Looking for Advice with an Account in Collection

Anonymous · ‎12-18-2017

Hello everyone! Long time lurker, first time posting.

So I have a credit card account that went into collections on 9/2017. It was purchased by a company called Unifund LLC. The amount due is $717.00. This has just hit my credit report, showing first being reported 12/2017. All of my other accounts are up to date with no issues and my plan in 2018 was to start paying down all my remaining credit cards and hopefully pay off my car loan but this is my first obstacle. This is just one credit card that got lost in the shuffle of a divorce and a move this year.

So at first, I decided to ignore this debt and work on the up to date debt that i have a take care of this at the end, but I was reading online (here and other websites) that Unifund can be a pain to work with so I am not sure if pushing this to the end is the best idea. I don't want it to accure any type of fees or face some sort of judgement against me.

So I narrowed it down to 3 choices: let the debt sit until all other debt is paid and then take care of it since it's already dinging my credit. Second, start by sending a debt validation letter and then a pay to delete letter for possibly half the amount owed (I know they didn't pay $717 for this debt) or calling up a lawyer and have them negotiate it for me.

I am looking for any advice from anyone who has either dealt with Unifund or just anyone who may be able to point me in the best direction or sees something that I do not in my situation.

Thank you!

Anonymous · ‎12-18-2017

Any advice you get about judgments is going to be generally not helpful unless we know what state you're in to determine your SOL.

Anonymous · ‎12-18-2017

I am in Tennessee.

Anonymous · ‎12-18-2017

That puts you at: "6 yrs. unless expressly provided" per FindLaw. I've never seen the caveat unless expressly provided.

Ok so it's relatively new (however collections do fall off from the date the debt went bad at the original lender which you didn't include and could be a full three years earlier) and you have to decide whether or not they are going to take it all the way to civil judgment or not in the next six years. My bet honestly is that for $717 they'll let it sit as a collections as long as they can because they put the fear of God in you they will take it to the next step but I don't know -- it doesn't come to that nearly as often as people are led to believe. They might add interest, I'd find out the experience of others who have owed them money. I don't know what you mean by hard to deal with -- as in they want the full amount or something shady like will verify a debt you know isn't yours.

I'm inclined to say your other debts that are more recent are more important if you can get rid of them for less than $717.

Anonymous · ‎12-18-2017

Thank you Achieving for your advice.

What I meant when I said they are hard to deal with I read that they will not answer debt validation letters and will not do pay to delete sometimes only wanting the entire balance. I also read that they can add a lot of interest and fees to a low balance and they take it to court. Most of the stories I saw online they owed much more than me. Some people have accused them of shady tactics, but all of this may be normal for debt collectors.

I have not heard from Unifund at all. I think they have my old address, so if they've been sending anything I am unaware. I haven't receieved any phone calls. I just saw this on my credit report and didn't know if there are any negatives to letting it hang out there while I pay down all my other debt or would it be best to be proactive and take care of it.

Thank you once again for your response

Anonymous · ‎12-18-2017

What I meant when I said they are hard to deal with I read that they will not answer debt validation letters and will not do pay to delete sometimes only wanting the entire balance. I also read that they can add a lot of interest and fees to a low balance and they take it to court. Most of the stories I saw online they owed much more than me. Some people have accused them of shady tactics, but all of this may be normal for debt collectors.

If they have a reputation for not answering debt validation letters this makes them incredibly easy to deal with. Ask for DV and when they don't provide it, the CRAs will delete the whole thing and it won't cost you a dime. Just make sure this is true. As for PFD, with new accounts just acquired, they are gonna want the whole thing. Your chances of a PFD increase with time generally. It costs them money to take you to court if they have a bad case and don't win. These are people who are already making pennies on the dollar, they deal in bulk cases that are shoo-ins that pay off as much as possible, aka people they know are looking for a mortgage. Don't ever have a mortgage inquiry on your report that they can see in a soft pull for example.

