I need Help, Bogus Bank collection letter ...

[MikeM]

I came across this forum via Google search.

I received a letter from a company named NCO, it states I "owed" a bank $700, the letter included an account number, so I called the bank to inquire about it and they informed me, there is no such account number ever issued.

I don't owe anyone anything. My credit score is excellent. No car debts pay cash for my vehicles, no credit card debts though I have open lines of credit with Amex, wells, etc, only a mortgage that is half paid off.

This is my first time I have received a letter to collect for a debt that I absolutely know nothing about.

What steps should I take to get rid of this bogus claim, do I have to file with the FTC or Department of Justice for this issue?

I checked my credit last week and they made an "inquiry" in my credit report with only a name and address, can they even do that for bogus claims?

Thank you

[swirlgirl]

Did you ever have an account at the bank listed in the letter? Maybe the account number listed is the CAs internal account number.

If you've never had an account at the bank, then I would simply write a letter to the CA telling them that the debt is not yours, that you never had an account at that bank and that they have the wrong person.

Keep an eye on your credit report and also request your report from Chex Systems (https://www.consumerdebit.com/consumerinfo/us/en/index.htm).

[MikeM]

Did you ever have an account at the bank listed in the letter? Maybe the account number listed is the CAs internal account number.

If you've never had an account at the bank, then I would simply write a letter to the CA telling them that the debt is not yours, that you never had an account at that bank and that they have the wrong person.

Keep an eye on your credit report and also request your report from Chex Systems (https://www.consumerdebit.com/consumerinfo/us/en/index.htm).

Hi -- I have no account at that bank but the bank name was indicated in the letter along with the account number and another account number which was mentioned as "NCO" account number, I gave the bank the original account number and they verified, they never issued it to anybody.

I obtained a credit report and my score is excellent though there was a single inquiry by that no honor, NCO company inquiring about my credit with only a name and address, can they even do these things? I mean, can I form a company with the sole purpose of "spying" on other peoples credit report under the guise of "collections"? is this even legal for them to just obtain my report with minimal requirements? isn't this a serious security breach when they'll eventually use it for other unlawful purposes?

I'll check with Chexsystems, although I have a checking account but I have standing orders from my bank, not to give me a checkbook, I told them, even if they pay me a $1million bucks, I wouldn't write a check, they got the point.

Thank you for your reply.

[swirlgirl]

If the inquiry bothers you that much, you can ask NCO to delete. They may or may not comply. Also do a search for permissible purpose. Basically, the CA believed that you were the correct person and they made an inquiry.

Not saying it's right, but it's up to you if you have the time and energy to fight this.

[MikeM]

If the inquiry bothers you that much, you can ask NCO to delete. They may or may not comply. Also do a search for permissible purpose. Basically, the CA believed that you were the correct person and they made an inquiry.

Not saying it's right, but it's up to you if you have the time and energy to fight this.

Well it does, I have a .mil clearance and I don't want to possibly lose my clearance over a bogus debt claim and unauthorized access to my credit file.

Although my .mil clearance allows me to explain the situation and I'm sure they'll understand but the fact that its bogus and they can request a credit report for no reason which is conveniently called, "permissible purpose" there is something wrong with the system and the credit reporting agencies should request for supporting documents prior to releasing credit files.

Can I contact the 3 credit reporting agencies and dispute the validity of the "inquiry"? would that affect my credit score eventhough it's only an inquiry?

Thank you.

[swirlgirl]

Yes, you can request for the CRAs to remove the inquiry. But I can tell you they probably will not. Your best bet is to contact NCO. Since you're saying that the whole matter is a case of mistaken identity, you can use that as leverage to get them to remove it.

The inquiry will only have a slight, temporary affect on your credit score. Maybe a 1 or 2 point decrease that will naturally correct itself with a few months of normal, on time payments and general positive credit behavior.

There's also something called bumpage. Do a search. But that's a lot of hassle for 1 inquiry. When you search, you'll come across a lot of suggestions for getting rid of inquiries.

[MikeM]

Yes, you can request for the CRAs to remove the inquiry. But I can tell you they probably will not. Your best bet is to contact NCO. Since you're saying that the whole matter is a case of mistaken identity, you can use that as leverage to get them to remove it.

The inquiry will only have a slight, temporary affect on your credit score. Maybe a 1 or 2 point decrease that will naturally correct itself with a few months of normal, on time payments and general positive credit behavior.

There's also something called bumpage. Do a search. But that's a lot of hassle for 1 inquiry. When you search, you'll come across a lot of suggestions for getting rid of inquiries.

Can you please tell me why, they won't remove the inquiry?

