Collection Question

[crusheroz]

What is the name of your state? Washington
I wrote back in Aug. about a collection agency collecting on a debt of mine. When I talked to them back in Aug. I made an informal request for validation and disputed 550.00 of the debt. I then sent in a formal request for validation and disputed the above amount. Their response to my validation was a letter accepting a payment plan for the full amount. Is it safe to guess that they cant prove I owe the addition 550.00 and it is fees that they have just added. The total debt is for 1650.00. I do owe 1100.00, and never disputed that. I have been paying them since Aug, by money order. And they are licensed in my state now. What would be the best way to handle this. I will be able to pay the debt off in Feb. with my tax return. And I only want to pay what is left of the 1100.00 balance.

 

[jross2]

Assuming you are correct and they can not validate, why don't you stop paying the scumbags right now, ask for validation and tell them unless they provide proper proof, you will not send another dime. Now if your concious bothers you about this, there are plenty of needy people in this world besides this CA. Distribute the balance to a needy family or a charity of your choice. Just be sure about the validation part. No sense in paying twice.

 

[JETX]

There really is no 'best way' to handle it, since we don't know all the facts of your situation.

Howeer, I would suggest that you contact them (certified RRR) and tell them that you are ceasing ALL further payments unless and until they can properly comply with your validation request. Include a copy of the previous request and proof of delivery. Also, request a COMPLETE and current accounting of all payments made.
Then, stop paying until they comply.

 

[racer72]

Distribute the balance to a needy family or a charity of your choice. Just be sure about the validation part. No sense in paying twice.


And I will guarantee you will pay twice is you follow this foolish advice. A validation is now too late because you now have a history of payments and by sending payments they will claim you accepted their payment plan for the whole amount. The additional amount is probably for interest, lawyer and other fees. Other than bankruptcy, you are now stuck with the whole amount. Except for the filthy rich, I don't know anybody that enjoys giving away their money. If you decide to quit paying, keep the money.

 

[JETX]

Sorry, but NOT correct.

"A validation is now too late"
*** There is no 'timeframe' for a validation request. The debtor can request it at any time.

"because you now have a history of payments and by sending payments they will claim you accepted their payment plan for the whole amount."
*** The 'history of payments' cannot be construed to be an acceptance of a payment plan. Simply, unless there is something missing here, there is NO proof of the existence of a plan or what that 'plan' may be.

"The additional amount is probably for interest, lawyer and other fees."
*** Agreed.

"Other than bankruptcy, you are now stuck with the whole amount."
*** Not true. You are only liable for the CORRECT amount of the debt. The key is that you can only find out the CORRECT amount by process of validation.

"Except for the filthy rich, I don't know anybody that enjoys giving away their money. If you decide to quit paying, keep the money."
*** Agreed.

 

[racer72]

"because you now have a history of payments and by sending payments they will claim you accepted their payment plan for the whole amount."
*** The 'history of payments' cannot be construed to be an acceptance of a payment plan. Simply, unless there is something missing here, there is NO proof of the existence of a plan or what that 'plan' may be.

Just this past week saw 2 different collection agency lawyers use that as part of their evidence in court and in both cases the judge agreed. The initial payment made was all the CA needed to consider the offer of repayment as acceptable. Neither defendant had asked for validation of the debt prior to the CA's offer of repayment if that makes any difference. If I was a creditor and made an offer to a creditor of $100 a month on a $1000 debt and $100 checks started arriving, I would consider that as an acceptance of the debt and payment plan. So did the judge in these cases.

 

[JETX]

"The total debt is for 1650.00. I do owe 1100.00 "
*** And I would argue that based on that statement alone, that there is NO agreement to repay. Simply, since there is no 'meeting of the minds' as to the amount of debt owed, there cannot be an 'agreement' as to the debt to be paid.

Also, the fact that the debtor has requested a validation (if that was done correctly), would have a huge impact on this issue. The FDCPA prohibits a collector from ANY collection efforts until he complies with the request.

15 USC 1692(g)(b)
"(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector."

 

[crusheroz]

I got a letter from the collection agency in August. This agency bought the debt from another agency. When I first talked to them I disagreed with the amount they said I owed. I questioned where they came up with the extra 550.00 I did send in a payment to them in August only because I do owe the 1100.00. I never agreed to any certain amount. I sent in before the payment, that I wanted validation of the 550.00. I have proof from the orginal creditor that the amount owed was 1100.00 and it is on my credit report as such. Instead of them sending me validation, I got a letter for a payment plan, saying that I can pay 50.00 a month till the debt is paid in full. I dont agree with this, I will pay the debt, but not the 550.00 unless they can prove to me where it came from. So is it really too late to fight this? Also the validation was sent to them by certified mail RR. They did get it. In the letter I disputed the amount of 550.00 and asked for validation of that amount. I also put that I didnt want proof that they have my name and address, that I wanted documents to show where they came up with this amount.