Talked to Collection Company Before Reading - How to handle?

[sundevilatx]

Hi,

 

I'm new here, and have gotten myself and my wife into a bit of a pickle...

 

We had a line of credit with HSBC (wife was primary account holder, I'm secondary name on account).  We got into a bit of a financial jam with a rental home we own, that we needed to pay some hefty repair costs on.  Somewhere along the line, this line of credit got picked up by Capital One.  To make matters worse, our dog was diagnosed with cancer at the beginning of the year, and we've been dealing with his issues (amputation, chemo, etc.).

 

With all the stuff going on original line of credit with HSBC left our radar, and we were throwing out the Capital One contact letters (thinking they were just junk).

 

The other day, we received a letter from United Recovery Systems saying that this bill (approximately $1500 and change) has been referred to them and they were trying to collect the debt.

 

The line of credit is under my wife's name as well as my own, but I always paid the bills.  I "posed" as my wife (gave her name as the letter was addressed to her, and SSN, etc) and I called the number on the letter, and explained the situation we were in to the guy on the other line.  Not knowing any better, he got the information I probably should have never given to him (my bank account, both of our monthly incomes, how much we paid on rent and the mortgage on the house we rent out, etc).  With that information, he "calculated" three scenarios:

 

1)  Pay $986 by the end of the month (Friday) to "settle" the debt.

 

2)  Make 3 payments of $500(ish) over the next three months to have the debt paid in full.

 

3)  A Hardship option where half of the money is paid now, and the remaining balance is paid off @ $100(ish) a month until paid in full.

 

I asked him if I had to make a decision today (I wanted to discuss with my wife).  Again, not knowing any better, he said that in order to keep a "good faith" with Capital One, I needed to show make a decision on one option, so that he could report that we are making an attempt to pay the debt.  He stated I had the option to change my mind before the end of the week when the money would be withdrawn from my account.

 

When talking with the gentleman, I asked if his company has purchased the debt from Capital One.  He assured me that that was NOT the case, and that his company was hired merely to help collect the cash on Capital One's behalf.  According to him, Capital One still owned the debt.  I have not yet verified this with Capital One.  When I called their customer service number, I was told (in a recording) that I needed to contact the number that eventually sent me to United Recovery.

 

Again, because of the apparent timeliness of the decision, I told the gentleman that I would choose option 1 (pay $986 to "settle").  I asked him how that would reflect on my credit report and he told me that he could not guarantee the specific wording on the credit report, as that was handled by Capital One.  But he imagined that it would be considered "settled".

 

I gave him my routing number and account number for my checking account.  When he asked if he should use a random check number, I told him no, and gave him the check number for the next check in my checkbook.

 

He said, I can call back before the end of the week, and change my mind on which option to choose.  He recorded the portion of the call where I gave him the routing number and account number and where I agreed to option #1 (for his protection, as well as my own).

 

One thing to keep in mind... My name (and only my name) is on the checking account.  I gave my wife's name at the beginning of the phone call and said that her name was authorized to write checks (which it is not).  I did this because my wife doesn't have time during the day to make these sorts of calls.  I've done it before, and all they really care to hear is verification of a name and a social security number, and whatever other sorts of verification they do...

 

With all that being said, and knowing I probably screwed up... What should be my next course of action to have the most minimal impact on our credit rating?  We've already received a letter from our homeowner's insurance that they will not be able to renew our policy because they got word that we had an account go into collections (apparently, our agent was shopping for rates?  I'm not sure whey they were notified, or why they did another credit check).

 

How bad is it to have an account show up as "closed/settled" vs. "closed/paid in full"?  We have the money right now for the $986 payment.  But, I'm not too comfortable with the account being shown as "settled".  I would actually rather make three payments of $500(ish) and have the account shown as "paid in full".

 

However, if the end result is the same, obviously we'd rather only pay the $986 and save a few hundred dollars.

 

Should I call and say that I'd like to change to option 2.  However, I will only make the final two payments when they send a letter showing that they will close the account as paid in full, AND take any history of collections off the account?  Does United Recover even have the power to do this?  I guess I don't know how this will show up on our credit history.  Will it show up under Capital One ("in collections") and under United Recovery ("$1500ish owed")?

 

I'm willing to pay off the full amount of the debt, to have a clean history.

 

Also, maybe I can cancel the check before it's even cashed? I would call United Recovery and tell them I will be doing so as well.

 

Pay day is Friday.  I'm willing to close the checking account Friday morning if necessary so they don't have access to my money.  It may make life a little miserable, but probably worth it in the end.

