I got a colection letter today please help need advice

[kctatum]

I got a letter from a collection agency collecting a debt that i do owe HSBC. but the company sending the letter isn’t reporting on my CR and the company they say they are collecting for isn’t HSBC, but it has the same account number. The only one reporting this is HSBC and they show it as Bal 0 and sold, collections, charge off.

They want to settle $625(which is mostly fee's) for $366 and even sent me three mail in vouchers for $122 so all I have to do is every month send in one of these vouchers and $122 and they will send me a letter that the debt is paid in full.

I guess my question is if I do pay this nothing comes off my CR because these people aren’t even reporting to the CRA. So the HSBC TL stays there for another 6 years with out me getting them to remove it. i rather pay HSBC direct and have them remove it. SO should I pay it and just have HSBC change the TL to paid collection? Does that even help your score?

Please advise. I am just starting and am way confused and don’t want to make the wrong move here. So any advice would be greatly appreciated.

Thanks,

Kevin

[willingtocope]

Sound like your debt is now in the hands of a junk debt buyer (JDB). Paying them (or the collection agency working for them) will have no effect on how HSBC is reporting. They don't own it anymore, so they can't report anything.

So...do you owe the JDB anything? They paid maybe $50 for the "$625" debt. They probably got your name alone with a couple thousand others on a list. Its not even certain that the list came from HSBC. Depending on how old this debt is, it could have changed hands a couple of times.

IMO, there are two problems with paying a JDB.

First, you have no proof that they're even collecting the right debt from the right person. JDB record keeping is not that good.

Second, just rolling over and coughing up money to these people lets them continue to run their scam on other folks.

Third, even if you do pay them...unless you're very careful...they may just turn around and sell the debt again to another JDB. (They're less interested in whether you owe money and more interested in finding suckers that will pay them.)

Me...I'd suggest you use the DV process on the CA that contacted you. See if they can prove this is really yours.

[kctatum]

Thanks for the info.

See thats one of my fears, i dont want to pay these clowns just to get a call or a letter next year saying i owe this debt.

Can these JDB report th the CRA? DO you think i could call up HSBC and see if they will remove it if i pay them? or is it to late because they already sold it?

Thanks,

Kevin

[willingtocope]

It depends on how old the debt is...if the "date of first delinquency" (DOFD) is more than 7 years ago, then if the do report, its called "reaging" which is a violation of the FDCPA.

You could try calling HSBC. They can buy it back, but, its highly unusual. Don't send them any money until you get everything in writing.

[rmuse00]

HSBC has probably already written this debt off so it's too late. Just like Willing said. Best thing to do here is to DV. You want them to validate all the information pertaining to this debt they are collecting. Here is more on the DV process.

[x-ray]

JDBs offer to settle for less when they do not have a strong case against you (missing paperwork, they have not really purchased the debt, etc).

You can try calling HSBC but only pay them if they agree in writing to remove their derogatory tradelines from you CR.

As far as this JDB, you should DV and fight them:boxing: , see what they have first before making any decisions.