Collections question

[piper0nicki]

Hi, I have a collections account on my credit report that is listed as "Closed". The notes from the 1st collection agency say "settled, less than full balance". I just received a phone call from a different collections agency trying to collect on that debt.    What does this mean and what should I do?

[RobertEG]

Did you, in fact, settle the debt?

If so, do you have proof?

If the debt was discharged, then there is no basis for a new debt collector to have active collection authority.

That raises the question as to how they assert that they have obtained collection authority.

Procedurally, the debt collector is required, after having initiated communication with you, to send a formal collection ("dunning") notice within 5 days, which must include the name of the current owner of the debt, the amount of the asserted debt, and advisement of your DV rights.

I would wait a few days for that dunning notice, and send a DV request prior to 30 days after you receive that dunning notice.

That will impose a cease collection bar on the debt collector until such time as they have first sent the requested debt validation.