Negotiating with Collection Agencies

[EaglesFan2006]

I am in a real bind here.  I owe 4800 dollars over 4 accounts.  Two are bank overdrafts that have been sent to collections (one for 2k originially Bank of America, now with Penncro and the other 1400 with citizens now with RJM).  The other two are payday loans in collections (one with Detex, one with Harris and Dial) that don't appear on my credit report.  All 4 of these debts are old (2005-2006) so I don't think DV letters would do me any good.  Basicly I'd love to start paying them off but I am having an impossible time trying to work something out, mainly because the payments they demand I just can't afford right now (for example an installment payment of 600 a month).  I know they broke some rules (I just got a letter saying a payment is due per our agreement, which I never made any ...also on the phone one said i had a promised payment due today, which I never did either).  The whole thing is very tiring and exhausting and I've heard so many different things about what to do with these people.  Basicly I'd like to avoid being sued, pay these off with the ideal goal of getting the two deleted from my credit report, and if possible save as much money as I can.  If anyone has any advice please let me know. 

[Anonymous]

DV letters will work at any time, if I understand them correctly.  Especially when they are from that long ago.  Have you tried contacting and working with the original creditors?  That would be the ideal way to go.  PLUS, everyone on here who knows a good amount, says not to talk to the CA's on the phone.  If I were you, and after reading everything on here over the last couple of weeks, I would contact the original creditors, no matter how old the debt and see if they still own the account.  If they do, try to work it out with them.  I am sure you will get some more advice from here, they know their stuff.

[Junejer]

Eaglesfan, D'sMom is correct. STOP talking to CAs on the phone, everything in writing. Also, you can DV anytime. You need to make sure that you are paying the correct entity. I am quite certain that you don't want to throw away your hard-earned money.  You can use the following letter, making sure that you change the names "to protect the innocent". Never sign the letter, just type your name. Did I mention that you should NEVER speak to a CA on the phone again? If I did not, do not speak to a CA on the phone again.   GL.

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

[EaglesFan2006]

Thank you.  I did try contacing the original creditors and both referred me to the agencies on this matter.  That's sort of the bind I'm in because I know that would be easier.  The starting amounts here are so astronomical.  And I will send a DV then becasue I'd definitely want to make sure I'm paying the right people.  Hopefully in the mean time they won't sue or anything like that.

[Junejer]

These are from 2005-2006. What's your state's SOL? If you are close to SOl, you might not want to send the DV, until SOL is past.

[EaglesFan2006]

Pennsylvania I think is 4 years.  So I'm still within that.  Sending a DV resets the SOL?

[FICOfit]

I don't think the DV will reset the SOL, but it may make them want to try to sue you.  That's why I'm always leary on sending a DV.  CAs can be very sneaky sometimes

[EaglesFan2006]

So basicly I drafted a letter that looks like this ... does anything think this is okay?  I'd really like to not trigger a lawsuit....

I am writing in response to a letter dated January 21st, 2008 that I received yesterday, stating “This letter will confirm your agreement to remit a payment in the amount of $466.66 due in our office by 1/31/2008.”

This is not correct as no compromise was reached.  During this conversation I made no promise to pay any amount by any particular date.  Please provide documentation to support your claim.  I have enclosed a copy of this letter.  This suggested payment plan is too far out of my budget as I have very limited income.

I would also like to see an account of this debt to make sure the amount is correct and that any payment I send is going to the right place.  Pending receipt of this information in writing, I hope a compromise that I may be able to afford can be reached.

[Anonymous]

IMO - Keep it simple, send CMRR something like this:

This letter is being sent to you in response to your letter dated Insert Date (copy attached) stating “This letter will confirm your agreement to remit a payment in the amount of $466.66 due in our office by 1/31/2008.”

I have made no such agreement with Name of Collection Agency.

Please be advised that this notice is sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

I wish to communicate solely in writing.  Do not call me at any time or place.  All future communications must be in writing and sent to the address noted in this letter.

Regards,

Your Typed Name (do not sign)

[Anonymous]

Since some are payday loans double check with your state AG as to what they can/can't do (there are restrictions here in MD).  Payday lenders are considered 'predatory' here.