topic Re: CC went to collection... in Rebuilding Your Credit

CC went to collection...

Anonymous — Sun, 21 Dec 2008 03:01:42 GMT

Yesterday I recieved a call from work. The person from the CA pretty much threatend me in everyway possible! Long story short, my wife takes care of the bills and simply forgot to pay this CC for 4 months.

CA told me that if we don't come to some type of payment agreement by Dec 31st, the account will go to counsil and then to court ect...and they will go after my house, my car and what ever assets I have.

They want me to pay either $400 per month or pay 60% of the debt off and be done with it. I told them I would call back on monday.

Now I don't want to deal with this person again and I would like to get the agreement in writing. I can't afford to pay the $400 per month and I don't have the $1600(60%). I could borrow the money from my father if need be, but wanted to get some advice before I jump the gun.

My intensions had been to continue paying what I could afford each month and then in Feb when I recieve my Tax return, pay the debt off.

Any advice would be great.

thanks

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 03:07:39 GMT

Is the OC reporting? If so, are they reporting a balance? If they are, then I would call the OC and try to set up some payment arrangement and ask them to pull the account back from collections. Ask if they have some type of rehab progam.

From the sounds of your post, this happened recent? If so, then you are for certain within SOL.

Have you received anything in the mail from them?

Have they reported on your report yet?

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 03:13:25 GMT

Yes I believe the OC is reporting, but it list as went to collection ect and they wouldnt talk to me. The late payemts were from Jan to April of this year and no, I never received any letters or phone calls. SOL?

Message Edited by DonM on 12-20-2008 07:13 PM

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 03:17:27 GMT

SOL = Statute of Limitations-- time period a creditor has to sue

You said the CA called you, correct? Now that they have made initial contact, they are required to send you written communications within 5 days that contains certain information per FDCPA 809.

Is the CA reporting on your report?

Since the debt is within SOL, if you know for certain that you could PIF if you were sued, then I would DV the CA. If they properly validate, then I would try to negotiate a PFD(if they are reporting). If they are not reporting and they validate properly, then negotiate a pay for not reporting.

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 03:40:05 GMT

Thanks so much for replying btw. My 30 free credit report has expired now. So I can't say for sure at this point in time the CA is showing. So should I request an agreement in writing and avoid phone conversation? The verbal agreement was to pay off 60% of the debt. Yes I understand they must send a written letter within 5 days.

At which point should I send them a PFD? Should I even bother calling them on monday?

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 03:52:33 GMT

Sorry but I think i'm a little confused. Do i have to ask for DV? or is the DV the written letter they are required by law to send me after phone conversation?

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 04:07:30 GMT

DV= Debt Validation......it is where you request that they validate the debt.

IMO, never talk to a CA on the phone.

If you have already gotten your free annual reports, then maybe the following can help.

If you have your Experian report number from when you pulled your reports before, you can go to their website and towards the bottom in the middle it will say "review report again", click that and enter your report number and other information and you'll see a current copy.

Otherwise go to TransUnion's online dispute and go through the steps to get a report to use for disputing. You don't actually have to complete a dispute, but can view your report.

If you've been denied credit in the last 60 days, are unemployed, and under some other circumstances you can get a free report from the CRA. If it is for denial of credit, you get a report from the CRA the creditor used.

TransUnion

Experian

Equifax

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 04:19:21 GMT

Ok so then I wont call them on monday. It's just that they threatend to sue if we didn't come to an agreement by the Dec 31st. I'm sure this is just to scare me into paying up. I have every intension to pay. I just want to validate first. I'm awfully sick and tired right now. So sorry for being confused.

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 04:24:04 GMT

No problem, I was very confused when I began and still am from time to time.

You can always fax them any negotiation papers.

If you plan to skip DV'ing, and just pay the settlement offer, you need to get it in writing( it needs to be specific) that 1) the amount of $XXXX will satisfy the debt in full with no further amount due or outstanding 2) the account will not be sold/transfered/assigned to any other collection agency 3) -- if you go for PFD-- that any entry by "CA" on your personal credit report will be completely removed within 30 days and if no such entry has been made regarding this account, no such entry will be made.

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 04:28:23 GMT

As of August 2008 the account was charged off as bad credit and was purchased by another lender.

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 04:30:17 GMT

IMHO I highly doubt that they will sue for $2600, while it is possible I believe that it is just a scare tactic. Sent a DV (debt validation) via certified mail. Once you receive a DV, fax over a payment arrangement proposal that YOU are comfortable and that you can afford. Last thing you want is to dump all your money and default on other bills. Keep fax receipts just in case they do sue, this way you will have proof that you have attempted to settle. I am sure it will work out fine but don't delay. I used to have 12 collection accounts ( I am down to one). You have no idea what kind of threats that they have used against me, none of which ever came to reality.

Re: CC went to collection...

Anonymous — Sun, 21 Dec 2008 04:36:37 GMT

$2600 is highly worth them suing over.

I've been seeing people getting sued over <$500 in the past months.

Re: CC went to collection...

Anonymous — Mon, 22 Dec 2008 14:21:23 GMT

Although i'm sure it's nothing but a scare tatic, i don't take it lightly! With the amount of credit issues in this country, I would not doubt they sue me if I don't make any attempts to pay up.

