Reply
Established Member
dv112
Posts: 23
Registered: ‎09-07-2013

No response from GW or PFD letters. Sent a DV and then the balance increased $150

I had a balance owed to a medical company that was sold to a collection agency back in 2009 for about $380. Lately I have been recieving settlement offers to pay about half the amount but I was willing to pay it in full if they would accept a PFD. I sent them two letters with no response and decided to submit a DV through a CA. Two weeks later I receive the results that show the account updated with a new balance of $530! Does anyone know if a CA can add fees?

 

I've never seen this before. Should I keep sending them letters until they can agree to something?In my PFD letter I even offered to accept any terms as long as they would report it PIF for the original balance. I recieved a CK alert this morning that a new account is reporting delinquent but my score watch hasn't posted any change in scores so I hope this hasn't affected a couple of points. 

 

Can I challenge the new balance?

 

 

Starting Scores: 639 EX | 625 EQ | 664 TU (9/1/13)
Current Scores: 640 EX (11/10/13) | 627 EQ (10/18/13) | 658 TU (12/16/13)
CL Timeline: (9/2013) CapOne Secured: $900 | (11/2013) Amazon Store Card: $800 • In the Garden until 01/2015 (for auto re-fi)

*Score dropped 10 points on 12/09/13 for auto loan inquiries and high christmas utilization.
Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150


dv112 wrote:

I had a balance owed to a medical company that was sold to a collection agency back in 2009 for about $380. Lately I have been recieving settlement offers to pay about half the amount but I was willing to pay it in full if they would accept a PFD. I sent them two letters with no response and decided to submit a DV through a CA. Two weeks later I receive the results that show the account updated with a new balance of $530! Does anyone know if a CA can add fees?

 

I've never seen this before. Should I keep sending them letters until they can agree to something?In my PFD letter I even offered to accept any terms as long as they would report it PIF for the original balance. I recieved a CK alert this morning that a new account is reporting delinquent but my score watch hasn't posted any change in scores so I hope this hasn't affected a couple of points. 

 

Can I challenge the new balance?

 

 


The balance changing on the collection account shouldn't change the score much, if at all.

 

And CAs can add fees and interest if the debt's original contract indicates as such

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150

They shouldn't be updating the balance at all without first responding to the DV letter.

Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150


guiness56 wrote:

They shouldn't be updating the balance at all without first responding to the DV letter.


That is assuming the DV is considered timely

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150


rckstrscott wrote:

guiness56 wrote:

They shouldn't be updating the balance at all without first responding to the DV letter.


That is assuming the DV is considered timely

 

-scott


Yes, I know this.

Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150


guiness56 wrote:

rckstrscott wrote:

guiness56 wrote:

They shouldn't be updating the balance at all without first responding to the DV letter.


That is assuming the DV is considered timely

 

-scott


Yes, I know this.


Clearly I know you know this haha

I was more reiterating in the context of the general conversation.. 

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Established Member
dv112
Posts: 23
Registered: ‎09-07-2013

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150

I will assume I will find something in the mail from them I guess. It I do find fees added I could try to send them a new letter for PFD with the new balance. I won't mind paying it if they will delete. I just don't want them to continue increasing the amount as a result of my letters. 

Starting Scores: 639 EX | 625 EQ | 664 TU (9/1/13)
Current Scores: 640 EX (11/10/13) | 627 EQ (10/18/13) | 658 TU (12/16/13)
CL Timeline: (9/2013) CapOne Secured: $900 | (11/2013) Amazon Store Card: $800 • In the Garden until 01/2015 (for auto re-fi)

*Score dropped 10 points on 12/09/13 for auto loan inquiries and high christmas utilization.
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150


dv112 wrote:

I will assume I will find something in the mail from them I guess. It I do find fees added I could try to send them a new letter for PFD with the new balance. I won't mind paying it if they will delete. I just don't want them to continue increasing the amount as a result of my letters. 


They can't increase the balance based solely on your letters.

 

If your state laws and the OC allow for interest and fees to be added they can, until paid.  I would try for the PFD also.

Mega Contributor
RobertEG
Posts: 17,314
Registered: ‎03-19-2007

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150

[ Edited ]

Be careful how you word your offer if CR deltion is your goal.  They might accept.

 

The post states that "I even offered to accept any terms as long as they would report it PIF for the original balance"

 

Reporting paid is a requirment if they accept whatever amount you offer as satisfaction of the debt.

If paid in full, they must report a $0 balance, and cannot add a comment that you paid less than the full amount.

If they accept a settlement for less, they must also report a $0 balance, but can also add a comment to the effect that payment was for less than the full debt.

 

If they accept your payment of the original balance only, that is a settlement for less, and your condition would thus only prevent them from reporting the additional special comment that the debt was paid for less than its full amount.  No CR deletion results from such reporting.

 

the issue of whether additional amounts above that of the principal balance on the OC account can be collected is governed by FDCPA 808(1), which states that it is a violation for them to attempt to collect any amount that is either not specifically authorized in the account agreement that created the debt, or is otherwise permitted by law.

 

If your account agreement with the OC did not specifically authorized additional amounts, then the issue of whether they can attempt to collect any additional amount depends upon the statutes and regulations of your state as they apply to debt collectors.  You might contact your state regulatory agency that handles debt collection practices, and inquire as to what is permitted under the laws and regs of your state.

 

Established Member
dv112
Posts: 23
Registered: ‎09-07-2013

Re: No response from GW or PFD letters. Sent a DV and then the balance increased $150

 


RobertEG wrote:

the issue of whether additional amounts above that of the principal balance on the OC account can be collected is governed by FDCPA 808(1), which states that it is a violation for them to attempt to collect any amount that is either not specifically authorized in the account agreement that created the debt, or is otherwise permitted by law.

 

If your account agreement with the OC did not specifically authorized additional amounts, then the issue of whether they can attempt to collect any additional amount depends upon the statutes and regulations of your state as they apply to debt collectors.  You might contact your state regulatory agency that handles debt collection practices, and inquire as to what is permitted under the laws and regs of your state.

 


 

oh this is very helpful. I will definitely pursue this if they cannot provide me with an itemized list of the additonal fees. 
Thanks everyone! 

 

 

 

Starting Scores: 639 EX | 625 EQ | 664 TU (9/1/13)
Current Scores: 640 EX (11/10/13) | 627 EQ (10/18/13) | 658 TU (12/16/13)
CL Timeline: (9/2013) CapOne Secured: $900 | (11/2013) Amazon Store Card: $800 • In the Garden until 01/2015 (for auto re-fi)

*Score dropped 10 points on 12/09/13 for auto loan inquiries and high christmas utilization.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+