CC80

Collections on an account that is NOT listed on my credit report. Zombie Debt!?

Recommended Posts

Im very curious on how to handle collections on this random account. Do i dispute it? Do I look into it? Does it even matter? Is it even mine? Could it be zombie debt?

 

 

Here's the deal:

While digging thru some old paperwork I came across a collections letter dated back in Sept 2013. Its a "deal" letter and says nothing but basically "here's what you owe us" and "pick your payment plan option.".

The amount in collections is for about $1500 but I have NO IDEA what its from or what its for.

 

Ive recently accessed all 3 of my credit reports and it is NOT listed anywhere. Not the creditor, the amount, nor the account number, I see NOTHING on my credit report about this account. 

 

The letter was sent from First National Collection Bureau and the statement is listed like this:

Creditor: JEFFERSON CAPITAL SYSTEMS

Original Creditor: FIRST BANK AND TRUST

Original Account #: XXXXXXXX

Ref #: XXXXXXXXX

Total Due: $1489.95

 

Im assuming its been passed around to a few collection agencies BUT I still have no idea what it is and is not on my credit report anywhere. And i dont recall any other debt other than what is listed on my credit report. Maybe some cable bills or phone bills from wayyy back but i'll never see those again. 

The only charged off credit card accounts that I have on my report are far lower amounts than that and the only other collections account that even gets close to that number is something that is listed with an entirely different collection agency. (old gym membership, out of SOL. forgot about that whole 2 year contract thing when i cancelled and went to a different gym.)

 

 

Anyway, I havent received any mail regarding that account since then. 

However this collection agency First National Collection Bureau does have another charge off account of mine. (Something for far less amount with an expired SOL so they may get a FOAD letter for that one sometime soon if they keep sending me stuff about it.)

 

 

So on this $1500 collections account, does it even matter if its NOT on my credit report? Do I need to look into it? Should I dispute it? Should I just let it sit? I literally have no idea what it could be and I see nothing on my CR. I mean, I dont plan on stirring the pot unless they send me something else but this CA has another account of mine so maybe they mixed up? who knows. Or could it be zombie debt that has just been passed around so long and built up so much interest and fees that its so far inflated from the original amount?

 

Since its not on any of my credit reports should I just send them a FOAD letter? 

 

Thanks in advance for any helpful tips or info. These forums are a wealth of knowledge.

 

 

 

 

 

 

 

 

 

 

Share this post


Link to post
Share on other sites

One thing about living in TX is you have a 4 year SOL and the TX TFC-392 working for you. If it's not on your CR's, I would ignore it for now, keep an eye out on the court dockets to make sure nothing appears out of no where and when all else fails. You can DV anytime as long as you cite the TFC-392 in a Tx style DV letter.

  • Like 1

Share this post


Link to post
Share on other sites

I'd DV right away.  

 

the letter is from last year and ive received no info regarding it since that point. Its not listed on my CR at all so would a DV be worth stirring up any drama about it? If its something that has fallen off my credit report then they really cant do anything about it at this point, right? well except keep bugging me about it until I do send them a DV, or C&D or FOAD letters.

 

After reviewing my CR, most everything stopped reporting actively back in 2011 and 2012 with the exception of a few debts that were picked up in 2013 and are now in collections with various CA's. 

 

Ive been brainstorming like crazy and I think it may be one of those wacky credit cards that I opened back in 2007 or something while finishing school. The thing is, if it is that account then it is definitely expired SOL and has dropped from my CR. Im assuming the letter is just a zombie debt that they are trying to get active again by getting me to make a payment or something.

 

I mean, what are the odds of something getting picked up now that is not even listed on my CR? and has not been listed on my CR. unless it just dropped off my CR right before i checked my report this month for some other issues.

 

very stange. is it really worth a DV? ive got no judgements or anything and no court proceedings regarding it.

Share this post


Link to post
Share on other sites

What drama can you stir up if the debt is out of statute? A DV letter makes them respond so you can decide if a FOAD would be appropriate. If you know it is out of statute, just FOAD them.

 

But say you get one in the future and don't DV within the 30 days...

 

"To Whom It May Concern:

 

I just received a collection notice from XXXXXX. I dispute the validity of this debt. All calls are inconvenient.

 

From,

 

Me"

 

30 days from receipt. You could have been in deepest darkest Africa on a safari for the last year for all they know. But in this case with no trade lines reporting, a FOAD would probably be fine. 

  • Like 1

Share this post


Link to post
Share on other sites

Good point. 

 

Ive just received another letter regarding that account. 

 

However, this one looks like its been bought by a totally different CA from what was on the other letter and they are trying to collect on it. 