I told the person from the CA i would call him back today and I will. Only to tell him I want the agreement in writing and nothing more. Maybe I'll fax a written copy of my request to get the ball going faster. I can obtain the fax # when I call him at 2pm eastern time. I know sidewinder suggested not to call, but I don't want them to think I'm ignoring him and not wanting to come to some type of agreement.

I should have the money from my father later today.

Any other suggestions?

Re: CC went to collection...

Anonymous — Mon, 22 Dec 2008 14:31:55 GMT

Well, if they told you that they would "go after" your house or car, they lied to you. I don't think any state allows a creditor to just take a piece of property (whether real or not) that was never collateral or related to the debt itself.

They could, however, depending on your state, slap a lien on the property so if you ever sell it, they get the money they're due from the sale before you do. Like if you sell your car for $5000 and you owe them $2600, if they've put a lien on it (which I really believe is RARE), you will end up with $2400 in your pocket after they've taken their "cut."

As for your house, well, most states (if not all) have a Homestead provision that prevents such things from happening if it's your primary residence (meaning, it's not your summer home).

They *can* garnish your wages or levy your bank accounts (again, it depends on the state -- some are more debtor-friendly than others). But in order to do THAT, most times, they have additional hoops to jump through -- one of which is to subpoena you for your financial information.

Bottom line, though is IF you are summoned/served/subpoenaed SHOW UP. Don't just shove that piece of paper in the trash can and figure it will sort itself. APPEAR.

Just thought you'd like to know how full of poopy they are in terms of the specific threats they handed you.

Re: CC went to collection...

Anonymous — Mon, 22 Dec 2008 14:33:39 GMT

Whoops. Commonwealths are often the exception to the rule. In Commonwealths, they CAN often allow the creditor to come to your home and "take" property unrelated or unsecured in the debt.

Not a home or car, though. Often it's furniture, collectibles, etc.

Re: CC went to collection...

Anonymous — Mon, 22 Dec 2008 15:49:51 GMT

As i stated in another post. The debt isn't showing anything other then being bought from another company. But it doesnt say who or exactly when. If the CA agrees to remove this from my CR, do i also have to have to have the OC do the same? It appears as though the CA bought the account in August. When should this show on my report?

Re: CC went to collection...

Anonymous — Mon, 22 Dec 2008 16:57:51 GMT

@Anonymous wrote:
As i stated in another post. The debt isn't showing anything other then being bought from another company. But it doesnt say who or exactly when. If the CA agrees to remove this from my CR, do i also have to have to have the OC do the same? It appears as though the CA bought the account in August. When should this show on my report?

Okay, wait a tick ... are you saying that the OC sold/transferred the debt to one CA (who's reporting) and then somehow has been transferred/sold to ANOTHER CA who's not yet reporting??

Two things: Legally, only one OC (for obvious reasons) and ONE CA can report a single debt/tradeline at any one time. So if a "new" CA reports the debt to the CRAs, the "old" CA can no longer legally show on your CRs. Otherwise, they're in violation of the Fair Credit Reporting Act, and you can spank them.

Another thing is that that "new" CA MUST send you what's called a "Dunning Letter" prior to inserting the account/tradeline onto your reports. That "Dunning Letter" gives you (IIRC) 30 days to ask for debt validation (meaning, asking for proof the debt is yours).

You always DO have the option to DV them at any time. But the FCRA is written loosey-goosey enough that it doesn't do (IMHO) a good job specifying what constitutes "collection activity." Meaning, it doesn't say outright whether CR insertion would be considered "collection activity." Personally, I would think it does. But I'm not a judge (If I were, free dismissals with prejudice for everyone!! LOL!). :/

Irregardless, if you DV them and they never respond to you with "proper proof" (they will often respond with a crappy photocopied letter containing an account number, your name and addy - Pah!), by FCRA, they MUST instruct the CRAs to delete the TL from your CRs. Unfortunately, they don't always, so you have to be the one to keep track.

Re: CC went to collection...

Anonymous — Mon, 22 Dec 2008 17:06:06 GMT

Wonderin, what I'm saying is no one is reporting at this time! The original account is shown as being sold by OC. But doesnt show who.

Re: CC went to collection...

Anonymous — Mon, 22 Dec 2008 17:10:02 GMT

Oops submitted to soon. I've yet to receive anything from anyone. The first contact was made by the CA this past Friday. So I should receive the letter in the mail in the next few days. Tomorrow I'm sending out the DV letter.

Re: CC went to collection...

Anonymous — Mon, 22 Dec 2008 17:36:00 GMT

@Anonymous wrote:
Oops submitted to soon. I've yet to receive anything from anyone. The first contact was made by the CA this past Friday. So I should receive the letter in the mail in the next few days. Tomorrow I'm sending out the DV letter.

Yes! Once you receive the CA's dunning letter, send out that DV! Don't send it out until you receive it, though.

So, the OC is the only one reporting right now? Can you possibly offer a settlement/PFD to the CA?

I say that only because IF it's a recent charge-off, chances are, they'll be able to validate the debt in a matter of mere days. You WILL want a game plan to be on the safe side when that happens.

NOW, that being said ... if the CA threatens to take your home again, you can spank them on a Fair Debt Collection Practices Act violation. They are absolutely NOT supposed to threaten you with actions they can't legally take (such as taking your home).

What are the tape-recording laws in your state?