LorneReams Posted July 8, 2003 Report Share Posted July 8, 2003 I was trying to avoid asking for help, and try to solve this problem on my own, but now I'm so scared that I want to get some support. I owe a debt to a financial institution that I was unaware of for the last 4 years. It was for a car loan that was totaled and the insurance company paid off. Or so I thought. It turns out that there was a balance of 2200 left on the account. This was back in 99. The loan was opened in 97. I received no notification from the company during this time. About a month ago, I find a strange listing on my credit report showing a paid account with a 2200$ balance. I didn't recognize it. I am trying to buy a house with my fiancé and the mortgage company said I have to get the balance removed before I can be approved. I send a letter to the CRA stating that the account was not mine. They update saying it's a collection account. Now I'm confused so I contact the OC (by phone) and ask for information on the account. After being transferred around for about an hour, I get an agent who gives me the balance (2200) and says it was sent to a collection agency. I get the number, and call. The CA has NO information except my SS# and the balance. No name, address, or any other info. They ask if I want to settle. I said that I wasn't even sure that the account is mine. I agree to update them when I get more info from the OC (I didn't give ANY info to them, not even my name). So now I'm getting confused and contact the OC again. This time I get to the deficiency department. This is when I learn about the insurance not paying the total amount of the loan. I ask for some paperwork showing this, and the agent happily agreed. He seemed very understanding to my situation. After reviewing the documents, I confirmed that I do indeed owe the 2200$ and I prepare to pay them. I call back and the agent I had been talking to was on vacation. I roughly go over everything with the new agent, and she asks immediately when I'll be able to pay. I, taken aback by this abruptness, say I was unsure. She then said she could reduce it to 1700. I'm now more surprised because I was ready and willing to pay the 2200, and said I wasn't sure. She then quickly said she would accept 1580$. Now at this point, this is sounding really shady, so I ask for this in writing. She happily agrees, and then asked what date would I be paying. I said I wasn't sure (still feeling uncomfortable). She says she requires a date to put on the settlement letter. I then retort that I wasn't agreeing to anything until I see the paperwork. She then starts going off on how if I don't set a date now, they are going to garnish my wages and commit to action against me. I was so taken aback; I agree to a 7/25 date and quickly hang up the phone. I just received the letter 2 days ago that basically states that I will agree to a settlement of 1580 and that they must receive the payment by 7/25, or it will be void and they won't offer it again. The letter says nothing of how they will handle the credit line, nor does it even mention specifics of the settlement, instead it references to "our agreement over the phone". I am so unnerved and embarrassed by this that I couldn't sleep for the last couple of nights. I chased THEM down and they make me feel this way. I'm the one trying to be honest by paying this off when I wasn't even aware of it, and they threaten me. I just don't know what to do.If this seems rambling I apologize, I'm so upset and angry, I can't think straight. Link to comment Share on other sites More sharing options...
kb9tbq Posted July 8, 2003 Report Share Posted July 8, 2003 When is your mortgage loan expected to go through; have you set a date yet?Did you happen to hear when the 1st agent would be back off of vacation?If you can wait until this period of time, would opt out of dealing any further with this one rude person and bid your time to speak again with the other one you originally was working with.These is no reason for you to get worked up over people this rude, just feel sorry for them, that they think they have to treat people that way to get by...Best of wishes, Link to comment Share on other sites More sharing options...
LorneReams Posted July 8, 2003 Author Report Share Posted July 8, 2003 I can hold off on the mortgage. My initial date was 8/1, but I'd rather handle this first. I'm scared to call back. What should I say? Didn't I already agree to this? I hate being threatened, but I feel so helpless. What should I ask for in the settlement? I thought it would just be easy to pay them. Link to comment Share on other sites More sharing options...
kb9tbq Posted July 8, 2003 Report Share Posted July 8, 2003 That settlement letter is not binding until you sign and return to them, so you are not required to do this.If you are willing to pay full, then work harder and paying them off in exchange for deletion of the tradeline... that is the main objective when credit scores are concerned.Just be nice, and ask when the other individual will be returning from vaction and if they ask why, just tell them, that you feel more comfortable with speaking directly to this gentleman on the matter - don't have to say anything further. Just thanks and have a good day. Then hang up, but don't give them room to push you around, if they do, just come back and say thanks, but I will wait, have a good day; buy. End of conversation hang up the phone.ok, they might not like this - with commission and the sort, but if she wanted to make that money, she should of been nicer. No problem, people don't deserve your time or business, if they don't know how to play nice to begin with, that is my motto. Link to comment Share on other sites More sharing options...
