Confused by mixed information, please help.

[n2deep]

I had a hard inquiry on my CR, didn't do anything about it because there is one debt out there that I have been somewhat avoiding. I have a 12,000 debt from a balance left after a repossession. I was then sent a collection letter by this CA who did the inquiry. I have already worked out a payment plan with OC, but advised them I cannot afford due to being unemployed, I have made a couple of payments but am behind. Anyways, I believe they have sent this account to collections, and that this letter from CA is regarding the repo account. My concern is that I would like to remain dealing with the OC, and not the CA. Im sure the CA would work out a payment plan, but that would also mean a new account showing up on my CR, I want to avoid that. My confusion comes regarding whether or not to DV the CA, if this would bring more serious consequences or would keep them from reporting while I can work something out with OC. Please help, is there something I can do or am I outta luck and its going on report regardless?

[moondog7324]

1. How old is the debt- is it still within your State's SOL?

2. If they sold the debt, you will not be able to negotiate with the original creditor.

3. I would DV-  just to prove they have a legal right to collect the debt

4. How long has it been since the dunning letter- you may not be able to have a timely DV- depending on state laws.

[n2deep]

1. How old is the debt- is it still within your State's SOL?  Very recent 11/2008, so yes its well within our 6yr SOL

2. If they sold the debt, you will not be able to negotiate with the original creditor.  Ima pray they didn't, if so I have new friends to make.

3. I would DV-  just to prove they have a legal right to collect the debt  As long as it can't hurt anything - thats the plan.

4. How long has it been since the dunning letter- you may not be able to have a timely DV- depending on state laws.  I have two more days, so thats why I was iffy as to whether or not I should.

 

Thank you for the speedy reply.

[moondog7324]

My opinion (i'm no expert) that you should send a timely DV. I believe it isn't going to effect whether they sue or not (I'm assuming thatt's what your worried about) and it will show them you are aware of your rights. The worse case scenario- they sue you- best case they leave you alone.

[RobertEG]

Send the a DV letter.  Once sent, they cannot post to your CR until they validate, so that might buy you some time. But once they validate, they can resume posting.

You need to determine if the OC still owns the debt and has merely contracted with the CA for their collection services, or whether the OC sold the debt to the CA. In the former case, you still might be able to negotiate with the OC.  In the latter case, you cant.

If the CA wants to post to your CR, all they have to do is respond to your DV by telling you the name of the OC and the amount of the debt.

Your option is to offer either the OC or CA payment of the remaining debt, in whole or part.  Since you apparently cannot do this now, then it will get nastier.  The CA has every right to post to your CR, and then to bring legal action