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Established Member
ang123
Posts: 22
Registered: ‎09-22-2011

Got my response to first PFD- Anyone heard of Credit Bartering?

 

So I received my first response to my PFD, and it said that I was engaging in "credit bartering" which is not allowed per the Fair Credit Reporting act. They responded I should just pay the bill, and they will report it as "satisfied", and it will be removed after 7 years.

 

So, that was a blow. Any suggestions? I offered to pay in full- should I resend? Is this really credit bartering?

 

Thanks!

Regular Contributor
MsTucker09
Posts: 225
Registered: ‎02-16-2009

Re: Got my response to first PFD- Anyone heard of Credit Bartering?


ang123 wrote:

 

So I received my first response to my PFD, and it said that I was engaging in "credit bartering" which is not allowed per the Fair Credit Reporting act. They responded I should just pay the bill, and they will report it as "satisfied", and it will be removed after 7 years.

 

So, that was a blow. Any suggestions? I offered to pay in full- should I resend? Is this really credit bartering?

 

Thanks!


wow Ive never heard of that before.....thats interesting.....if they dont delete it you aren't gaining anything from paying the bill.


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New Contributor
StoneBroke
Posts: 58
Registered: ‎05-26-2009

Re: Got my response to first PFD- Anyone heard of Credit Bartering?

[ Edited ]

Collection agencies have no moral ethics.  They will lie, or come very close to lying in order to scare you to pay, or at the very least confuse you of your rights.  It’s why you should always deal with the collection agencies in writing and never on the phone.

 

It sounds like just another scrupleless tactic to get you to pay and I wouldn’t fall for it.  They want to see how aware you are of your rights and if they can get you to budge.  Which company are you dealing with?  What is the amount due and what did you offer?  How old is the debt and what is the SOL for you?  With this info it will help us build a response to them.

 

One of my favorite things to include in my letters is this:

 

I am currently negotiating my debt with several creditors and I have a limited amount of money to pay my creditors. So, I have decided to settle only those debts where I can satisfy the terms and conditions as mutually agreed on between myself and my creditors.  I have already reached acceptable settlements with a few of creditors and I doubt whether I will have enough funds available at the end of this month.  Therefore, your speedy response is appreciated.

 

PS:  If you are dealing with a collection agency, you should only be going through payment negotiations if you have already completed the debt validation process with them.  Then and only then should you be dealing with them!



Established Member
ang123
Posts: 22
Registered: ‎09-22-2011

Re: Got my response to first PFD- Anyone heard of Credit Bartering?

 The medical debts are all recent, and will not fall off for at least 5 years.

The amount due was 240, I offered 240.

The company is Alliance Collection Agencies. In my PFD I stated that I do not verify r acknowledge my debt, that I offer to pay in full if they agree to delete. Here is a copy of my letter



Alliance Collection

3916 S Business Park Ave

Marshfield, WI 54449

 

Dear Creditor/Collection Manager, 

Re: Accounts listed XXXXXXXXX

 

This letter is in response to your credit report entry for the debt 

accounts listed above. I would like to pay off or settle this debt in full and save our time 

and efforts.   

 

I’d like to notify that I’m not acknowledging or accepting that I owe this debt. This is 

because the debt hasn’t been verified yet. This letter also doesn’t imply a promise to pay 

the debt unless you provide a response as detailed below. 

 

I am aware of the fact that your company can report the debt to the credit bureaus as you 

find necessary. Moreover, you have the ability to change the account status since you are 

the information provider.  

 

I am willing to offer $244.00 as payment or settlement of the debts in full in return of 

your agreement to remove all information on these accounts from my credit report within 10 

calendar days. If you agree to the terms, I shall send you a certified payment of the 

amount stated above in exchange to have all information on these debt accounts deleted 

from my credit report.  

 

I hope you’ll also agree to not discuss this offer to any third party (except the original 

creditor). If you find my offer acceptable, please send me a letter agreeing to the terms. It 

will be convenient for me if the letter is signed by your authorized agent. The letter 

should be subject to the laws of my state and treated as a contract. 

 

As per the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt. 

In case I do not receive your postmarked response within the next 15 days, I shall 

withdraw the offer and request full verification of this debt.