 

Any advice on how to handle this situation would be much appreciated (especially if I can have it before the end of the week).

 

In the meantime, I'm going to call back tomorrow and ask to switch to option #2.  Hopefully, that's a good idea?  I'll hold off til mid afternoon and hope I can get some good advice here.

 

Thanks!

[TomnTex]

^{I did not read your entire post, but you never give anyone information to your banking info, nor do you give them access to it. I would go down tomorrow and close out the account. If there is any direct deposits going to it, stop them immediately. Then, sit back, catch your breath and then read, read, and read this forum and ask questions. The OC's and JDBs will try anything to get the money. So, close out that account ASAP and start a new account at another bank.}

 

^{If you are dealing with the OC then work out something to pay them in  settlement of some kind if you can afford it. If it's a JDB dump them, save your money you don't owe the JDB a thing. But, never give your banking info to anyone. They will make you promises and not put it in writing, so be careful. If your dealing with a OC work it out on your terms, don't let them force you into anything.}

 

^{I was just going to bed, thus I did not read it all. But others will be along. Try and stop any withdrawals from your bank by going to the manager and telling them that you with draw any authorization from Cap 1 or anyone to make those withdrawals now. Put it on file with the bank so that your covered, and then close it out. Send all letters to a JDB or OC CMRRR. That's certified mail return receipt with green card.}

[sundevilatx]

Well, I went to the bank today to put a hold on any withdrawls from my account.  Tomorrow, after my pay check clears, I will close the account and open a new one.

 

My concern is that they have me "on tape" agreeing to pay a certain amount by a certain date.  Is this something that can hold up in court?  Seems like they're allowed to lie and say whatever to collect a debt.  What rights do I have (I'll be looking into that later).

 

In the meantime, any other advice is appreciated.  I'll be reading up on this over the weekend.

[willingtocope]

Its really a toss up as to whether they actually recorded your conversation.  Usually, CAs use that as an intimidation.  There's not enough disk space in the world to record all there BS.

 

As a general rule, "If it ain't in writing, it didn't happen"...and that works both ways.

 

However, in the unlikely event they did record...you can always claim "least sophisticated consumer" confusion (read the FDCPA) and that upon further review, you changed your mind.

[TomnTex]

They may have you on tape, but you were forced under duress to make a quick decision that would benefit them. I don't think you will have anything to worry about there. Just tell them that you were not aware of your rights and felt forced into making that statement.

 

Now that you know who they are, if you don't have their address Google it and then send them a DV letter stating that you dispute their claim and that you request validation. Also, that all call to you at any number are inconvenient and to contact you only by mail. Make sure you send it CMRRR as with all letters. The best thing is to only communicate by mail so that everything is in writing. It also allows you to have time to think. Here in Texas, you are allowed to record phone calls, so make sure you run down to Radio Shack and pick up a recorder to record any calls and voice mails. Somewhere on here I have a thread about the equipment needed to fight the JDB's. Look for it. Try and not answer their calls, they will start leaving threating messages that you can hopefully get a FDCPA violation.

 

But, just get on here and study and learn your rights. We will help you through this if you have the will to fight.

[racecar]

achtung achtung achtung achtung achtung

CLOSE THAT BANK ACCOUNT ASAP

 

DONT SEND United Recovery Systems A DIME

 

Also call your local courthouse and see if they have a judgement against you.

[racecar]

If there is no judgement against you send them this.certified mail return receipt

Debt Validation Request

Your Name

Your Address

United Recovery Systems

5800 North Course Drive

Houston, Texas 77072

Account number

Date

Dear United Recovery Systems,

This letter is in response to your letter dated ______________________, 2013 (copy enclosed).

I dispute this alleged Capital One/HSBC account in its entirety.

As per the FDCPA, I have the right to request validation of the alleged debt.

All phone calls are inconvenient, so all communications need to be by mail.

Best Regards,

Typed name

[TomnTex]

Do what Racecar said for the DV. Make sure you send a copy if any of their letter to you for their reference and send it CMRRR.

[admin]

If Capital One does indeed still own it, by paying the full amount, Capital One will still be reporting you with late pays, even though the account is "paid".  It sounds like you have 180 day lates or the Collection agency wouldn't have gotten involved.  Those are very bad.  Showing an account with a "settled" will also probably still show you with late pays.  It's probably only marginally better for your credit to have late pays and no settlement than settlement and late pays.  

 

Capital One has been known to hang on to accounts for a long time.  It's quite possible they own it.  

