Debt question... collections related.

[SunnyD]

"Pay your fucking bills."

Now that that's out of the way...

If one has a collection agency hounding them for money and yet the original bill with the original creditor was paid and you have proof of said payment, does one still need to go through the process of sending a debt validation request or would it be (remotely advisable and) more expedient to simply send a copy of the proof of payment from the original creditor along with a demand for immediate removal of derogatory action from your credit reports?

edit: Oops, I typo'd. It probably makes a difference.

 

[OCGuy]

"Pay your fucking bills."

Now that that's out of the way...

If one has a collection agency hounding them for money and yet the original bill with the original creditor was paid and you have proof of said payment, does one still need to go through the process of sending a debt validation request or would it be (remotely advisable and) more expedient to simply send a copy of the proof of payment to the original creditor along with a demand for immediate removal of derogatory action from your credit reports?

The original creditor cannot remove the collection, as they are not the people who reported it.

Here are the actions I would take:

1. Send the collection company proof that it was paid. They don't like buying fake debt from their clients (the original creditor being their client)

2. Contact the original creditor, explain the error, and try to get a letter from them saying that it was indeed paid. Forward that to the collection company if #1 didn't work

3. If none of that works, go to annualcreditreport.com (not a credit-monitoring scam site) and pull your free annual credit report from one of the bureaus (don't pay for a credit score, just get the free report). Find the collection on your report, and hit the "dispute" button.

The collection company will have to prove it is your debt, and you can send the credit bureau any documentation you have to show your case.

Good Luck.

 

[highland145]

Assuming you've told them it's paid, have they asked for proof? Probably they don't want it because they'd like you to give some $$. Think I'd make them do the leg work on the validation just to be an ass. You can always dispute the credit report and give the bureaus proof.

 

[Golgatha]

The original creditor cannot remove the collection, as they are not the people who reported it.

Here are the actions I would take:

1. Send the collection company proof that it was paid. They don't like buying fake debt from their clients (the original creditor being their client)

2. Contact the original creditor, explain the error, and try to get a letter from them saying that it was indeed paid. Forward that to the collection company if #1 didn't work

3. If none of that works, go to annualcreditreport.com (not a credit-monitoring scam site) and pull your free annual credit report from one of the bureaus (don't pay for a credit score, just get the free report). Find the collection on your report, and hit the "dispute" button.

The collection company will have to prove it is your debt, and you can send the credit bureau any documentation you have to show your case.

Good Luck.

I would go straight to step 3 if they've already hit your credit report with a negative action. Mainly because fuck debt collectors who purchase bad debts. They are lower than the lowest scum of the earth IMO. I'd go one further personally and report them under the FDCPA for fraudulently reporting a negative action on your credit report. Also, you can send them a cease and desist contact letter (I'd recommend certified mail for this) and if they contact you ever again you can file a complaint under the FDCPA for that as well. Why, BECAUSE FUCK DEBT COLLECTORS!!!! I seriously wouldn't piss on them if they were on fire, but I'd be tempted to throw some salt on them if they get the flames out.

http://www.law.cornell.edu/uscode/text/15/1692c

 

[OCGuy]

I would go straight to step 3 if they've already hit your credit report with a negative action. Mainly because fuck debt collectors who purchase bad debts. They are lower than the lowest scum of the earth IMO. I'd go one further personally and report them under the FDCPA for fraudulently reporting a negative action on your credit report. Also, you can send them a cease and desist contact letter (I'd recommend certified mail for this) and if they contact you ever again you can file a complaint under the FDCPA for that as well. Why, BECAUSE FUCK DEBT COLLECTORS!!!! I seriously wouldn't piss on them if they were on fire, but I'd be tempted to throw some salt on them if they get the flames out.

http://www.law.cornell.edu/uscode/text/15/1692c

You blame the people who purchased the debt, instead of the people who sold it? A complaint would do nothing.

The real asshole collectors are the ones who sell the debt again to a different collection agency, after they find out it is invalid.

I have seen collections pop back up on people 3 years later and screw up a home loan. Crazy.

 

[Golgatha]

You blame the people who purchased the debt, instead of the people who sold it? A complaint would do nothing.

The real asshole collectors are the ones who sell the debt again to a different collection agency, after they find out it is invalid.

I have seen collections pop back up on people 3 years later and screw up a home loan. Crazy.

Ok, fuck debt sellers too .

Debts only get sold if they are bad. If a company gives out a line of credit, they should be stuck with all the consequences of extending too much credit to people that have no business having access to it in the first place. If that was law, I guarantee you we'd have a lot less deficient accounts to deal with in this country.

I'd say the debt buyers are worse though because they know the debt is bad up front and they are known to use any tactics legal or illegal (thanks to the FDCPA finally) to get their payday. They're right down there with Rent-A-Center and Payday loan outfits in my book and those financial institutions should simply not exist.

