Help! Collection Agency concern

[Anonymous]

     On Dec. 19, 2010 one of my CC was charged off because I wasn't able to give payments for 5 months.  On Jan 18, 2011, I got a letter from a 3rd party CA.  It stated the name of the CA that bought the debt and the amount owed which is about $1400.  I did not validate the debt because I knew I owed it since was it had been charged off just a month before.  I called sears and was told that Sherman Financial bought the account.  The name on the letter I received names the creditor as LVNV Funding.  I googled both and found that they are the same company.  I agreed to a 12 month payment plan and have already given 1 payment. They did email me the payment arrangement letter, and i have kept this and I printed the statement from my Visa card as proof that I made the 1st payment.  

      This is my debt, and I do want to pay it.  My concern that is that by not validated the debt, I do not have proof that the CA I'm paying is legally authorized to collect for Sherman Financial.  Is it too late to validate now since I already gave a payment.  I'm still within the 30 days to dispute the debt, but that's not really what I want to do.  I just want to make sure I'm paying the correct CA. 

     The CA I'm currently working with has done some things that make me have doubts to their honesty.  First I did not receive a confirmation  # when I made the payment over the phone.  They told me to call back because they were having problems with their system..  I never did call back for the # but I've go6 proof it was deducted from my cc.  Then they said they would email me another payment arrangement because they made a mistake and I should be done with the repayment in 11 months instead of 12.  I never got the email.  I called the credit manager, but he put me on hold and never got back to the phone.  Anybody have any advice for me?  I was happy to be paying the debt, but now I'm getting scared.  Do they have to validate that they are authorized to collect if I send it in writing or have I lost my consumer rights by giving the 1st payment and agreeing to the payment plan?

[Anonymous]

Nobody's posted a reply.  Please offer some advice.  The last day to validate is Feb. 18.  I just want to know how I can make sure the  CA  I'm paying has been authorized to collect on this debt.  Could I just call Sherman Financial, the company who bought the debt?

[Anonymous]

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@Anonymous wrote:

Nobody's posted a reply.  Please offer some advice.  The last day to validate is Feb. 18.  I just want to know how I can make sure the  CA  I'm paying has been authorized to collect on this debt.  Could I just call Sherman Financial, the company who bought the debt?

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No one has replied because honestly unsure what is the right advice. Possibly RobertEG will reply at some point when he comes on. He usually has good advice in these types of situations. You may even be able to send him a PM and ask him for your help. He is very helpful and I am sure he would assist you as best as he can.

[Anonymous]

How do I PM Robert?

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@Anonymous wrote:

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@Anonymous wrote:

Nobody's posted a reply.  Please offer some advice.  The last day to validate is Feb. 18.  I just want to know how I can make sure the  CA  I'm paying has been authorized to collect on this debt.  Could I just call Sherman Financial, the company who bought the debt?

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No one has replied because honestly unsure what is the right advice. Possibly RobertEG will reply at some point when he comes on. He usually has good advice in these types of situations. You may even be able to send him a PM and ask him for your help. He is very helpful and I am sure he would assist you as best as he can.

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[Anonymous]

Any advice would be welcomed.  Even if it's to tell me I've made the biggest mistake ever and I deserve it for being stupid. 

[Anonymous]

Ok since no one seems to have any advice, here's what I'm going to do. 

On Monday, I will call the CA who bought my account to verify that the 3rd party CA is authorized to collect for them. Hopefully they'll provide the information i need.  If they do, I will continue giving all payments using my Walmart MoneyCard Visa.  Walmart has an online account. manager where I can go to track my payment transactions.   I can also ask for a more indepth list of all transaction posted. I will print these statements as soon as each transaction posts as proof that I paid.  The name of the 3rd party CA does appear

 Plus, Walmart does not honor any transactions if there no money in the card. I will use this card only for this account transferring only the necessary amounts each month, and then I will cancel the card right after I give the last payment.   If they still demand ridiculous fees and charges after my 12 monthly payments, I will not pay, and I will cease all communication with them.  The only extra amount I will pay is the 6% interest rate they did state over the phone that they might charge.  It comes out to about $80.

 My credit has already been hurt by the original CO so if they don't update my credit report it won't be so bad. .  I still have to wait 7 years for the OC baddie to come off my report.  Plus, I can dispute with the CR and file a complaint with the attorney general in their state,  I live in Texas so I've read we have a lot of consumer rights.   So what do you all think of my plan.   Is this a good way to go about paying theddebt

Transunion - 679

Experian - 669

Equifax - 678

[rayandsuebrown]

hi call the original creditor, they will tell you who they sold it to.

good luck

[Anonymous]

I did call the OC and they told me the name of the company who bought it. 

The CA (different name from the one who bought it) sent me a letter on Jan 18 that stated, "We have been authorized to collect the outstanding amount owed. You have 30 days to dispute...." The letter has the name of the original creditor, the creditor, and the balance. 

 I guess my other concern is that I accepted a payment arrangement offer that does not say payments will settle account in full.  It says to "call after the last payment is given to discuss a resolution regarding the remaining balance."  I don't know what remaining balance he is taking about.  The original balance is about $1350; the 12 payments total $1430. 

I did questions the collector about  a remaining balance, but he said it was a small amount of 6% interest charges.  He also said their would be no other fees applied.  Of course I have none of this in writing.  I do have a call log of the different conversations and I wrote down his name, what he said, and date and time of conversation. 

 I fear they lied to me and they will try to collect more money.  I will not pay them any more.  That will be my "resolution regarding the remaining balance"  Am I entitled to request the amount of any fees and interest rates being applied during the payment arrangement?  Do you think they'll sue me for the remaining balance even after I pay them more than what I originally owed.

I know I made a bad deal, but any advice that will prepare me for what might come would be greatly appreciated.

[IOBA]

You sound super stressed about the whole thing!  

* are they authorized to collect on the debt?

* if you have already entered into an agreement, you might have to stick with it.

* yes, if you ask for a break down of the total amount, then they need to provide it to you.

* what exactly does your payment agreement say?  you mentioned you are suppose to call to discuss the remaining balance -- that is kinda a contradiction to a payment plan.  A payment plan is to pay off the debt, and in theory, once you have made all the agreed upon payments, the debt is paid off.

[Anonymous]

I am super stressed.  I can't sleep or eat!  I never DV'd so I'm just assuming that the letter they sent on Jan 19 that says they are authorized is correct.  I plan on calling Creditor who bought the CO tomorrow to verify who can collect. This is my first experience with a CA so I'm worried I might be asked to pay more at the end.  This is what the payment arrangement says:

This letter serves as confirmation that (CA) will accept the following payment arrangement on the above referenced account:

(12 payments due by last day of the month) (letter does specify amounts and dates)

After the last payment is made, please contact us to discuss a resolution regarding the remaining balance. This agreement is in effect through the last payment date outlined above.

LIke I said earlier, if they try to get more money out of me, I'll just refuse to pay.  Letter does say, "This agreement is in effect through the last payment date."  I'll only pay the 6% interest they quoted on the phone. Maybe.