Invalid contract?

[nurbloc]

My husband gave power of attorney to an ex-girlfriend before he left for Iraq on a civilian contract. The person responsible for his finances was very irresponsible and took a great deal of his money, leaving many credit obligations in her wake. After returning to the States and attempting to get things cleared up with his business, he changed the checking account. A few months later we received a mark against his credit stating he was late on his payment by 3 months. I contacted the consumer and discovered that he had a contract signed in his name, with no other information about who signed it. My husband was unaware that the contract existed, but had been making payments through automatic debit on the closed account. I contacted the company and asked if they would consider taking off the debt from the credit report if we paid the balance in full ($790.00) in good faith. They stated to send a request to that affect in writting. I did that and they immediately sent the information to a collection agency and will not take our phone calls. The new collection agency is stating that we dont have a leg to stand on and that my husband rectified the debt by making payments. They dont care who signed the contract or that even if he knew that it existed. Now our report has the original debt owing of $790 and the collection agency has reported that we owe them $1590. I asked the collection agency how they could double report like that and they said they could. Ive asked why we owe so much and how they could validate the debt without a power of attorney for the original signer or my husbands signature and they say that they can and will. I told them I will try to get this resolved in small claims court and they say the contract states that all matters would be bumped up the Municiple level and have to be heard in Illinios where the company is located. How can all of this be if my husband didnt know the contract existed and the person that may or may have not signed it didnt give him the information? How can he be legally obligated to a contract and juristiction if he didnt know? How can the collection agency report it as double and the original debter report it once? What can I do? Do I have any recourse?

[qtptute]

My husband gave power of attorney to an ex-girlfriend before he left for Iraq on a civilian contract. The person responsible for his finances was very irresponsible and took a great deal of his money, leaving many credit obligations in her wake. After returning to the States and attempting to get things cleared up with his business, he changed the checking account. A few months later we received a mark against his credit stating he was late on his payment by 3 months. I contacted the consumer and discovered that he had a contract signed in his name, with no other information about who signed it. My husband was unaware that the contract existed, but had been making payments through automatic debit on the closed account. I contacted the company and asked if they would consider taking off the debt from the credit report if we paid the balance in full ($790.00) in good faith. They stated to send a request to that affect in writting. I did that and they immediately sent the information to a collection agency and will not take our phone calls. The new collection agency is stating that we dont have a leg to stand on and that my husband rectified the debt by making payments. They dont care who signed the contract or that even if he knew that it existed. Now our report has the original debt owing of $790 and the collection agency has reported that we owe them $1590. I asked the collection agency how they could double report like that and they said they could. Ive asked why we owe so much and how they could validate the debt without a power of attorney for the original signer or my husbands signature and they say that they can and will. I told them I will try to get this resolved in small claims court and they say the contract states that all matters would be bumped up the Municiple level and have to be heard in Illinios where the company is located. How can all of this be if my husband didnt know the contract existed and the person that may or may have not signed it didnt give him the information? How can he be legally obligated to a contract and juristiction if he didnt know? How can the collection agency report it as double and the original debter report it once? What can I do? Do I have any recourse?

It looks like ID Theft. Did he sign the contract or did she sign it for him? If she signed it for him, then I would file a ID Theft Affidavit and send it to the CRAs. File a police report immediately. You can find a fillable ID Theft Affidavit on our webiste. www.krumbeinlaw.com/consumer

Do not talk to the collection agency anymore. Deal with them in writing only. Send them a letter CMRRR and keep a copy for yourself.

[nurbloc]

Thank you so much for your quick response... This contract was signed 4 years ago and payments have been made on it for 3 years... the collection agency said that constitutes rectifying the debt, the equipment was leased but my husband didnt know it... he still has the dang thing in storage... now what?