how to handle new owner of a debt

valley_man0505 · ‎06-20-2008

I have been DV'ing some old accounts from about 5 years ago in hopes of getting some of my baddies removed. There was one stubborn OC that I could not get removed. Now, I suddenly got notice from a CA that they own this debt and are willing to settle for $290 (balance with OC is $1200). As much as I'd like to try a PFD, I would like to stall cuz I am trying to build up reserves to improve my chances of being approved for a mortgage (as soon as I get my mortgage, I will try for PFD). Right now, this CA is not showing on my reports--will a DV keep them from reporting until they can validate? If they do report, will the balance show what I owe the OC (I assume it will, even thought that is nowhere near what they likely bought the debt for)? Also, now that the OC sold the debt, do you think they will still go through the validation process if I DV again?

Anonymous · ‎06-20-2008

Yes...they will show the original amount...you have to think...would you rather...paying $290 out your reserves...or get a new collection added...tank you scores...and make you get denied...for have a negative account within 12 months???...

Message Edited by slyhouse08 on 06-20-2008 08:59 AM

Anonymous · ‎06-20-2008

valley_man0505 wrote:

I have been DV'ing some old accounts from about 5 years ago in hopes of getting some of my baddies removed. There was one stubborn OC that I could not get removed. Now, I suddenly got notice from a CA that they own this debt and are willing to settle for $290 (balance with OC is $1200). As much as I'd like to try a PFD, I would like to stall cuz I am trying to build up reserves to improve my chances of being approved for a mortgage (as soon as I get my mortgage, I will try for PFD). Right now, this CA is not showing on my reports--will a DV keep them from reporting until they can validate? If they do report, will the balance show what I owe the OC (I assume it will, even thought that is nowhere near what they likely bought the debt for)? Also, now that the OC sold the debt, do you think they will still go through the validation process if I DV again?

OC are not required to respond to a DV. DV is for debt collectors and an OC is not defined as a debt collector.

If you DV a CA that has not reported, they can not report until they validate. If they validate and report, they will report the full amount owed to the OC.

How old is this debt? They are willing to settle for less than 25% of the original amount, it must be fairly old.

I definetely worry about getting it taken care of without it being reported then worry about your reserves.

Message Edited by sidewinder on 06-20-2008 09:03 AM