Help!! Don't know what to do with this debt.

[mimi1225]

About 3 years ago, I had a loan that was set up to automatically debit payments from my bank account. These payments were made in full and on time. After a year into payments, out of the blue, a bill collector starting calling me for this debt. I called the company who the loan was thru and asked why a collector was calling me. They said the loan had been accidentally sent to collections, but since they had sold the loan I would have to deal with the collection agency. They apologized but advised there was nothing they could do since they no longer owned the loan.

This collection agency began harassing me, phone calls, lawyer threats, etc. I adviced I wanted something in writing regarding balance and who they were. All I got was letters saying I agreed to pay them $100 month. I never agreed to anything. After many calls and never recieving anything regarding the loan's balance the calls just stopped. I never recieved anything in writing, I even called the original company trying to find info. on the loan and they said they couldn't help since they no longer owned the loan.

Now 2 years later, the original company I got the loan thru is calling asking for payments. They are saying they bought the debt back from the collection agency. This sounded weird and I asked for something in writing and I was sent a letter advicing I needed to pay within 10 days. (no balance, no amount). All of this makes no sense to me. My loan never should have been sent to an outside collection agency, no one at the original company would help me, the creditor never sent me anything in writing, I recieved no communication regarding this loan in over 2 years. Does it make sense that a company would sell an up to date loan to a collection agency and then buy it back 2 years later. Help I don't trust anyone regarding this matter and am afraid to sent anyone money.

[maynard]

Weird story. I dont know if your leaving out details or they are just flat out trying to rip you off.

Assuming what you said is correct....... I would obviously not send anyone money until you get everything straightened out and determine exactly who legally owns your debt.

I would start by getting a copy of your credit report. And then memorize the Fair Debt Collection Practices Act. That is the regulations debt collection agencies must follow. Read it until you understand it backwards and forwards.

Im not telling you to ignore your debt, but you need to know your rights and you should know what obligations the collection agencies have

[jpg7n16]

Call the current company and tell them that you are requesting that they send you written documentation of the amount owed, and a breakout of where the charges are from (actual loan, interest, late fees)

Here are some Debt Collection FAQs from the FTC.gov website: Debt Collection FAQs: A Guide for Consumers


I found this letter form that could be helpful to you:

From: The Fair Debt Collection Practices Act (FDCPA)

Sample Letter
Your Name
Your Address

Date

Collection Agency's Name
Collection Agency's Address

Subject: Debt Collection Against [Your Name]
Creditor Name: [Creditor]
Account No. [Number]


Dear Account Representative,

I am writing pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g, to inform you that I dispute the alleged debt associated with account [number ________] with [creditor]. I do not believe that I owe the amount alleged by you.

Your letter of [Date of letter from debt collector] was the first time I have heard from you about this alleged debt. Thus I am requesting that you provide the following information:

• Please explain the nature of the alleged debt - that is, what the money I allegedly owe is for;
• Please provide an accounting explainig how you calculated what you allege that I owe;
• Please provide me with copies of any contracts or documents which form a basis for the alleged debt; and
• Please provide me with the name and address of the original creditor.

I further request that you take the following actions:

1. Please contact any credit agencies to whom you have reported this alleged debt, and inform them that I am disputing the debt; and
2. Please also forward a copy of this letter to the creditor who alleges that I owe the debt at issue, and inform them that I am disputing the debt.

Except as specifically outlined herein, I am requesting that you cease all contact with me about the alleged debt. Any further contact should be strictly in conformity with the FDCPA: It should be limited to providing me with the documentation requested in this letter, informing me that you have ceased collection efforts on the alleged debt, or stating that you are taking a specific action in relation to the debt such as commencing a collection lawsuit. Any further contact should be made in writing, and should be submitted to my home address by mail.

Sincerely,

[Your Name]

[mimi1225]

It is a weird story and I haven't left anything out. I just don't know what to do. It doesn't show on my credit report at all and I don't want it to, I just can't seem to get any details and I don't trust who actually holds my loan. Does anyone know if companies sell loans to collections agencies and then buy them back..don't know if it sounds legit or not. I don't even know if it was legal for the original company to sell my loan when it was not deliquent in the first place. I don't want this to mess up my credit but I don't know what legal rights I have..The original loan acct number is no longer valid anywhere since it was sold and no one will send me anything in writing with a new one.

[maat55]

I would not settle anything until they give you proof in writing that you owe the money. If on the other hand you know you owe them, why not just settle? Is it an unsettled debt on your report from two years ago?

[mimi1225]

I want to pay it, I was paying it. I just don't know who owns the loan now. It is not showing on my credit, I looked to find who to pay and nothing shows. I can't get the original company or the collection agency to give me anything in writing.

[jpg7n16]

Originally Posted by mimi1225

I want to pay it, I was paying it. I just don't know who owns the loan now. It is not showing on my credit, I looked to find who to pay and nothing shows. I can't get the original company or the collection agency to give me anything in writing.

Did you see my post above?

Send them a letter and demand proof of debt in writing. Send it certified, so you can get confirmation that they got it. None of that 'we never received any letter from you' stuff.

Until they send it to you, don't pay them anything, and don't discuss over the phone. If they ever call you, tell them to refer to your letter that demands written proof of debt.


You may know that you borrowed the money, but they have to prove that you owe them for it. I don't care that the names of the companies are the same/similar. I care that they are unable to prove ownership of the debt. I guarantee you your bank has written documentation of your mortgage, and could mail/email you a copy today if you needed it.

Once they submit written proof to you, you should pay what you owe, but not until then.


Keep a record of your correspondence with them so that if they take you to court to sort it out, you can just be like:

• Phone call 1/28 11:35am - requested documentation in writing, company was unwilling to send written confirmation
• Letter mailed 1/29 (certified received 2/4) - mailed letter demanding proof of debt in accordance with Fair Debt Collection Practices Act; no reply received
• Phone call 2/5 3:40pm - company called, told them to refer to my written letter which they received on 2/4
• Phone call 2/6 11pm - company called me, yelling and demanding payment; I promptly hung up
• etc.

And take a copy of the letter, and your phone records with you to court.

Then you have documentation for the court that you've been actively seeking proof of the debt, and the company is in violation of federal standards of debt collection.

Being taken to court over a debt doesn't mean your a criminal, it just means that a judge will sort out who owes who and what terms are acceptable for repayment.

[FinanceVideoGuru]

jpg7n16 is right. follow his advice and all should work out. Good call.

[Eric80]

if i were you i'd go and seek advice from the citizens advice bureau to see what they can offer - they will be able to guide you in the right direction. I ended up going to see a debt advisor and they were able to offer some really good advice and i consolidated my debts - it was the best thing that I had done!