New Collection Account on Credit Report

[Michigander]

My wife and I are in the mortgage process and found a big surprise on her reports. She went through a divorce in 1999 and her ex got the house and the judgement was for him to assume all leins, encumbrances and debt for the property. He filed BK in, it appears, 2002.

Some CA called Portfolio in Norfolk VA has placed a collection account on her Equifax and Transunion reports. We called them and spoke to an employee and then a manager. The manager was absolutely impossible to talk to and was demanding and demeaning to the point he said he was either going to force her to file BK or pursue leagl action to collect the debt. He stated that his company had purchased the account from Conseco.

If anyone has any advice, it would be greatly welcome. Her EX score is 743, but her EQ is 634 and her TU is 683 because of this negative information.

Thanks!!!!

[DocDon]

The debt for the property is not the same as a debt incurred by a spouse, and since her ex declared insolvency, it removes his liability from the debt, but not the debt itself - so the question is whether declaration of a BK (providing the spousal clause on debts is in there) is not considered "taking care of" the outstanding debts.

Was the account for a credit card? Was it a joint account? When was payment last made to this account?

Report the CA to our Attorney General, their Attorney General, and the FTC for being stupid enough to make such threats to you in violation of the law.

[Michigander]

The debt was for financing of a modular home. She signed off on the debt during the divorce. He was the borrower, and she was, I assume, the co-borrower.

This started in 2000, and we hired an attorney to make it correct. All 3 credit reporting agencies removed it from her reports. Now, it shows up again with this shark outfit from Virgina, named Portfolio.

I guess my concerns are:

How to remove it from her reports

How to take legal action based upon the way we were treated in our inquiry.

How to determine the SOL for Michigan, (6 years), and last payment made after divorce date. Should be very close.

How to validate the debt, the collection process, and the legal right for Portfolio to report to the big 3

Maybe determine what Portfolio paid Conseco for the supposed contract.

I have never in my life experienced the demeaning and demanding attitude of the "manager" that Portfolio put on the phone with us. My initial impression is scum bag bottom feeding sharks.

We are already mad, how do we begin to fix this?

Thank you all for your replies and advice.

[DocDon]

Ah, gotcha.

Is Portfolio claiming they owe the debt, or are they collecting on behalf of the original creditor, who should know better at this point that making her responsible for the debt is out of the question?

The reason I ask is that the OC may very well have sold the debt off to an unsuspecting JDB who now thinks they can come after the money without knowing what happened to the OC and their CA.

If the OC still retains the account, file a formal complaint with their state Attorney General. Do the same for Portfolio.

As far as being abused - people with any amount of class would never think of hiring into a CA. Think about it.....

[pford]

My wife and I are in the mortgage process and found a big surprise on her reports. She went through a divorce in 1999 and her ex got the house and the judgement was for him to assume all leins, encumbrances and debt for the property. He filed BK in, it appears, 2002.

Some CA called Portfolio in Norfolk VA has placed a collection account on her Equifax and Transunion reports. We called them and spoke to an employee and then a manager. The manager was absolutely impossible to talk to and was demanding and demeaning to the point he said he was either going to force her to file BK or pursue leagl action to collect the debt. He stated that his company had purchased the account from Conseco.

If anyone has any advice, it would be greatly welcome. Her EX score is 743, but her EQ is 634 and her TU is 683 because of this negative information.

Thanks!!!!

Portfolio Recovery Associates...That is the EXACT same thing that happened to me a few weeks ago when my husband and I went to apply for a mortgage. A collection account popped up. I believe it was from the x-husband who agreed to pay this Sears account, but my name was still on it. So, he filed bankruptcy a few years ago and I never heard anything else about it until now. So, (it was also from 1999) because there was an inquiry from a mortgage company, the CA threw this on to my credit reports and lowered my scores about 100 points.

So, I called them and spoke to an employee...then to a manager who immediately started screaming at me!!! Same story!! They are SCUM!!! Don't try to talk to them, they are not worth your time!! NO ONE CAN BE FORCED TO FILE BANKRUPTCY!! DOn't allow them to intimidate you!!! PLEASE

What state are you in??????

First, don't talk to them on the phone ever again. If they call, hang up!! PERIOD

Second, send a letter for them to verify the debt. Send it Registered, return reciept (about $10). Look on this website to get the letter. Copy it and just change the amounts to fit your needs. They have 30 days to respond. If they don't, that is their way of saying, they have NO WAY to verify the debt...

Will write more in a few minutes...........................

[pford]

I'm back....

I can honestly say, I have never been treated like this in my life. I have felt insulted, raped, guilty before proven innocent, violated...

They call me at work and threaten me. Just today one of them called me and I told him "DOn't call me at work ever again." You know what he said? "I'll talk to you tomorrow and the next day..."

If you are that close to SOL, I'd wait it out. Let them stew in their own slime. If they have purchased this debt, it only cost them about 10cents to the dollar.

Send the letter for them to verify. Make them prove it's yours within 30 days. If they can't, don't worry about it.

I know this is upsetting for you........me too. My FICO was 789 until they pulled this on me and now mine is 686.

