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Fire your debt collector? And other questons...


chibuya
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This is a great site with so much information to wade through.. and I'm already overwhelmed with conflicting information on other sites..so I thought I would post my questions here.

1) I have read on other sites it is best to send a cease and disist letter to "fire" a collector and deal with the OC instead. Why is this beneficial when it is more likely to cut a deal with a collecter pennies on the dollar?

2) Regarding my credit report. I have an item past due to Best Buy. On my credit report it reads acct status: closed. Paymentsstatus: No status. Comments: Account in dispute-reported by subscriber. (I never disputed this) Payment history is blank. No balance is listed

From what I can gather this account was sold to Arrow Finnacial Service. My Experian is reflecting this as a collection closed and assigned to a collection agency. The payment history for this shows CO Apr 02 then ND's until June 03 where it say CO again.

I just recently received a call from another collection agency stating the work with Arrow Financial and they are trying to collect.

Shoudl I send a cease letter and work with the OC (Best Buy)? And what about the my credit report with really no info from Best Buy?

Thanks

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Others will chime in, but let me take a crack at your questions...

1. "Fire" the collector doesn't always work and we'll talk about in a minute, but, if you have the money, its best to deal with the OC because they have the power to remove all detrimental entries from you CR's. If you can have the OC report "paid as agreed" with no lates, that's great. But like I said, this isn't always easy.

2. Because...sometimes the OC has sold the debt or "transferred to another lender". In other words, the Collection Agency now owns it. Its not impossible...but it is hard...to get the CA to hand it back to the OC so the OC can do what I said above. So...while you may settle with the CA and get there derogs removed from you reports, the OC will still be there.

And...in general...a "Paid Collection" on your report is almost as bad a an "Open Collection".

And a DV or C&D to the Original Creditor carries no LEGAL wait. The FDCPA only applies to CAs. Sometimes, the OC will validate...but legally they don't have to.

So...bottom line...it sounds like Arrow has bought the debt from Best Buy (like you said, for pennies on the dollar) and has hired someone to try to collect it from you. Chances are this "Other" collector is really a subsidiary of Arrow...maybe even a law firm...but thats where it stand right now.

And...welcome to CIC...we'll help if we can...

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Thank you for your response. I'm in the process of typing up a validation letter.

If Arrow is unable to procure docs from Best Buy, such as credit app, statements showing ending balance due? What will my next step be.

Unfortunatly, I do owe the money... but trying to buy sometime.

Thanks again

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Okay...here it is again. Willing's Sermon #1. Just because you DID owe Best Buy, does not mean you definitely owe this collection agency anything. If the debt is charged off, then Best Buy has already been compensated by the US Taxpayer for their "loss", and the collection agency paid them pennies on the dollar for the right to continue to hassle you. You don't owe the collection agency anything. That doesn't mean they won't try to collect...it only means that you need to make them prove they have the right person, the right amount, and the right to collect money in your state. Then...if they can prove all that...you can negotiate with them for a much smaller settlement...if you do everything in writing and make sure all references are deleted from your credit report.

If Best Buy hasn't charged off as yet, it will be, unless you deal with them directly. To do that, you need to get the CA out of the way first. That's what debt validation will do. And, if you can't afford to pay Best Buy, then you're right...the DV process will buy you some time, and you'll probably get to use it on several CAs before you're done.

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Thank you Willing...

I needed that little boost of encouragement this morning. The "nice" collection lady has left a message everyday on my voicemail here at work. Now I have all my calls going directly to voicemail until I get my proof of receipt back to be sure they received my letter to stop calling me at work.

As for Best Buy charging this off.

Experian reads:Closed, acct in dispute reported by subscriber. With no payment information.

Equifax reads:Closed At least 120 days or more than four payments past due, customer disputes this information. ACCOUNT TRANSFERRED OR SOLD. Last payment date reads Nov '01.

Trans Union has it listed as OPEN, paid paying as agreed. With the last payment date of Jan '01.

The last four digits reflected on the credit reports are all different. Not sure why. And I never sent a dispute letter to Best Buy.

Does the above information mean that is was charged off? Will the Trans Union information hurt me in anyway? Should I leave it as is?

So if this information is correct that my last payment was in Nov of '01 and California SOL is 4 years. I have one year to Nov 05 for this to be past the SOL?

What I have gathered from my research. Arrow has to respond to my DV by providing statements from Best Buy showing the final amount due, plus the credit application?

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Okay, then, the fact that EQ is reporting is a TRANSFERED does indeed imply that its been charged off...I would expect the others to show the same thing before long. Therefore...its the CA that "owns" the debt, and you don't owe them squat...

With TU reporting last payment date at Jan 01, then maybe the SOL is up earlier than you thought...

And, it seems to me that California has its own version of the FDCPA which might be a little more in your favor...(I'm not certain of that, but you might check the thread at http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=12017 for more info...)

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Thanks, I have one more question. Then I'm off to Credit Repairs and Credit Bureaus for more questions.

I had pulled my credit reports a few days ago, because I was approved for a car loan. I wanted to clean up my report in preparation for refinancing at a lower rate next year. That's when I noticed Arrow Financial list as a separate collection from Best Buy. I didn't have any idea what Arrow was for until I received their first letter a few days ago. Funny I hadn't heard anything from Arrow until I was financed for a car. Anyhow, Best Buy shows and open date of 9/1/00 and looks to be first pastdue payment December of 01. Arrow shows their listing as opened October 1, 02. Does this reflect as a separate listing? Does it change my potential SOL date. Do I have any grounds to point this out to Arrow.. or have they posted this correctly?

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I'm not absolutely sure of the details, so I think you need to do some searching...but, I beleive Arrow can report their "open" date as the date they purchased the debt...but, that does not change the DOLA as far as the SOL is concerned.

And...I beleive that many of the debt buyers pull your reports automatically every month or so to see if there has been some new borrowing activity...something that would indicate you've got money. You should be able to see that under the "Inquiries" sections of your CRAs.

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Also.. if you tell them on the phone not to call you at your place of employment.. they have to stop calling you.

So dont think the letter is the only way to stop their harrassment.

Simply telling them to stop is ok too. at least at your place of employment.

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