 

Can you call Capital One back and just ask to speak to a live person?  Don't put in your account information when they first ask for it on the phone, that will get you transfered to United Recovery.  See if you can just keep pressing "0" until you get a customer service agent.  You can also try looking at this website for ways to get a live person: 

 

http://gethuman.org

[MuteDebt]

If Capital One does indeed still own it, by paying the full amount, Capital One will still be reporting you with late pays, even though the account is "paid".  It sounds like you have 180 day lates or the Collection agency wouldn't have gotten involved.  Those are very bad.  Showing an account with a "settled" will also probably still show you with late pays.  It's probably only marginally better for your credit to have late pays and no settlement than settlement and late pays.  

 

Capital One has been known to hang on to accounts for a long time.  It's quite possible they own it.  

 

Can you call Capital One back and just ask to speak to a live person?  Don't put in your account information when they first ask for it on the phone, that will get you transfered to United Recovery.  See if you can just keep pressing "0" until you get a customer service agent.  You can also try looking at this website for ways to get a live person: 

 

http://gethuman.org

When I called Capital One to see if they still owned my account. I wish I had a recorder. They were so rude it was incredible. I kept asking the girl for an answer of YES or NO. She refused and started calling me names and kept saying I owed them money and use explitives towards me. I couldn't believe I kept repeating I need one answer from you YES or NO. Does Capital One still own this account? She kept saying it didn't matter. If you call them get a recording device. I believe what they did to me was illegal but I didn't record. And then once my case started they did more illegal things! They are AMAZING! I love CRAP ONE!

[MuteDebt]

OH you are in the right place to fight. I'm on my second case and was scared Sh*%Less with the first one. I got talked out of filing for bankruptcy and was told how damaging that would be and that I could fight these cases. Although I don't think anybody knew exactly how many I have. HA I have a few and the third one is in the pipeline. I think I understand the process a lot better and they don't have what they need to win! Remember that no matter what you get from them in the mail it's not enough! There are laws in place that make them have to have a lot to prove you owe them! Even the original bank. Often Capital One does not sell it's debt. It's one of the few that doesn't. Still doesn't mean they have everything to win!

[TomnTex]

I told you to get a recorder! Also, advised you to stay off the phone and to only communicate by usps mail.

[Torden]

This is the recorder I use for landline:  http://www.amazon.com/Sangean-DAR-101-Desk-Recorder-Black/dp/B003XU76QK/ref=sr_1_1

[BTO429]

You would think when posters come here asking for advice from people who have experience in this they would listen to what we say ,,,,but unfortunately, for them, they do not. 

 

We love to help people here on the forum but you need to listen to things or you will continue to have problems. DO NOT CALL THEM,,,send them a letter and ask them who owns the debt.

[sundevilatx]

In my case, I made contact with them BEFORE coming here to read on what to do...

 

So, just trying to get some good advice on how to handle the situation going forward.

 

I had to close my account.  Now that they've tried to make a withdrawl on the account, they called back.  I asked them to only communicate through written communication.

[admin]

In my case, I made contact with them BEFORE coming here to read on what to do...

 

So, just trying to get some good advice on how to handle the situation going forward.

 

I had to close my account.  Now that they've tried to make a withdrawl on the account, they called back.  I asked them to only communicate through written communication.

@sundevilatx - You need to make this request in writing and tell them that all calls are inconvenient.  Saying stuff over the phone will do nothing.  

[jared_strauss]

First time poster here. While I appreciate the obvious fact that everyone in this thread is just trying to help this gentleman: let's review this situation for what it actually is....

 

• He has 1 delinquent debt.

 

• He is familiar with this debt and feels that he owes it. 

 

• He has indicated his desire to pay it.

 

• He has expressed concern about his future credit.

 

• He has indicated that he would like to resolve this issue as soon as possible.

 

• He has stated that he has the financial ability to resolve it immediately.

 

• He is being contacted by one of the more well-known collection agencies in this country.

 

To me, all of this points to an obvious solution: pay the bill today. And if you wan't to resolve the situation in the best manner possible: pay it in full. 

 

There is a distinction with what is reported to your credit report when you settle vs. paying in full.

 

When you settle, it will generally state "settlement accepted on this account."

 

Whereas if you pay it in full, it will state "paid in full."

 

The formula that is used to generate your credit score is proprietary. Meaning that no one knows for sure if this distinction makes a difference in future credit score.

 

However, logically I believe it does. And in my opinion, it's not worth the risk if you're only going to save hundreds of dollars. Especially if you only have one delinquent debt. 

