topic Re: Question about Asset Acceptance in Rebuilding Your Credit

Question about Asset Acceptance

nmorton79 — Sat, 11 Apr 2009 16:27:38 GMT

Happy Saturday to all

DH had a account with HSBC/Beneficial that he defaulted on an it went into collections. The amount owed ballooned from 2983 to over $7000, and then was turned over to Asset Acceptance. In September 2008, the account was then turned over to Ocwen. They were calling and threatening to take legal action, and at the time DH applied for a job with our local police department, and when they ran his credit, they told he needed to get into repayment or else he would have a hard time getting hired. So since Sepet 2008 we have been paying$300 per month and have since paid the balance down by $2100. (DH has since been offered a job with our local police department and is set to enter into the Police Academy in June) So, the problem is that even though we are paying Ocwen, they are not reporting, and Asset Acceptance is stil reporting a balance of $7200. When we started paying Ocwen, they stated the balance was $6926, so according to them the balance should be $4826 now. DH has diputed the CRA's and it always comes back verified and he's told to contact Asset Acceptance. Where do we go from here? Do we DV Asset Acceptance? We're trying to get our mid scores above 620 so we ca buy a home this year...Please help!!!!! Thanx for listening and responding

Re: Question about Asset Acceptance

Anonymous — Sat, 11 Apr 2009 16:31:00 GMT

Is Ocwen collecting for Asset or do they own/been assigned the account from the OC?

Is the OC reporting? If so, are they reporting a balance?

Re: Question about Asset Acceptance

Cinnnamon — Sat, 11 Apr 2009 20:04:09 GMT

Several things you can do. You can call HSBC and request that you pay them directly on a payment arrangement, also get proof of your debt. That seems strange your DH's debt escalated like that about 2900 to $ 7000. Interest should be that much and collections agencies tend to overcharge the original debt. Beware of that. Also you can send a cease and desist letter to the collections stating you only deal with the original creditor, ask the HSBC if they still own the account and to send you a letter with proof. You might have overpaid the account without knowledge, collections are not supposed to overcharge you more than what the original debt is and they can't be sued for doing that. You have a right to know on the contract of who owns the debt to be collected on. This shows who authorized to collect on the debt and the collector should send you a copy of the contract between them and HSBC that gives them permission to collect on it.

Don't let them scare you and under the FDCPA, they can't threatened court unless they mean it. That's illegal and a form of harassment under the FDCPA. Also if the Account is transferred to Ocwen, Asset Acceptance should not be reporting that you still owe a debt ( I dealt with them myself- it was deleted), if Ocwen supposed bought the account or it was assigned. Contact HSBC and ask questions about who owns this account and a letter to show what the actual debt is or have you DH call. I think you may have overpaid and they need to reimburse you the balance and also to have to deleted off your credit report. Privay message me for help. Good luck.

Under the FDCRA the collection agency can't be the owner and the assigner of a account.

Re: Question about Asset Acceptance

nothingman02 — Sat, 11 Apr 2009 20:38:39 GMT

Do not send out a C&D. Pull your reports from ACR and examine all details. AAC is JDB so I am not sure that the debt has been 'assigned' to them. Check with HSBC about that. First step is to find out who ows this debt.

Message Edited by nothingman02 on 04-11-2009 01:38 PM

Re: Question about Asset Acceptance

Cinnnamon — Sat, 11 Apr 2009 20:42:13 GMT

Nothingman-

I think you repeating what I said. hahhahaa, But he should do a cease and desist. It seems that these colelctors not playing fairly.

Re: Question about Asset Acceptance

nothingman02 — Sat, 11 Apr 2009 21:04:33 GMT

Not really.

Re: Question about Asset Acceptance

Anonymous — Sat, 11 Apr 2009 21:25:23 GMT

IMO, sending a C&D while the account is within SOL is like sending a letter asking them to sue you.

Re: Question about Asset Acceptance

nothingman02 — Sat, 11 Apr 2009 21:30:54 GMT

My sentiments exactly. I think C&D obviously would be a wrong idea. Also it seems like AAC purchased this debt from HSBC, still owns this debt and they have outsourced it to Ocwen.

Re: Question about Asset Acceptance

nmorton79 — Sun, 12 Apr 2009 01:45:02 GMT

@Anonymous wrote:
Is Ocwen collecting for Asset or do they own/been assigned the account from the OC?
Is the OC reporting? If so, are they reporting a balance?

OC is reporting with a $0 balance, Ocwen stated when they first called that they were calling on behalf of HSBC consumer lending...I'm not sure if DH has never actually received any calls or correspondance from Asset Acceptance

Re: Question about Asset Acceptance

Anonymous — Sun, 12 Apr 2009 01:58:18 GMT

Because you have been making payments to Ocwen, I would ask them if they own the debt or who they are collecting for.

Don't mention Asset.

Since the OC is reporting $0, I would say they sold the account.

If Ocwen doesn't mention Asset, I would DV Asset.