I have not heard from Unifund at all. I think they have my old address, so if they've been sending anything I am unaware. I haven't receieved any phone calls. I just saw this on my credit report and didn't know if there are any negatives to letting it hang out there while I pay down all my other debt or would it be best to be proactive and take care of it.

If your current address is anywhere on your report, they have seen it and chosen to ignore it. Much to their peril. Have it removed from your report immediately and then debt validation is an option. You never received a notice that it was going to collections and can prove it. That opens other options too.

Thank you once again for your response

Adkins · ‎12-19-2017

@Anonymous wrote:
What I meant when I said they are hard to deal with I read that they will not answer debt validation letters and will not do pay to delete sometimes only wanting the entire balance. I also read that they can add a lot of interest and fees to a low balance and they take it to court. Most of the stories I saw online they owed much more than me. Some people have accused them of shady tactics, but all of this may be normal for debt collectors.

If they have a reputation for not answering debt validation letters this makes them incredibly easy to deal with. Ask for DV and when they don't provide it, the CRAs will delete the whole thing and it won't cost you a dime. Just make sure this is true. As for PFD, with new accounts just acquired, they are gonna want the whole thing. Your chances of a PFD increase with time generally. It costs them money to take you to court if they have a bad case and don't win. These are people who are already making pennies on the dollar, they deal in bulk cases that are shoo-ins that pay off as much as possible, aka people they know are looking for a mortgage. Don't ever have a mortgage inquiry on your report that they can see in a soft pull for example.

I have not heard from Unifund at all. I think they have my old address, so if they've been sending anything I am unaware. I haven't receieved any phone calls. I just saw this on my credit report and didn't know if there are any negatives to letting it hang out there while I pay down all my other debt or would it be best to be proactive and take care of it.

If your current address is anywhere on your report, they have seen it and chosen to ignore it. Much to their peril. Have it removed from your report immediately and then debt validation is an option. You never received a notice that it was going to collections and can prove it. That opens other options too.

Thank you once again for your response

Make sure you send your DV certified & signed receipt, so you have paper trail proof to back you up when you dispute with the CRAs.

Last HP 08-07-2023

RobertEG · ‎12-19-2017

The DV process under FDCPA 809 does not impose any requirement that a debt collector respond to a DV request, and does not impose any requirment for deletion based on a lack of response.

A DV request must be sent within 30 days after their dunning notice to be timely.

If untimely, a DV request can simply be ignored, as it imposes no restrictions on a debt collector.

If timely, a DV request imposes a cease collection bar on a debt collector, which remains in effect until the debt collector chooses to send validation. They can choose not to respond, and remain under the cease collection bar indefinately.

There is no violation on their part unless they resume active collection on the debt without first sending validation.

Has more than 30 days expired since their dunning notice?

While under a cease collection bar imposed by a timely DV, a debt collector cannot negotiate terms of a settlement or a PFD.

The consumer remains in limbo, and cannot proceed with negotiations.

Anonymous · ‎12-19-2017

Well one of three things will happen, so prepare for each outcome.

You will DV, the company will reply with a complete full beautiful response that Experian will be happy to provide you as it fully meets all the FCRA requirements. And it'll be the slow march to set a trial date which you will lose and have a judgment.

You will DV, the company will e-Oscar together some random hodgepodge that they will send off and Experian will say in the most passive aggressive note ever written... "they have justified the debt to OUR satisfaction" (they include the caps). This is a big clue, btw about what to do next.

You will DV, they will realize they have no case or you are not worth their time. Remember at the end of the day, you will think its the OJ Simpson case, it's just another day at the office for them. If not you, someone else. And they want to make money as fast as possible so they don't waste time. In which case, the debt goes away or they send it back to the original creditor. This also gives you a big clue about what to do next.

Odds for each: 5%/60%/35% in my experience.

Anonymous · ‎12-19-2017

Oddly I have never been asked to produce any of my DV mail receipts and now will just request them on the phone (don't tell anyone) because it's seriously faster and I have a contact at each of the major bureaus that I will take with me to my deathbed that didn't know me from Adam 12 months ago. Social engineering is fun when you are doing it for the good guys. Namely me.