable , as they will still show as a collection Item for the next Seven years). But it is better a paid collection than a open collection.

Additionally DO NOT PAY with check by phone, credit/Debit card, Western Union or Money gram. These people have been known in the past to continue taking money out of peoples account with out authorization.

Send the payment in the form of Check or Money Order (cashiers check, etc) by Mail (Certified Mail Return Receipt Requested, or CMRR) or Over night only . The signature receipt or way bill and delivery report from the overnight carrier (fed Ex, UPS, and DHL all have this available on line) along with the cashed check or money order stub will be your proof of payment (in case they refuse to send you a receipt). Since this is a large amount you may want to consult an attorney to deal with them to make sure you are covered.

You are dealing with one of the worst collectors, but talking to them is the best course of action in this case. They are greedy, and may be willing to arrive at a settlement if they know they will get paid.

Congratulations on achieving a position that you can actually pay this debt in full with out a problem.

I hope you are able to resolve this amicable in a speedy manner. Please update us on the situation.

Timbo,

12K is quite a large amount and you should give some thought before you make a payment agreement at this situation.

If you agree to do so, make sure that you will continue the payments till the account is paid in full. Since the SOL will already be renewed once you make a payment, the negative remark will stay in your file for another 7 years from the date of last activity.

At this stage, as the debt is past the SOL period, you can neither be forced to pay this debt nor there can be any lawsuit against you. And since you are nearing the 7 year mark, it is better to wait till that time. Right now, your file will be giving a negative view for another 1 year. If you activate the SOL and somehow fail to make the payment, its impact will be longer.

I will always recommended to pay the past debts but looking into the present situation you are in, I will prefer to wait till the time it is removed from the CR. And remember, you are dealing with a collection agency that has the worst feedback from the consumers. So, be careful on this thought as well.

The statute of limitations to collect a debt has no bearing on the time an account can be reported. Therefore, requesting to have it deleted from the credit reporting agencies is a waste of time. Kindly refer to the Fair Credit Reporting Act for more information.

Thanks for the quick replies. It will drop off CRA in in 1 year so I think best to wait it out. Thank you Clay and Ben and others. It is definitely past SOL and
13 months to go on CRA till 01/07. Reading the stories on here, I don't want to even deal with them. I am like most people who got in a financial jam when my mom died, but I have to look at it from a business end, and let the clock run out. I fly from overseas to home tomorrow and wish you all good wishes during the holidays. I read this column and have successfully deleted entries from sixty down to five, and only one derog. (Asset, of course). I normally don't post, only read, so thank you all for your advice on this remaining black mark. For the rest of you, keep your head up and persistent on making things accurate, I did it, it takes a while, but the things I have learned, many from this site are invaluable.

Hi Timbo

Make sure that you place the account on dispute every time you are contacted by a CA. If you do not respond to the collection letter or do not place it on dispute, things can take a negative shape. The collector will assume that you are avoiding the debt and as a result take the matter to the court. The judge will also take the decision in his favor after failing to see your defense. So, a written dispute from your side is very important. We all wish happy holidays to you too. Take care.

There is an entry on credit report by Asset Acceptance for a debt owed to GATEWAY. First of all, I have never knowingly done business with this company ( who lists orig debt of $2700, which has grown to $3200 since). I have asked for validation, yet none has been sent by CA, instead I am told to contact GATEWAY for verification of this account. This has cause some credit issues for me and I could use some advise.

Carl,

Do you have proof of the date when you sent the validation letter to Asset Acceptance? By law, after you have asked an agency to validate the debt in writing, they are required to serve the details within 30 days. If they do not respond with proper details, you can inform the CRA about their failing attempts. The CRA will verify the matter and remove the item from your file if your dispute is found correct.

Have you contacted GATEWAY about inquiring this account? Legally, the CA is required to serve the details once they are holding your account. If you have anything to dispute over, it is their responsibility to verify it with the OC and serve you the details.

Send all your letters through certified mail with return receipt requested. Keep everything documented in a file so that you have proof of all your actions taken.

