Collector Issue Need Advice on what to send!

[bay75]

I am in need of advice on how to handle something. I had a loan through ORNL Credit Union for my Honda Pilot. I was never late always on time. I took out a personal loan for 2,500 dollars. I had some medical issues that took place and I had fell behind about 400.00 on the personal loan. In the night they came and repo'd my car and said they could do so due to a cross collaterial clause I was unaware of. They auctioned my car off and said I owed an additional 3,000 dollars This was done almost a year and half ago. I had not paid anything to them once this took place they would not work with me at all! I received a letter a few days ago from a collector saying that they received my payment of $7.61. I never sent them anything!  what do I need to do. I know by them saying I made a payment that this would cause the dates to change and this would stay on my credit for longer now. What type of letter do I need to send to them to proof this payment came from me. I do know this is my account however I don't want agree that its mine. Is this not illegal for them to lie and say I paid when I did not. I need some help on this one I would not send a DV letter would I? I know its mine I am just disputing that I sent them anything!

Thanks Jennifer

[missgamecock]

They are trying to entice you to get to respond to them.

[HoldingOntoHope]

First thing we would need to know is if this collection agency is reporting to the credit bureaus and if so are they reporting the payment activity. It will not affect their ability to continue reporting the debt to the bureaus because that is set by date of first default which cannot be changed. The reporting will drop at 7 1/2 years from that date.

It could as you said affect the statute of limitations to sue depending on the laws of your state. If they are only referring to the payment in a letter to you and not reporting it to the bureaus then it could just be a shady trick. If they are reporting false information to the credit bureaus then that is another ball game. In any event if they attempted to sue you based on this information then you could challenge them in court and make them produce evidence of the payment from you.

Also do you know if the credit union has sold this debt to them or simply assigned it for collection? If it is only assigned then you may be able to work out a settlement with the CU and make the whole problem go away. I'm sorry that you found yourself in this position but your story may provide a warning to others as the cross accounts and collection procedure is fairly common among financial institutions. It is disclosed in that paperwork that so many of us simply sign without reading in our eagerness to get a loan.