LorneReams Posted July 8, 2003 Author Report Share Posted July 8, 2003 Thank you. You've single-handedly calmed me down, which I didn't think was possible. I'll call today after lunch, and will probably have some more questions afterwards, if you don't mind. Link to comment Share on other sites More sharing options...
kb9tbq Posted July 8, 2003 Report Share Posted July 8, 2003 Sure thing, defiinitely glad to be of help, know how stressful it can be; dealing with these companies. They don't help matters, since most of them are of the mind to instill fear which is bs, cause nothing in this life is important other then health and loved ones - ok.Everything else can be repaired; eventually. Link to comment Share on other sites More sharing options...
LetoAtreides Posted July 8, 2003 Report Share Posted July 8, 2003 Definitely go in calm and collected, and you'll come out ahead.Kb's advice is great, and I'm sure you'll come out of the situation just fine! Link to comment Share on other sites More sharing options...
creditfix Posted July 8, 2003 Report Share Posted July 8, 2003 This has gone to a CA? It is 4 yrs old? What's the SOL? If you want to settle this, I would begin by offering them less than 50% and work my way up to 50. If the SOL has run then you definitely have the upper hand. Link to comment Share on other sites More sharing options...
LorneReams Posted July 8, 2003 Author Report Share Posted July 8, 2003 The SOL for this in MA is 6 years. The last payment was the insurance settlement in Nov 99. That would make the SOL around 2005-2006 (unless I'm misunderstanding something). I'm settling for 70%. I was willing to settle for 100% because I thought it was the ethical thing to do. The rude woman I talked to shot herself in the foot by offering me less without listening to me. The guy, whose name is Jamie, is back from vacation. He didn't seem happy about the settlement amount especially considering I told him I would pay the whole amount if it was actually valid. I feel much better now, and after talking to him, feel confident that this will be resolved. When I asked how it would look on the credit report, he says the just remove the derogatory status. I will be as if I paid it on time. He said if there was any problems with it after I pay, I could call him directly and he'll make sure it gets updated correctly. I'm trusting him, and if it's a mistake I'll chalk it up as one of life's lessons. The funny thing is on my credit report from the mortgage company, it states three reasons my score isn't higher. 3 of the 4 reasons reference this one account (time, amount, and late payments) with the last being utilization. I'm hoping that fixing this account will significantly raise my score. I much rather have a positive account then having it deleted all together.Again, thanks for all your help. You helped me keep a cool head, which make things easier when I talked to them. Link to comment Share on other sites More sharing options...
creditfix Posted July 8, 2003 Report Share Posted July 8, 2003 Normally, they report that as PAID IN SETTLEMENT FOR A LESSER AMOUNT. I hope they don't do that to you. Keep checking the account and stay on them. So glad you got it worked out. Link to comment Share on other sites More sharing options...
kb9tbq Posted July 8, 2003 Report Share Posted July 8, 2003 Is the account showing up on your credit report a collection account in the collection agencies name, or is it under the name of the original creditor, just showing collection?Sometimes I have known collection companies to say they would show positive, but their meaning of positive is showing paid collection (and that is the best it can get if it is the Collection Agencies tradeline that is actually showing up on the report).If that is the case, you might just wait and see, if not contact him and ask if it is possible to remove the collection listing all together, since you will be going for a mortgage loan, and that this was really all a big mistake, and would appriciate their good will in the matter. Link to comment Share on other sites More sharing options...
LorneReams Posted July 8, 2003 Author Report Share Posted July 8, 2003 Actually there was never a collection account associated with this trade line. It was always the original creditor. In fact it really wasn't negative per se until recently. It just said, "balance 2200. Paid or paying as agreed". It didn't turn negative until I disputed it. Then it said in the update:Updated account"2200 past due amount. Collection account"As far as I know, there is no collection account. This is the OC I'm dealing with now. Do you think that is going to cause me problems?I feel that it's my responsibility to pay this account. I owe them money, and I have no problem paying them. On the other hand, I don't believe I should be held responsible for their apathy and lack of communication regarding this account. Had they told me promptly back in 99 that I had owed this money, I would have been more then willing to pay off the remainder of the account. If they try to say that this is a negative account and hold me responsible for their mistakes, I'm going to be quite upset. Link to comment Share on other sites More sharing options...
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