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Last month I made a written offer to settle a  debt claimed that I owe by Credit Control, a collection agency acting on behalf of JH Portfolio Debt Equities, a JDB that had apparently purchased debt from a charged off Chase account.   I received a response in writing from Credit Control stating that they were authorized to agree to my offer and that once my payments were complete, the account would be settled in full.  They also sent me the complete agreed upon payment schedule and stated that my first payment must be received "on or before" November 29th by check, check by phone, debit or credit card by phone.  As it was already close to that date by the time I received their response letter, and also a holiday week, I opted to make the first payment by phone and not trust the mail to deliver the first payment on time. I called to make the payment at around 10am on the 29th, (thinking that this would satisfy the "ON or before" due date that they had stated in their letter) and I was told that JH Portfolio had reclaimed the account and placed it with another agency.  Is that even legal? Before the due date of the first agreed upon payment had even passed? A week later I receive a letter from a new collection agency, Alpha Recovery Group, requesting that I pay the original amount in full (what happened to the reduced amount that Credit Control had agreed to?).  Alpha Recovery's letter was dated November 29th, again showing that this account was placed with them before the due date of the first payment per the previous agreement had even passed. Very confused, and this all seems more than a little shady to me.  Not sure what my next step should be. Validation letter? Sit back and wait for them to sue me so I can submit this info to the court?  I don't really see the point in trying to negotiate a settlement again if they're just going to accept and then renege before the ink is even dry on the agreement.

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First mistake was think you could settle with a JDB or a CA. Only try that with the OC if possible. A JDB or CA will lie out of both sides of their mouth and never open it. You won't get anything in writing from them and if you do they renig on it. The other mistake was to (you probably paid from your bank account), is to never let a JDB/CA know your banking info. Either send a money order or open a small account in another bank from where you normally bank. Just don't give the your main info.

 

I would go back to the OC and thry and settle with them. If not, let it slide. Your probably past the SOL or near it by now and their claim won't hurt your credit that bad. It will be very doubtful if you get a PDF. If you get anything is they will say the account is current and no PDF, so will remain on your CR for up to 7.5 years. They will try to tghreaten you, scare you, intimidate you, but, hang tuff. Get on here and read and read until your blue in the face and learn your rights. You can get through this......

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Thanks for your response. No second mistake made. I haven't given them any bank account info.  I tried to make a payment as agreed, but since the account was "reclaimed" they didn't get anything.  You are apparently right about my first mistake though.

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Based on what you wrote Chase no longer owns this account, so they are out of the picture. In my opinion trying to deal with any JDB is useless. Dealing with a CA representing a JDB is even more dangerous. It sounds like you are dealing with some smaller JDBs/CAs which usually means the debt is not worth the usual suspects buying. 

 

Do you know the date of the last payment? In TN the SOL is 6 years from the date of the last payment. If you pay them one dime it could reset the SOL and you will have another 6 years to worry about. 

 

You might want to move this thread over to the "legal issues" area. More people will view it and you will get more input there. 

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Thanks.  Yes, Chase has been out of It since 2010. I thought I was doing the right thing by trying to settle this. I once ignored a JDB only to have them sue me over a debt that was so small, I thought they'd never bother to take it to court.  So I figured I'd try to settle this one before it reached that point. This one is not a huge amount either, which is why I don't understand their logic of reclaiming and switching it to another agency after initially accepting a settlement in writing. Is it really worth all that just to attempt to squeeze a few more bucks from me when I could've already been paying a settlement that was going to make them a profit anyway? Sheesh!

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When was last payment or date of default on the account?

Never believe the plaintiff's date use your own records.

This could apply.

Tennessee has a borrowing statute

Delaware Code Title 10, Chapter 81, § 8106 establishes a 3 year statute of limitations

The plaintiff’s cause of action would be barred in Delaware.

The plaintiff’s cause of action would also be barred in Tennessee.

 

 

28-1-112. Application of foreign statutes.

 

Where the statute of limitations of another state or government has created a bar to an action upon a cause accruing therein, while the party to be charged was a resident in such state or such government, the bar is equally effectual in this state.

 

[Code 1858, § 2783; Shan., § 4480; Code 1932, § 8607; T.C.A. (orig. ed.), § 28-114.]  

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Unfortunately you will never get a General Sessions Judge in TN to consider the borrowing statute. The good news for the OC is that they are dealing with some lesser known companies that are less likely to sue. This is about the time that Chase had some issues with their collections department, so I'm guessing the larger JDBs avoided buying a lot of these. 

 

Since they already know for sure where you are located I would send a simple DV letter to the new CA. Just send it within the first 30 days of the first letter. Send it CMRR through the USPS and keep everything documented. I WOULD NOT speak with them for any reason on the phone.

 

CA:

 

This debt is disputed and verification is requested.

or

I dispute this and require verification.

 

Sincerely,

ToxicSnoopy

 

 

.

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 Is it really worth all that just to attempt to squeeze a few more bucks from me when I could've already been paying a settlement that was going to make them a profit anyway? Sheesh!

 

Don't worry because they make enough money on the ones who settle and/or get default judgments. Chase had some collections issues and these debts are worth even less than most.

 

If Chase sells a charged off account with a face value of 1,000 it is worth about $15.00 - $25.00 to a JDB. They will hold the account and add another $500.00 in interest and fees. (legal or not) 

Add a little administrative cost to the account and they might have $100.00 invested. Anything they get over that amount is pure profit. It sounds like in your situation they are letting other CAs do the work because they think the account is worthless. They will pay the CA a percentage of anything they collect on your account. This way they make a profit without doing any work. 

