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drowninggrl
Joined: 30 Dec 2008
drowninggrl's page
Posts: 3
171 Magic Points
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Subject: Collection Agency or Original Creditor
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Tue Dec 30, 2008 6:54 pm
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I have a charge off with MNBA (now Bank of America), it's been on my credit report for about two years. I was contacted by Portfolio Associates and then by Phillips and Cohen. I sent a debt validation letter to Phillips and Cohen and never heard anything from them. I then sent a letter to the credit bureau (only one) and it came back that the debt was mine, but they never sent me anything proving that. At any rate, I really just want to move on. I came into some money and would like to offer a settlement. I have a couple of questions...
1. Do I offer settlement to the OC or the CA?
2. How much should I offer on a $16,000 charge off? Is there a difference if I can pay a lump sum vs. a payment plan?
Thanks in advance. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Tue Dec 30, 2008 7:30 pm
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The credit bureaus do not have to senf you proof that the debt is your. They look into it but to get proof you will need to ask for debt validation from the company trying to collect the debt. You will need to answer a few questions and we can help you better. First off what state are you from? Depoending on your state you may be protected from the Statute of Limitations. I am in PA and here it is 4 years. If the last payment was made over 4 years ago then they can not sue me legally and win in a debt. So we will also need to know the date of your LAST payment. You should be able to find this on your credit report. Under the listing it will have 30 days late as of...and a date.
If it is past the SOL you may not want to pursue paying off this debt because you will start the SOL time clock all over. Get back to us with this information and we can go from here. No matter what you do, of the debt is now owned by a collection agency you will not be able to get the listing from the original lender (MNBA) removed and paying the debt will not much help your score. I could go on forever sut leats start with this information to see how to handle youre problem. |
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drowninggrl61
Joined: 30 Dec 2008
drowninggrl61's page
Posts: 1
50 Magic Points
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Tue Dec 30, 2008 11:37 pm
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I was unable to log in under my other user name, so I created a new one. Anyway...
I am also in PA. The last payment on this account was in April of 2006. I need to pay this debt because I am about to purchase a home and the lender is requiring that it be paid. I did send a letter to the company asking for debt validation, but never received it. I was under the impression I could then send that information (or lack of) to the credit bureas and they would have to remove it from my credit report as not validated. Anyway...I need to pay it, just need to know to whom I should now be dealing with. I contacted MBNA (via e-mail) and they asked me to call - I have not yet, because I've been reading conflicting information as to who I should be dealing with. Some say to never deal with the collection agency and go back to the original creditor, others say the OC no longer has anything to do with it.
So no matter who I deal with...how much should I offer? |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Tue Dec 30, 2008 11:55 pm
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| You will be legally held responsible if they take you to court. The SOL in PA is 4 years so they have until April of 2010 to sue you. I would not pay the debt until they validate it. How long ago did you ask for debt validation? They are suppose to provide it with in 30 days pr you can dispute it and get it off your record. Sine the collection agency did not validate I would call the original lender and ask if they still own the debt. If they do this is really much better because you can make a debt settlement offer with them and ask for a pay-for-delte..which will remove the listing all together from your report. Call them and if they do not own it they will tell you to contact the debt collector. Remeber if you do get a settlement offer from them be sure to get something from them that proves you paid this debt. Sometimes they come back later and trry to recollect and you must have the documants showing that you paid. Had this happen to a relative of mine. |
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drowninggrl
Joined: 30 Dec 2008
drowninggrl's page
Posts: 3
171 Magic Points
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Wed Dec 31, 2008 12:32 am
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| I asked for a debt validation letter in August 2007. I have not heard from them since. |
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Mary
Joined: 06 Jul 2006
Mary's page
Posts: 730
17413 Magic Points
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Wed Dec 31, 2008 12:03 pm
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If you have already asked for debt validation and they have not yet validated the debt within 30 days from the date of receipt of your letter, then the collection agency has lost their right to collect the debt as per the fair debt validation Act and you are no longer required to pay off the debt. But if the CA has sold off the debt to another CA by this time then you need to send a debt validation letter again to the new CA, but since the previous CA could not validate the debt, is is most likely that the new CA will also not be able to validate the debt.
