NCB Management Services - Please help!!

[mrchamp103]

I just received a negative hit on my credit report from NCB Management Services and they state that it is from an account from back in 2009 from HSBC. For the last 5 years, HSBC has always showed that the account was zeroed out and that I never owed anything else on that account. I even called HSBC to years ago to inquire on that account and a CS rep stated that that account was closed in full. Now this company is stating that they want to charge me $6k on interest accumulated on an amount that HSBC never chose to pursue nor did it ever show on my credit report.

Can a debt collector collect on interest that I had no idea what was owed? Is this legal? Also I noticed that "conviniently" their board of directors happens to come from HSBC.

[Creditaddict]

they can pursue collections for 5 years usually depending what state you are in... they can continue reporting for 7 years.... depending if your state is 5 years and what date in 2009 that account shows, they are probably making a push to try to collect before statue of limitation is up at 5 years.

they certainly can continue to acrue interest

however what was the original debt?

do you have cash, are you interested in setteling?

is this your only baddie unpaid now?

[mrchamp103]

I am in Florida so the statute is 7 years but again they state that they are not charging me on the amount owed but on interest that has accrued. What are they accruing on if my credit report shows a 0 amount.

I will follow up a bit later and see when exactly my last payment was done but if I am not mistaken I believe my 7 years are about to come up very soon and thus they are trying to collect right away. I asked for a VD so let's see what is received in the next 30 days.

The original debt owed was like $7k (for a jetski) but then they sold it at auction for just a bit less.

Not my only bad debt but almost all will complete 7 years this year and will start to fall off. Is it legal for them to hit my credit report for a negative amount without sending a VD nor contacting me before to verify if the debt was actually mine or not?

[Creditaddict]

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@mrchamp103 wrote:

I am in Florida so the statute is 7 years but again they state that they are not charging me on the amount owed but on interest that has accrued. What are they accruing on if my credit report shows a 0 amount.

I will follow up a bit later and see when exactly my last payment was done but if I am not mistaken I believe my 7 years are about to come up very soon and thus they are trying to collect right away. I asked for a VD so let's see what is received in the next 30 days.

The original debt owed was like $7k (for a jetski) but then they sold it at auction for just a bit less.

Not my only bad debt but almost all will complete 7 years this year and will start to fall off. Is it legal for them to hit my credit report for a negative amount without sending a VD nor contacting me before to verify if the debt was actually mine or not?

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yes it's legal.

if it's 2009 you are not close to 7 years when it comes to how much collecting they can still try to do.

however if you have others that you are just waiting to age off then I would not talk to them... most likely they are not going to spend the money to take you to court to win a judgement so they will just bug and bug and report the next year or so then it will all go away.

if it was your only and they were really messing your credit up and you had the money you could try to settle, however if it was $7k and they sold it for say $6k and added even another $1k for the collection fees, selling, etc. that would be $2k... this new agency could be adding interest and late fees on that $2k every month but if you offered money, they would probably quickly take it all the way back to less than the $2k for settlement.... I would never pay more than 50%, especially on such an old debt... and that's 50% of original LOSS not half of this stupid collection agency... they paid pennies on the original amount... it's not a loss to them.

[RobertEG]

Reporting by the OC of a $0 balance on your account with them does not mean that there is no longer a debt.  it means that you no longer owe the debt to them.

The credtior was required, upon sale of the debt, to promptly report a $0 balance owed to them.

If and until the new owner reports, your CR will not provide information on what happended to the debt, or evenif there is still a debt.

Once the new owner reports, they provide the statement that they debt is unpaid, and is owned by them. 

As for what amounts they can attempt to collect, the FDCPA stipulates that they may not attempt to collect any amount that is either not specifically authorized in your account that created the debt, or is otherwise permitted by law.

I would first review your account agreement with the OC, and determine what that agreement authorized.  Continued accrual of interest on unpaid debt is a standard clause.

6K in interest alone sounds huge.  Are you sure that does not include the principal on the unpaid debt?

If you want an itemization of the debt and less than 30 days has expired since they sent you dunning notice, you can send a timely DV, in chich you can request both verification of the debt and an itemization of the asserted debt, thus provding a clear statement of the components of the debt.

A timely DV request wont compel their verification and itemization within any specific period, but will prevent further collection activities on their part until they proivde those items, so it may be incentive for them to respond.

[RobertEG]

A DV must be sent within 30 days of dunning notice in order to be timely, and even if timely, it invokes a cease collection bar, not a requirement to respond. 

As long as they cease active collection, they have no requirement or period to respond.

If the DV is not timely, it invokes no cease collection bar, and the debt collector can choose not to respond, and go on about their collection activities.

The FDCPA does not require proofs in order to verify.  The debt collector must conduct an investigation and convey their determination to the consumer.  Any supporting documentation is likely to be contested as to either its completness or what it proves, and there is no party under the DV process to rule on evidence.

The DV process is not a legal fact finding process.

Similarly, while the courts have affirmed that a consumer can request an itemization of the debt as part of a DV request, compliance does not require proving the accuracy of the items.

The debt validation process does not apply to original creditors.  Your contract with them and their billing statements constitute their "validation" of the debt.

If the creditor has reported information, its accuracy can be disputed under the FCRA dispute process, but unlike the FDCPA DV process, the consumer must meet the initial burden of documenating some inaccuracy in their reporting.   One cannot simply request debt validation from an OC.