Need Help with Writing Letter to Asset Acceptance

[StartinOver]

I need help writing my letter to Asset Acceptance. Background about the debt: I purchased on credit from Dell a refurbished laptop. I had 2 weeks to send it back if I wanted to. Within that time frame I contacted them to send it back, because it kept skipping around the page as I typed. They intimidated me into keeping it, saying I had to, etc. I was homeless, living in my car, working full time temp jobs and taking over 20 credits that year, so was desperate for the laptop. Soon after I learned they cheated me out of a couple hundred dollars of software, and gave me the trial version, when it specifically stated full versions.

Next they lost my payments when I made 3 at once. Then when I would call I would spend hours on the phone talking to India. I finally told them making this payment was very difficult, I did not get what I was charged for, and I wanted to talk to someone in America or I would stop paying, which I did when no one contacted me. My $1500 credit line was paid down to $1000 when I stopped paying, but the value received was probably $750.

Now, after 5.5 years AA says my account was opened 02/07, my high limit is $2985, and my amount owed is almost $4000. I had tried disputing it online 1 year ago, which did not work and from advice here, see I should not use online dispute.  Now I need help on forming an effective letter to them, and hope someone can help me. From what I understand, it is illegal for them to have added all this interest, let alone the incorrect information. Here are my notes, please advise. TIA.

I pulled a copy of my credit report and under § 809 of FDCPA, am requesting validation of the debt, which includes a copy of the debt or judgment for which you are collecting to include date of first delinquency, amount owed when first delinquent, and a copy of the judgment.  I want full validation, not simply a response of verification. I also want to know if you are merely collecting for this debt of if you purchased this debt and if so what date. 

FDCPA requires collection agencies to cease active collection activity until such time as they have provided validation of the debt. 

Additionally, I wanted to remind you of Idaho Statues that state: 

Idaho Statue: TITLE 26, CHAPTER 22 COLLECTION AGENCIES No collection agency licensee, or collection agency required to be licensed under this act, or agent of such collection agency shall collect or attempt to collect any interest or other charges, fees, or expenses incidental to the principal obligation unless such interest or incidental fees, charges, or expenses:(a)  Are expressly authorized by statute;(b)  Are allowed by court ruling against the debtor;(c)  Have been judicially determined;(d)  Are provided for in a written form agreement, signed by both the debtor and the licensee, and which has the prior approval of the director with respect to the terms of the agreement and amounts of the fees, interest, charges and expenses; or(e)  Reasonably relate to the actual cost associated with processing a demand draft or other form of electronic payment on behalf of a debtor for a debt payment, provided that the debtor has preauthorized the method of payment and has been notified in advance that such payment may be made by reasonable alternative means that will not result in additional charges, fees or expenses to the debtor.  

[StartinOver]

Am I doing something wrong? Does anyone have any advice for me? I am desperate and don't want to lose my job if I don't get the reports cleaned, and I also can't get a house in time. Pretty please help?

[llecs]

What is your goal? To get it off? To get a successful PFD?

Have you sent a DV letter?

[StartinOver]

No, I have not sent anything. I have no money to pay, so my goal is to get if off until they have it correct, and hopefully it will never be back on so I can get a house.  So, whatever the letter is called is fine with me. I just want it off as soon as possible, I need my middle score up a 100 or so points, and all my lates and collections off.  I justy got several ideas together and compiled the notes and facts above so someone might hopefully help me. But I am afraid time is too short to accommplish my goal. I am 54, so if I can't clean up my report in the next 2 months, I will not have a house for the rest of my life, but I will have college loans for the rest of my life and I will never be able to get out of debt, as I need a hand up to do so. I feel a home and the rebate are what I need to get going, as I need transportation, too.  Anyone good at writing letters?

[llecs]

I wouldn't suggest doing anyything with this until you are out of SOL. Sending any letter could get you sued. Do you know if SOL expired?

[Anonymous]

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llecs wrote:
I wouldn't suggest doing anyything with this until you are out of SOL. Sending any letter could get you sued. Do you know if SOL expired?

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+1

Startinover, if you're not able to PFD, I'd not start poking at the CA reporting. It appears to be a legitimate debt, and it appears that they're probably reporting correctly (after defaulting, you'd owe the penalties, interest, collection fees, etc...). It doesn't appear that the account was reaged, the 2007 date is the date that the CA began reporting is all. DVing them within the SOL could, as IIecs already mentioned, get you sued. DVing with no means of negotiation outside of the SOL, but within CRTP is likely going to get them to update, knocking your score down even more, and the collection efforts going in earnest.

[StartinOver]

It is hard having to go back and forth in so many screens to pull up info and put together everyone's comments while researching the net again to re-re-re-verify. Cleaning up a credit report really takes a lot of work, whew!

Yes, I implied that SOL was past, but didn't think to state it. Here it is, though I don't know which one it falls under:

Oral: 4 years

Written: 5 years

Promissory Note: 5 years

Open-ended Accounts: 4 years

Ok, so now back to my first post:  It appears (see my notes), that they can't charge interest on the past due account, unless they have taken me to court first, is that correct? If that is so, then the amount they are claiming is incorrect.  I am confused about DV. It sounds like something you are supposed to do within 30 days, yet it also sounds like people here suggest doing it any time you need validation (You just don't want to stir them up within SOL or they will sue you). It sounds like you do it so that you can get them to commit on paper the facts they have (who owns, when rec'd, CL, amount owed, DOFD, etc), so that if they have something incorrect you can dispute, and thereby get it removed while incorrect, or hopefully forever.

