Phantom Payments?

[DubbaYou]

I am dealing with the triology of stupidity, CACH, Portfolio and Midland.  After they're gone, I am clean and clear. I just checked Experian, and Portfolio is showing that I have been making a payment of $43 every month since they first reported, March of 2011.  I have never made any payment to them. I have offered settlements, but they won't reply. Is this a tactic to re-age the debt?  Also, they report the original balance at $403, but first reported it at $364 in March of 2011, and keep bumping it up every month.  This is on a debt of $210 from the OC which is why I will only offer them $210 for it.

I did get CACH off my credit report because they contradicted themselved in letters to me, so I sent everything to the BBB and they disappeared from my credit report and haven't sent me anything.  I know they may sell the account, but hopefully to someone who won't double it and who will accept a payment.

With Midland, has anyone had luck with them at all?  They have taken a $600 account from the OC, and are demanding $1200+ for it.  I filed a BBB complaint stating they had adding fees in violation of the FDCPA and the BBB told me to contact the AG and FTC.  Any advice?

[SFernandez13461]

*Bump*

Unfortunately, I don't know how to advise you, but Portfolio's reporting a fictional $40 payment for me as well. Hopefully one of the experts will chime in.

[RobertEG]

My concern would be with the potential impact on your state statute of limitations.

In some states, the running of the SOL period can be reset by certain actions of the consumer.  One of those actions in some state codes is either making a firm commitment to pay, or making payments. 

I would dig up a copy of your state SOL statute that governs the type of debt that is under collection, and determine if your state has any such reset provisions for tolling of the statute.  SOL usually begins, under most state statutes, with the date they were first legally able to bring a "cause of action" (i.e., sue you) for delinquency, which is usually the same as the credit reporting DOFD. 

If the debt is now outside of SOL, then the issue of reset would be moot. 

If you wish to correct their reporting, file a direct dispute with them, alleging the inaccuracy to be their reporting of non-existent payments.  Kinda unique for a consumer to dispute creditor reporting of reduction of their debt, but if it has SOL implications, it might be important to get your dispute of record so that they could not rely upon such an argument in court. They must conclude any direct dispute within 30'ish days of receipt.

[DubbaYou]

I am assuming that it is an attempt to reage the debt.  Question for anyone who knows, when something like this happens, should I contact my AG or the AG in the area where the company is based? 

[RobertEG]

Contacting your state AG is always an option.

However, I suggest that you also send a formal complaint to the FTC.  They are the agency specifically authorized to bring sanctions and legal action for FCRA and FDCPA violations.

Your state AG, unless they see the case as compelling, may choose to first see a seeking of remedy under the established federal process.

As an aside, if a debt collector is charging amounts above any specifically authorized in your original account agreement with the creditor, their action is a violation of FDCPA 808(1) unless they can provide some clear statutory authorization for them to attempt to collection amounts not provided for in your account agreement.

I suppose they have itemized the additional amounts.  I would challenge them to provide basis in your state law for collection of such amounts.