Get Off My Back Direct Merchants Bank!

[MommieDearest]

What is the name of your state? CO

I need some advice.
I paid off and closed my Direct Merchants Bank Mastercard in 2001. I never heard from them again. Over a year went by and thinking they were long gone I destroyed all my records. I discovered about a year and a half later that DMB was on my credit report as a blackmark for nonpayment. On the credit report they claimed I owed them aprox. $200. I talked to the credit report people, who advised me not to contact the credit card company but to file a dispute with them. Since that incident I have filed a dispute on my credit report aprox. every 6-8 months. I was finally advised by the credit report people in August 2004 to place a permenant statement on my report explaining the discrepancy.

On Sat morning 7:30am, a lawfirm contacted me saying that DMB was sueing me for nonpayment in the amount of over $400. This is the first communication I have ever had (outside of the credit report) concerning this account. The lady from the lawfirm told me to write a letter of dispute, but wouldn't give me a name to address the letter. The address she gave me is also different than the address listed on the lawfirm's website, but the phone number is the same.

What should my next step be? I have not heard from them since Saturday, (it's Wednesday) I ordered a copy of the original check I wrote them in 2001, and a filed a new dispute with the credit report people.

What next?

[Debt Guy]

It would be good if you still had saved your paperwork.

But, here is what I would do.

When you get the copy of the cancelled check, write a letter to the law firm asking for a validation of the debt (VOD) -- you can find samples at [url]www.creditinfocenter.com[/url]. Explain the situation and send them a copy of the cancelled check.

They may or may not believe you. You may still end up in court. If so, you want to be showing the judge as much as you can in terms of paperwork and your efforts to correct the matter.

For what it is worth, I think the credit bureau people gave you bad advice. I would have made my original dispute with the creditor.

[MommieDearest]

Thank you for your advice -

I actually did (against the credit report agency's advice) call the credit card company. They had no record of me ever having a credit card, and I wasn't in their collections department. I did not have any success - as they claimed that I never existed. Arghghg.

Does anyone know if the credit card company would be able to provide old statements (granted that they are able to track me down)? If they are, then I could show that I paid in full.

[Debt Guy]

You can ask -- fax your request to DMCCB at 918-384-4963.