     GVS (Gvs) | Monday, May 22, 2000 - 04:28 pm 
I was recently contacted by a collection agency regarding a cellular account which was charged off in 1994. I asked if they could fax or send me a letter detailing the account in question and provide any billing detail. They were very resistant to doing anything to prove to me the legitimacy of the debt.
So, I called the collector back again and asked that they just fax me something/anything they had. I finally got a letter from them with an account number and an original balance, and the collection amount (more than doubled with interest).
I faxed them a letter today offering to pay the original balance if they would agree to remove any reported entries on my credit profile; or if not, then remove any references to charge-off, late payment, collection, or original creditor, and report it as paid in full. I also included the requirement that this would satisfy the debt in full, and that this account could not be sold to a third party in the future.
Does anyone have any comments as to how my chances are of succeeding with this? One of the collection agents I spoke with said he was authorized to accept the original amount if made in one payment. They of course wanted to do a "phone-check", which I wouldn't allow. I did check my credit reports and there is no entry from the original creditor, just from the collection agency.
Thanks for any advice you can offer,
George |
| Christine Baker (Admin) | Monday, May 22, 2000 - 06:44 pm
The first thing to do is to check the statute of limitations.
Please go to "Links and my 2 cents" and check, then post whether the statute of limitations expired or not.
It always helps GREATLY if you post what STATE you're in as we're dealing with STATE laws.
If the original creditor is in another State, check that too. |
| Lynn Whealer (Lynnwhealer) | Tuesday, May 23, 2000 - 06:20 am
To expand on Christine's answer, if the SOL has expired, they will not be able to sue you to get the money, thus they have no recourse or leverage against you other than to continue to have a "ding" on your credit report. Since it charged off in 1994, the 7-year clock will expunge this record from your reports in 2001 (whatever month it was charged off in). So, maybe you might want to consider just letting it "fall off" if that period of waiting is not a problem for you. You've got a great deal of leverage to get what you want here if the SOL has passed (which is most probable). If they KNOW you KNOW that your position is strong, then they will probably be more receptive to cutting you the deal you want instead of what they want. |
| GVS (Gvs) | Tuesday, May 23, 2000 - 10:36 am
Thanks Christine and Lynn for your comments. I am in California. I checked your Link on the SOL for CA and it's 4 years. How do you think I should proceed with the collector? I spoke with them this morning, and they were not willing to promise anything other than reporting the debt as "Paid", and the account would report as an "R1". Is that good enough? The fax they sent me said that they would notify the appropriate credit bureaus that this account has been satisfied. The strange thing to me is that since I never had an account with them, per se, why shouldn't they just removed the entry altogether?
How do you think I should proceed?
Thanks for your help,
George |
| Christine Baker (Admin) | Tuesday, May 23, 2000 - 12:16 pm
DON'T pay! As I said before, UNLESS they got a judgment, you have absolutely NO reason to pay. I think they would have mentioned it if they had a judgment.
Showing the collection as paid will NOT improve your Credit Scores. (see the posting in "Links ..." about the most recent Fair Isaac update."
As Lynn said, if you really need/want to pay, you have the leverage.
Also, you need to make sure the DATE of the collection entry on your report reflects the CORRECT 1994 date so it will drop off in 2001. |
| GVS (Gvs) | Tuesday, May 23, 2000 - 04:04 pm
Well, here is what they have reported to Experian as of today:
Date open: UNK
Balance date: 3-31-00
Last paid: 11-98
Amount1: $888-O (original)
Balance: $1001
Amount2: $888-C (initial charge-off)
Pymt level: 3-94
Past due: $1001
Acct cond: (left blank)
Mos rev: (73)
Maximum: 3-94/L
Pymt status: Chargoff
Pmt history by month: LL-LL----L-L-LL---------
Original creditor: (name listed of phone company)
So, they have played with the dates it looks like to me. As I mentioned previously, there is no entry from the phone company itself on my report.