What about jerks like those at Primer Credit Managment, 866-808-7175, who keep calling claiming people who owe debts live here when said people don't live here? And they get cocky and all smart ass and resist when you ask for a supervisor and the even when you finally get a supervisor they too are smart ass and start accusing you of "threatening" their employee when the only 'threat' made was that if they don't stop calling you'll file a complaint...then they just laugh.
Ass holes who hide behind phones and harass others with no legal right to do so....I'd love to meet them on the street just once, but then they'd just run and cry to their mommies like stinking democrates

Hey DebtFree,
Reminder: those "Stinking Democrates" will have control of the House AND the Senate in January!!!!!!!

HELP HELP. I have received a court filed letter stating that Assets Acceptance LLC has filed a law suit against me. I have over $10,000 on a credit card they evidently purchased. Because of circumstances, I am not able to make any payments, and am barly making my ends meet to keep a roof over my head. I have absolutely no money after i pay my neccessary living expenses. What do I do. I put them off thinking they couldnt do anything to me. Now Im concerned about this lawsuit, and if they will be able to garnish my wages, take money from my bank accounts etc. Im in deep trouble, put have absolutely no way of being able to pay any amount to them right now. What can they do to me, and what can I do to prolong their action, or stop it.

So if the Statute of Limitations has run, can the collection agency legally continue to report the account to the credit bureaus?

I have a question, since most of the people in this forum say a negative report can stay 7 years in the credit report. But, if the negative hit was made by one CA, then other two or three CAs took over subsequently...the seven years start from the date the first CA reported it, or it is 7 years per CA?
thanks a lot

7 years from the last date of activity. Last date of activity is either usually a payment or charge off (180 days into default). Unless the CA is illegally reaging the debt, then it will stay on for just seven years, regardless of how many CA's touch it (unless you make a payment).

So let me see if i understand this correctly... Will the debt stay on your report for 7 years from charge off date or from date CA took it over? And if i pay CA settlement will it then come off my report? This is a bit confusing to me. Also, how can a 4,200 credit card debt suddenly be 9,400? Seems a bit astounding to me!
Thanks for any answers.

The negative item will stay on the credit report from the date of first delinquency. Some collectors try to re-age the debts by posting the latest dates when they got your file. By doing this, they try to hurt the credit for longer period. If you see the collector doing such illegal activities, dispute the item with the CRA. They will need to correct the reporting.

Quote:

If the SOL is 7 years, is it 7 years exact since my last payment or is it 7 years and 180 days? It will be 7 years in may. I called them about another account that does not belong to me and they brought up the one that does. Did I wave a red flag for them to sue?

All three credit bureau's deleted the one that is not quite 7 years yet. so do I have anything to worry about as far as asset acceptance taking me to court?

SOL for credit reporting and SOL for filing a lawsuit are two different things. What state are you in, and what was this debt for? Also, did you admit to owing it or make a promise to pay?

As for credit reporting, I'm pretty certain that it's seven years from date of charge off, not from date of delinquency.

I am in Texas. two of the debt's are for credit cards $11000 each from First USA bank. I only had one First USA card. The third one is for ATT wireless $900, I never had an ATT cell phone. I did not admit to owning the debt, but I did say I had a First USA card before. I simply asked them to send me more details on these debts as far as account numbers and original dates to see if it matched my records. Of course they said their legal department would only limit the information they send me. I just wanted a letter from them with the dates so I can send it to the credit bureau to get them deleted. asset said ATT wireless is from 1996, but when they reported it they changed the date to 2005 so it will remain on my records till 2012.

I just found this site and I didn't know they can take me to court. Now I'm thinking I shouldn't have called them at all.

I would dispute that with the reporting agencies johnny, they can't change the date of the debt just because you talked to them. File a dipsute with the reporting agencies.

