Debt Purchasing?

[Anonymous]

Help, is this legal? & What can I do to stop it?, CA /  Factoring Company Acount (debt purchaser)? Account was apparently purchased 10/07, cl was 8,000.00, high credit 8,441.00 still being reported open & interest fees added so bal. is now over 12,000.00 I tried to contact the orignal oc when all this started, & they say they have no account info, & never did. I did a dv but when I try to contact them still get the same response

[Anonymous]

Depending on your original contract and state laws, it is legal for a CA to add fees to the account.

Who are you sending the DV to?  It must go to the CA.

[Anonymous]

What state are you in?  Very relevant, because often state laws provide more protection than federal.

What type of account was the original account?

Who did you send DV to?  Do you have proof (certified return receipt)?  Did they respond?  If so, with what?

How is the account reported on your CR?

Have you disputed through bureaus?  If so, what was the result?

[Anonymous]

It is not a good idea to dispute through the CRAs unless you are absolutely sure it is not yours or the fall off date has come and gone.  Doing so can cause other problems.

[Anonymous]

I am in Kentucky & this was a cc account, it being reported open, sent dv to ca reported valid. I have not disputed it as I know it was valid just did not know the wife quit paying on it.

[Anonymous]

If the account is closed/charged off and NOT currently open but is being reported as an open delinquent account, then it is not valid as reported.  If they have charged fees or interest theyt are not entitled to and have reported that amount due wrongly, then it is not valid as reported.  If they have not reported dates correctly, then it is not valid as reported.  They are entitled to accurately report the item or not report it at all.  They may not report it innaccurately per FCRA and FDCPA and probably various state statutes as well. 

When did this account first go delinquent (when did you stop paying to OC)?

What does your CR show as the Date of First Delinquency?

What does your CR show as the Date of Last Activity? 

When did you receive your intitial written notice of collection from CA? 

Did you DV within 30 days of initial CA notice? 

What did you ask for in your DV?

If you sent DV within 30 days of their initial written notice, did the CA provide to you a proper written validation of debt obtained from the OC?  (what exactly did they provide to you)?

Is the debt correctly reported on your CR?  (all dates, DOFD, DOLA, Amount, etc?)  Based upon your description, it sounds as though some of the information is reported incorrectly, such as OPEN status and possibly amounts due, depending on what your CC agreement stated and what your state laws allow.

You mentioned that you contacted the OC and they had no information, did they state this in writing or verbally?

What do you want as an outcome? 

Are you prepared to settle? 

SOL in Kentucky is 5 years for open accounts like a CC and 15 years for a written contract.  There are no specific licensing or bonding requirments for the CA in Kentucky.  Kentucky law on collections mostly defers to the FDCPA, it appears.

If you are beyond the SOL, then you have a better chance of a reduced settlement.  If you are not beyond SOL, you need to be aware that for this amount they could file suit.  So, making a plan is probably a good idea....decide how to handle this and what outcome you prefer.

Do you have the ability to make a reduced settlement offer (maybe a PFD or at least PIF for less than owed? 

Can you lump a settlement or would you need terms?

How

Message Edited by txjohn on 03-09-2009 07:38 AM