Collection Agency and account settlement

[twowheelrider]

What is the name of your state?What is the name of your state?Our residence is in the State of Kansas. I had a credit card that was in my name that my wife used. My wife use to handle the finances but was not paying this bill. Long story short she did not pay the debt and the account basically doubled because of interest. The creditor sold the account sometime late last year to a collection agency in California thereby making it a 3rd party. We were sent a settlement offer letter in early January from the collection agency. The settlement was for about half the balance of the account. We wanted to settle it then but did not have the funds at that time. At the end of Feb we received a new bill from the collection ageny with the full balance. We now have the funds to settle the account for the amount they offered in January so we called the collection agency. We found out that the account was transferred to another account manager since the offer letter was sent out. The current account manager said the offer had expired but that we could settle out for a new amount which was approx $500 more than the offer in Jan and about $300 less than the full amount. We asked to speak with the previous account manager and was able to but she said the Jan offer had expired. We explained we don't have the funds to pay the new amount but would be able to pay that which was offered in Jan. When we told her that she became agitated. We also asked why they would not honor the first offer she kept indicating it was expired and she became very rude and disrespectful and eventually hung up on us. We called back and spoke with the current account manager and asked to speak with a supervisor. The current account manager was also rude but transfered the call and the supervisor's VM picked up so we left a message to call us before the end of their work day. We decided to call back the first account manager because past experience indicated that the supervisor would not likely call us back and we had additional questions and wanted to resolve this. As we spoke to her again she said because we involved the supervisor we would have to pay the full amount. I am trying to honor the debt but need legal advice on how to go about this. I read some articles on the web and decided not to speak with the collection agency until we know exactly what needs to be done. I feel the collection agency violated section 807(10) of the FDCPA.
I did not record the conversation and I don't know if I can without their knowledge. My wife does not remember the last time she made a payment but we know the debt is a few years old. My initial thought was to write a letter and attach a check (with earlier offer amount) indicating that cashing this check would constitute acceptance that the debt is paid in full and that they would report the debt to the credit agencies to either remove it or show it paid in full. Does anyone have any suggestions?

 

[cmorris]

The statute of limitations in Kansas is 3 years. If the debt is 3+ years old, you don't legally have to pay it.

Stay off the phone though! If you insist on calling, then you can can tape record without notifying them. First of all, Kansas is a one-party state. Second, most collection agencies, when you call them, state the call may be recorded.

Send a letter, certified mail return receipt, requesting full and proper validation as per the Fair Debt Collection Practices Act. Tell them to only contact you by mail. After you get the green card back, send a dispute letter to all of the applicable credit bureaus CMRR, disputing this debt as "not mine." This puts the CA on a 30 day time line.

If the debt is still valid, then negotiate through writing only, CMRR. Don't send a check, send a money order.

 

[twowheelrider]

Re

I believe the CR report shows the debt was started in June of 2002 which means that it will not be 3 years for a few more months. That may also depend on whether my wife made a payment to the CA. She believes she did but cannot remember when without going through all the paperwork mess (another story). I am going to presume it is a valid debt. I have found some additional info on the web about "debt validation" and was wondering if that should be pursued. I really don't want to drag this out though if I can help it. I would like to just send them a money order in the amount of the Jan. settlement offer (see my first post). In addition to the money order there would be a letter indicating that cashing it means accepting it as payment in full and they would report the debt as paid in full to the credit bureaus. The problem with that approach is even if they agree to the offer they probably will not honor the reporting part.
Do you have any insight or ideas?

 

[cmorris]

Get your settlement in writing (from the CA) that is is for payment in full. Make sure there is a clause in the settlement letter that the unpaid portion cannot be sold. Hang on to it for dear life. Just do everything by mail; the phone is your enemy.