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Help with collection agency!

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Regular Contributor

Help with collection agency!

I had a charged off account with capital one. The account was being collected upon through an agency called Unifund. I settled the account in full through unifund back around March. Capital one shows my account as settled in full.

Today I got two letters from a collection agency called global credit & collection Corp (distressed asset portfolio III, P.C.) saying that they have purchased this account from unifund and I owe them the full amount.

What is going on here? This is a paid collection. Why is a separate agency collecting on it? And what can I do?
March 2018 - EX: 419 EQ: 456 TU: 423
February 2019 - EX: 537 EQ: 547 TU: 509
March 2019 - EX: 625 EQ: 555 TU: 579
April 2019 - EX: 640 EQ: 637 TU: 642
Message 1 of 10
9 REPLIES 9
Established Contributor

Re: Help with collection agency!

They are most likely lying. Scam debt collectors and I wouldn’t worry about it and ask that they send validation for the debt. I had that happen with a HSN charged off account and called HSN who said I owed them nothing. So you can either ignore it or have they validate either way if capital one says you owe nothing then you owe nothing.





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Current Score: 503 507 507 2/19
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Message 2 of 10
Regular Contributor

Re: Help with collection agency!

You can also write them a letter with proof that the acct is paid, then tell them to quit pursuing you or you will have to sue them for harrasment.

Message 3 of 10
Established Contributor

Re: Help with collection agency!


@cali_alli wrote:
I had a charged off account with capital one. The account was being collected upon through an agency called Unifund. I settled the account in full through unifund back around March. Capital one shows my account as settled in full.

Today I got two letters from a collection agency called global credit & collection Corp (distressed asset portfolio III, P.C.) saying that they have purchased this account from unifund and I owe them the full amount.

What is going on here? This is a paid collection. Why is a separate agency collecting on it? And what can I do?

I hope you got the settlement agreement in writing signed by Cap1. If not, then qas far as Global is concerned, there was no settlement agreement. If an agreement isn't in writing, there is no agreement.

4/1/2017 EQ 579 TU 595 EX588
9/20/2018 EQ 810 TU 807 EX 795
6/12/19 EQ 820 TU /789 EX 793
12/13/2019 EQ 835 TU 813 EX 810
Message 4 of 10
Established Contributor

Re: Help with collection agency!

Capital One is already reporting that the account was settled in full so a collection agency can’t go over a original creditor saying you owe a balance. It’s up to the original creditor in writing or not as far as a balance being owed and since capital one is not reporting one there is no balance.





Starting Score: 494 503 521
Current Score: 503 507 507 2/19
Goal Score: 680


Take the myFICO Fitness Challenge




Message 5 of 10
Established Contributor

Re: Help with collection agency!


@simplegirl wrote:
Capital One is already reporting that the account was settled in full so a collection agency can’t go over a original creditor saying you owe a balance. It’s up to the original creditor in writing or not as far as a balance being owed and since capital one is not reporting one there is no balance.

Please re-read the original post. Cap1 settled the debt through its collection agency and then sold the remainder of the debt to a Junk Debt Buyer (JDB).  JDBs will buy debts that were wiped out in Bankruptcy, extinguished through Settlement or where the borrower is dead, and still try to collect. Obviously they JDB pays very little for these debts, maybe a penny or two on the dollar, but if they can collect a nickel on the dollar from the debtor or debtor's survivors, they can still make a profit. True, the new CA shouldn't try to collect ona  debt that has been settled, but it's up to the OP to raise the settlement as a defense and will probably have to prove the settlement to the new CA.

4/1/2017 EQ 579 TU 595 EX588
9/20/2018 EQ 810 TU 807 EX 795
6/12/19 EQ 820 TU /789 EX 793
12/13/2019 EQ 835 TU 813 EX 810
Message 6 of 10
Established Contributor

Re: Help with collection agency!

It is still a debt through capital one not collection agencies. I had this happen to me recently with a debt I settled with a debt collector and their response was call the original creditor and they will tell you if you owe this amount which is what I did. The original creditor said I owed nothing and had no balance and my settlement wasn’t in writing so your basically saying a debt collector can settle an account in full then claim you still owe a balance that is inaccurate. Also if capital one is reporting settled in full they did not sell the account the collection agency was just collecting on their behalf.





Starting Score: 494 503 521
Current Score: 503 507 507 2/19
Goal Score: 680


Take the myFICO Fitness Challenge




Message 7 of 10
Regular Contributor

Re: Help with collection agency!

I think you misread my post. Capital one did not sell the remaining debt to this new CA. The original balance was roughly 1800. Unifund was hired by Cap1 to collect the 1800. Account was settled in full through Cap1. Account is now zeroed our. This new CA is saying they purchase the 1800 collection from Unifund, not cap1. Cap1 says it’s closed and paid.
March 2018 - EX: 419 EQ: 456 TU: 423
February 2019 - EX: 537 EQ: 547 TU: 509
March 2019 - EX: 625 EQ: 555 TU: 579
April 2019 - EX: 640 EQ: 637 TU: 642
Message 8 of 10
Legendary Contributor

Re: Help with collection agency!

Since you have a factual issue regarding the accuracy of their reporting of a collection, you have basis for filing a formal dispute with the CRA, requiring an investigation by the reporting debt collector and a reinvestigation by the CRA, all of which must be completed within 30 days.

 

The factual issue that you can assert is that the debt was paid, and thus there is no delinquent debt in fact upon which the new debt collector can have any collection authority, and thus any basis for report to a CRA.

 

A formal dispute is preferable, providing you have factual support for an assertion of inaccuracy, over a debt validation request, in that DV requests do not set any period for or requirement to respond.  At best, they impose a bar against continued collection activites if the DV is timely.

Message 9 of 10
Established Contributor

Re: Help with collection agency!


@RobertEG wrote:

Since you have a factual issue regarding the accuracy of their reporting of a collection, you have basis for filing a formal dispute with the CRA, requiring an investigation by the reporting debt collector and a reinvestigation by the CRA, all of which must be completed within 30 days.

 

The factual issue that you can assert is that the debt was paid, and thus there is no delinquent debt in fact upon which the new debt collector can have any collection authority, and thus any basis for report to a CRA.

 

A formal dispute is preferable, providing you have factual support for an assertion of inaccuracy, over a debt validation request, in that DV requests do not set any period for or requirement to respond.  At best, they impose a bar against continued collection activites if the DV is timely.


This is both a FCRA and a FDCPA issue - meaning two suits against the new CA. Suit #1 for the FDCPA violation of misrepresenting the legal character of the debt - in this case that you owe anything, and then suit #2 would be a FCRA suit for knowingly misreporting the debt to a Credit Bureau. When dealing with Junk Deby Buyers, I have found that the best defense is a good offense, and nothing gets their attention faster than recieving a summons. That is why I sue first and ask later.

4/1/2017 EQ 579 TU 595 EX588
9/20/2018 EQ 810 TU 807 EX 795
6/12/19 EQ 820 TU /789 EX 793
12/13/2019 EQ 835 TU 813 EX 810
Message 10 of 10
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