My mortgage company said they would NOT let me have a mortgage without paying this off. I said "NO" I will NOT pay for something I don't think I owe.

I finally told my mortgage lender to take me off of the mortgage loan and just keep in my husband's name. As of today, our closing is next week and all is just fine!!

Please PM me if you need a shoulder...

[Michigander]

Filed complaints tonight with:

Michigan Attorney General

Virginia Attorney General

The FTC

Who knows, but I hope it helps.

[DocDon]

It may or may not help you directly (since they cannot "take action on your behalf directly), but it does help to build a case against morons like this who wreak havoc on the consumer as a whole. You also have them on violations of the FDCPA, which allows you to seek civil relief.

This is what these mental giants don't understand - there's a right way and a wrong way to go about things. It's not even a matter of not wanting to pay your obligations - but that's what they believe - all consumers who end up in collections are deadbeats. The ones that don't believe that are eventually fired.

Mind you, the whole industry is not like this, but the majority are, and as such, the few 'good' CA's are thrown into the same cesspool.

Given the collection industry brings in billions a year, the problems of abuses in the collection industry are shoved under the rug along with a nice stack of campaign money. You quickly see how important it is to let the powers that be know what's going on. It's also important to pay attention to what's going on in your own backyard.

We're so well trained to believe that anyone who follows politics is off-kilter, that the ACA is able to waltz right into the offices of the same elected officials we put there with their own agenda in hand.

I for one have voiced my opinion to every elected official I put in office, as well as State Attorneys General and the FTC.

Think about it....

Here endeth my rant.

[Michigander]

Thank you all for the inormation and advice. I will gladly send a DV letter in my wife's name to this outfit, but can I do this without a writen communication from them? Is the telephone conversation today enough to allow us to send a DV letter?

Again, time is of the essence, of course. Best case advice, anyone? I cannot swing the mortgage on my own income. The mortgage company is willing to work with us on this, but we need resolution. Hire an attorney? Open to all options at this point.

Of course she is quite anxious over this, as she should be. She has done nothing wrong and her reports are great except for this new bully.

Thanks!

[pford]

Thank you all for the inormation and advice. I will gladly send a DV letter in my wife's name to this outfit, but can I do this without a writen communication from them? Is the telephone conversation today enough to allow us to send a DV letter?

Again, time is of the essence, of course. Best case advice, anyone? I cannot swing the mortgage on my own income. The mortgage company is willing to work with us on this, but we need resolution. Hire an attorney? Open to all options at this point.

Of course she is quite anxious over this, as she should be. She has done nothing wrong and her reports are great except for this new bully.

Thanks!

You are guilty before proven innocent with these scum. I have never done anything wrong either.

I sent them the DV letter and had never received anything from them before. Someone on this site suggested sending the letter because it popped up on my credit report and I had no idea what it was.

Put this question in the "Mortgage" section. You may get some more great advice there also.

Hope you get this resolved quickly. Would you do me a favor? Write about it here in this forum when it gets resolved. It will help all of us.

[Michigander]

Please keep in mind that this mental midget at Portfolio,( bottom feeding scum sucker shark), actually made these statements. I was remiss in not recording them when the technology is available in my office.

Do I send a DV now? Without formal contact from them? I made the formal telephone contact today. Is this a ploy they use often? Make us make a legal mistake?

Should I wait a few days and call him back and record the tirade? Seems to me like a nice thing to have for court when I file suit. Is it admissable?

I am a educated person, however I am not an attorney.

Sorry for ranting, but I am really pissed about this BS.

Thanks

[DocDon]

Your phone call was the formal contact. If they don't send you the mini-miranda in 5 days, you can chalk up another violation.

Do not DV them just yet - let these idiots hang themselves.

[Michigander]

DocDon and Pford, thank you!

I wish to move on this, but move wisely. To Doc Don, how long should I wait before sending a DV? And thanks for the advice on the phone call starting the cycle.

Man, I hate this BS, but here I am. I want to fix it and stuff a few folks and companies just for the stress and time it takes. I absolutely want to file on Portfolio, and I will gladly donate monies collected to support this excellent web site.

[divemedic]

Heed Doc's advice. However, you have to remember that unless the OC agreed IN WRITING to let you out of a debt, the decision on who pays for what bill arising out of a divorceis not binding on the creditor. The creditor was not a party to the proceedings and does not have to take you off the loan.

[pford]

Hello Michigander,

Here is my chain of events:

I had sent them a DV letter late last month (30 days would have been around March 24), got an abusive phone call from them at work this past Monday, and last night received a letter from them stating:

"Portfolio Recovery Associates has concluded its investigation of your dispute and is purging your account from its files. If PRA is reporting the account on your credit reports, PRA will request that the three major reporting agencies delete PRA's trade line for this account from your credit reports.

Should you have any questions............"

I just wanted to let you know because if you send them the DV letter, and they can’t validate it, that’s it…end of story.

