     P.Rosa (Angryconsumer) | Thursday, August 10, 2000 - 08:31 am 
I recently got one of those sneaky collections letter from The Credit Store in South Dakota. What looked like a credit card solicitation turned out to be an attempt to collect two old Citibank MC/Visa accounts. These accounts totalled about $16,000 (almost one-quarter of which was interest) and had been charged off in 1990 or 1991. Both of the accounts are well past the statute of limitations for collections suits - The Credit Store admits that much in their letter - and have come off my credit report.
Curious, I did a little online research into The Credit Store, and in their federal SEC filing uncovered two very interesting things: 1) they acquire charged-off accounts for an average of one cent on the dollar; and 2) if they fail in their collections activities, they resell the accounts to other collections agencies.
This second fact worries me quite a bit. As we all know, SOL's stop collections agencies from filing lawsuits, but do *not* prevent them from making other collections activities. My fear is that if The Credit Store sells the Citibank accounts, the buyer might be an aggressive agency that'll bombard me with telephone calls and letters. I went through that sort of stuff nine years ago, and it was a nightmare that still lives with me today. So I got to thinking whether it would be wise for me to offer The Credit Store $200 or so in settlement of the account. That would cover their acquisition cost of the debt with a little extra for their time and effort. I'm willing to pay $200 if that'll prevent a deluge of calls and letters. But I'm concerned that making an offer will be enough to restart the SOL, putting me on the hook for the full amount, and/or might get the Citibank debt back on my credit report.
Any advice would be appreciated. TIA. |
| E Burrows (Perseguidor) | Thursday, August 10, 2000 - 09:21 am
My advice to you: Don't pay a dime to them. If you pay them it will show on your report as a "paid collection account settled for less than the original amount." Something like that. I don't think you want that on your report, besides it will reset the clock on the account.
I also received a letter from them about an account that was charged off in 1992. I just sent them a letter telling them not to contact me about it anymore. By law they have to stop.
They can re-sell the account, sure, but for how long will that go on? Who will be stupid enough to give them any money when they look at the age of the account? If that is the case, a simple letter will do the trick.
Don't give them a cent. |
| Robert H. Innes (Marcom) | Thursday, August 10, 2000 - 11:35 am
Thanks for the timely info. I just received word my Beacon score is 585 and now none wants to work with me on a car loan or lease. In reviewing my credit report I have found several entries where a different agency who bought the accounts is showing it as unpaid from like 1990 and several in 1994. Can I just send them a letter saying not to contact me about it. Will that help in raising my score? |
| Senator (Senator) | Thursday, August 10, 2000 - 04:09 pm
I would challenge the listing on the credit report. Ask them to verify it. Do a search on the engine and look for credit challenges. You may be able to get it deleted. For every deletion, I think it may raise your score roughly 6 points. Don't hold me to that number but it seems in talking with people that is about the average amount of increase. |
| michelle l belanger (Mlyn) | Thursday, August 10, 2000 - 05:34 pm
As was pointed out, you may want to try and seek verification of the debt. I would almost be willing to bet that Citibank won't have any records (you likely would be routed to an Asset Sales section), but you should also write to them asking for verification.
The more frequently that those accounts changed hands, the more likely it seems that there is no accompanying documentation. In fact, I remember not long ago seeing a couple of portfolios that claimed to have something like 80% of the paper without verification. It was also vintage paper. Yes, the account may move somewhere else, and yes the initial call or letter is a nuisance, but most companies do tend to honor the letters sent certified that seek a cease and desist or otherwise demonstrate knowledge of the relevant statutes.
For those who remember my inquiries about Creditrust, there has been no further contact since the certified letters were sent. Citicorp provided a letter that claimed no records except that the account the purportedly belonged to me had been sold in 1997 and to contact the new agency for additional records. The unknown is whether Creditrust stopped calling due to the letter or due to the lack of staff as they umm, "reorganized" before they defaulted on their own finances and filed for bankruptcy protection, after which trading on their stock was halted.
Good luck... |
| Morgan Appel (Downinsocal) | Monday, August 14, 2000 - 08:10 am
Jinkies.
Got a similar set from a company called First Select. A bunch of Bozos who disguise their collection efforts in altruistic clothing. They bought my debt from B of A, and now, they buy my wrath.
These guys all use some shadow dancing in these offers--read between the lines:
WE WANT TO HELP YOU (you bastard!) RESOLVE YOUR CREDIT PROBLEMS (pay now or we're gonna send ya to jail!). WE'LL EVEN PAY PART OF YOUR DEBT OFF (here's a stamp to mail payment plus interest)
Hate 'em. |
| Robert H. Innes (Marcom) | Tuesday, August 15, 2000 - 02:52 pm
I really appreciate this forum-what an asset to a beginer at fighting back! A couple of points: 1-If the SOL has expired, does it do any good to report it-I have like 8 accounts on the report-either r-5,to r-9 all exceeding the sol; 2-Will this challenge in fact improve my report and score since three are slated to "fall off" after 7 years?
Thanks for your opinions |
