Settled Debt was sold to AFNI. What to do? Need Advise.

[Anonymous]

Hello all,

In 2008, I had a settlement in full with NRS (National Recovery System) over a bill with AT&T. I was able to get copies of the settlement letter. Throughout the years, two other collection companies tried to collect the debt from me again but I was able to send them my copies of settlement letter and things were solved.

But not with AFNI. I faxed over my NRS settlement letter on 2/28/12 and the agent told me that he put it in the system and asked me to follow up in another week for it to get resolved. So I start calling them every week, but all they can tell me is, they are waiting on AT&T to get back to them and If I dont' want it shown on my CR, then I should settle with them. Its been about 2 month now, What can I do? Just keep waiting? I don't want to settle this thing twice to get things resolved.

Right now, it is shown as being disputed by consumer on CR. 

Thanks in advance.

[RobertEG]

Have you sent them a timely DV?  That will invoke an automatic cease collection bar on them, accomplishing a block against their reporting until such time as they provide adequate debt verification.  I would get that block in place.

Did you actually file a dispute under the FCRA?  If all you did was inquire, there should not be a pending dispute flag in your credit file.

With a dispute flag, your FICO score is temporarily kinda useless, as it will exclude certain OC account history from your scoring.  That would also be an immediate concern of mine.....

[Anonymous]

I did not sent them a timely DV. At the time, I didn't received any formal letter from AFNI regarding this debt. It was through numerous voicemail until I called them back. I thought I could simply show them my settlement letter and they would leave me alone. So since they've placed a collection, can a DV still works?

Last month, I had requested all 3 agency to fixed my credit report becuase my information is all mixed up with my brother (our name and SSN differs only by 1 alphabet/digit and we are listed as each other's AKA). While fixing my other information, I did put a note asking them to verify with AFNI as the debt was settled before went into collection. So I guess thats why they noted that it was being "disputed" by me.

I called AFNI today, the lady simply told me that it is currently in dispute...at the time, I wasn't aware of how this could affect me and how my score is kinda useless now. I had a feeling that things will never be resolved and that AFNI is telling me to wait and wait, until AT&T gets back to them.......

[RobertEG]

You can DV at any time.  However, if not sent within the 30-day period running from date of their dunning notice, it no longer imposes an automatic cease collection bar.

So they are free to continue collection activities, and ignore your DV request if they choose to do so.

[Anonymous]

Thanks Robert. I will send them a DV letter since I haven't received any dunning notice from them. But since they've already reported the account to FCRA, are they obligated to remove account until they can verify the debt?

[Anonymous]

I am thinking that I prob have no option than to settle with them. They can say that they are waiting to hear from AT&T forever .....and since it's already on my credit report, they prob won't remove it until i pay them some $$$

[RobertEG]

No.  Cease collection bars are not retroactive.  Anything already reported wont be affected. 

[Anonymous]

Updates---sent DV through email and got this standard response...

"Thank you for your inquiry.  We have received your dispute and are investigating.  We will contact you in writing with the results"

I guess I will be waiting, in this case, Is a Certified Mail version of DV still needed?

[RobertEG]

I would be concerned with that response.....

They may be saying that they are treating it as a direct dispute, not a DV.  Its a new tactic being used by some debt collectors.

If so, you may end up with a dispute flag, a whole lot of red tape.

I would send a very short reply stating that it is unclear what is meant by their statement that they are considering your "dispute."

State simply a clarification that it was not a dispute under the FCRA, but rather a request for debt verification, and while awaiting their reply, remind them that they are under a cease collection bar pursuant to FDCPA 809(b).  It may save you a whole lot of headaches.......