 

The bad news is by offering to settle with the first CA they think your are an easy target. They know where you live and that you are alive. Before you made contact they were just guessing. That is the main reason I would send a DV letter to the new CA. You have little to lose and it may also protect your rights in the future. Even if they sue you have a good chance of beating them. You will just need to learn the laws and procedures of your local court. Most attorneys they hire are only skilled at fighting people who do not fight back.

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Thanks.  I will take your advice and send a DV letter to the new CA. Since the JDB would apparently rather play games than take my payment, I guess I'll just play along for awhile longer and see what happens.  Still don't get why they just didn't refuse my settlement offer in the first place if they had no intention of letting me pay the settlement. Never thought I'd be mad that a CA wouldn't take my money (haha), but this is the last of the old junky debts that I had and I just wanted it finally gone. 

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Thanks.  I will take your advice and send a DV letter to the new CA. Since the JDB would apparently rather play games than take my payment, I guess I'll just play along for awhile longer and see what happens.  Still don't get why they just didn't refuse my settlement offer in the first place if they had no intention of letting me pay the settlement. Never thought I'd be mad that a CA wouldn't take my money (haha), but this is the last of the old junky debts that I had and I just wanted it finally gone.

Don't take it personal, they keep such horrible records, they don't even know they passed off your account. There are several on here that are in the middle of a lawsuit for an account, and the JDB sells their account while in litigation! There are also several who have hand their account sold (me and my aunt included in this) AFTER they paid a settlement in full. The only way to get rid of these guys is to fight and beat them, and make sure you keep any and all records so that when they sell the account anyway you have proof of your win.

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Thought:

Is it possible to successfully have a 1099-C from a JDB/CA for some 85-90% of the original balance? And only after that, settle on the remaining 10-15%. Or are these just my fantasies?

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@sasha0378  No.  Not possible.  They certainly wouldn't give you a 1099c before you paid then, and even if they did, its supposed to come from the original creditor...not the JDB.

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Sounds like thay have set you up to extend the SOL also. I tell everyone DO NOT TRY AND SETTLE!!! It's not worth it, i;ve seen too many things go wrong, and it usually ends up worse for you. You end up learning the hard way sorry to say.

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Thank you, friends!

 

Nope, nobody has been setting me up yet. It is just my fantasies as I am just trying to figure out when to expect 1099C. Should I call the OC with a request to issue the form since they discharged debt in 2011? Has anyone done this before in a similar situation? After all, my understanding is that there is penalty of 20% for not submitting 1099C by a creditor.

 

As far as I am concerned, I just answered JDB/CA's summons. My only defense could be their lack of standing. Not so sure about SOL, which is 6 years in WA, but I don't know which laws are applicable for my credit card contract.

 

Here is my situation (please forgive me, if I am hi-jacking this particular topic): http://www.creditinfocenter.com/community/topic/322792-sued-by-cavalry-spv-i-llc-suttell-hammer-in-wa

 

Since settlement with JDB is not an option, the only way out is beat them, I take it. Or is there a way to buy my debt out?

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You should get one within threes years after default. If you don't your suppose to figure out what you think you owe if the amount is more than $600.00 and pay taxes on that. If it was me, I would not be waking up the sleeping dogs. Just let it go until you get that 1099-C in the mail. I did, paid two hundred fifty for a tax gal and got it written off for insolvency for the year it went into default.

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@TomnTex

 

 

I have been in litigation with Cap1  in Nov 2008 on four accounts viz. .2 business credit cards (Biz Credit Card & Biz Line of Credit)  and 2 personal credit cards( Credit Card + Line of Credit. All four accounts were listed on the lawsuit. The final judgement was " want of prosecution" which ended in 2010.  I just happen to get only 1 1099C out of the 4 accounts (a personal line of credit 1099c) which appears on my personal credit report and nothing else.

 

 

My question is as follows:

Will they send me 1099c for all four accounts? if so when is it due. on the date court gave judgment + 3 yrs or day i defaulted and three years thereon. 

 

1) The first 1099c received was much higher then the amount owed? is that possible. I received it in tax year 2011 and filed it. 

 

2) do they issue 1099c for business credit card accounts? going into default. It doesn't appear on my personal credit report or biz credit report.  

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Good question. I just got a letter from Chase, telling me that they'll be sending me a 1099C for a debt that had last payment made in 2011. Ruh row, Chase. Too bad the 20% (for two years) doesn't revert to the alleged debtor.

 

I'll deal with the 1099C, and the fact that they continue to report...But, I wonder. Can they still sell the debt, if they file the 1099C? I wouldn't assume that they won't, even if they legally can't. I just want to know if it's legal.

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As you can see from all the 1099c related threads, we've been debating the consequences for several weeks now.

 

Here's my opinion:

 

@Wins the Battle  ...yes, they can legally still sell the debt, unless it was discharged in bankruptcy.

 

@energizer  ... If the two business debts were opened in the name of your business and you did NOT sign a personal guarantee, then you might not get 1099c's.  If you did sign a personal guarantee...I don't know...last I heard, this issue was still working its way thru the courts.  The 1099c for the personal credit card may yet appear...they have 3 years from an "identifiable event" to issue one.

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