Help! Sent PFD letter, but before CA responded- they already withdrew $ from bank

[Anonymous]

Hello everyone,

I've been reading up on information on how to clean one's credit & I'm thoroughly grateful for all the useful information everyone has contributed to this forum. However, I think I read up a little bit too late within my process of dealing with a CA.

Please excuse the long post, I just want to make sure I list all the facts surrounding my situation.

Scenario:

-I had an old (approx. 4 yrs. old) private student loan turned over to a CA.

-CA finally gets a hold of me via phone & tells me that if I don't pay up, I'll be sued.

-CA says that if I pay off approx. 40% of the full amount, that will settle my debt (I thought this was a great deal)

-told CA that was fine, but that I didn't have that kind of $; I had some of it but it would take some time to withdraw out of my savings

-CA manages to get my bank account & routing # out of me (I know, I know...I shouldn't of have)

-I did NOT authorize CA to withdraw $ out of my account, that is- I did not explicitly say they could take $ out on such & such date. What I did say was: "I need to transfer $ out of my savings into my account, I don't know when the full transfer will be, but will check on Friday to see if it's fully done"

-CA said: "no problem, just call me that Friday morning to settle this"

I then proceeded to start searching around the internet & came across this website. I'm learning that EVERYTHING must be done in writing when dealing with CA's.

I immediately sent them a PFD. I also made sure to call my bank to let them know that this CA had my banking info, but that I had not authorized them to withdraw anything, so they proceeded to block them. I removed all my $ from that account & transferred to a 2nd account. I also tried to close this account, but bank said I had to keep it open for a couple of more days due to a pending transaction I had (grocery shopping or the other).

Days later, a $1000 debit from the CA went through on my bank account; I called my bank, made a stink about it & they currently are working on making a reverse on said transaction.

I made sure to write a complaint to the FTC, the BBB & the fraud center of the state of OH (where the CA is located).

I know the CA received my PDF letter 2 days before they made the debit on my account, because I had delivery confirmation on mailing.

On the same day I realized this unauthorized transaction on my account, I received a letter from the CA stating our settlement agreement. It was dated the same day I had sent out the PFD letter to them, so I don't think this was a response to the PFD, but a simple settlement reminder from them.

I currently have a negative balance on that account & am working on my bank to resolve this matter. I also have the full settlement amount (after scrounging it all up) in another account. So I have the $ to pay the CA, but I don't want to send anything out 'til my negative balance bank account is settled; as I don't want the CA to possibly end up with an extra $1000 of mine.

Now I don't know what to do.

Do I send them another PFD letter, but add a caveat where I state that  I won't pay the settlement amount in full until my bank account is all worked out?

Or do I contact them again AFTER my bank account is worked out?

I'm also scared that they make want to ask me to pay more since I was supposed to have paid off the agreed settlement on the 30th of Sept.?

ANY help would be greatly appreciated. THANK YOU!

[llecs]

Lessons are best learned through experience.

In the future, as you have already read and pointed out, always DV then PFD the CA, never talk to a CA on the phone, never give the CA any personal information like bank accounts, and always get everything in writing.

Without reviewing the FDCPA again, they probably didn't break any laws. The problem is you'd have to record the phone call in order to prove they did anything wrong. And in Ohio (assuming you are there too), you have to ask for permission before recording a phone call. And giving them bank account info shows intent that you wanted to pay over the phone.

Also a PFD isn't a legal document. It is just another form of a GW. No CA or OC has the obligation to respond to or acknowledge one.

If the $$$ does not clear or your bank reverses the payment, then I personally would fax or e-mail them a PFD for the same $1000. You'd clear out the account and you'd save $$$ (from settlement). Now some would say to DV, but if you know the debt is legit, then I'd PFD without a DV. If they deny the PFD, then I'd DV then offer a PFD again for the settlement offer.

If the $$$ does go through, then I would start with the GWs to get it removed.

[Anonymous]

Ilecs, thank you for the feedback.

Yes, the debt is legit.

However, the $1000 is not the full settlement amount. It was only the 1st payment. I was/am supposed to pay another $2500 to settle it completely.

Should I just allow the $1000 withdrawal to go through & then mail out a cashier's check for the remainder $2500? (just so I can be done with this)

After I've paid it all off- would I mail the GW to the OC or the CA?

Thanks!

[Anonymous]

Just some more timeline info:

I spoke to CA on the 15th

I was supposed to call back on the 19th to verify if I had the 1st payment of $1000

Mailed out PFD instead on the 19th

They received the PFD on the 22nd

They withdrew the $1000 the 24th

I called my bank on the 25th to stop this (they said it will take 5-7 business days to resolve)

I'm supposed to have paid off the full $3500 settlement amount by tomorrow the 30th

[llecs]

I want to say, if the $1k cleared, to stop, regroup, send a DV, then send a PFD for the $2500, then mail the money via a certified check if they accept.

However, I think you mentioned a 40% settlement. If so, that is an org. $8750 debt. You are saving over $5000 on this. Not bad, btw.

The question you'd have to ask is, is pursuing a PFD, possibly getting denied for the PFD, or even a possible recinded settlement offer worth $5000? Would you be willing to allow the CA to report for $5000?  I can't answer that.

If I found my way into your situation, I'd follow through with the $2500 and GW them to get them to delete. I would be afraid if I pressed too hard, they may withdraw the offer. Prior to any event happening, I would also be concerned about SOL. It would have likely been reset with a payment and/or an attempted $1000 payment. Pressing too far with a PFD could bring about a possible suit too.

[Anonymous]

Points well made. This is truly something to think about.

Thank you very much for all the input.