If I contact, NCO it'd be my word against theirs? what if they said, I called to pay for the debt which isn't mine what is my defense against that?

I prefer to send them a letter via the USPS informing them of the bogus debt claim. I'll keep records of all correspondence and proof of mailing, would it be a better alternative to calling them? I don't want to call them b/c from what I can gather these types of people are crafty SOB's with no honor and I don't expect any of it from these low lifes.

I'm not generally "worried" about my credit standing with the banks, reason being, I don't use any of my credit lines but I'm more worried about my .mil clearance and what my colleagues would say if they'll find out, I have an inquiry from an NCO eventhough its a bogus debt claim but still the fact that its in there bothers me.

Kind of like, you're accused of possible rape, possible murder suspect, etc, you know what I'm trying to convey in this post?

Thank you for your reply.

[swirlgirl]

I'm just speaking from personal experience. You ask a CRA to remove an inquiry because you believe it's invalid. The CRAs asks NCO is the inquiry valid. NCO says yes. Inquiry stays.

The issue of true permissible purpose rests with NCO and why they believe it's valid. Since you obviously can prove that you are not the right person they are looking for, technically, they don't have permissable purpose. That's your advantage.

You've contacted the bank already. Have them send you a short letter explaining that they don't know that account number. With written proof from the bank, NCO will most likely remove the inquiry.

If I contact, NCO it'd be my word against theirs? what if they said, I called to pay for the debt which isn't mine what is my defense against that?

Huh? By all means, contact them via letters so you'll have a paper trail. Send them a copy of the letter from the bank.

In general, you should always have something in writing to support your claims. Otherwise it is your word against theirs.

[tonitunes]

What I would do is send a certified letter to NCO and explain to them that you have contacted the bank and this is indeed NOT your debt. Explain to them that they have the wrong person, simple case of mistaken identity. And then at first I would politely ask them to remove the inquiry because they didn't have permissible purpose due to the debt not belonging to you. Explain to them that this is important to you and you need it removed asap. Keep a copy of this letter that you send.

See what happens after that. You might get lucky and they just delete it. If not, you can try the hard nose approach and get a copy of something from the bank showing this is not your debt and threaten them that they didn't have permissible purpose. It all depends on how far you want to take it.

[OMGWhatHaveIdone]

Don't forget to send all written correspondence via Certified Mail Return Receipt Requested (CMRRR in CIC land).

I would not talk to them on the phone, personally, because I've dealt with NCO before and they are rude. The debt isn't yours. Get the proof from the bank - the short letter SG was referring to. Copy it and send it to NCO with your letter:

Dear NCO,

I recently received a letter from you stating that I owe money on a debt which you are collecting on. The account number is xxxx, with Bank XYZ. I contacted the bank and received a letter stating that they do not know of any such account. I have never held any accounts with Bank XYZ. Clearly this is a mistaken identity.

Please remove the inquiry off of my CR and take me out of your database for this debt. I am attaching a copy of the letter sent to my by the bank as proof that I do not owe this debt.

Sincerely,

MikeM.

This should be all you need to get your point across.

[MikeM]

Swirlgirl, Tonitunes, OMGWhatHaveIdone,

Thank you very much to all three of you for providing a guidance regarding my situation.

I'll follow thru with the advice given by this wonderful forum, bookmarking this website as we speak.

I am re-reading your replies and appreciate your assistance.

Have a good weekend.

Mike

[OMGWhatHaveIdone]

Swirlgirl, Tonitunes, OMGWhatHaveIdone,

Thank you very much to all three of you for providing a guidance regarding my situation.

I'll follow thru with the advice given by this wonderful forum, bookmarking this website as we speak.

I am re-reading your replies and appreciate your assistance.

Have a good weekend.

Mike

Mike,

You're very welcome. Keep reading here. There's a lot of information to digest. You are on the right path to getting your credit where it needs to be.

Remember, you are not alone. Most (if not all) of us here are or have been where you are. It's not a quick process, but you can get things accomplished. Just be persistent yet patient. I have a good feeling that you will successfully be able to get this cleared up.

Good luck to you!

[Flyingifr]

Mike -

If the debt truly is not yours and you never had an account with that bank, or any bank that that bank ever merged with, then I would simply file a suit against the CA for the pull. The "Collections" exception, IMHO, only applies to a vaolid debt. For a court to rule any other way would be to provide a blanket allowance to any creditor, CA or JDB to pull anyone's credit whenever they want to simply by asserting "we thought that person had a delinquent account with us" and would gut the Permissible Purpose section of FCRA. The legal premise is "you peek, you pay".