collection...What to do next?

[Consumerman]

Remember "date of last activity," date last payment received on account determines how long it typically stays on report.  Seven years from that date.  Ask them to write you confirming what you owe.  Once you have confirmation, make them aware that if a reasonable settlement cannot be worked out, divide what they tell you owe by 36 to 60 months and begin makinig scheduled payments.  Collectors get paid by what they collect over pay periods.  Much better if they receive a large one time payment.  If you do something like this, I strongly suspect that you will hear from them about a settlement amount.  If you cannot make a one time payment when settlement offer made, offer three or four payment over that number of months.

[gdale6]

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@Consumerman wrote:

Remember "date of last activity," date last payment received on account determines how long it typically stays on report.  Seven years from that date.  Ask them to write you confirming what you owe.  Once you have confirmation, make them aware that if a reasonable settlement cannot be worked out, divide what they tell you owe by 36 to 60 months and begin makinig scheduled payments.  Collectors get paid by what they collect over pay periods.  Much better if they receive a large one time payment.  If you do something like this, I strongly suspect that you will hear from them about a settlement amount.  If you cannot make a one time payment when settlement offer made, offer three or four payment over that number of months.

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This is incorrect, the DOLA plays no part in the time an account can remain on file. The DoFD is always the date that the CRTP clock runs from on a COed account and the CA must operate from that same date as well.

[Anonymous]

Going through this thread...

- Do you know who owns the debt? A charge off is one thing, but does it show that the OC sold it off? If not, then this collector is working on their behalf (probably why it isn't showing on your credit report).

- Yes, send a DV letter. Keep it simple. Do not acknowledge it is yours.

- Going from $694 to $1400 after charge off? If this was sold, all agreements that existed prior are off and if this debt collector added interest without hitting you with statements, that is an issue in many states, in some, the debt collector cannot add interest.

It makes all the sense in the world to have them verify, otherwise anyone can send you a letter and demand payment. Let them prove it is yours. Then establish how they can act in the capacity of loan shark by doubling the amount over 5 years.

Good Luck

[Anonymous]

I would suggest you not do anything over the phone. then get proof that they own the debt. there are a lot unethicial cls out there

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@Anonymous wrote:

Thank you to everyone on here for the great advice in the past.  I have a problem.  I have a Credit one charge off . It was charged off in june 2011 and sold to msw capital llc. Never have received Any communication from them. The charged off amount was $694. Today I received a call from P&B capital group trying to collect for msw capital.  Stating the account is in pre legal Status.  They are claiming that the balance due now is $1400. ! He said interest, and fees still are being added. Nothing is on my credit reports yet and I'd like to settle but not for 1400. That's ridiculous.  My original credit line was 350.00 should I offer that in exchange for not reporting?  Any advice would be appreciated. Thanks! 

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@Anonymous wrote:

Thank you to everyone on here for the great advice in the past.  I have a problem.  I have a Credit one charge off . It was charged off in june 2011 and sold to msw capital llc. Never have received Any communication from them. The charged off amount was $694. Today I received a call from P&B capital group trying to collect for msw capital.  Stating the account is in pre legal Status.  They are claiming that the balance due now is $1400. ! He said interest, and fees still are being added. Nothing is on my credit reports yet and I'd like to settle but not for 1400. That's ridiculous.  My original credit line was 350.00 should I offer that in exchange for not reporting?  Any advice would be appreciated. Thanks! 

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[Anonymous]

When I have had a problem like this in the past. I used Legal Shield which is only $19.95 a month, have an attorney send a letter to them in your behalf. Especially if they harassed you. That usually makes them want to negotiate or leave you alone.

[Anonymous]

Date of last activity is any payment or any PROMISE to pay, so you need to be very careful about actually entering into agreements with collectors, because that can reset the clock.

They may choose to sue if you're still within the SOL, though suits on such small amounts are not the norm.

If the debt has been sold to any of these agencies contacting you, they have paid pennies on the dollar for it. A "fresh sale," the first one from the original creditor to an agency MIGHT have cost them 8 to 9 cents on the dollar. Fresh agencies will usually spend no more than 6 months trying to collect on those accounts and then they often sell them further down the food chain for even less money. Anything they make above their costs is, of course, profit. Most agencies will settle for a single 35% payment , even down to 20% the further it gets down the food chain. Extra fees and interest added on top of the original debt are irrelevant. Don't let an original $1000 that has morphed into $1300 become the basis of a "deal" back down to $1000 - they paid at most $100 for it. Offering $350 on an original $1000 default gives them 250% profit, which is more than enough to cover expenses including the individual collector's commission.

I settled a family member's accounts (all post-charge off) for a maximum of 35% to each credit with the exception of one, who wouldn't budge off 60%. They eventually got nothing.

The line collector often won't have authority to go this low, but their managers can and often will. If you are reasonable, tell them you realize that their authority probably doesn't allow that, but you know there's negotiation room if they pass it on up to management, you'll often get a favorable response when they realize you won't be impressed with a 70 or 80% "generous offer."

The less contentious the conversations the more apt you are to succeed.

[Anonymous]

First of all if you live in California the statue of limitation may be expired which means they can still hound you but they can't sue you in Court. And the 1400 they say you owe is nothing but BS. Original creditor has already gotten paid by their own insurance that covers those kinds of losses Plus they had a nice tax write off so they didn't lose and to top it all off they sold it to a bottom feeder collection agency so they didn't lose any money they actually make money on your bad debt. Do not negotiate any payment plan with that collection agency, you will only trigger the statute of limitation all over again no matter what state you live in. check your bureaus and see if they put a negative report on your personal credit. if they did write to them and make them prove that you gave him permissible purpose to enter into your private Credit personal business. I can guarantee you 100% you did not give them that right, sue their ass. Good luck, not that you need it if you know what you're doing. (Mod Cut)

[Anonymous]

If you agree or make any payment on this account it will reset the SOL. If I were you make the send you documentation you owe this bill. Collections agency sell accounts and lose the records. Make the prove you owe this bill

Kevin. Boise Idaho

[Anonymous]

I'm a debt collector. Demand verification of debt. #1 the debt was sold for pennies on the dollar... #2 agencies up balances intentionally... not legally or validly. Verification of debt is your right a protection as a consumer. However, don't expect the "true" balance to be anywhere close to the charge off amount. I'd guess the balance they provided isn't too far off if they haven't stopped the interest. Also, DO NOT settle without a letter first, and, make the payment before the due date for your protection! Good luck