topic Re: settling with original creditor in General Credit Topics

settling with original creditor

Anonymous — Thu, 01 Mar 2012 23:54:58 GMT

Hello,

I received a call from World Recovery in reference to an old defaulted Wells Fargo account for less than $100.00. I told them I had recently settled that full amount with Wells Fargo they then informed me that since Wells Fargo no longer owns the debt, I will be responsible for all of the interest. I told them I would not be dealing with them at all and excused myself from the conversation.

Is this true? Will they still be able to collect interest on the debt?

The account has not posted to my credit report and I would like to keep it that way!

Thanks so much.

Re: settling with original creditor

RobertEG — Fri, 02 Mar 2012 00:15:04 GMT

Something doesnt jive.

The OC could not have accepted payment from you unless they still owned the debt.

The debt collector assertion that they owned the debt is contrary to the actions by the OC.

Interest accrues to the owner. If the OC accepted your payment as full satisfaction of the debt, and they owned it, then I see nothing due to the CRA, unless they are asserting legitimate collection fees.

What is the status of the collection? Can you still file a timely DV, meaning are you beyond 30 days from any dunning notice sent to you?

If so, then you can force the debt collector to cease all collection activity, including credit reporting, until they have settled the issue of debt, including any interest accrued, with the OC and verify that fact back to you. If you have evidence of satisfaction of the debt, and they falsely provide verification to you. then a trip to the courthouse would be in order.

Their lack of current credit reporting may be telling. It might indicate that they dont want to face an FCRA dispute over the issue, and thus are avoiding this by refraining from reporting any information that you could dispute.

Make them obtain verification, and put them under a cease collection bar until such time as they do.

Re: settling with original creditor

Anonymous — Fri, 02 Mar 2012 04:11:36 GMT

Thanks so much for responding and for shedding some light on this. So, is it possible that Wells Fargo still owned the debt even that World Recovery does not?

I never received a dunning notice from them or the OC.

At any rate, I will send them a cease and desist letter tomorrow.

Thanks again for the advice!

Re: settling with original creditor

RobertEG — Fri, 02 Mar 2012 07:39:01 GMT

I would NOT recommend sending them a cease communication letter at this point. You can do better.

Just DV them. A DV imposes a full cease collection bar, which is more widesweeping than a cease communication letter under FDCPA 805(c).

And it includes a request for debt verification, and additionally provides for your request of the name of both the current and original creditor.

The name of the current credtior is something that is required in their dunning notice. Make them put in writing that they are the current owner of the debt. Their failure to send dunning notice is particulary telling, as identification of the current owner of the debt for which they are collecting is a required part of a dunning notice.

And, of course, an itemization of the items and amounts that they assert are part of the debt, such as the interest.

You get much more by way of DV. You compel their silence with a cease communication letter.

Reserve a cease communications letter until they have provided debt validation. Make then put on record that they have validated the debt thru the credtior.

Re: settling with original creditor

LIGHTNIN — Fri, 02 Mar 2012 10:16:03 GMT

@Anonymous wrote:
Hello,
I received a call from World Recovery in reference to an old defaulted Wells Fargo account for less than $100.00. I told them I had recently settled that full amount with Wells Fargo they then informed me that since Wells Fargo no longer owns the debt, I will be responsible for all of the interest. I told them I would not be dealing with them at all and excused myself from the conversation.
Is this true? Will they still be able to collect interest on the debt?
The account has not posted to my credit report and I would like to keep it that way!
Thanks so much.

The CRTP (credit reporting time period) is the length of time an item can report, on a CR.

The CRTP for Most Negatives is up to 7-7.5 years, from the DoFD ( date of first default) on the OC account.

Once passed the CRTP, the negative can no longer report.

Hope, this helps