_________________
Where there's a will, there's a way !! |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Wed Dec 31, 2008 1:48 pm
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| Do you have the proof that you asked for debt validation? Hopefully you sent it by certified mail. If you did and they are the ones still listing the debt on your credit report you will be able to dispute the debt due to the fact they did not validate. You need to get a dispute in the process but do not send any oriinal proof. Only send a copy of the proof that you have so you will have something for your own records just in case they would try to sue or recollect this debt. They will not be able to win in court if you have proof asking for the debt validation. So if you want to get this removed you need to start disputing the debt. |
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drowninggrl
Joined: 30 Dec 2008
drowninggrl's page
Posts: 3
171 Magic Points
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Wed Dec 31, 2008 3:40 pm
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I do have proof that I asked for debt validation. I did send it by certified mail. I then started disputing the debt with the credit bureau. I got back a letter that has a statement on my credit report that list that I disputed the account, but it is still there. That was in July of 2008. I was just fed up with the process.
Mary, you say the collection agency has lost its right to collect the debt - they have not sold it off to anyone else. Now my lender is requiring that I make a settlement before my mortgage loan is approved. Who do I deal with now? |
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jeff
Joined: 31 Dec 2008
jeff's page
Posts: 3
120 Magic Points
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Subject: so, must the pay-for delete agreement
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Wed Dec 31, 2008 6:44 pm
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| be with the original creditor? for instance i have a few 20-80 dollar collection accounts on my report...they are listed as the collector accounts NOT with the hospital....also i have one 700 dollar collection account with the same hospital but again on my credit report it states the credit collection agency as the owner...do u think the collection agency would agree to delete all the accounts if i pay the 700 dollars...could they agree to this at all?? |
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goodnatured
Joined: 03 Nov 2007
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Posts: 3735
10 Magic Points
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Wed Dec 31, 2008 10:38 pm
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I think you are going to have to find out who has it, your credit report should show the last ones to have the debt or the last one that is trying to collect the debt. I would start there and see what comes out of it, if the original creditor wrote it off then they will have nothing on the debt.
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Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online |
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Mary
Joined: 06 Jul 2006
Mary's page
Posts: 730
17413 Magic Points
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Thu Jan 01, 2009 11:36 am
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Hi Jeff
The collection agency may or may not agree to remove the negative listing from your credit report. If they agree to pay for deletion agreement, then get it in writing before paying off the debt in full so that after you pay off the debt, they remove the listing from your report. If they do not agree to pay for deletion agreement, ask the collection agency to change the status of the listing to "paid as agreed" instead of "paid in full".
_________________
Where there's a will, there's a way !! |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1093
25288 Magic Points
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Thu Jan 01, 2009 11:50 am
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I agree with Mary on this point. If you come to pay for deletion agreement with the collection agency, only the CA listing will get removed from your credit report and not the original creditor listing. The CA may agree to remove the listing if you pay off the debt in full. Even if they do not agree to pay for deletion agreement, you should always take steps to pay off the debt because the creditor may sue you to the court and bring judgment against you to recover the debt and if there is a judgment in your credit report, your credit score may fall drastically.
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All the Best 
Justin |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Thu Jan 01, 2009 2:55 pm
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| What is the difference in getting the collection agency to list a debt as "paid as agreed" whether than "paid in full". Both to me appear to have about the same meaning but i have seen this a few times while being a member here. I am not disputing the difference I would just like to know what the difference is. |
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jeff
Joined: 31 Dec 2008
jeff's page
Posts: 3
120 Magic Points
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Thu Jan 01, 2009 6:25 pm
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| i will talk to the CA and see what they will agree to...i guess im wondering why the hospital does not have a listing on my report...only the ca...so r u saying that even if i come to a pay4delete agreement with the ca and they delete their entry the hospital could then add a new entry?? thnx again! |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Fri Jan 02, 2009 12:10 am
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| If the collection agency is the only one listing then you shouldn't have to worry about getting them deleted. If you ask for a pay for delete from the CA then it should clear up the listing. I have an old medical bill, actually two, and neither one has any other listing than what the collection agency has on there. Most medical places will have a collection agency as part of their business so this may be why you only see that listing. In any case if the collection agency is the only listing get that pay for delete and then it will clear it up. |
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