Contact Valid?

What is the name of your state? NJ
I had signed a contract a few years back for a vacation deal (pay money, take vacations every so often). The company is now out of business and unable to provide services. The debt was sent to a collection agency in CA who seeks payment in full. I sent them a letter telling the collection agency that I will not pay the money for a contract for services which cannot be provided. I am also submitting a explanation to the credit bureau, so my side of the story is on my credit report. Is there any other action for me to take? Any help would be greatly appreciated, and if any more information is needed, I shall post it at once.

Thanks in advance.

[bigun]

First of all, do not send a statement to the CRA's. THat's just a red flag that other creditors have had problems with you and many potential creditors will just ignore a credit app with a qualifying statement.
I'd suggest that since no one exist to fullfil the terms of the contract, the contract is void and the collection agency is in violation of the FDCPA. Specifically, misrepresenting the nature of the debt. There can be np debt if the other side breached the contract.

[url]http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm[/url]

You have a lot of rights in this matter. Read the FDCPA and then, send a letter demanding they remove the listing because, the contract is not valid. When you get the green card back, dispute it with the CRA's {CRRR} with the argument that the contract has been breached by the other party and they can't list a debt that does not exist.

[url]http://www.ftc.gov/os/statutes/fcra.htm[/url]

You have a ton of rights here and very likely a damn good lawsuit against everyone that has touched this debt.

This is great, I appreciate the help. I had a friend (lawyer, not paying him, he's helping as a favor) send a letter specifying to them that they have no right to hold us to this contract, and to direct all communications through him. Neither he nor I has heard back, and I want this settled as soon as possible. Being at this point, with him having communicated with the collection agency, should I ask that he sends a letter demanding the listing to be removed, or just do it myself.

Again, thanks so much for the help.

[bigun]

Is the trade line listed as in dispute on your credit reports? If not, the CA just racked up their 2nd FDCPA violation. First being trying to collect on an invalid contract.
I'd ask your friend if he can recommend someone versed in consumer law. Everyone from the CA's to the CRA's {once you let them know the debt is invalid} is violating the law.
I'd say a letter from a lawyer may carry more clout. If your friend is willing, ask him to write the letter.

[bigun]

BTW, here are the requirements for a ca to do business in New Jerset. Prehaps check and see if they are in compliance.


Collection Agency Licensing Requirements:
Any person who conducts a collection agency, collection bureau or collection office in the State of New Jersey, or engages in collection activities including receiving payment of accounts, soliciting the right to collect, or advertise for or solicit in print the right to collect, is required to file a bond in an amount prescribed by its Secretary of State. (Sec. 45:18-1.)

Application and bond information may be obtained from: Department of State Division of Commercial Recording Collection Agency Bond CN 453 Trenton, New Jersey 08625 or visit the Department of State's web site [url]http://www.state.nj.us/state/index.html.[/url]

I will indeed do that.

By the way, what is the "trade line" on the report? I was just looking at my credit the other day, and will look and see if you would tell me.

Thanks once again!

[bigun]

The trade line means the listing of the debt that the CA placed on your report. It should read "disputed".