HandsOnDeck

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About HandsOnDeck

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  1. An old credit card debt surfaced last year, when CAs began calling. After a little digging, I learned that a JDB purchased the debt from US Bank---the CAs were their minions, trying to collect. None of the CAs responded to DV letters, so things just quietly slumbered in the background. Not a word for nearly a year, then six weeks ago, yet another CA came calling (actually, mailing, to be literal). Idiot me did a stupid thing---sent DV letters to both the CA -and- the JDB that hired them, in hopes of getting this shut down once and for all (assuming the latter didn't have validation documents either). Bad move. No word from the CA, but the JDB sent back: Copies of the Bill of Sale and Assignment (two--one when US Bank sold it to JDB #1, then a second when JDB #1 sold it to these guys, JDB #2)Copies of two monthly credit card account statements (one showing the last charge made on the card, the second showing the bank's charge off)Their MN collection agency license number As I understand it, that fulfills validation requirements. If this had occurred a year ago, I could have/would have negotiated a settlement, but now, within six months of the SOL, the devil on my shoulder wants to run the clock out. Add to that a serious dip in my career the past nine months, and a negotiated settlement isn't financially possible. Pertinent details: Date of First Delinquency: March 2008Minnesota SOL = 6 yearsResulting expiration date is March 2014, six months from now Yes, I should have left sleeping dogs alone. That said, what do you wise souls suggest I do moving forward?
  2. Just checked the thread before heading to the post office.... So, if the 1099 part stays in, and they balk over the IRS issue, then yes, I can see how that might deep six them signing. That said...let's go back to my post #20 in this thread to review where the debt came from: • Had the bank not processed an automated monthly transfer against an insufficient cash balance, there would have been no overdraft. • Had third parties not continued auto-billings they were no longer authorized for (all of which were reversed when their mistakes were caught), there would have been no overdraft. • Had the bank not charged NSF fees against every one of those unauthorized (later reversed) billings, including the initial negative balance they created themselves, there would have been no overdraft. The bank and third parties were 100% responsible for the overdraft/debt situation. I had sufficient money in the account to cover the legitimate payments, and then some. For that reason, I don't see how filing a 1099 against me makes sense. I'm willing to pay, in full, the dollar amount they never should have transferred to begin with. I spent it, I'll pay it. The remaining portion of debt being "forgiven" didn't come from me--it's third party activity, without authorization, later reversed, then compounded by NSF charges against each of those transactions. Do I need to spell that out in the letter to the CA? Or will doing so only open a door that mitigates the language in item #2 (see post 26, above)? So much frustration over a mess I didn't create to begin with (the debt). Thanks for hanging in there with me, folks. Your wisdom is a Godsend.
  3. Done, and done. Now, ball's in their court. Thanks again for the great help, RockDaddy. You're a Godsend.
  4. Kindred spirits, as they say. Perfect. Thank you, thank you, thank you! I'm off to plug in the real names, then send it CM on Monday (too late today, since it's Saturday). Do I need to give them a deadline for signing and returning? Also...because this JUST occurred to me.... Several times, in several threads, there have been warnings to never commit your handwriting anywhere, at any time. The way the letter is written, there's a space for me to sign (using my full, legal name, no less) and date on the last page. Is it kosher to remove that part, and have only the CA representative sign? Can't believe that didn't hit me until now. Duh.
  5. Wow...great catch on "the." Totally missed that (was in the original I followed from the website). Thanks for that. Any help with the wording? And, am I asking them not to file a 1099 against the difference between the bank's charge off amount -or- the CA's wildly inflated "balance due" that's double the amount? My concern (which may or may not be rational) is that they'll file a 1099 using the inflated amount....
