When does collections become collections? USDA Loan

Anonymous — Fri, 17 Jul 2009 20:48:47 GMT

I am trying to get a USDA loan. The rules stipulate that you can not have had "accounts converted to collections in the past 12 months." My credit report shows that National Credit Systems opened the account on 10-2007, it was reviewed on 10-2008. The delinquency date is 10-2008, as is the date last active and the payment pattern start date. I have the originial letter from National Credit Systems dated Oct 22, 2007 saying the account was placed in their office for collections. I have 30 days to dispute. The debt ($168) wasn't paid because I never received a bill from my old apartment complex. All I wanted to see was a bill, which no one ever sent me. I then tried to send a good faith letter a few weeks ago saying I will pay the debt if you take it off my report, and didnt hear from them.

So I am losing a great loan over a $168 debt, which I have in my pocket.

So who is right? I read the letter to mean that it was put into collections in 2007 not 2008. My broker has been really good about this so far, but he is pretty much sticking firm with what he sees. Is this legal? disputable?

Re: When does collections become collections? USDA Loan

Anonymous — Sat, 18 Jul 2009 06:41:45 GMT

By not giving you the bill from the apartment, it sounds like they failed to properly verify the debt. I would try to have them validate by using this letter I found in the rebuilding credit forum here:

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Make any changes needed ( first sentence) Just pulled my CR and see that you report that I owe you a debt. (something like that)

CERTIFIED MAIL #: ___________

Your Name

Your Address

YourTown,, State ZipCode

Debt Collection Company Name

Their address

Town, State ZipCode

Date:

Re: Debt Collection Company Name; Acct # Debt Collection Company #; Original Creditor Name; OC Acct #

To Whom It May Concern:

This letter is being sent to you in response to a notice sent to me on DATE. Be advised that this is a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

This is NOT a request for "verification" or proof of my mailing address, but a request for FULL MEDIA VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that (a) the account is valid, (b) the amount allegedly owed is accurate, and (c) I have a contractual obligation to pay Debt Collection Company Name for this alleged debt.

All of the following MUST be provided to adequately validate the authenticity of the alleged debt AND provide proof of my contractual obligation to Debt Collection Company Name for this alleged debt:

Signed credit application between myself and the original creditor
Copies of all signed vouchers from the date account was opened until default
Copies of all statements from the date account opened until default
Proof of the statute of limitations
Proof of agreement that you were hired by the Original creditor (creditor as defined by the FDCPA) or
A copy of the contract Debt Collection Company Name purchased the alleged debt.
If the alleged debt was purchased, provide a copy of an agreement between Debt Collection Company Name and myself, signed by me, stating that I have a contractual responsibility to Debt Collection Company Name for the alleged debt
Provide proof that Debt Collection Company Name is bonded/Licensed for debt collecting in the State of Your State

Be advised that failing to provide ALL of the media requested to validate the alleged debt will invalidate any and all claims Debt Collection Company Name is asserting regarding this alleged debt. If Debt Collection Company Name can NOT provide all of the validation media requested above, ALL collection efforts MUST be stopped and the account MUST be DELETED from the Debt Collection Company Name. If you can NOT validate your claim, you can NOT, by law, collect on it, or SELL it to another collection agency. Also, reporting a debt to the credit reporting agencies that can not be validated is a violation of the FCRA (Fair Credit Reporting Act), and carries a $2500 fine to be paid to me. I have two years to decide if I want to pursue this matter. PLEASE GIVE THIS MATTER THE ATTENTION IT DESERVES.

If your offices are able to provide all of the validating media as requested, I will require at least 30 days to investigate this information, and during such time, all collection activity must cease and desist.

I am also stating, in writing, that no telephone contact be made by your offices. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment, and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by United States Postal Service.

Best Regards,

Your Name

Re: When does collections become collections? USDA Loan

Anonymous — Sat, 18 Jul 2009 08:03:37 GMT

If the account was placed on your CR in 2007, then that should be the date they use.

Who did you send the letter to, the CA or the apartment complex?

topic When does collections become collections? USDA Loan in General Credit Topics

When does collections become collections? USDA Loan

Re: When does collections become collections? USDA Loan

Re: When does collections become collections? USDA Loan