December 8, 2009

Tennessee Chasing After Me

I live in Tennessee and I had a Rental Property that was Foreclosed on in 2008. Wells Fargo held the original Mortgage and sold the property for less that the amount that I owned. I received a 1099-A and thought I was done with my Rental Nightmares!

I recently recieved a letter from a out of town Collection Agency stating that I owed 19K!!

I do not have the means to pay this debt, that’s why I loss the Property!

I know my credit is ruined but what else can they do to me! “You can’t squeeze blood from a turnip”…or can you???

Thanks for your advise

Scott (more…)

August 20, 2009

Portfolio Recovery & Professional Debt Management Busted

St. Louis, Mo. – Attorney General Chris Koster today filed suit against two debt collection companies that are operating scams to collect debts from citizens who do not owe the money.

Koster filed law suits in St. Louis against Portfolio Recovery Associates, a public company based in Virginia, and Professional Debt Management located in Kansas City.

Koster said Portfolio buys old and bankruptcy-discharged debt, often from another bad debt buyer, and then tries to collect, sometimes through court action. He said the company often is attempting to collect on accounts that are already paid or have been discharged in bankruptcy; sometimes they try to collect from the wrong consumer or for the wrong amounts. He said the company has threatened to garnish consumers’ social security checks, which they have no authority to do, and has refused to provide consumers with proof that the debt is valid.

Koster said Professional Debt Management uses scare tactics, leaving messages on consumers’ phones that there is an emergency. He said that like Portfolio, they attempt to collect on accounts already paid or from the wrong party.

“The Attorney General’s office intends to take aggressive action to protect Missouri consumers,” Koster said. “I am asking the court to issue a permanent injunction prohibiting these companies from violating consumer protection laws and to order that they provide full restitution to the people they have harmed.”

Koster also is asking that the court impose monetary penalties and require the companies to pay all court costs.

January 12, 2009

Short Sale Second Mortgage Collection

Hi Paul,

I just found your site, and wish I had found it earlier.  We recently went through a short sale due to needing to relocate to another city for work. 

We had a first mortgage and a 2nd (HELOC, both with Wells Fargo.  The process was arduaous, and Wells Fargo was absolutely terrible to deal with, but the bottom line is it finally closed in October. 

The first mortgage is reported as settled, but the 2nd is listed as a charge-off. In our inexperience and zeal to get this thing to close, I inadvertently let them include language giving them the right to attempt to collect on the deficiency after the sale.  I was somewhat relieved when I heard from them in November stating that they have deemed the deficiency amount “uncollectable” and they would be issuing a 1099. 

Now, the other day, I get a letter from a law firm stating that they are pursueing payment for the short amount.  I called them to ask about the situation, and they said that they will be issuing a 1099, and attempting to collect as well. 

Is this legal?  How long do they have to issue the 1099, until January 31st for this year’s taxes? Once I get the 1099, can thye still attempt to collect or pursue a judgment?  If they do elect to pursue the judgment, do you recommend that I demand to them to validate the debt by providing the original documentation? Your help is greatly appreciated!

Phil (more…)

January 10, 2009

Dana’s Story

Dana Fixed Her Credit & Buys a Home!Mine is twofold: Testimonial and attempt to stump the experts!

First, the testimonial. My credit score was doomed until I stumbled upon this site about 10 months ago. I used the abundant advice on this site and have repaired my credit so much so that I’m well within reach of approval for a mortgage to purchase my first home!! The pay for deletes, references to consumer rights using exact verbiage, and the ever helpful green cards, have been a credit-saver. I CANNOT THANK YOU ENOUGH!

Now, for the question. I had a vehicle on my report for about $12,000 that went into default back in February of 2002. It was repossessed, but wasn’t reported as such. Additionally, GMAC reported the debt twice on my report, with 2 different account numbers, for different amounts, AND they were not reporting the payments I was making on the account. It simply read that the account was seriously delinquent. It goes without saying it wasn’t difficult to get it removed from my credit file since even I didn’t know what account was valid, and GMAC couldn’t verify (sounded like a failure on their part records wise). Also, the statute of limitations shown on my credit report showed the debt would be removed in October of 2008 anyway. So, it is gone.

This past week I received a letter from a collection agency for the full amount of this account attempting to settle for less than the amount owed. Up until now I’d never received a letter from any collection agency regarding this account. I’ve scoured for answers on what to do in this case, but I can’t find anything. I’d like to send the collection agency a letter citing what my rights are and their wrongful collection practices (if they’re wrong at all).

Even more on this issue is the IRS. I received a letter from them back in September stating I would have to pay taxes on the full amount of the debt because GMAC has reported it as income to me. So, I am also paying the IRS. I stopped making payments to GMAC once I received this letter. I sent a letter to dispute this with the IRS along with copies of my payments to GMAC (how can I owe taxes for income on a debt that I’m still paying on?), but the IRS still says I owe taxes on the amount. I don’t want to mess with the IRS!

Can the collection agency really collect on this debt? And am I really up against the wall with the IRS on this?

Oh…if I may add…today, while sending off my final letters and proof to the credit reporting agencies, my local post office informed me of a new way of receiving proof of receipt without the need for the green card. The clerk said to send via Certified mail. On the receipt is the tracking number. Within 3 days of mailing check the tracking number on the USPS website and simply print out the signature. I tried this with one of the past letters I mailed and sure enough! There was the address, date and time of delivery, and the printed name and signature of the recipient. She assured me it was just as good as the green card. Saved me about 20 bucks today! This should be enough…right???