I have disputed it twice. I spoke to experian and they told me to get a letter from asset with the original date and they will delete it for me. Not sure how I would be able to get a letter like that. Asset said they can't send me that type of information. However, equifax deleted it but experian and transunion wouldn't. This $900 att wireless is the only thing on my credit and I never even owned an att phone.

johnny, now that they have your contact info, you can probably count on more collection activity. You do have claims for reporting violations if you dispute the accuracy and they fail to do a reasonable investigation. This liability can extend to the reporting bureau and the company reporting the account if the dispute is sent to both. Additionally, re-aging an account to keep it on the credit report is a violation of the FCRA.

To the first post: You cannot be summoned to court by phone. Nor can they get a court to rule against you unless you've been served a summons, which comes certified mail or by a deputy sheriff.

I also doubt that once something is outside of the SOL, that they can legally sue you for it, whether you admit to it or not. A SOL is from the date the incident first occurred. If you steal something from someone, but the SOL is ten years in your state, and they find you after 11, do you think they can prosecute you? No.

I would consult a lawyer before believing anything here.

Uh tracker the first post never ever said that you would be served a summons by phone. Re-read the post, the only thing about the phone is when a collector calls you. The post said not to stay at home if you get sued, there was no implication that you are served by phone. Also CA's do try and sue for debts outside of the SOL and hope you don't show up to contest it. CA's have been known to change the date of the debt. Oh wait, we all know CA's never do anything illegal.

Now, move along and call those people beacause your not going to get your commission by wasting your time here trying to twist things around.

Hello, This morning my husband recieved a call from from Tate&Kirlin which looking up online I found out was asset acceptance and found this site. He had some unpaid cc from 98'. Which is the only thing I can think this call is about. When I have him call back(he's at work) I will have him ask for validation?
Also for CC debt I was confused about MA SOL could you explain which category it falls under? And maybe where we should go from here, and how to deal with these people? We have never dealt with a credit col. before. Thanks,Ann

Massachusetts Statutes of Limitation

Debt instruments issued by banks, Contract under seal: 20 years.

Judgments: 20 Years.

Oral or Written Contracts: 6 Years.

Consumer Protection Actions: 4 Years.

Recovery of Property: 3 Years.

Probate Claims: 1 Year from date of death.

Claims on mortgage notes following foreclosure or on claims junior to a foreclosed mortgage: 2 Years.

I am from Massachusetts so I know most of the laws. The SOL on a credit card is 6 years written contracts, open accounts and verbal agreements are all 6 years. Contract under seal is a bank account such as a mortgage.

Have you been contacted by mail from this company yet? If not this is what you do when you call them.

Ask them what it is for, do not admit to owing anything. Ask when they think you last made a payment on this if they say it was more than 6 years ago, then you know the SOL has passed.

DO NOT verify your social security number to them. Only verify your name and address, possibly your telephone number too. If they ask you if it is tour SS# tell them you will not answer that question. Then further instruct them that seeing as they just contacted you by phone they now have 5 days to send you something in writing and then hang up on them.

You want to keep the call as short as possible give very little information but make them know that you know your rights.

Any other questions, feel free to ask, I will be back on tonight.

I had one collection agency pay $25 on an a account past the SOL to make it active, I got every bank document of mine and fought them in court, I won they could not prove I made the payment, it was paid by money order from a city about 70 miles from me, and on the day actually that whole week I was not even in my home state, I even pointed out via mapquest that the one of the offices of the CA was 4.8 miles away from place the money order was purchased.

Ok I got their letter today and I know what it's regarding now. My husband lost his job 4 yrs ago and we couldn't afford 2 car notes, so we cad the more expensive one volentaraliy reposessed. This was 4 yrs ago in Fl. Here's Fl sol. I'm still not sure which category it falls into. Thank you.

Florida Statutes of Limitation

Contract or written instrument and for mortgage foreclosure: 5 years. F.S. 95.11.

Libel, slander, or unpaid wages: 2 years.

Judgments: 20 years total and to be a lien on any real property, it has to be re-recorded for a second time at 10 years.

The limitations period begins from the date the last element of the cause of action occurred, (95.051). NOTE: The limitation period is tolled (stopped) for any period during which the debtor is absent from the state and each time a voluntary payment is made on a debt arising from a written instrument.

