KB9 - A question for you

[soclose]

Yesterday - we had a thread about Sherman Acquisitions - and you recommended calling them because another CA is calling me about the debt. They said they can't accept payment, remove the account and directed me to the other agency. I asked them to validate the debt and they said I have to send them a handwritten request, a copy of my driver's license and SS card. I sent them a fax typed and will follow up with a CMRR validation request - but can they still report it if they sold it? They're also charging interest on the account - do I need to have a copy of the original sale contract to see if it allowed for ca's to add interest

[kb9tbq]

That was not quite the intent, you wanted them to admit they no longer have the account; and that they will be updating the CRAs if the debt was only asigned to them.

You don't need to go through the debt validation with them, or what ever their results won't matter to them, since someone else now has the debt.

If they bought the debt, then they are allowed to report, but must also report zero balance; account sold.

If they were asigned the debt, then they should remove tradeline all together from the credit report. This is what we are hopping for, that they have to remove an asigned debt.

So if you can get their word that it is being removed, get that in writing.

[soclose]

What's the difference between buying and assigning? And if they sold the debt, can the new CA make a settlement that includes deletion from Sherman?

[kb9tbq]

Assigning means that the original creditor still owns the account; and that consumers have a chance to possibly settle with them. They also have the power to re-call a debt form a collection agency making them also remove their reporting. So that the only tradeline on the credit report in the end best accomplishable is the Original Creditors listing - and some people have been lucky through good will letters; to make these positive again.

But once the account is sold; they no longer have any say in how much is charged but they must show that the account is zero balance; since the new owner bought the debt from them. They won't be able to go after the consumer to pay any more after this happens. If they accept money on a sold debt, then they can be sued for this practice!!!

Same holds true for any collection agencies buying & selling said debt, but they can only affect their own reporting, they can negotiate another companies doings (only the OC can do that, if they still own the debt).

So if they sold the debt, you be lucky to make them update zero balance sold (if you try spam disputing you might be able to bump it off of the credit report).

You main dealings are now with this new collection agnecy - and negotiating with them to remove said debt in exchange of paying.

You can even use check endorsements (if applicable in your state to make a contract) stating that by cashing they agree to remove...

[soclose]

Sherman said they still own the account but that the new agency is "working" it for them - does that mean that if I settle w/the new agency there's still a possibility it could be updated by Sherman to a positive status?

[kb9tbq]

Oh, Sherman is a special one, they are doing business under a few different collection agency names; there are more here that can comment on that part, but if you can deal then with Sherman directly; you might get to knock out both collection account listings.

Sorry forgot about that one, look on the collection section you should find others that have delt with this company to give you some ideas what you might be able to get done, ok.