 

Please forward your agreement to my address listed above.  

Yours sincerely, 

 

 

My thoughts on their response is to tell them that thier reporting is VOLUNTARY and that their assertion of my credit bartering being illegal and the like is untrue and misleading and then showing them the reference of the FCRA; and my legal ramifications...

 

 

New Contributor
StoneBroke
Posts: 58
Registered: ‎05-26-2009

Re: Got my response to first PFD- Anyone heard of Credit Bartering?

I have not heard of Alliance Collection.  If I were you I would Google and read up on them, search this and other forums and read up on people's experiences in dealing with them.  Also make sure they are registered to do business in your state.  If not, that's your ammunition against them.  If they are going to play hardball this early in the game sounds like you’ll need all the ammunition you can get.

 

Your letter stated "As per the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt.   In case I do not receive your postmarked response within the next 15 days, I shall withdraw the offer and request full verification of this debt."  It’s a good statement to add, I have done so myself in the past.  Unfortunately they called your bluff. 

 

You could respond to their letter as you stated and request a PFD one last time however the chances that they turn around and accept it are decreasing at this point.  I would certainly try, at the very least, because they are playing your bluff with their own bluff, so reencounter with your own bluff.  If they don’t want to play ball then you have no choice but to go through the DV process first, making sure they are the legal owners, before moving onto the settlement process.    



Established Member
ang123
Posts: 22
Registered: ‎09-22-2011

Re: Got my response to first PFD- Anyone heard of Credit Bartering?

This is the letter that I have that I am going to send out (after some typos and cleanups are done) Thoughts?

 



Alliance Collection

3916 S Business Park Ave

Marshfield, WI 54449

 

Dear Creditor/Collection Manager, 

Re: Accounts listed Under XXXXXXXXXXXXX

 

This letter is in response to your letter dated September 26, 2011 for the debt 

accounts listed above. I would like to point out a discrepancy in your letter:

 

Under the Fair Debt Collections Practices Act FCCA Section 807 (10)

§ 807.  False or misleading representations  [15 USC 1692e]

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

 

(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

 

 

 Per your last correspondece you state my request for your agency to delete the record upon payment of the discussed debt is "Credit bartering as defined in the Fair Credit Reporting Act." This however is untrue; The Fair Credit Reporting Act makes no reference to "credit bartering". Further this untrue statement falls under the jurisdiction of the Fair Debt Collection Practices Act as listed above. The FDCPA goes on to state if such violation occurs:

 

 § 813.  Civil liability  [15 USC 1692k]

(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of --

(1) any actual damage sustained by such person as a result of such failure;

(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000.

 

I am still willing to offer $240.00 as payment or settlement of the debts in full in return of 

your agreement to remove all information on these accounts from my credit report within 10 

calendar days. If you agree to the terms, I shall send you a certified payment of the 

amount stated above in exchange to have all information on these debt accounts deleted 

from my credit report. 

 

I hope you’ll also agree to not discuss this offer to any third party (except the original 

creditor). If you find my offer acceptable, please send me a letter agreeing to the terms. It 

will be convenient for me if the letter is signed by your authorized agent. The letter 

should be subject to the laws of my state and treated as a contract. 

 

As per the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt. 

In case I do not receive your postmarked response within the next 10 days, I shall 

withdraw the offer and request full verification of this debt.

 

Please forward your agreement to my address listed above.  

Yours sincerely, 

 

 

Contributor
Pacman2012
Posts: 298
Registered: ‎08-16-2011

Re: Got my response to first PFD- Anyone heard of Credit Bartering?

VERY good.. Sounds like you know what you're talking about and you mean business!


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Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Re: Got my response to first PFD- Anyone heard of Credit Bartering?

I agree your letter is good. 

 

Question:  Why did you ask that they not discuss it with a third party in your first letter?

(Just curious)

 

Also, please come back and let us know what happens w/ this.   I hope you come back w/ good news!! 

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New Contributor
StoneBroke
Posts: 58
Registered: ‎05-26-2009

Re: Got my response to first PFD- Anyone heard of Credit Bartering?

I like it!!!!!  Good luck!!!!! 


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