Almost all other actions fall under the 4-year catch-all limitations period, (F.S. 95.11(3)(p)).

OK Ann03 this is what you need to do. First off how long has it been since you lived in Florida? You are in Massachusetts now?

This is the statute of limitations in Florida, The car payment would fall under written contract and is 5 years:

Open Account (credit cards): 4 years
Written Contract: 5 years
Domestic Judgment: 7 years (renewable)
Foreign Judgment: 5 years

Now they can go by where the contract was signed or where you reside now. Most likely they will pursue the state with the longer SOL which is Massachusetts, 6 years.

On that letter it should have a 30 day disclosure on it, right? If so that means this is the first time they have contacted you by mail and you now have 30 days to request validation. Format this letter to your needs and send it certified mail return receipt requested. Do not sign the letter only type your name.

Once they get it they must validate the debt and cannot attempt to collect any further including filing a lawsuit. If they do you can counter sue them and get the case dismissed.

What I would do is when you fill out the green card, Photocopy it in color if you can, do it at the bottom of the page. Make sure it is filled out and has the tracking number and everything on it. Make 2 copies and use that as the second page in your debt validation letter. This way you send a copy to them and you have a copy for yourself if you are taken to court. It is in color so you are showing that you sent it before it was signed for and when you get the green card back, you have the same thing but with a signature on it. This will cover everything and cannot be disputed in court saying they never got it. Hopefully I was clear on that but if you have any questions, feel free to ask....


Your Name
Your Address
CITY/Town, STATE ZIPCODE

Date: March 9, 2005



Collection Agency Name
Address
CITY/Town, STATE ZIPCODE

Re: Acct Ref. # XXXXX and XXXXX

To Whom It May Concern:

This letter is being sent to you in response to a alleged debt. 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
.
What I need you to provide as the debt validation is as follows:
1. What the money you say I owe is for;
2. Explain and show me how you calculated what you say I owe;
3. Provide me with copies of any papers that show I agreed to pay what you say I owe;
4. Provide a verification or copy of any judgment if applicable;
5. Identify the original creditor;
6. Prove the Statute of Limitations has not expired on this account
7. Show me that you are licensed to collect in my state
8. Provide me with your license numbers and Registered Agent
9. Proof that the collection company owns the debt/or has been assigned the debt. (You are legally entitled to collect this particular debt from me.) This is basic contract law.
10. Complete payment history, starting with the original creditor. (I need to have proof of my payment history with original Creditor, what the amount of the debt was when the creditor assigned the debt to your company, and what fees/interest has been tacked on to this debt and how you/they determined these fees.) This requirement was established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004..
11. Copy of the original signed loan agreement or credit card application. (My contract with the original creditor establishing the debt between us.) This is also basic contract law.

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:
1. Violation of the Fair Credit Reporting Act
2. Violation of the Fair Debt Collection Practices Act
3. 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 investigating 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.

It would be advisable that you assure that your records are in order before I am forced to take legal action.



Best Regards,

Hi Pkertramp, Sorry to confuse you and thanks for your help.

We are in Florida have been since 99. This repo was in FL also. The letter was dated on Jan. 28th. all it has on it is the creditor(that's how I know it's the repo) the ammount, And an offer to settle for 50% which is over 2k. Which must be recieved by Feb. 18th or the offer is void.
I really don't know what to do, my husband makes less than 30k a year and we have 3 children 2 not even in school yet. Two of them with medical problems. That's how he lost his job 4yrs ago taking off to much time for Dr's appts.

Thanks again for your time,
Ann

Check to make sure whether or not FL has adopted the UCC is regards to Repos'. The SOL would be 4 years from the date the deficiency is realized. When was the vehicle sold at auction? When were you first notified of the deficiency balance?

I'm one of those people that didn't respond to the collection letters and it did go to court and I have judgements against me. So now that they're considered valid is my only choice to try to settle with the collection company? Or can I still ask them for a debt validation letter?