Refusal to Verify Debt that Doesnt Exist

[Mission2000]

Just wondering if I had a case against this credit collection agency that just started calling me.

Here is what happned. In 1996, Nationsbank repossessed my vehicle. They filed a judgement on me for the deficiency balance. In June 2002, I contacted Nationsbank about settling the judgement so I could purchase a house. They told me I had to deal with their attorney. I contacted their attorney and settled the judgement in June 2002. I received notification from the courthouse that it was settlted, as well as notification from the attorney that it was settled. I personally checked at the courthouse to verify it and it was marked as settled. However, between June 2002 and now, Bank of America bought Nationsbank. They sold my account to some credit collection agency called World, who then sold it to Leading Edge. I have never been contacted since settling it notifying me that it had been sold or that they were pursuing me for money until about two weeks ago when Leading Edge contacted me. They left several vague messages on my answering machine that just said to call them. They didnt mention who the message was for so I ignored them. Eventually they left a message saying it was extremely important that I call them, so I did.

That is when they told me they were trying to collect the judgement. I explained that I had settled it and they demanded proof. I told them I was not sending them anything since I had no proof they owned my account and if they wanted to verify it was settled they could contact the courthouse or the attorney. They told me the burden of proof was on me otherwise they would continue collections. I asked them for verification they owned my account. They said they would give me nothing because they didnt have to as the proof was on me. The only info they offered was the judgement number. They just kept saying the burden of proof was on me.

So I contacted the attorney's office that filed the judgement. The president of the firm called me back to assure me that my judgement was fine and that he would resolve the matter with Leading Edge. He said many of Nationsbank accounts that had been settled were sold incorrectly and that he had had to deal with Leading Edge many times in the past.

My question is this. Wasnt it illegal for them to sell my account since it was not deficient? And two, wasnt it illegal from them to tell me that I had to prove the debt was satisfied when its actually their job to verify it if I request it?

Thanks for your help.

Clint

[LadynRed]

Yes, if you ask for validation IN WRITING !! Asking on the phone is pointless.

I'd say that BofA was wrong in selling off paid judgment, but its not the first,nor will it be the last time crap gets scewed up in a merger/take-over.

Make them validate it in writing - sample letters are on this board. By law they have to cease collection activities until they PROVE its your debt and, in this case, unpaid - which its not.

Have you checked your credit reports ?? Leading Edge may be smearing inaccurate info on your reports and you can sue their butts for FCRA violations !

[Recovering Attorney]

Yes, see what is on your credit report first.

In teh meantime, write the lawyer demanding he take care of this and send you written proof within 30 days. cc Leading Edge and your state's Attorney General - consumer protection section. You may want to get a duplicate judgment transcript from the court to protect yourself. This is nothing underhanded, just the result of sloppy paperwork in a rash of corporate mergers. It happens. It's a pain.

[Methuss]

This is nothing underhanded, just the result of sloppy paperwork in a rash of corporate mergers. It happens. It's a pain.

Yes, but it is also negligent non-compliance as defined in the FCRA. Furnishers are required by law to have procedures in place to prevent inaccuracies. Obviously they either did not have such procedures, or the procedures were not followed. Of course, this is if there is anything on your CR about it.

[Recovering Attorney]

I don't disagree with you, Muthuss. My point, I guess, is that knowing the law helps you get things done, not just scare up lawsuits. If you can show damage becasue of their non-compliance, then maybe it's worth it. But usually the stakes aren't high enough.

In NYS, judgment satisfactions are supposed to be filed by the creditor's atty w ithin 10 days. Banks are required to file mortgage satisfactions in a similar time. Does it always happen? No. The bank never filed the Sat when I bought my house. I went to refinance, and had to track the seller's loan through two merged banks before I found someone who sent me teh sat to file. Was it worth the time and agravation to sue them for my time and aggravation? No, it was more important to me to button that up and get my refinance. Sometimes we delight in finding the Big Guys tripping over things while losing sight of our goals.

[Methuss]

True, but when dealing with big businesses it is often necessary to have leverage over the business in order to get them to even respond. Lots of big businesses rely upon the fact that most consumers don't know their rights and need a swift kick to tell them that they can't simply ignore the consumer.

I frequently use a filled out, ready to file small claims complaint as an attachment to second and third letters so they know I mean business. They may ignore the first letter, and maybe the second, but when they get the one with the attached complaint, they always become more responsive (and usually cooperative).

Of course, my blunt as a brick style doesn't work for everyone. Some people are just not comfortable taking such agressive measures.