 

Same amount but this "deal letter" is for even more of a discount. AND at the bottom of the letter it states this:

"This information is not legal advice. This debt may be too old for you to be sued on it in court. If it is to old, you cannot be required to pay it through lawsuit. While this debt may not be enforceable through a lawsuit, it may till affect your ability to obtain credit or affect your credit score or rating."

 

Now, im remembering back and I did have one more credit card that went into collections during some hard times. 

Im pretty sure I stopped paying on it sometime in 2009 so its more than likely out of the statue of limitations. BUT why isnt it on my credit report? The others that I had during that time are, but this one is not. If its not reporting now, does that mean they can still report it at some point? Or since its old and hasnt been reported yet are they not allowed to report that debt on my credit report?

Perhaps its just because its been sold around for awhile and hasnt popped back up on my CR yet? I dont know how that works so if anyone could share some knowledge, please let me know. 

Share this post


Link to post
Share on other sites

Yes, i am almost certain that is has a DOFD from sometime in 2009. Is there any danger in DV'ing? In that, it could it make them more aggressive in collections efforts AND/OR actually start reporting that bad debt? Out of SOL they cant do anything about it but if they arent reporting now i dont want them to use that as leverage against me to clear it up. 

 

And why wouldnt it have been already been reported since DOFD or whenever it hits collection status? Last month was the first time ive accessed my credit reports in years and its just not there. Id like to keep it that way, ya know. 

Share this post


Link to post
Share on other sites

They could very well report the debt to the CRAs if you DV since you are still in the reporting period. But they can do that regardless whether you DV or not. They are sending you notices so it's not like you are waking a sleeping bear. He's already awake. I would DV.

Share this post


Link to post
Share on other sites

@CC80

 

Is this the first time you've heard from the CA? 

 

Did the letter contain the 30-day notice about validation?

Share this post


Link to post
Share on other sites

@CC80

 

Is this the first time you've heard from the CA? 

This is the first time Ive heard from this specific CA. I was contacted Sept 2013 by a different CA about this account but it looks like this debt was just bought by a new CA which sent me the latest letter.

 

Did the letter contain the 30-day notice about validation?

Yes, the back of the letter gives notice that i have 30 days to dispute the validity of this debt and so on.

Share this post


Link to post
Share on other sites

They could very well report the debt to the CRAs if you DV since you are still in the reporting period. But they can do that regardless whether you DV or not. They are sending you notices so it's not like you are waking a sleeping bear. He's already awake. I would DV.

Good call.

Now, If I DV and they produce the proper validation of debt does that reset the SOL or give them more of a chance to get what they want from me? I havent researched what happens when someone DV's on debt with an expired SOL and the CA validates said debt. Other than making a deal for a PFD or something like that. Im not making a deal for PFD since its not on my CR. 

Even if a CA validates debt in question can you still just decide to tell them to FOAD? I always associate FOAD's with zombie debt and such. Whereas this is out of SOL but within the reporting period.

Share this post


Link to post
Share on other sites

@CC80

 

A DV request does not reset the SOL as long as you do not admit the debt is yours and/or promise to pay.   Just dispute the debt and request validation...nothing else.  OR, if the debt is outside the SOL, send a C&D. 

 

Even if they validate the debt, as long as you didn't agree or offer to make a payment, the SOL is not affected.

Share this post


Link to post
Share on other sites

Yes, i am almost certain that is has a DOFD from sometime in 2009. Is there any danger in DV'ing? In that, it could it make them more aggressive in collections efforts AND/OR actually start reporting that bad debt? Out of SOL they cant do anything about it but if they arent reporting now i dont want them to use that as leverage against me to clear it up. 

 

And why wouldnt it have been already been reported since DOFD or whenever it hits collection status? Last month was the first time ive accessed my credit reports in years and its just not there. Id like to keep it that way, ya know. 

If it's still within SOL, I'd be cautious about DVing.  

Share this post


Link to post
Share on other sites

From what your saying and the statement on their letter that it is out of SOL and they won't sue, send them a full C&D letter as well as to anyone else in the future that you hear from as they will just sell it. THis is Texas after all.

Share this post


Link to post
Share on other sites

I agree. Double check when the last time you allegedly made a payment was... Four years from that date per Texas statute. The DOFD is for reporting to CRAs.

Share this post


Link to post
Share on other sites

@elite1331: the OP lives in TX. Their code for protection of consumers doesn't require that the consumer DV within 30 days. It DOES, however, require that the alleged creditor respond, once DV'ed within 30 days.

 

Pretty sweet for Texans. 

 

I'd DV, myownself.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.