 

Settlement remarks tend to make more sense in regard to risk/reward when you're saving thousands. 

 

In respect to the chain of title: Capital One bought HSBC's entire credit card portfolio. This happened a little over a year ago. And HSBC exited the United States market upon doing so. 

 

In respect to feeling comfortable with United Recovery: call Capital One and confirm that they placed the account with them (I give it a 99.999% chance that they did).

 

Once you confirm this and you're comfortable, call United Recovery and make the arrangements you feel most comfortable with and get it done. 

 

In respect to check by phones: once you have confirmed the agencies involvement with the original creditor (Cap One) and you have a letter from United Recovery outlining your agreement, check by phone is fine.

 

You have the arrangement in writing and you know they are definitely the company that is servicing your debt, so what risk even exists at this point?

 

In respect to your credit: your future creditors will review the amount of time it has been since your final delinquency has been resolved in order to determine your credit worthiness. Typically speaking, a paid or settled delinquency will no longer effect you after 24 months from the time you resolved it. Providing again, that it is your last remaining delinquency. 

 

Sending cease and desist letters and closing checking accounts should be the last thing this gentleman should be doing. Not based off of his stated goals. 

 

There is a ton of misinformation on the internet. And I mean a ton. But please keep in mind, most of it isn't delivered with ill intent. It has more to do with people trying to help based on the information they know from their own personal experiences. 

 

This stuff is too complex to clearly understand all of the nuances to consider when basing it off of personal experience. There just isn't enough variety in any given circumstance. 

 

So I mean no disrespect. I understand that everyone in this thread is just trying to help. 

[TomnTex]

I completly disagree with the above posters advice on how to go about this. this is a JDB, you don't owe them, and you will not get anything in writing from them regards to a settlement. Been proven too many times in the past.

[willingtocope]

@TomnTex  I too disagree.  And, such advice coming from a first time poster sounds more than a little suspicious.  CA? 

[jared_strauss]

Hi guys, 

 

I appreciate your pessimism.

 

Tom, in this case United Recovery is not a JDB. Capital One doesn't sell their recently charged off debt. In fact, they sell very little of their old debt. Cap One is a more of a cradle-to-grave creditor. 

 

And while it is true that he "doesn't owe" United Recovery and that he owes Cap One, Cap One has hired United Recovery to service this debt. So what is the difference? 

 

In respect to not gaining anything in writing, that's not inline with my experience. For every account that I've ever negotiated for people, I've always received the agreement in writing. 

 

@ Willing - Google my name. That should alleviate any suspicion.   

[willingtocope]

Ah....Jared Strauss the "debt fixer".   A "catch more commission with honey that with threats" collection agency. 

 

Personally,  I'm not impressed.  We've had debt fixers here before handing out "its your debt, so let me help you negoiate a settlement...for a fee" type advice.

 

You're welcome to stay, but be aware...we'll be watching.  Soliciting business from our members is not permitted.

[jared_strauss]

No worries on soliciting business. That's not my style.

 

I wouldn't be immediately impressed either. Most "debt fixers" are total BS. 

 

So back to the content in my original post...

 

Per the original poster's stated goals - what do you disagree with? 

[TomnTex]

Our goal here is to help each member resolve their problems. Most of the time that means as a Pro se fighting for themselfs. We do not in MOST cases advocate paying these leeches, but to sue them and win. Yes, your on here to try and drum up business to enrich yourself. Your not here to help anyone else but yourself. As Willing said, "your type on and go on here and you will be watched".

[jared_strauss]

Hi Tom, 

 

I understand your goal and appreciate it. But in this particular person's situation, the advice he was receiving wasn't consistent with what he stated he wanted to accomplish. 

 

I assure you,  I'm not on here to drum up business. If you knew about the specific service I offered, you would realize that my services would only be available to a very small segment of people that are on this site. I offer an incredibly niche service. 

[willingtocope]

 

 

 you would realize that my services would only be available to a very small segment of people that are on this site. I offer an incredibly niche service. 

In other words, Crap 1 isn't one of the companies you have a contract with....ah, excuse me...contacts at so you can "settle" this particular debt.

 

But, back to the OP...

 

If you have the full amount Crap 1 says you owe, call them back and tell them it is your personal policy NOT to deal with collection agencies and if they want paid, they'll deal with you directly or take you to court and you'll let the judge decide...so, "where do I send the check, made out to Crap 1".  Don't worry about your credit reports....the damage has already been done, and will get better with age.

 

If you don't have the full amount, send United Recovery a DV letter, and be prepared to play "whack a mole".