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Letter From CollectCorp For American Express


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Amex Blue has either sold or given CollectCorp authorization to collect a CC debt of about $13K. Just got the letter yesterday. They actually called the house the same day asking for my wife since it is her card. Anyway, we are in a financial hole and can't afford to pay the full amount. My wife asked the CA about settling and the CA rep on the phone said they don't do settlements for less than the full amount. I thought that was a bunch of crap. I plan to send a form DV letter to them within the 30 days, but will that give them more fuel to sue my wife once they validate the debt?

We certainly can't come up with $13K now or even in the far future. I wonder how long she can continue to ask for a reduced settlement (in writing) before they start the legal process.

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Amex Blue has either sold or given CollectCorp authorization to collect a CC debt of about $13K. Just got the letter yesterday. They actually called the house the same day asking for my wife since it is her card. Anyway, we are in a financial hole and can't afford to pay the full amount. My wife asked the CA about settling and the CA rep on the phone said they don't do settlements for less than the full amount. I thought that was a bunch of crap. I plan to send a form DV letter to them within the 30 days, but will that give them more fuel to sue my wife once they validate the debt?

We certainly can't come up with $13K now or even in the far future. I wonder how long she can continue to ask for a reduced settlement (in writing) before they start the legal process.

Amex normally does not sell their debts, only assign. DV the CA and you will likely receive validation straight from AMEX. Best bet would be to work with the OC when you are financially able.

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Send them a DV letter in a timely manner. They'll either validate or not. I had a citibank cc that went to a ca.I sent them a DV letter which they never validated.They ended up giving the account to another ca who I have to sent another DV letter to. That shows the OC still owned the account *.I'm guessing the OC does this a number of times and then either sues you or sells it to a JDB who tries themsellves to collect and then eventually tries to sue you.

* Or the CA really does now own the account and then sold it to another CA.Who knows.:roll:

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Amex normally does not sell their debts, only assign. DV the CA and you will likely receive validation straight from AMEX. Best bet would be to work with the OC when you are financially able.

Then why couldn't the CA produce validation from the OC in my case ?

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Then why couldn't the CA produce validation from the OC in my case ?

YMMV. Perosnally I've never had any dealings with Citi so I can't speak to that. Perhaps your account was sold to a JDB and not assigned to a CA. Personal experience with both mine and DW's AMEX. They still own it although they are not reporting they still do AR's monthly on both accounts that were charged off in early 04.

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Amex Blue has either sold or given CollectCorp authorization to collect a CC debt of about $13K. Just got the letter yesterday. They actually called the house the same day asking for my wife since it is her card. Anyway, we are in a financial hole and can't afford to pay the full amount. My wife asked the CA about settling and the CA rep on the phone said they don't do settlements for less than the full amount. I thought that was a bunch of crap. I plan to send a form DV letter to them within the 30 days, but will that give them more fuel to sue my wife once they validate the debt?

We certainly can't come up with $13K now or even in the far future. I wonder how long she can continue to ask for a reduced settlement (in writing) before they start the legal process.

Well I currently have CollectCorp on my back for an account for 5 grand. They are relentless and break the rules.

To the people who responded, how do you know whether the OC still has the debt or the JDB owns the debt??

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JDBs always own a debt. CA's never do.

If you're asking how to tell which particular species of bottomfeeder you're dealing with, check your CR. If the debt's been sold, the OC's TL will have a zero balance and be labeled as "sold/transfered to another lender" or something similar.

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Don't ask for a settlement. If your credit reports are a mess you will receive a settlement offer by the time the account is with the second or third collection agency. A year and a half after first delinquency and three collection agencies later I have received a 50% settlement letter for my Amex Blue. This is after DVing all collection agencies that contacted me within the 30 day window. The bigger the financial mess you appear to be in databases the more likely that you will be offered a settlement--at least that's my experience.

If this is a recently delinquent debt, Collectcorp does not own the account. I dealt with Collectcorp within the first 6 months of my Amex Blue delinquency. I DVed and they disappeared. Well, they did continue to try to collect after receiving the DV, but when I sent a letter pointing out this violation they disappeared.

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Don't ask for a settlement. If your credit reports are a mess you will receive a settlement offer by the time the account is with the second or third collection agency. A year and a half after first delinquency and three collection agencies later I have received a 50% settlement letter for my Amex Blue. This is after DVing all collection agencies that contacted me within the 30 day window. The bigger the financial mess you appear to be in databases the more likely that you will be offered a settlement--at least that's my experience.

If this is a recently delinquent debt, Collectcorp does not own the account. I dealt with Collectcorp within the first 6 months of my Amex Blue delinquency. I DVed and they disappeared. Well, they did continue to try to collect after receiving the DV, but when I sent a letter pointing out this violation they disappeared.

So you sent a DV letter to CollectCorp and they continued to try to collect. So after they disappeared after the second letter, what has happened with the original Amex debt?

