topic Re: Collection for overdrawn checking account. Proper validation of debt? in Rebuilding Your Credit

Collection for overdrawn checking account. Proper validation of debt?

theo78 — Wed, 22 Aug 2012 15:41:20 GMT

I asked RJM Acquisitions LLC for validation (via CMRR 2 X) of a collection for a Bank of America overdrawn checking account from 5 years ago. They responded with a paper I signed to open the account, a copy of my bank statement with a negative balance, a letter saying they own the debt now and how much they are collecting and Bank of America's address. I asked them to show where Bank of America wrote this account off, how much was written off, and under what authority they were collecting this debt for Bank Of America. They did not provide that information .Does this do as proper validation? This is the third or fourth debt collection agency to have this account. This just showed up on my credit report. How should I proceed?

Re: Collection for overdrawn checking account. Proper validation of debt?

Shogun — Wed, 22 Aug 2012 16:38:34 GMT

Actually by reporting standards. I do believe they sent you what is necessary. Hopefully someone else will jump in here but they don't have to give you loads of info like some people think they should.

Re: Collection for overdrawn checking account. Proper validation of debt?

trix_r_4_kids — Wed, 22 Aug 2012 16:50:29 GMT

It seems that since they validated your DV, the best course of action may be a PFD (Pay for Delete). RJM is VERY good with PFDs. It only took about a month between the time I sent them a PFD, they responded, I sent the money, and the delete from the CRAs.

Also, since this is "third or fourth debt collection agency to have this account", I'd strike while the iron is hot. Another agency will not be as generous as RJM.

Re: Collection for overdrawn checking account. Proper validation of debt?

theo78 — Wed, 22 Aug 2012 17:31:36 GMT

How much should I offer on a PFD? They are saying I owe $1400. Of that, $1100 are overdraft fees. These were accrued in a one month period. Bank of America selectively chose the order in witch items were cleared causing a large amount of over draft fees. This is my only bad item on my credit report and is really pissing me off....

Re: Collection for overdrawn checking account. Proper validation of debt?

Anonymous — Wed, 22 Aug 2012 18:19:03 GMT

this is very odd that they put an overdrawn checking acount on your credit report...unless you were overdrawn by alot.

Re: Collection for overdrawn checking account. Proper validation of debt?

theo78 — Wed, 22 Aug 2012 18:33:42 GMT

Like I said. It's a toatal of $1400 and $1100 are overdraft fees...

Re: Collection for overdrawn checking account. Proper validation of debt?

Anonymous — Wed, 22 Aug 2012 21:07:13 GMT

oh ok. Well if you get the funds to pay i would negotiate a PFD. Alot of time you might be able to settle for less and still do PFD. check the adress on your credit report and send a PFD letter to that adress.

Re: Collection for overdrawn checking account. Proper validation of debt?

theo78 — Wed, 22 Aug 2012 22:11:07 GMT

I just counted. in the course of 1 month they charged me EXACTLY 30 overdraft fees at $35 a pop totaling $1050 in fees. I had requested not to have transactions go threw if there were not funds.

Re: Collection for overdrawn checking account. Proper validation of debt?

trix_r_4_kids — Wed, 22 Aug 2012 23:10:11 GMT

Since it was over 5 years ago, I would start with 50% ($700). They may counter, but it is a place to start.

I know you're PO'ed. Fees can be unreal. However, this won't just go away. The lower your score, the more you'll pay in interest over the life of any card or loan. As I said in an earlier post, RJM is pretty easy to work with in comparison to other CAs. This debt could get passed along to an agency that isn't as nice and that CA could tack on more fees and interest.

Re: Collection for overdrawn checking account. Proper validation of debt?

proudnavymom — Thu, 23 Aug 2012 03:08:47 GMT

I think I recall getting something in the mail about a class action lawsuit against a bank based on the order in which they processed debits (checks and other debits) in order to maximize the insufficient fund charges for the bank. I don't think it was Bank of America, but maybe one day that will happen with them.

Re: Collection for overdrawn checking account. Proper validation of debt?

llecs — Thu, 23 Aug 2012 03:12:31 GMT

OP, this is a good thing. Of all the CAs to deal with RJM is the one. They are always open to PFDs and they are open to settlements within the PFD. Don't fight them; you wouldn't want anyone else to take over.