I would like to get this removed, even if it will cost me what I originally owed (which was only $431). At some point during the next several months I will be applying for another mortgage, and I'm sure that I would have to pay this off before I could close escrow anyway.
Any suggestions or comments?
Thanks,
George |
| Christine Baker (Admin) | Tuesday, May 23, 2000 - 08:52 pm
You could start by demanding proof of the debt, who knows, with the wrong dates and amount, maybe it's not even yours. It sounds like they can't back up the debt, in which case they'd have to remove the entry from your reports.
Or you could start by disputing the "last paid: 11/98" and the incorrect original owed amount.
You could fax the dispute directly to the collection agency and mail it to the CRAs reporting it.
Once they correct everything, you could make your original offer again.
A good lawyer could probably get them to remove the entry from your credit AND have them pay the legal fees. After all, they tried to defraud you out of over $400 and actually can't legally collect at all.
If you let them know that you need a mortgage, you lose all negotiating advantages.
Does anyone know WHY collections have to be paid for a mortgage? Since the SOL expired, why do mortgage lenders care? |
| Christine Baker (Admin) | Tuesday, May 23, 2000 - 09:01 pm
Does anyone know what the maximum interest rate is for collections? Are they allowed to charge interest and/or fees at all?
I know of the legal rates for judgments, but can't recall reading about charge-offs/collections at all. |
| GVS (Gvs) | Thursday, May 25, 2000 - 08:41 am
Christine,
Know any good lawyers that handle this kind of stuff? |
| Christine Baker (Admin) | Thursday, May 25, 2000 - 11:29 am
Unfortunately, no. There's a link to lawyers specializing in FCRA in the "Links ..." section, but I haven't gotten any feedback.
It's quite telling that among thousands of postings isn't a single recommendation.
I just joined a legal plan and it's literally taking WEEKS!! to process the online order.
I just read that the Lexington law firm also takes weeks to respond to E-mails.
I remember seeing ads for lawyers specializing in these types of negotiations, but don't remember where.
Wished I could be more helpful. |
| GVS (Gvs) | Friday, May 26, 2000 - 11:56 am
Christine,
I just got some more information from a couple of forums on Compuserve (the legal and personal finance forums).
1. From the Legal forum:
Generally, the S/L for written contracts is 4 years from the date of breach, however what may also apply is a 2 year S/L on an "account stated", i.e. a billing. So if they kept billing you in some fashion each new bill would trigger a new S/L. Unlikely though, as "charge off" means the company is reporting it on its books as a total loss, whereas billing would indicate they still considered it collectible.
2. From the Personal Finance forum:
I have heard on the Clark Howard radio show (a syndicated "consumer action show") that you can request (require?) the original company to take back the debt and then pay them. I suspect that the phone company will be more cooperative. At least they will be nicer.
Interesting concept, getting rid of the collections agency and working out a better deal with the original creditor.
George |
| Christine Baker (Admin) | Friday, May 26, 2000 - 12:24 pm
This is VERY strange, and I really don't believe it unless I see the *LAW* references at a .gov.
1) "So if they kept billing you in some fashion each new bill would trigger a new S/L."
This statement may well apply to one State or another, I've never heard of this. Can you find out where we'd find the .gov URL for this?
2) As far as "requesting" a company take back a debt:
Sure, you can request anything you like. But I don't think they HAVE to do anything.
Here's why: Most companies SELL the debts! Sold is sold. Why would a collection company SELL the debt back to the creditor? Obviously, that would indicate that the debtor wants to pay. That's how they make their money, when people finally pay.
I'm sure that some companies have certain agreements with their collection agencies, they might be able to purchase the debt back to get the business of the debtor.
Again, there might be some State law requiring that, and it would be good to know about.
I'd really appreciate it if you could find out more. |
| Shylock (Shylock) | Friday, May 26, 2000 - 03:16 pm
Since Clark Howard is a host at KFI AM640 I'm assuming that GVS is based in California.
Accordingly I'd recommend that he contact the California Department of Consumer Affairs and request their "Checklist of Significant California and Federal Consumer Laws." It's about 30 pages. |