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Nothing has happened to it.

Some CAs will respond to a validation request and provide at least some information (rarely, however, do they supply all that is requested). However, most CAs won't bother to respond because they either don't have the information and/or they simply don't want to bother because they figure the consumer isn't going to pay anyway...since collecting is very much a numbers game (get some money and move onto the next account), they don't like to wast time on unproductive work.

In any event, a CA not validating has no impact on the actual debt (whether it's legitimate and/or collectable)...eventually, the debt will either be sold to a JDB and/or re-assigned to a different CA and the process starts over again.

Except for handfull of states, debts never "go away" unless they are paid, settled and/or discharged by bankruptcy.

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I talked to CollectCorp today and they do not in fact own the debt, they are just the mediator of the debt, in their words. The rep actually suggested that I talk to a family member with a credit card and transfer the full amount to their credit card. Their other option was to get a loan through prosper dot com.

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Send them a DV letter.

I am a little confused about sending them a DV letter. I have read in another post that sending a DV letter is a red flag that tells/suggests to them that you don't plan on paying the debt and that the OC should just start the legal proces and get a judgement.

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I am a little confused about sending them a DV letter. I have read in another post that sending a DV letter is a red flag that tells/suggests to them that you don't plan on paying the debt and that the OC should just start the legal proces and get a judgement.

In my opinion sending a DV letter is not a red flag.I had one CA send me a dunning letter.I sent them a DV letter. They never validated.The account is now with a different CA and THEIR DV letter went out today.:mrgreen::)

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I am a little confused about sending them a DV letter. I have read in another post that sending a DV letter is a red flag that tells/suggests to them that you don't plan on paying the debt and that the OC should just start the legal proces and get a judgement.

It is true that many people use the DV process as a way to try and avoid paying their legitimate debts – CAs know this and so, sometimes, they will just not bother to respond for that reason.

However, most CAs don’t respond either because they don’t have the data to substantiate their assertions or because they are looking for the quick/easy money; they don’t want to spend time responding to validation requests even if they’ve got the data to do so.

Sometimes the debt owner (keep in mind that only the person that owns the debt has standing to actually pull the trigger and sue you) will decide to sue you but in all likelihood, if they are going to sue you they are going to sue you.

Despite the fact that some people misuse the DV process, it is still the ONLY way a consumer can protect his/her rights…even if you are 100% certain the debt is your debt and that you owe something; without properly vetting the CA, you have ZERO assurance that this CA has the legal right to collect the debt or is legally operating within your state or that the amount being requested for payment is correct.

Now, if you want to send money to some company you’ve never heard of with no assurance at all that it will even be applied to the debt you think you owe you have the right to do that – personally, I think that would be an extremely foolish thing to do.

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So this is one plan of attack.

Send DV. If they properly validate, try to settle?

or

Send DV. If they don't properly validate. Wait for the next CA. Send DV to new CA. And you keep this up for how long?

I really would like to settle and move past my financial fubars. I don't have the full amount, but I do have atleast 40% of the full amount. I guess I am not sure I want to gamble that AMEX will go to another CA and another CA rather than just getting a judgement in court. We seem to be at a deadlock between my 40% and their 75%.

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If they haven’t agreed to settle the account in full for the amount you have to pay (and that MUST be in writing to be of any good to you) then why are we discussing whether to validate, etc.? What AMEX/their CA demands in terms of money is immaterial if you don’t have the money to pay it!

I suggest you properly vet this CA through the debt validation process and if, when appropriate, you’ve worked out a settlement you can afford, and have it in writing, then and only then pay – if you don’t want to do that it’s certainly your call to make.

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It is true that many people use the DV process as a way to try and avoid paying their legitimate debts – CAs know this and so, sometimes, they will just not bother to respond for that reason.

I really don't think a debt that is accrued at a default rate of 30% or more is " legitimate ".At least not "legitimate " to me.:mrgreen:

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I really don't think a debt that is accrued at a default rate of 30% or more is " legitimate ".At least not "legitimate " to me.:mrgreen:

Perhaps not but it doesn't really matter what is "legitmiate" to the consumer - what matters is whether the contract/loan agreement/card agreement they willingly entered into allows for the "30% or more".

If a person doesn't like the destination; why do they sign up for the trip???

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Please don't think of using CollectCorp's suggestions ! They'll rip you off.Send them a DV letter. The more CA's your debt goes to the better the chances it will have a lousy custody history.
This is an AMEX card with a high balance. It's not going away anytime soon.
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I really would like to settle and move past my financial fubars. I don't have the full amount, but I do have atleast 40% of the full amount. I guess I am not sure I want to gamble that AMEX will go to another CA and another CA rather than just getting a judgement in court. We seem to be at a deadlock between my 40% and their 75%.

You will likely owe taxes on the forgiven amount. That's a large chunk of money.

Also, and I don't know if it matters to you, but if you don't pay in full, you won't have an AMEX card ever again.

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