Dana (more…)

November 6, 2008

Post-Foreclosure Collection Continues

I had a home with two mortgages that went into foreclosure. The second is now trying to collect. (after 2 years) I sent a validation of debt letter (certified) they responded back 4 months later with a copy of the note. They did not bother verifying my other demands ie: proof that they are allowed to collect in my state. What is my recourse know? because they call every day demanding their money. Don’t they have 30 days to validate my request? Real Time Resolutions is the collection agency.

Craig (more…)

July 8, 2008

Debt Collection Disputes

Filed under: Debt Validation,FDCPA

I’m on the mailing list of a debt collection industry publication called “Collection Advisor”.  Most of the articles are pretty creepy or downright sleazy.  In all fairness, here’s an article from page 18 of their most recent July 2008 edition titled “How Do I Respond to a Dispute?” that I actually agree with:

“Initially, a debt collector is entitled to rely on the representations of its client with respect to the amount and validity of the debt.  However, upon receipt of the dispute, the debt collector may no longer assume the debt is valid.  The debt collector must obtain additional information to support the validity of the debt.  Further, under section 807(8) of the FDCPA, the dispute of the debt must be reported to any consumer reporting agencies to which the debt has been reported.  This requirement under the FDCPA applies whether or not the dispute was received within the thirty-day validation period.  This section 807(8) requirement also applies whether the dispute was received in writing or verbally.”

There’s a first for everything.  I wonder if David the Debt Collector is listening?  I wonder

June 20, 2008

Battling Tools of Debt Collection

I just found your site last nite been reading it ever since. What brought me to find your site is a letter i recieved from ThisDebtCollector.  Stating that I owe them 320.80.

“Since you have failed to remit payment in full we are now left with theoption of summiting this account into the credit burwaus for listing on your credit report as an unpaid past due debt. This will be kept there for at least seven (7) years. Because this adverse credit rating becomes public record information it may result in future denial of credit. When collection investigations reveal your debt is substantioal enough and your assests (employment, bank,cars,property) show that they have a net worth, we will at that time consider sueing you in order to force collection.”

Ok this debt was origanlly 170.75 to a matco tool distributor (Tool Truck). according to a old credit report i have it states Date opened 01/2005 but date placed for collection [11/2001] Estamated date of removal 01/2008 It is not on my credit reports as of last nite from Equifax, Transunion, or Experian. So from reading your post I gathered they cannot repost it to my credit reports if I understand what I read properly. I have looked at but im not sure where a Tool Truck debt falls. I live in Washington State.  Pretty sure they are just triing to scare me.

Any suggestions you have and or pointers would be greatly appeciated.

Michael (more…)

May 2, 2008

Protecting Credit Through The FDCPA

Filed under: Debt Validation,FDCPA

I just received a letter from a collection agency two weeks ago claiming I owe from an old cingular account.  This bill was supposedly from 2002. 

I have been an excellent customer of cingular since 96.  I relocated from AR to TN in 2002 when I transferred my service to a TN number and closed the AR numbers.  The best I can remember, we disputed the last bill because two of my phone numbers (I had three seperate phones between myself and my husband)were on an incorrect plan and as a result I accrued unnecessary charges.  We resolved this in 2002 and I was told I did not owe any other charges. They had my new address, I never received any bill to state that I owed an money beyond this conversation.  Six years later, April 14th I am sent a collection notice. 

I at first thought the letter was fraudulant.  Most customer care reps could not help me because they showed the balance to be zero on the account.  After finally getting to the correct accounting office, I explained what I thought had happened and that I did not believe that owed for the amount.  The lady put me on hold to reveiw the account and came back and specifically told me that I was correct and the collection was turned over by mistake.  ATT would then contact the collection agency to resolve the issue which would take a couple of days to reflect.  The lady at ATT also told me that ATT would be contacting me in two days to let me know that the collection agency had been contacted.  She assured me several times of this and I ask her if she could fax me something in writing.  She said that she had reflected this in the notes and that she would give me the case number in which to refer. 

I got no follow up from att and I called them today.  They are now saying that they credited the account but, that my questions need to be directed to the credit agency.  The lady I spoke with today is going to call me back tomorrow after she consults with her supervisor further. 

I have been a 12 year paying customer with this company always in good standing.  I have excellent credit that will be ruined in a matter of weeks if this issue is not resolved.  What do you suggest that I do?????
Nicole (more…)

February 18, 2008

Orginal Creditors: FDCPA, FCBA, & FCRA

Filed under: Debt Validation

I need more info about validation  debt letter with original creditor not with collection agency.Please let me know if you have any.

Kevin (more…)

January 14, 2008

Debt Collector Antics

When my daughter was 16, I had an auto insurance policy for her and a separate one for myself.

Upon changing carrier’s and cancelling both policies, the insurance carrier debited amounts I did not owe from my bank account. 

I filed a fraud claim with my bank and the bank gave me the money back. 

Once the billing issue was cleared up with the insurance aganecy and a correct final bill was paid, I later found out (years later) that they had reported an amount owed on my daughter’s credit report. 

To this day, the collection agency refuses to remove it.  My daughter has tried and I have tried to get it reomved but no one will help us. 

Since she was a minor at the time and never signed any docuemnt indicating responsbility for payment, what recourse do we have?

Christina (more…)

Next Page »

Back to Broken Credit Blog