I hate them with a very personal passion. I've always paid my bills, but the assholes that made my mom's life a stressful hell back in the 80's and 90's deserve a hot poker in the ass. Admittedly my mom is bad with money in general, which is why she got the calls, but the collectors back in those days all went above and beyond was is reasonable to try and collect on a debt. Cursing, threats, calling at all hours of the day, etc. Fuck each and every one of those pieces of shit eating maggots!

 

[OCGuy]

Ok, fuck debt sellers too .

Debts only get sold if they are bad. If a company gives out a line of credit, they should be stuck with all the consequences of extending too much credit to people that have no business having access to it in the first place. If that was law, I guarantee you we'd have a lot less deficient accounts to deal with in this country.

You can be the best underwriter in the world, but people will still default on debt. People get sick, people get laid off.

Most of the collections I see on a daily basis are medical and utilities.

 

[sixone]

ALWAYS start with a validation request. That usually stops collection agencies, because they rarely are able to prove it. Just be sure to follow up and make sure they aren't reporting on your credit report.

Friend of mine is an attorney, was hired by a man who paid one collection agency, who sold the "debt" to another one. DON'T TRUST THEM, EVER.

 

[smackababy]

If it is already on your report and you have proof it was paid, file a dispute. Don't bother talking with them. They will have to prove the debt belongs to you and is valid, which will be quite hard when you have proof it was already paid.

In the event you haven't paid it, most of the time you can get a debt collector to agree to remove it if it is paid (get this in writing) then pay it and you can dispute the credit report mark with that.

 

[Uppsala9496]

If it is already on your report and you have proof it was paid, file a dispute. Don't bother talking with them. They will have to prove the debt belongs to you and is valid, which will be quite hard when you have proof it was already paid.

In the event you haven't paid it, most of the time you can get a debt collector to agree to remove it if it is paid (get this in writing) then pay it and you can dispute the credit report mark with that.

NO! Ask them to prove it. To exercise the rights given to you by the FDCPA, you should send your validation letter within 30-days of receiving a debt validation notice.

Sucks that you need to send in a certified letter and waste the time and energy to do so. But whatever you do, don't ignore it. But you already know that.

 

[SunnyD]

I apologies... I typo'd:

or would it be (remotely advisable and) more expedient to simply send a copy of the proof of payment to the original creditor along with a demand for immediate removal of derogatory action from your credit reports?

should read:

or would it be (remotely advisable and) more expedient to simply send a copy of the proof of payment from the original creditor along with a demand for immediate removal of derogatory action from your credit reports?

That probably makes a bit of contextual difference. Sorry about that.

 

[brandonb]

<--- Works for a collection agency.

Talk to the collection agency AND the ones who currently own the debt (could be the original creditor, the collection agency, or a debt buying firm) The ones who own the debt is considered the 1st party. Collection agencies typically are hired to call on that debt for the original creditor, or debt buying firm, but some agencies can purchase the debt on their own and become the 1st party.

You can figure out who is the owner of the debt by the initial letter that they sent you when the agency got the debt. It should list the current owner, and the original owner, and that they are now collecting on it. This is a requirement by law.

The collection agency will want proof of the dispute. The paper work indicating it was paid, etc. Typically when that occurs, the collection agency will get off your back. This information goes back to the 1st party.

However, it's still up to the 1st party (owners of the debt) to fix the dispute and close the account.

There was new laws past in the last year which requires collection agencies and debt buying firms to address complaints/disputes. In the past, all requests could be ignored, but they are coming down hard on this, and chances are, most companies will honor the dispute these days. If not they could be breaking the rules laid out by the CFPB.

 

[CountZero]

Sending a validation request without any proof on your part lets you get info that you can then contradict. You want the last date of activity on the account and the date the account was transferred to the CA. They legally have to provide very little information in order to validate a debt, it is nearly criminal how little information is required, but in my experience 3 out of 4 will give you a fair amount of info.

At the same time contact the original creditor to get any paperwork proving you owe them nothing and have paid. If they sold the debt to the CA this might be monumentally difficult.

With those pieces of information you can go back to the CA and tell them to cease collection efforts and all reporting. At this point you can also contact all the reporting agency that have it listed.

IF it has been reported to Experian filing a dispute with them first is absolutely useless. To give you an idea of the idiocy within Experian my report actually had an alternate SSN and argued with me when trying to get it removed. The other two are hit and miss but if you don't dispute with the CA it might just show up again.

All correspondences should be typed up (nothing hand written), mailed using certified mail with a return receipt and never sign anything you send to a collection agency.

 

[Red Squirrel]

Document everything.
Don't sign anything.
Show a stance of dominance.

If that does not work, better call Saul!