Re: Question about Asset Acceptance

Cinnnamon — Sun, 12 Apr 2009 02:09:00 GMT

Nmorton-

As I stated, Contact HSBC and request the information that I stated in my other comments. You DON'T HAVE deal with them, that's why I recommended a "Cease and Desist", it seems you may be taking for a ride. And you can cease and desist basically on anyone. But it not wise to do it to the original creditor-HSBC. Contact HSBC and ask for a proof of contract that says whether Asset Acceptance or OCwen owns the account. Don't pay anyone until you have proof of who you actually supposed to send payments to. If you prefer to deal with the OC, talk to them and make whatever arrangement you need be. You shouldn't be push around like a ping-ping. This is a bad tactic if how CA's like to do it. They tell you someone else owns or assigned to the account,but they still want to collect money on the account they don't own or not assigned to. Best thing check with HSBC and get it clear from the horse's mouth. You might be due an overpayment. GET all deals in writing!

Re: Question about Asset Acceptance

Anonymous — Sun, 12 Apr 2009 02:26:40 GMT

The original poster stated that the balance ballooned while it was still held by the OC.

As stated above, a cease and desist letter is an invitation to sue. You are welcome to send a C&D to any or all of your creditors. The reason that most people send one is when a CA or JDB is pursuing an old debt that is outside the SOL. You can also send a limited C&D when a CA or JDB is contacting your family to try to track you down--there, you provide your address, and ask they only correspond with you in writing. In a C&D, you ask the creditor not to contact you regarding the debt. When it's a legitimate debt, and you're inside the SOL, trying to cut off the OC/CA is a very bad idea.

You're much better off following the advice of our experienced moderator, sidewinder.

Since you've entered into a payment agreement, and have been making payments, you're kind of stuck with that CA. If you violate the agreement with the CA, they will escalate and could sue. But in terms of figuring out the Asset piece, depending on what Ocwen says (or doesn't say) about Asset, you may need to DV Asset.

Many CAs will not put a payment agreement in writing. You may be able to get one, but don't be surprised if they refuse, especially now that you're already in the midst of a payment agreement.

Re: Question about Asset Acceptance

nmorton79 — Sun, 12 Apr 2009 03:18:40 GMT

Ok...thanx for all of the responses...alot of really good advice given. We will contact HSBC to see if they still own the account. We will also DV Asset Acceptance because like I said, I'm not sure if DH ever heard from them. At this point I don't see the need to send a C&D letter because we are not having any problems with CA's calling and harrassing us. Yes Ocwen did say that were ready to take legal action, and we did not want to be sued, but the main reason DH entered into a payment aggreement(which he did manage to get in writing) was because he was going up for a police job and his recruiter told him that he needed to be in repayment before he could be hired. The only problem DH is having is with Asset Acceptance reporting either 1)at all or 2)an incorrect balance..Hopefully a DV will = a deletion, and ocwen will never report...we shall see...I will keep everyone posted...Thanks again for all the helpful advice

Re: Question about Asset Acceptance

valley_man0505 — Mon, 13 Apr 2009 13:29:30 GMT

I feel the need to post here to say that I also agree NOT to send a C&D letter if the account is in SOL, which it obviously is since you have been making regular payments (remember, SOL starts from DOLP). If you send a C&D letter to a CA, you not just "inviting" them to sue, you are forcing them to sue. Once you send a C&D letter, suing is the ONLY option the CA has left to collect from you.

Also, all the talk about working only with HSBC seems moot at this point since they are reporting a $0 balance. You could call them to see who they sold the account to, but beyond that, there isn't anything HSBC can do anymore since it appears that they sold the account. If you do this, also keep in mind that if HSBC tells you they sold it to someone other than Asset Acceptance, that doesn't mean AA isn't the rightful owner NOW. I called an OC once about a debt once to get DOFD. While on the phone with them, they told me who they sold the debt to. However, that was worthless information since the debt had changed hand 3 times already since the OC sold it (once they sell it, they have no idea what happens to it after that). In fact, the CA they sold it to didn't even exist anymore.

From the way it sounds, the most likely scenario here is that Asset Acceptance owns the debt, and the Ocwen is collecting on their behalf. It is not uncommon for a CA to buy an account and assign a different CA to the actual collection activities. This would also explain why Asset is not updating the balance--they probably will not do so until the ENTIRE balance is paid unless you specifically request them to. What happens a lot is the CA that is actually collecting does not even give the JDB the amount collected until they have it ALL. Also, keep in mind that a $0 collection hurts just as much as a $10,000 collection, so updating the balance on a monthly basis could actually hurt you since the account looks more "fresh" in the scoring algorithm. I would actually prefer if a CA didn't update until I PIF'd (if they insisted on updating at all). If you want them to update the balance simply to prove to someone looking at your report that you are in payment arrangements, then try to get a letter saying so instead of trying to get the balance updated on your reports.

Re: Question about Asset Acceptance

nothingman02 — Mon, 13 Apr 2009 14:46:58 GMT

At this point I don't see the need to send a C&D letter because we are not having any problems with CA's calling and harrassing us.

Nmorton79, as mentioned throughout this thread, a C&D is not a convinient option that you could employ at any which time. If its not past the SOL, its not a good idea to send out a C&D even if they are harassing you. You could send out a letter asking them to contact only in writing through mail and not to anybody else or any other means.

