Collection for money I do not owe 4-5 years ago.

[mintra]

Hello to all you expert.

I had a PREPAID account with PrimeCo and stopped using the phone service before US Cellular took over the company. Later on they somehow messed up my account and sent a bill to me for the service I never used. So I disputed with them over the phone and they mailed me a bunch of detailed description of the bill or something like that. I didn't pay too much attention to the papers since I stated to the rep that my account is PREPAID and I owed them nothing. I thought they already took care of the matter.

Forward 4-5 years later, to my surprise, I got a letter from a CA today stating I owe them $10x.xx. The debt was purchased on 12/21/06. The original creditor was US Cellular. I'm about to send a DV letter to them but I thought they might response with the same detailed bill I received before.

I'd like to ask if I should just send them DV letter. Do I need to send them any proof at all e.g. the paper statement from PrimeCo stating my account was PREPAID? I don't know much about legal matter so if anyone has suggestion I'd really appreciate it.

Thank you.

[breathing_easier]

I would wait to see how they respond to the DV first. Don't provide any documentation to them at this point. It could be that you got snagged by one of those 'automatic renewal' clauses that some agreements have. In other words, if you don't specifically state, in writing, that you no longer want the service you're automatically renewed. Do you still have the detailed description of your alleged bill that they sent you 4-5 years ago?

[mintra]

Thank you for your quick response. Can automatic renewal applied in my situation since I only bought refill card each month and I never signed any contract with them nor I ever received any bills besides monthly statements up until I stop using the phone? ( I could only find the past due notification letter for $77.xx back in 07/03.) This is really weird.

Anyway, I will send them a DV letter tomorrow and see how it goes.

I forgot to add that this is from Portfolio Recovery Associates. It seems many on this board had a problem with them. Anyone had any luck dealing with PRA?

[direred]

Lawsuit worked.

Nothing less did.

[mintra]

Should I just pay the $100 to avoid headache now or try sending the DV first?

I just checked my credit report last night and it shows no negative. I hate to see it comes up and have to deal with CRAs on top of the CA. (It took me quite a while to gain good credit.)

It seems Portfolio are very sneaky on DV's. (Even on the letter I received, they mentioned 30 days time frame to dispute the validity and they will verify the debt or send me a judgement.)

At least I pay for the lesson for not finishing the dispute charge with US Cellular before it went to collection, don't you think?

[admin]

If it's not on your credit report - I'd just pay the collection. See if you can get them to agree not to put it on your credit report in the future. Don't admit it's yours in any case.

[mintra]

I just wrote this;

To whom it may concern:

I'm writing this letter in response to the notice you sent me on January 17, 2007 regarding the collection account number xxxxxxx. I am certain that I never owe any money to the original creditor, US Cellular, as stated on your letter nor I acknowledge liability for this debt in any manner.

However, rather than disputing the validity of this debt, I'd like to make an offer to pay the full amount of $10x.xx as stated on your notice to settle this debt in exchange with a clean record on my credit reports. In other words, I'm requesting you not to report this collection account to the major credit bureaus. Or in case the reports have been made, I would ask that you delete them from my records completely and no further re-insertion be done.

I hope that you agree with my offer and are willing to sign the enclosed agreement along with letter of approval on your company's letterhead and return them to me by postal mail so that I can send you the payment check promptly. Please make sure the letter is signed by a person with the authority to accept said offer. I would also like to request that any further communication be done in writing only and sent to the address noted on this letter by mail.

Thank you for your time and assistance in this matter.

Regards,

My name

And here's the AGEEMENT FORM

AGREEMENT TO SETTLE DEBT

Portfolio Recovery Associates, referred to as CREDITOR and My Name, referred to as DEBTOR, agree to settle the indebtedness as between them.

CREDITOR, hereby agrees to settle the indebtedness due the CREDITOR on the following terms and conditions:

The CREDITOR and the DEBTOR agree that the present debt due is $10x.xx (one hundred xx & xx/100 dollars). The parties agree that the CREDITOR shall accept the sum of $10x.xx (one hundred xx & xx/100 dollars) as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due. The payment shall be made in cash.

In addition, upon accepting of the $10x.xx, the CREDITOR will not report this account to any Credit Reporting Agencies including but not limited to Experian, Equifax and Trans Union and will delete any entries showing this account in case that the reports have been made.

This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns.

Dated: _______________

Signature: ____________

Portfolio Recovery Associates

CREDITOR

Signature: ____________

My Name

Debtor

Will this work? What do you think?

Also 2 stupid questions..

1. Do I send 2 agreement forms signed by me -one for them to keep and the other for them to send back to me?

2. Does money order considered cash?

Thank you.