Defunct Credit Card company

[Anonymous]

I had a credit card through Salute Visa, who I am just finding out is defunct. As the priginal creditor, they reported on my credit report an amount of $382. There is now a Collection Agency(Midland) reporting a balance of $684. Do I still need to pay on a card that is now defunct? And how can there be 2 different amounts reported?

[daveg38]

I went through that...stick to your guns and they'll bow out, especially when the collection account can't verify with the original creditor the information to be inaccurate or correct.

Whatever you do, DO NOT let these schmucks bullying you into paying the original amount + their interest.  They bought your account for about $.07/$1.00 and then add their fees.

Send the validation, cease and desist and then if they refuse to get themselves off report fire off a few more validations.  Record all calls. Dispute with the 3 bureaus as often as you can...FCRA says they must be able to clearly validate your debt and remove it OR stop collecting on it while in dispute.  Nail them Edited to remove reference to a particular law office that will sue them for FCRA violations) if they get out of line. Worked wonders for me.  The collectors squealed like pigs and ran.

[LS2982]

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@daveg38 wrote:

I went through that...stick to your guns and they'll bow out, especially when the collection account can't verify with the original creditor the information to be inaccurate or correct.

Whatever you do, DO NOT let these schmucks bullying you into paying the original amount + their interest.  They bought your account for about $.07/$1.00 and then add their fees.

Send the validation, cease and desist and then if they refuse to get themselves off report fire off a few more validations.  Record all calls. Dispute with the 3 bureaus as often as you can...FCRA says they must be able to clearly validate your debt and remove it OR stop collecting on it while in dispute.  Nail them Edited to remove reference to a particular law office a free attorney that will sue them for FCRA violations) if they get out of line. Worked wonders for me.  The collectors squealed like pigs and ran.

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+1

[Anonymous]

Ok, forgive me for sounding "naive" but what is a Validation? Is that similar to requesting Proof of Debt?

[LS2982]

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@Anonymous wrote:

Ok, forgive me for sounding "naive" but what is a Validation? Is that similar to requesting Proof of Debt?

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Called a DV letter (Debt Verification) Here is an example from a member here:

Here is the letter I use:

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

[LS2982]

_____
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

[daveg38]

+1

And, on the same note, the above IS effective in scaring the beegeebies out of collectors.  Especially when a signed app is summoned and cannot be presented properly to you.

[Anonymous]

Great! Thanks for the information! How long will this process take? I am trying to purchase a home and these jerks are holding me up!

[MarineVietVet]

That letter is much too long and many of the things requested are not required to be supplied by the CRA's. Keep a DV short and sweet. Use something like this. This is all you need to do. Send the letter CMRRR.

"I pulled my credit bureau report, and I discovered that you claim I owe you a debt. Under FDCPA 809, send me validation of this debt."

"You claim I owe you a debt. In accordance with FDCPA, send me validation of this debt."

"I received your letter claiming I owe you a debt. Per the FDCPA, send me validation of this debt."

[daveg38]

Well, first, never apply for credit cards within 6 months of shooting for a mortgage.  Lenders will see you as potentially desperate.

Next, use the dispute area with EACH bureau separately to argue the validity of the account.  The same day you dispute with them, fire off the debt validation to the company in question.  Send it Certified with Signature Required.  Important step there.

Then they have 30 days to validate or 45 if new info was discovered to turn over an answer (documents of proof) or they'll delete it.

[MarineVietVet]

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@daveg38 wrote:

Well, first, never apply for credit cards within 6 months of shooting for a mortgage.  Lenders will see you as potentially desperate.

Next, use the dispute area with EACH bureau separately to argue the validity of the account.  The same day you dispute with them, fire off the debt validation to the company in question.  Send it Certified with Signature Required.  Important step there.

Then they have 30 days to validate or 45 if new info was discovered to turn over an answer (documents of proof) or they'll delete it.

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Unless you live in Texas there is never a time limit for a CRA to respond to a DV request. But they do have to stop all collection efforts.