How to deal with shady collection agency?

[Etno]

A family member called me today; they had 5 calls this morning from a Bertrand Management that was trying to serve me papers. I didn't think I owed anyone anything anymore, so I called to see what it was about. They claimed to be from their legal department, and informed me of the account, which is an old Chase credit card that I did have at one time.

They gave me an account number, and told me to call Chase to verify. I called Chase independently, and they verified that I did still owe on the account even though they goodwilled it last year and removed the account from my reports, which is why I forgot about it. Chase said they sold it to another collection agency, I called them, they sold it to someone else, and down the line, until I did finally get to someone who sold it to this Bertrand company. They did do a pull on my reports. The debt is for around $2,100. They are claiming, of course, that if I don't pay it TODAY (The first day I have ever heard of this and my first contact with them) I will be served papers immediately.

My questions are:

1. Can they serve me papers without anything being filed first? I have checked my county/state court site and nothing is filed in my name.,

2. What is the best course of action here? Should I DV the debt with them and hope they really don't file anything, or am I just being paranoid here thinking that they would really file anything?

3. They offered a settlement of $1,800, doesn't this seem high? In this case, I could only pay it in full on a credit card, and I've read that's a bad idea. If I have a settlement letter from them is this still a bad option? If they charge too much can I dispute it with the credit card company?

Thank you so much for any help. All the research I have done on them so far has been very shady so I am very wary of giving them anything.

[guiness56]

Is it still within your state SOL?

In order to be served, they would first need to file suit against you.  And they wouldn't do the serving, it would be a sheriff, process server, etc.  Whatever your state laws allow.

That ploy is to get you to pay.  Period.

[Etno]

Yes, it's within SOL. Only for another 6 months.

Should I send them a DV?

[guiness56]

Can you pay in full if they validate?  If you can, yes, send them a DV.

[Etno]

Yes, I can pay it in full if I really need to (like I said, on a credit card). I did find out that I do owe on this account still, so even though I won't tell them that I do owe on the account. My concern is paying them for something they have no right to collect on or them scamming me over somehow because of all the shady things I read online about them. 

Anyone settled via credit card? Would it be safer to request a check from my credit card company and pay them with that instead?

[guiness56]

When you send the DV ask for an accounting of how they came to the amount you owe.  They are not allowed to charge fees and interest unless the original agreement and your state laws allow it.

Make sure you mail it CMRRR within 30 days.

I think a check from your CC or a money order would be best.  Others have paid using a CC, debit or check by phone but if you are hesitant, don't do it.

[Etno]

If they do charge more than I authorize and I have a settlement letter from them for a different amount would I have any chance disputing the charges with my CC company?

[guiness56]

I don't know if I understand what you are saying. 

If Chase says you owe $500 and they say you owe $2700, you need to know how they came to that amount.  If it is legally done, their isn't much you can do about it other than negotiate a settlement.

If you send a DV letter, it puts a cease collection bar in place until they validate.  If they don't validate, they cannot even offer a settlement.

And no, Chase no longer owns the debt and they are not going to be a party to it.

[Etno]

If I send a DV letter, does that also mean that they cannot file suit against me until they validate?

They gave me the "last 5 digits of the docket number", but nothing is showing up on the court site at all. Could this be fake too?

[Shogun]

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@Etno wrote:

If I send a DV letter, does that also mean that they cannot file suit against me until they validate?

They gave me the "last 5 digits of the docket number", but nothing is showing up on the court site at all. Could this be fake too?

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They kind of had a legitimatcy feel to their actions, until they threw the court docket thing at you.  That, to me, is a red flag.  I would send an immediate DV.  This would place a cease bar on any collection activity until they satisfy the DV.  Yes, this includes filing for a judgement against you.