  6. Does the following letter work? Took most of it off this website (not the forums). As a side note: The dollar amount I used for number 2 is what the CA claims they're owed. It's more than double what the bank actually charged off, with no explanation of where the additional fees came from. The bank's final (charged off) amount: $3,188.77 The CA shows "current balance due" as: $6,336.15 (probably higher, since that was a few weeks ago) Which goes in the letter? The CA's (as shown below) or the bank's charged off amount? - - - - - - - - - - - - - - - - - - - - - - - - - ABC Collections, Inc, referred to as COLLECTION AGENCY and John Q. Consumer, referred to as CONSUMER, agree to resolve the matter of the alleged debt, originally held by the XYZ Bank, hereafter referred to as the CLIENT. CONSUMER hereby agrees to settle this alleged debt claimed by COLLECTION AGENCY on the following terms and conditions: 1. The COLLECTION AGENCY certifies that it is legally authorized to act in behalf of its CLIENT and that any agreement that the COLLECTION AGENCY makes on behalf of CLIENT is legally binding on the CLIENT. 2. The COLLECTION AGENCY and the CONSUMER agree that alleged debt is $6,336.15 (Six thousand three hundred thirty-six & 15/100 dollars). While the CONSUMER feels that validity of the debt has not been proved by the COLLECTION AGENCY, the parties agree that the COLLECTION AGENCY shall accept the sum of $2,500.00 (Two thousand five hundred & no/100 dollars) as full payment on the debt. 3. The acceptance of the payment will serve as a complete discharge of all monies due. The COLLECTION AGENCY agrees to consider the debt paid in full and agrees to not take further action to collect on the alleged debt, nor to sell or forward the alleged debt to any other organization or individual. The payment shall be made in the form of a cashier's check or money order. 4. Upon payment of the $2,500.00, the COLLECTION AGENCY agrees to remove any listing or information that the COLLECTION AGENCY may have placed on the CONSUMER'S credit report. The COLLECTION AGENCY agrees to never, at any time in the future, place any information on the CONSUMER'S credit report. 5. The CONSUMER feels that the negative information on CONSUMER's credit report is damaging and while the exact estimation of the damage is not currently known, the CONSUMER estimates it to be $10,000 (ten thousand dollars and zero cents). Should the COLLECTION AGENCY fail to remove the listing or reinsert any reference to it at a later date, the COLLECTION AGENCY agrees to award liquidated damages of $10,000 to CONSUMER. 6. This compromise is expressly conditioned upon the payment being mailed, via Certified Mail, by postmark date (date). If the CONSUMER fails to mail the compromised amount, via Certified Mail, by postmark date (date), this contract will be immediately terminated. 7. The person signing this agreement, __________________________________, hereby declares that he/she is authorized to act as an agent of the COLLECTION AGENCY. This Agreement shall be binding upon and inure to the benefit of the parties, their successors, and assignees. Dated: Signature: ____________ Legal Representative of ABC Collections, Inc. Dated: Signature: ____________ John Q. Consumer - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  7. I'm fine paying the $2,500. Just want to be sure that I do this (read: handle the paperwork) in a way that doesn't add a negative note to my CR, nor opens a door for someone else to try collecting the remaining dollar amount. Currently, this debt does not appear anywhere on my CR. According to other threads, that's because it's an old checking account, not a credit card. Want to be sure my actions now don't result in the CA posting a negative settlement entry that brings this debt onto the CR. My understanding (again, keeping in mind this is a checking account, not a credit card) is that banks hand off---not sell---closed accounts to CAs for collection. This is most definitely a CA, not a JDB.
  8. I so hope one of the previous participants in this thread will chime in...am a bit at odds about what to do next with this CA. Thanks in advance!
  9. Update time.... (You'll see me mention the MN AG's office below. At the suggestion of wise forum members who participated in the other thread noted in my initial post, I did file a complaint regarding the CA's agressive behavior. They've been "in the loop" for much of the back and forth, as a result.) Since my last post: Dec 1, 2012 (approx) The AG forwarded my complaint to the CA, along with their own cover letter demanding complete and thorough validation, since what little they'd provided to date was insufficient to confirm the alleged debt. Dec 10, 2012 AG sent me the CA's reply that said they'd requested 12 months' of account statements from the OC. Jan 7, 2013 Rec'd three (not twelve) months' worth of statements directly from the CA, beginning with Feb 2008...with an offer to settle for $2,500 instead of the full $6,336.15 (correct me if I'm wrong, but didn't someone say CAs can't add interest?). Now that I've combed through the statements, well...I'm all smiles. Here's what happened on the February statement: - Jan 31, 2008 we closed the business with a positive balance of $ 835.52 - The final/January merchant services bill: $ 391.31 - The final/January UPS bill: $12.45 - The final/January insurance bill: $ 92.52 - Monthly bank fee: $ 5.00 In other words, we had enough to pay all our bills, which would leave a remaining balance of $ 334.24 + interest. What derailed things? Wells Fargo processed a monthly auto-pay for $ 2,500 against a balance of $ 835.52 on February 1. This auto-pay, as noted above, was my monthly salary. The auto-pay transferred funds from the business account to my personal checking account, at the same bank branch. Had WF either not processed the automatic transfer due to insufficient funds -or- reversed the transfer upon realizing they'd erred by making it to begin with, NONE OF THE OVERDRAFTS WOULD HAVE OCCURRED. Not one. Instead, WF processed the auto-pay, knowing there weren't funds to cover it, putting the account under water. Then they charged us a $34 NSF fee for it. When our legitimate bills began arriving four days later (merchant services, UPS, insurance, etc.), there weren't funds to cover them, which meant more NSF fees. Making matters crazier, merchant services and UPS kept billing the monthly account fees, even though we'd closed our accounts with them the end of January. They caught their mistakes, reversed all the mistaken charges, but of course, by that time, Wells had tacked on a $34 NSF fee for each and every one. The insurance company didn't submit a charge again (at least one person did their job right in this fiasco). My guess is that the CA figured this out, realizes Merchant Services and UPS will back my story, and is hoping to collect on the $2,500 auto-pay since it was never returned. Before I respond to anyone, I'd like your opinions about how to proceed. (Yes, I spent the $2,500 auto-transfer, in good faith, having no idea it never should have run...see my post above, dated 28 Nov at 6:16). Thoughts? Anyone? Anyone?
