National Says Hubby Owes; They don't show up on Equifax!

[Ahutchga1972]

What is the name of your state? GA

Hey everybody! Here I am again after a few years' absence.

I had a few quick questions about hubby and my charged-off debt.

1) We pulled our Equifax report tonight. National Financial Systems claims DH (Dear hubby) owes $5,000 in debt. This is not showing up on Equifax.

2) National has been abusive to DH via phone. Even called him "little man" and told DH that it would not be worthwhile paying anything on this account (we offered a settlement when tax refund arrives via e-file). Whoever heard of a creditor not wanting some $$$?

3) My credit report shows Sherman has an old $1300 Sears acct. I recently got a letter supposedly from an Atlanta law firm saying Sherman turned this over to them. Once again, the credit report only lists Sherman. Not this law group. And I never received documentation that Sears sold to Sherman.

4) Is it better to leave charged-off accounts alone, or try to pay something on them? We would like to improve our credit score b/c we hope to buy a house in about 3 years. We're not accruing new debt, we've just had finanncial difficulity and until this refund, have been unable to pay on the old debt.

Thanks in advance for your help! You all do great work! IAAL helped me a few years ago regarding an apartment lease issue.

[Debt Guy]

Your questions are a little off topic for a legal website. You might try [url]www.creditinfocenter.com[/url] or [url]www.artofcredit.com[/url].

But, lets see if I can sort any of this out.

1. Not showing on Equifax -- all that means is that the creditor did not report to Equifax. There are 3 major Credit Reporting Agencies. Some creditors report to only one and some report to all three. Try Experian or Transunion and see what you get.

2a. National being abusive. One person's "stern and direct" is another person's "abusive". It is hard to tell if they violated the law. For sure, they cannot use profanity and cannot threaten things that are illegal (for example, having you arrested). The psychology of the collections business is to make you feel bad so you will send money and make the bad feelings go away for a while. Many collectors will get right up next to the line and will push. It may be poor taste but is not necessarily illegal. Read the Fair Debt Collection Practices Act at [url]www.ftc.gov[/url]. It is not hard to read and will outline what a collector may or may not do.

2b. refusing dollars -- the collection agency is not required to accept anything other than payment in full. Every other choice is based on the guidelines laid down by the owner of the debt and their assessment of your negotiation skills. If they refused what you offered, then they just think you can do better. They may or may not be right in their assessment. You can't make them take what you propose.

3a. Sherman -- they probably did turn it over to a law firm -- there are several collection law firms in Atlanta.

3b. credit report -- there is no requirement that the law firm report anything to the credit bureau -- so far as that goes, there is not requirement that Sherman report anything to the credit bureau. Reporting to the credit bureau is mostly an attempt to bring pressure on you to make it go away.

3c. there is not a requirement that you be provided documentation that Sears sold the debt -- Sears does not need your consent or acknowledgement

4a. Is it better to leave charged off accounts alone? Depends on lots of factors. Is the account still within the statute of limitations? In Georgia, the SOL is four years from the date of initial default. This is a very simple answer and is not a complete answer -- but if the debt is outside the SOL then technically it does not need to be repaid at all. On the other hand, the debt is hanging around and trashing your credit score and making it difficult for you to buy a home or a car, etc. Also, even if outside the SOL, the collector and still call you all the time and bug you to pay up. Finally, you need to look to your own sense of ethics and honor. What is the right thing to do?

4b. If you want to own a home in the next couple of years, you need to make all this go away. The faster, the better. Your credit score will need some time to heal.

Email me directly at [email]debtguy@hotpop.com[/email] for you want to dialogue more on this. I've just skimmed the surface of the answers to your questions.

[Ahutchga1972]

GA.

Thanks Debtguy, for your response. We do want to pay the debts. It is the right thing to do. Going to try to settle with as many creditors as we can.

DH pulled his triple report, and it only shows that National accessed our credit report in December 2004. Nothing about National taking over such and such an account.