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A CA acting for another CA, then a third CA--all ONE account

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Hope someone can help...thank you in advance.

OK....had a charge-off account with MBNA.

Magnus Services buys the debt.

Professional Recovery Services, acting on behalf of MAGNUS, settles $6500 debt for $4700 (balance 1800). I have written correspondence from PRS stating that this satisfies my obligation.

MAGNUS LEAVES 1800 BALANCE ON MY CREDIT REPORT, THEN SELLS DEBT TO ASSET ACCEPTANCE. (Furthermore, Magnus states that I opened an account with them in 1997. I opened my account with MBNA in 1997).

Within 30 days of contact from AA, I demand that they validate the debt. They do not. Yet they report to CA's that I'm 120 days past due, and they still send letters and call.


Seriously, is Magnus in violation for settling the debt then selling it? Are they correct to state that my "start date" is the date I started with the OC? And AA is obviously not entitled to anything, I don't know where to START with them!

Yesterday, I disputed these 2 items with the CRA's. So here I am.

Bless you all!


PS--I'm in L.A., CA. So any of you lawyers need a little business to help with your holiday shopping.... :)

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Unfortuneatly (sp?), you've tripped over the underhandedness of the CA industry. Unless your settlement with Magnus was in writing and included a phrase to the effect that this "settles the debt entirely and no further amount is owed", you're probably stuck. (I'm not sure of the exact wording, but you'll find other "settlement" letters here).

I'd suggest you DV Asset and make them prove this is your debt, and they have the right to collect it (again, you'll find example letters if you search).

What's happened is that you've shown to the CAs that you have money. They want more. Its all part of their game...

As for the start date...it should reflect the Date of Last Activity on your MBNA account, because that will be what governs the SOL for this account. Depending on where you live, you may be able to chase Asset away with that...

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Thanks, Gorilla!

A letter I wrote PRIOR TO SENDING THE CHECK contained this:

Your written acceptance, along with my payment, will satisfy all my financial and legal obligations; hence I will have no further financial obligations to Professional Recovery Services, MBNA, or any associated companies, persons, or institutions.

I will have a cashier’s check in your office within 2 business days of receiving your written acceptance; otherwise, this offer is void. I am willing to pay $X amount.

When I actually sent the check, I wrote:

Per your letter dated xx/xx/xx, I am enclosing a cashier’s check for $X amount as settlement in full on the above referenced account.

Please amend my credit report per your letter.

Think I'm covered?

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Oh, and I DID send a$$. Accept. a DV letter, asking for the following:

· Agreement with your client that grants you the authority to collect on this alleged debt

· Agreement that bears the signature of the alleged debtor wherein he agreed to pay the creditor.

· Any insurance claims been made by any creditor regarding this account

· Any judgments been obtained by any creditor regarding this account

Out of the goodness of my heart, I even made them an easy-to-fill-out form:

Questionnaire to be returned to me for Account# XXXXXXXX

Original Creditor's Name:

Name of Debtor:

Address of Debtor:

Balance of Account:

Date you acquired this debt:

This Debt was: assigned purchased

Please indicated any credit bureaus to which you have reported negative marks:

Experian ______

Equifax ______


Wanna know what I got back??????


and, AND, the account they reference is NOT that of MBNA (the OC), it is that of MAGNUS (the CA).

I DON'T quite think that counts as validation.... :?

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Finally, when PRS responded to my letter before I sent the check, they wrote:

This is to confirm that we have been authorized by our client to accept $X amount as settlement in full for the above referenced account....Once this is paid, our client will notify the credit bureau to amend the status of your report.



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O.k. First, file a formal complaint against Professional Recovery Services with the FTC and their state Attorney General for entering into a settlement agreement they were not authorized to enter into.

Second, file a formal complaint against Magnus for selling off a settled account to Asset.

Tell Asset the matter is being forwarded to the appropriate government agencies for further action.

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