[Michigander]

Pford

Great for you! I have not sent a DV letter yet for my wife because because we have yet to recieve anything in writing from them. Initial contact was by us for the CR problem. They asked her about her address in the beginning and it was obvious to us that they were 6 years behind. We never gave a current address. DocDon said to wait and let these people hang themselves. I am heeding his advice, but we need to move fairly quickly because of the mortgage qualification issue. We are approved now at a higher rate because her EX score is 743. But the EQ is now 633 today and the TU is 684. We need 700s on all for a better rate.

My question, in keeping with proper procedure is, do we send a DV now?

Please jump in here DocDon.

Thanks

[pford]

Doc,

Isn't it 5 days you should wait to send the DV letter for some type of document from a CA after they call and harrass you?

May I also ask, why did you tell Michigander to wait?

P

[DocDon]

The CA is supposed to send you written notification of your rights under the FDCPA within 5 days of intial contact (unless your rights are given at the time of the call). Given the abuse that was dished out, I doubt the CA had time to notify Michigander of their rights.

DV yes, but let these idiots chalk up another violation first.

[Michigander]

Hi Pford

Did you use the DV letter posted on this forum for a template?

We want them off our back now, and are very willing to burn them in a month or so. Right now I need to know how to procede with a DV, mail certifed, return reciept, but also can I fax the dispute to the big 3? A copy of the DV to the big 3?

Thanks! This forum is outstanding.

[pford]

Yes, here is the letter I used and just changed the names, addresses etc. I actually changed the first paragraph to read "This letter is being sent to you to request a validation and to dispute your claim...."

==========================================

Your Name

123 Your Street Address

Your City, ST 01234

ABC Collections

123 NotOnYourLife Ave

Chicago, IL

Date:

Re: Acct # XXXX-XXXX-XXXX-XXXX

To Whom It May Concern:

This letter is being sent to you in response to a notice sent to me on September 30, 2002. Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 ( that your claim is disputed and validation is requested.

This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.

Please provide me with the following:

What the money you say I owe is for;

Explain and show me how you calculated what you say I owe;

Provide me with copies of any papers that show I agreed to pay what you say I owe;

Provide a verification or copy of any judgment if applicable;

Identify the original creditor;

Prove the Statute of Limitations has not expired on this account

Show me that you are licensed to collect in my state

Provide me with your license numbers and Registered Agent

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:

Violation of the Fair Credit Reporting Act

Violation of the Fair Debt Collection Practices Act

Defamation of Character

If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist.

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.

If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.

Best Regards,

Your Signature

Your Name

=======================================

Send REGISTERED, RETURN RECEIPT (about $10). That way you can track it every step it takes (use usps.com). When it is signed for, the clock starts ticking for the 30 days.

but also can I fax the dispute to the big 3? A copy of the DV to the big 3?

That I don't know. Hopefully Doc will answer that.

[Michigander]

DocDon

Do we send the DV soon? Should we use a PO Box address due to the fact that portfolio has no real clue to her present address?, (previous posts, her address in on all 3 CRs) Should we send it with our home address and potentially await a summons in the future?

Thanks and you rock.

[DocDon]

If they are making a habit of violating the FDCPA, you're not going to send them a DV.

You're going to send them a letter indicating their violations, that the matter has been forwarded to the appropriate government agencies, and that they are to immediately cease all collection activity and remove any negative information reported to the major credit repositories.

Why would you comply with a company who stomped all over your rights? You're still worried about "what they can do to you", when they should be concerned about their blatant disregard for the law.

You've turned the tables on them - you have the upper hand given their violations. How about they be worried about what you can do them?

[Michigander]

Thanks for the advice. I have the sample letter that pford used for DV. Is there a template for the letter outlining violations and demanding the negative information be removed?

We wish to clear this up as soon as possible and I certainly do not want to make a mistake or miss a required step that will give portfolio the upper hand.

In their rude telephone conversation with us, the stated that they have been sending written collections letters to an address that my wife has not lived at since 1999 and "they were not returned". If they report to the big 3, I find it hard to believe they do not have her current address, which is listed on all 3 CRs.

Our mortgage broker suggested sending a dispute to TU and EQ with a copy of her divorce decree, etc. Is this a good idea?

Thanks!

[pford]

...Is there a template for the letter outlining violations and demanding the negative information be removed?...

...

In their rude telephone conversation with us, the stated that they have been sending written collections letters to an address that my wife has not lived at since 1999 and "they were not returned". If they report to the big 3, I find it hard to believe they do not have her current address, which is listed on all 3 CRs.

Our mortgage broker suggested sending a dispute to TU and EQ with a copy of her divorce decree, etc. Is this a good idea?

Thanks!

Good question...I'd like to know of that letter also.

I wouldn't send the divorce decree, but I would dispute to TU and EQ.

[Michigander]

It has now been 5 days and no USPS contact from Portfolio Recovery Associates, LLC. I have prepared a DV using the template on this forum and I have also obtained the FAX number for Portfolio by web search.

Questions:

1. Should I send it.

2. Should I send it now.

3. Should I send it CMRRR and FAX it.

If this escalates, I believe the SOL for my state is 6 yrs. I have no idea when last payment was made, but it should have been arround July to Oct 1998.

Possibly another course of action is to send a strong letter citing violations of the FDCPA. Or maybe DV first and then threaten.

Any ideas or advice?

Thanks!