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stumbling out the gates

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Anonymous
Not applicable

stumbling out the gates

so i decided a couple of weeks ago that i wanted to purchase a house and thus getting my credit straightend out was first in order. i ordered my free annual report and proceeded to call all of my debtors as all of my debt was petty cash (max $450). i only paid one through the phone after he verbally verified that his collection agency were the legal owners of the debt. the other two did not provide such information so i negotiated a settlement plan but insisted they first send me a document verifying my debt. i was set to pay it this week but recently came across one of the msg. board topics on the debt validation letter and realized i should have done this first to validate it b/c they could have been telling me anything to get my money. my question now is, am i legally bound to pay debt that may not be legal if there was a verbal agreement on my part to pay it?if not, i definitely want to send out the dv's and then consider paying it. 

 

Message 1 of 6
5 REPLIES 5
203bravo
Established Contributor

Re: stumbling out the gates

Am I legally bound to pay debt that may not be legal if there was a verbal agreement on my part to pay it?

 

One person cannot make a contract (verbally or written) and there must be a meeting of the mind for the contract to be enforceable.

 

Are you legally bound to pay the debt? Was the debt yours?  If it was then you are on the hook, if someone stole your identity then no.

 

With a CA always DV before making any payment arrangements. 

 

Best of luck.

Message 2 of 6
Anonymous
Not applicable

Re: stumbling out the gates

thanks for the advice!

 

my only concern after reading some of the warnings here is that the collection agency may not actually own my debt and i would basically be giving away free money. i guess i'm trying to weed out the authentic owners from counterfeit agencies since i saved up just enough money to elimainate my debt. the letters they sent me are pretty generic and just reiterate that its 'an attempt to collect a debt' and 'i have the right to inspect my credit.' in your experience is this a sufficient indicator of authenticity? 

 

related to that, if i failed to negotiate a delate for payment clause, is there still opportunity to request it after negotiation? i assumed that a paid settlement stays on your report for around five to seven years depending on the state but it appears (in reading some of these forum posts) that a person can successfully negotiate a delete for payment clause.

Message 3 of 6
guiness56
Epic Contributor

Re: stumbling out the gates

Each state has different laws pertaining to what constitutes a binding agreement.

 

If you agreed to payment arrangements with the CA, yes, it very well could be binding.  If you acknowledged the debt as yours, yes it could be binding.

 

Look up your states laws and see what they say. As I said, each state is different.

 

DV the CA first but, if it is within SOL, be prepared to PIF.  If it comes back validated, ask for a PFD.

 

 

Message 4 of 6
guiness56
Epic Contributor

Re: stumbling out the gates

A paid collection/CO stays on your report for 7 years from the DOFD, regardless of when it was paid.

 

Yes, you can request a PFD.  The CA is not obligated to accept but many times will.

 

If the debt has not be sold to a CA and is still owned by the OC, deal with them instead.  It is always better to deal with the OC.  Tell them you will pay if they delete and recall it from the CA.

Message 5 of 6
Anonymous
Not applicable

Re: stumbling out the gates

Usually SOL goes by DOLA (most states) But what is on your CR goes by CRTP.

 

Collections can remain approx 7 years from DOFD.

 

Who is reporting,an OC,CA or both?     What is the DOFD on each?    The OC sets the DOFD not the CA.

 

SOL is set by each state.

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

 

You stand a better chance of a CA accepting a PFD when you are past SOL.

 

FICO treats paid and unpaid collections the same!  You want them off your CR!!

 

Always send a DV  CMRRR  before a PFD.

 

Never call a CA!!!!!!!!!!!!!!!

 

You always want everything in writting when dealing with anyone reporting on your CR. It is your word agains theirs!!

 

If any of these are medical collections then follow the HIPAA process.

Message 6 of 6
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