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Collections for accounts not mine - Shall I pay?

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George4656
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Subject: Collections for accounts not mine - Shall I pay?

Thu Jul 02, 2009 5:56 am

Recently I discovered a collection accounts on my credit report. I called on the number mentioned and they said it was for a club membership I had taken and never paid. The original amount was $20 and now it is $225. They said that they would settle it for $100 and remove it from, my report. I am confused about it. Shall I take the settlement offer? I remember I had received club membership offers on mail but never signed one. Any advice will be appreciated.

rachael

Joined: 11 May 2009
rachael's page
Posts: 244

6581 Magic Points

Thu Jul 02, 2009 8:38 am

Hi George,

I don't think you should pay for debts that are not yours. Instead, you can send a "Debt Validation Letter" to the collection agency. In reply to your validation request, the CA must provide you with the contract with your original creditor. If you have not signed for the club membership, it is not likely that the CA will be able to produce the contract. In that case you are not liable to pay the debt.

In order to remove the debt accounts form your credit report, you can dispute the debt with the credit bureaus (on the ground that the CA has been unable to validate the debt). Therefore, you must send your "Debt Validation Letter" through certified mail, with a return receipt requested and retain copies of the same. You will find samples of "Debt Validation Letter" and 'Dispute Letter" in the Letters of Credit section.
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Looking forward to a debt-free life.

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