Re: Question about Asset Acceptance

nmorton79 — Mon, 13 Apr 2009 22:31:07 GMT

@valley_man0505 wrote:
I feel the need to post here to say that I also agree NOT to send a C&D letter if the account is in SOL, which it obviously is since you have been making regular payments (remember, SOL starts from DOLP). If you send a C&D letter to a CA, you not just "inviting" them to sue, you are forcing them to sue. Once you send a C&D letter, suing is the ONLY option the CA has left to collect from you.

Also, all the talk about working only with HSBC seems moot at this point since they are reporting a $0 balance. You could call them to see who they sold the account to, but beyond that, there isn't anything HSBC can do anymore since it appears that they sold the account. If you do this, also keep in mind that if HSBC tells you they sold it to someone other than Asset Acceptance, that doesn't mean AA isn't the rightful owner NOW. I called an OC once about a debt once to get DOFD. While on the phone with them, they told me who they sold the debt to. However, that was worthless information since the debt had changed hand 3 times already since the OC sold it (once they sell it, they have no idea what happens to it after that). In fact, the CA they sold it to didn't even exist anymore.

From the way it sounds, the most likely scenario here is that Asset Acceptance owns the debt, and the Ocwen is collecting on their behalf. It is not uncommon for a CA to buy an account and assign a different CA to the actual collection activities. This would also explain why Asset is not updating the balance--they probably will not do so until the ENTIRE balance is paid unless you specifically request them to. What happens a lot is the CA that is actually collecting does not even give the JDB the amount collected until they have it ALL. Also, keep in mind that a $0 collection hurts just as much as a $10,000 collection, so updating the balance on a monthly basis could actually hurt you since the account looks more "fresh" in the scoring algorithm. I would actually prefer if a CA didn't update until I PIF'd (if they insisted on updating at all). If you want them to update the balance simply to prove to someone looking at your report that you are in payment arrangements, then try to get a letter saying so instead of trying to get the balance updated on your reports.

Would that be the same if AA is not listed as a collection account? According to all the CR's he has no collections on his reports(although we know these are collection accounts listed. They are listed as a paid derog, paid after charge off, but because they are not listed as collections or public record he did actually gain some points as the balances came down...BTW, we have one joint account that went into collections--also with AA...it was for a target card..on DH's report it was just listed as a open account that went bad, but on my CR's it states collection account--he gained points when it was paid, I did not)

Re: Question about Asset Acceptance

valley_man0505 — Tue, 14 Apr 2009 13:09:46 GMT

@nmorton79 wrote:

Would that be the same if AA is not listed as a collection account? According to all the CR's he has no collections on his reports(although we know these are collection accounts listed. They are listed as a paid derog, paid after charge off, but because they are not listed as collections or public record he did actually gain some points as the balances came down...BTW, we have one joint account that went into collections--also with AA...it was for a target card..on DH's report it was just listed as a open account that went bad, but on my CR's it states collection account--he gained points when it was paid, I did not)

Do you mean that AA is on the report, but just not showing as a collection? Or aren't they even on the report?

Re: Question about Asset Acceptance

Cinnnamon — Tue, 14 Apr 2009 13:21:00 GMT

Nmorton-

Cease and Desist lletter is not always used for Harassment, some consumers use it for when the CA knows they can't on an account( SOL, past 7 yrs timelines, accts that are not own by CA or any situation), a consumer rather deals with the OC, or whatever the consumer chooses to not want to have any contact with the CA, unless the CA is writing the consumer to let them know what they will take ( to sue the consumer or to stop collecting on the account, or even send the acct back to the OC. ) So it all depends, I don't like drama with CA, so I tell them all should be in writing. I don't talk them to on the phone, they can be shady. So I have to protect myself @ at times. They will try to bully you if you don't know you rights, so not all C&D means harassment or threats.

Re: Question about Asset Acceptance

Anonymous — Tue, 14 Apr 2009 13:59:21 GMT

As stated above (repeatedly), since this account is clearly inside of the SOL, a C&D letter is unwise for the op.

Re: Question about Asset Acceptance

valley_man0505 — Tue, 14 Apr 2009 14:39:01 GMT

@Cinnnamon wrote:
Nmorton-

@Anonymous and Desist lletter is not always used for Harassment, some consumers use it for when the CA knows they can't on an account( SOL, past 7 yrs timelines, accts that are not own by CA or any situation), a consumer rather deals with the OC, or whatever the consumer chooses to not want to have any contact with the CA, unless the CA is writing the consumer to let them know what they will take ( to sue the consumer or to stop collecting on the account, or even send the acct back to the OC. ) So it all depends, I don't like drama with CA, so I tell them all should be in writing. I don't talk them to on the phone, they can be shady. So I have to protect myself @ at times. They will try to bully you if you don't know you rights, so not all C&D means harassment or threats.

If you are simply recommending that the OP tells the CA that all contact must be in writing, that is fine and is, in fact, highly recommended--anytime you can avoid talking to a CA on the phone, you should. However, that is different than a C&D letter. A C&D letter tells them to stop ALL contact with you, which leaves a lawsuit as their only option to collect.