How to deal with this collection agency RDC or Rent Debt

[ScottL]

almost 2 years ago my wife and i were going through a seperation (which is where most of my bad credit has occured) and I got an apartment. Luckily about 6 months or so in, we worked things out and I came back home. However, since money was tight and she had also lost her job at the time. I wasnt able to pay out the apartment and had to break the lease.

So currently there is a collection on my credit for this broken lease being collected by "rent debt company". The balance is roughly $3800 and has been on there since Dec 2011.

I have tried disputing this with all 3 CB and has not come off, everytime it comes back confirmed. I have tried calling them numerous times now and they are offering me a settlement, but only at 25% discount, so they are still wanting roughly $2900. Which I do not have at this time to throw down on this. I asked about payment plans, but she said they would not do a payment plan on the settlement amount, but only on the full $3800 amount.  She also said they cannot guarntee in anyway they will remove this collection once a settlement or a payment plan is paid in full. They will make it as paid and they MIGHT consider removing it afterwards, but will NOT agree to it before hand.

So im thinking a goodwill leter should work, but im wondering if there is anything else I can do to get this paid? Again, I cannot afford the $3k to settle and when I offereed $1k she basically laughed and said she wouldnt even present that low of an offer to her boss, that I would need to offer at least 70% bottom dollar as the debt is only 1 year old.

So im here asking for advice. Should i continue to try and dispute? are there any tips for getting it removed any other way? If not, should i do a payment arangement? in order to make it affordable, im going to have to do 12-16 month plan, is that a good idea? she said during the plan, it will still show on credit reports, however the amount owed will come down each month

what is my best course of action here?

[RobertEG]

In order to dispute, the consumer must assert a specific inaccuracy in their reporting, and provide enough documentation of that assertion to enable them to conduct a reasonable investigation of the asserted accuracy.  Do you have an actual inaccuracy to form the basis for a dispute?

Additionally, having already disputed, subsequent disputes could be dismissed without investigation on thier part as "frivolous or irrelevant" unless a new basis for dispute is provided.

What was the basis for your prior disputes?

Since you state you cannot currently settle, and deferred payment options are under negotiation, the very first thing I would nail down is the currrent statute of limitations status of the debt.  They have their options.

Check your state SOL statute for what appears to be a written contract in the form of a lease agreement.

If still within SOL, they have the lingering option of bringing civil suit to get a judgment ordering its payment.  Once that were to occur, it could be reported separately, and also serve as basis for further action, such as attempts to garnish wages. 

Entering into a payment agreement appears to be a way of preventing further escalation on their part, but if you enter into such a plan, continued timely payment is critical, as any default would give rise to a separate breach of contract issue. 

Upon final satisfaction of the debt, CR deletion is voluntary on their part, so hard to predict that outcome.

Contentious or unwarranted disputes along the way are not apt to create an atmosphere of good-will.

[ScottL]

im in Texas, so i believe SOL is 4 years.  When i asked her if it was a judgement or just collection (just wanted to hear her response, eventhough i knew currently it was only a collection) she said oh no, its just a collection, not a judgement.  so i ALMOST got the impression maybe they wont go to that extreme? i dont know that for sure, but she certainly didnt indicate anythign like, hey thats our next step, or that could happen... almost made it sound like they dont do that or whatever.  But i am only about a year into the 4 years

[ScottL]

as far as my previous disputes, i basically just did them online with each CB's website and chose something like "i am unaware of this debt" or maybe "not mine" something liek that... i just thought, maybe they wouldnt respond and id get lucky

i dont really have any evidence or documentation in regards to this and i did really break the lease. But as far as the amounts they are charging, i dont really even know if thats correct or not? i know i had probably 6-8 months left at $800/mo so im thinking they charged me less than full months rent so i guess thats good.

[RobertEG]

The amount of debt they can attempt to collect is regulated under FDCPA 808(1), which specifies that it is a violation to attempt "the collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law."

Does the lease specifically address such amounts?  If not, contact your state landlord/tenant agency and inquire as to what fees, etc., are specifically permiitted under the laws of your jurisdiction.  If the lease agreement does not specicially authorize any amount they are attempting to collection, and no laws permit a debt collector to collect such a fee  outside of your lease, then you have a case of violation of FDCPA 808(1).

[mendoza1210]

I have two paid collection accounts from RentDebt.  The 2008 collection was settled at 50% which the original balance was $1400.  The smaller one more recent one was settled in full at $285.

They do not GW, they do not PFD, and they have everything on the accounts.  When I disputed them I received like 30 pages of my lease contract, etc.

But, the one thing is that they do settle for less. 

Hope some of this helps.  If you do get them to GW, please let me know.  I have tried by snail mail.

***UPDATE***  As I was typing my reply, I decided to call them and ask about removing the paid collections.  The lady that answer my call said that she could get the paid in full account removed, but that she would have to run it through management.  OMG!!!! That would be awesome.  Unfortunately, since I settled the larger collection that I would not be able to have that one removed because it was a loss to the Apartment Complex.  Wish they had told me this earlier when I offered to pay for delete.

***UPDATE*** JUST GOT OFF THE PHONE, THEY ARE REMOVING BOTH COLLECTION ACCOUNTS!!!  THESE ACCOUNTS WERE PAID IN SEPT 2012.  I AM IN TEARS, TEARS OF HAPPINESS.  I HAVE ZERO COLLECTIONS!