Advice on whether to try PFD, or just let the debt drop after the 7.5 years passes

[scvbd99]

Here are the specifics of the debt

- OC is a small cable company. I owed them $353.56, and my date of first delinquency was October 2008.

- OC sent the debt to a local CA.  The debt is valid and they are reporting it accurately.

- There is no tradeline from the OC, only from the CA.

- The CA reports to Transunion and Equifax, and it is scheduled to fall of my credit report automatically in April of 2015

Here is the letter I just got from the CA:

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"Occasionally circumstances make it impossible to pay creditors in full. Recognizing this we are offering an oppurtunity for you to set your own terms.  Please complete the information requested below and return to us within fourteen (14) days.  If you have any questions, do not hesitate to contact us....

Client Name: XXXXX Cable Company

Date of Service: 10/1/2008

Principle Balance $353.56

Interest: $195.28

Other Charges: $400

Total: $948.84"

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I'm wondering what I should do about this. 

- was this account chaged off by the OC, or do you think the CA is actually collecting for the OC? I can't tell. 

- should I send a letter to the OC to request a PFD, or should I send a letter to the CA to request a PFD?

- does it seem like the CA would even be willing to do a PFD from the wording of the letter they sent to me (listed above)?

- does it seem like the $400 "other charges" is excessive?....like excessive enough to file a complaint with the FTC?

I'm about a year off from having 18 defaulted student loan tradelines removed from my credit reports. Basically, my credit is destroyed until then(March of 2014) no matter what, so I'm wondering if it's even worth it.   Thinking about just waiting out the extra year after that for it to fall of my credit reports. 

Thanks

[guiness56]

I would not pay that much.  What is the $400 for other charges.  That is outrageous!  Ask them for an itemized accounting and what exactly the other charges entail.

They may not even be able to collect those if your state doesn't allow it or there were no terms in the original contract with the OC for interest, etc.

[scvbd99]

Thanks for the response, guiness.  

I'm thinking what you said regarding the debt is correct, but I just don't know.  

I'm in WA state, there are laws in place that force the CA to document the original agreement with the OC...but it seems only if the debtor requests that infomration within 30 days of the "first notice" to the debtor.

I don't know if the CA sent a "first notice" back in 2008.  They seem pretty shrewd, so they probably did.  I never got it.  I'm wondering what I can do about it.  

I still don't know who owns this debt, though, the OC, or the CA.  If I could figure that out, then maybe I'd know where to go from there.  

[guiness56]

I would send a DV and specifically ask the name and address of the OC.

[scvbd99]

The CA is a small one that's right down the road from the OC.  After lookin at the CA's website regarding collection practices, I'm pretty sure the OC still owns the debt, and that they haven't just charged it off to the CA.  This is the CA's website where they explain their collection process with their clients:

http://automatedaccounts.com/collection_procedure.html

I'm really wondering if I should just offer maybe $400 to the CA in exchange for PFD....or contact the OC and ask them for the same?  

But since the OC doesn't even have a tradeline going for the debt, would they even be in a position to ask the CA to delete it from CRAs?

I'm really confused, but I'm only going to communicatuing in writing no matter what.

I'm also worried that if I do offer a lump sum settlement for a PFD, the CA willl just use that as an opportunity to re-start the statue of limitations for collecting on the debt, and then wait for me to just pay the whole amount.  

I realize I'm just kind of blathering on.  

I appreciate your help very much guiness.  

[guiness56]

OCs don't charge off debt to a CA.  The OC charges off the debt, which is an accounting term only.  Once the account is CO'd, the OC can sell the debt to the CA or assign it. 

The OC isn't listed on your CR so a PFD won't work for them.  It does sound like they still own the debt so maybe the OC would take payment and cancel the debt with the CA.

If you settle the debt, it is considered paid.  Legally, there would be nothing for them to restart.

You could contact the CA by phone and kinda feel them out as to whether they do PFDs or not.

I just left WA 2 years ago.  Was there for 20 years.