  10. That's just it---I'm not. As best I can tell after digging, digging, digging, this is a CA, not a JDB (thus my question in an earlier post about whether or not they even *can* own a debt). How could I find that out, definitively?
  11. Happy to see you here, Flyingifr. Thanks for jumping in. Forgive the newbie question, but...OOS? That one, I'm not familiar with (yet). • When the account was opened: Sole proprietorship (dba) • When the account was closed: LLC, although the bank didn't know that. The final statement reads [my name] dba [business name]. This has been a real eye-opener. Managed to dig up the final three months of bank statements, which showed the following: Wednesday, 1/30/08 The last "manually initiated transaction" (keep reading...you'll see why I've chosen those words) was a deposit made the same day we officially closed all vendor accounts, with the exception of the checking account. Thursday, 1/31/08 We had $800+ in the account. In the spirit of full disclosure, I knew we were positive, but had no idea by how much (among the other 4,682 things necessary to close a business, all I needed to know was that we were still in black ink, with no bills remaining). I'm spitting nails over this next part, so get ready. Friday, 2/1/08 The very next day, WF processed my regular end-of-month salary auto-pay, pushing the account into negative numbers. Knowing we were positive at month's end---but again, not knowing by how much---the deposit into my personal WF account didn't raise flags. I paid the mortgage, car, electric bill, etc. like normal, under the assumption the company account was still positive. Surely WF wouldn't process an auto-pay if there wasn't cash to cover it, right? Wrong. WF withdrew the salary payment from the company account, pushing its balance from $800+ to -$1600. In 24 hours, we went from positive to negative without lifting a finger. Feb + March 2008 Exacerbating the problem, two vendors (UPS and Merchant Services--the company that processed our customers' credit card transactions) continued submitting weekly/monthly auto-bills for two months after being notified to close our account. As a result, a combination of unauthorized charges and corresponding credits continued to hit the account, right up until the bank closed the account. The vendors apparently caught the mistakes, issuing credits against the unwarranted charges (while continuing to submit new charges, go figure). This flurry of activity went on without me realizing it. FYI: If you've ever had a merchant services account, you know that one month (even with no transactions) equates to dozens of nickel and dime charges automatically submitted to your bank. Each of those charges--plus the salary transfer--triggered NSF charges. 3/31/08 WF closed the account with a balance of -$3,178.82: 2,500.00.....The auto-pay that should *not* have been processed or cleared +678.82.....Bank NSF and "uncollected funds" fees Should I have caught this back then? Sure. My bad. But reflecting on the mountain of things happening while we closed the business, sold everything off, stripped the leased space back to eggshell status, wrestled with bonehead landlords (we weren't violating anything in the lease..they're just impossible idiots), and moved me into the new career, it's not surprising I didn't notice all these silent transactions in a checking account I believed to be sitting dormant, with cash on deposit. It's good that no sharp objects were on my desk when I located those final statements..... Or an entirely new game plan. This "little revelation" has my head spinning like a top.
  12. Not worried about them touching other accounts---my concern is about them touching my CR. As of now, there's no mention of either the WF checking account -or- any collection activity against the charged off amount; I don't want to make a wrong move that ADDS this to my CR. Reasoning, please...? Would love to hear your thoughts on the topic. MN = 6 years SOL on checking accounts Is there a way to confirm---one way or the other---without this being added to my CR? For example, I could contact WF, but fully expect to hear either "We charged it off, so go talk to the CA" or "Sure, we'll take your money, but we'll also add this to your CR, which starts the clock NOW, keeping it on your CR for another 7 years." Definitely a huge step backward.
  13. Was in response to my DV letter. What has me perplexed is: 1. Do they actually own this, or does Wells Fargo? I thought only OCs and JDBs owned debt, then hired CAs to chase it down...? 2. Since bank accounts don't have date of last payment, first date of default, etc., how do I know when the clock began ticking? I definitely need more info than the little bit that's in their letter, so I can confirm this is correct. Am also deeply concerned about taking the right steps to avoid this being ADDED to my credit report, since it's nowhere to be seen right now....
  14. Was "dba" (changed to LLC several years years later, but the bank wouldn't have known that). Sorry...missed that part of your post earlier.
  15. I *think* you're asking "Is this RJM...?" If correct, no---appears to be a scruffy little CA located in a local strip center (read: mall + office spaces).