So, I need help forming my thoughts into a letter (and someone to tell me if in my facts on statues up above, if I am correct in assuming they can't add interest without first taking me to court, and then only 5%) with all the ammunition I have provided. I am frustrated because I think I am providing facts here, but yet no one seems to get my point (obviously b/c of my lack of communication skills. Plus my stupid laptop can't hold more than 2 inches open here and it keeps flipping to hidden when I try to type. BUT I AM VERY THANKFUL THAT SOMEONE WOULD TAKE THE TIME TO HELP ME.

[Anonymous]

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StartinOver wrote:

It is hard having to go back and forth in so many screens to pull up info and put together everyone's comments while researching the net again to re-re-re-verify. Cleaning up a credit report really takes a lot of work, whew!

Yes, I implied that SOL was past, but didn't think to state it. Here it is, though I don't know which one it falls under:

Oral: 4 years

Written: 5 years

Promissory Note: 5 years

Open-ended Accounts: 4 years

Ok, so now back to my first post:  It appears (see my notes), that they can't charge interest on the past due account, unless they have taken me to court first, is that correct? If that is so, then the amount they are claiming is incorrect.  I am confused about DV. It sounds like something you are supposed to do within 30 days, yet it also sounds like people here suggest doing it any time you need validation (You just don't want to stir them up within SOL or they will sue you). It sounds like you do it so that you can get them to commit on paper the facts they have (who owns, when rec'd, CL, amount owed, DOFD, etc), so that if they have something incorrect you can dispute, and thereby get it removed while incorrect, or hopefully forever.

So, I need help forming my thoughts into a letter (and someone to tell me if in my facts on statues up above, if I am correct in assuming they can't add interest without first taking me to court, and then only 5%) with all the ammunition I have provided. I am frustrated because I think I am providing facts here, but yet no one seems to get my point (obviously b/c of my lack of communication skills. Plus my stupid laptop can't hold more than 2 inches open here and it keeps flipping to hidden when I try to type. BUT I AM VERY THANKFUL THAT SOMEONE WOULD TAKE THE TIME TO HELP ME.

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Thanks for being so patient as we try to understand your situation. I know this stuff can be frustrating. And, I'll echo your sentiments that it's a LOT of work! But, it is worth the hassle. 

First, there are standard DV letters floating around the boards that you can use the search feature to find, then tweak to your liking (or just get a good feel and some basics of what you want to say). Here's one such EXAMPLE.

I don't believe that you're correct in your belief that interest can't be added unless they take you to court. I'm willing to bet that you agreed to interest (probably even an accelarated default interest rate) when you borrowed the money for the computer. I'd bet my bottom dollar that it was in the fine print and the Idaho statues most certainly seem to allow it.

But, let me ask you this-- what are you hoping to accomplish by DVing the CA? I know you said that you want the tradeline gone, but what are you going to do if/when they validate? If they update, you're likely to see your score dip further. Even IF they're currently reporting incorrectly (from the details that you've provided, I don't have any reason to believe that it's misreported), they could just correct their reporting. This isn't going to help you at all. It's going to make the collection account appear current & probably drop your score.

I'm NOT trying to discourage you. I just want you to understand the potential impact of your actions, fully, before you make a definitive decision as to how to forge forward. DVing was never intended to be a means of making legitimate debt (and/or the consequences of default) go "poof" from your record. It's a formal means of requesting proof that the debt is or isn't legitimate, and that the collector has a legal right to collect. If you can't pay what you legitimately owe (even the amount that you don't dispute that you owe), or negotiate an amount that acceptable to you and the CA, then you should probably think twice about poking the CA. UNLESS you have reason to believe that the CA reporting no longer owns the debt.

Believe me-- I'm not trying to rain on your repair/rebuild parade. Nothing could be further from the truth. I want you to succeed! I just don't want you to fall into the trap of thinking that a letter is going to fix an unpaid default.

[StartinOver]

Thanks, LiLMirth, for taking the time to help me.

Asset Acceptance reports regularly, maybe 6-7-8 times a year on my credit report.  Won't it make a difference on the score whether I owed $1000 as opposed to $4000?

I called them a couple of months ago and asked when did they get the account (I think they have had it several times and it goes back to Dell. Yet Dell told me this week they sold it to AA, so how they could ever lose it is beyond me). THey responded- we no longer have it. I asked what date did they no longer have it. Coincendentally, it was that very day. I got the run around and called several places and no one knew who had the debt. If no one has it, it can't be validated, and if they can't provide a contract that I have signed that allows for charging interest in Idaho, then they would have to remove it, until they can prove and update to correct info.

Worse case senario would be it would remain just as it is until May 2011. But, tell me, can it make my report any worse if they are already consistently reporting it and it is past SOL, so they can't sue and win?

BTW, when I talked to Dell I was just about to get the correct info from the account. I had first reached India, then Phillippines, then finally got transferred to US.  They had to keep opening old screens to find the account info. I got cut off (purposely?), and whenever I called back to her direct line she never answered and never would call me back for the past two days.

[llecs]

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StartinOver wrote:

Asset Acceptance reports regularly, maybe 6-7-8 times a year on my credit report.  Won't it make a difference on the score whether I owed $1000 as opposed to $4000?

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It doesn't matter if they increase the balance to $10,000 or reduce it to $0, the damage is the same per your FICO score.