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Indy17

Collection Agengcy Hired by Primary holder Can't verify

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Hello everyone,

I collection agency hired by Chase bank, was unable to verify an account. After my follow up verification letter, Chase sent me a letter saying the wanted to settle  the account in question. I am guessing they do not have the required paperwork to verify this account. They sent me a very cryptic letter. It was only one sheet, that I am guessing is the account creation log. But it is missing all sorts of info; including the account number.

What is my next step?

I know primary creditors are usually exempt from verification. Can I see the collection agency hired by Chase?

Thanks everyone

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I wouldn't assume they don't have the paperwork.  Everything is electronic so really, there's no reason they wouldn't have it if they still had a record that you owed a debt in the first place.

What is their settlement offer?  It may be worth accepting that instead of getting sued and having a judgment for the full amount plus costs, fees and interest tacked on.

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Well, It's not exactly assumption. They have been unable to verify the account. Records get lost. -But on another note, I spoke to them and they gave me a very fair settlement offer of 27% of the principle, Which I probably will be taking.

 

Thanks

 

@Harry Seaward

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1 hour ago, Indy17 said:

They have been unable to verify the account.

An OC isn't obligated to "verify" the account. They sent monthly statements and that's all they need to do provided you didn't dispute any of the charges in a timely manner. Timely is usually within 90 days. If the account has charged off,  you're well outside of that window. 

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40 minutes ago, Indy17 said:

Doesn't a debt collector have some obligation to verify debt?

Exactly what verification did you want?   This is the original creditor.  You opened the account, used it, and defaulted.   Exactly what information are you looking for?

On 7/3/2018 at 6:01 AM, Indy17 said:

What is my next step?

Get ready for CHASE to sue you.

2 hours ago, Indy17 said:

I spoke to them and they gave me a very fair settlement offer of 27% of the principle, Which I probably will be taking.

That is the best deal you are going to get.  Grab it before they withdraw it and simply sue for the entire balance plus costs.

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1 hour ago, Indy17 said:

Thanks for clarifying harry. Doesn't a debt collector have some obligation to verify debt?

 

@Harry Seaward

 Did you send your verification request within 30 days of receiving the collection agencies first letter that contained the 30-day validation notice? 

 If you did  not send it within 30 days of the first letter, the collection agency is not required to respond and can continue collection efforts.

If it was sent within the 30-day period, they only have to respond if they want to continue trying to collect.  The FDCPA allows for debt collectors to cease collection efforts instead of providing validation.

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22 hours ago, Indy17 said:

Thanks for clarifying harry. Doesn't a debt collector have some obligation to verify debt?

Only if A.) you dispute within the "initial communication" 30-day window, AND B.) they want to continue collection activity.  In your case, they probably told Chase you disputed the debt and Chase decided to not waste any more time trying with collection agencies and pulled it back.  Again, this doesn't mean Chase couldn't verify.  I would assume it means Chase wanted to see if you would pay before being sued.  They got their answer and are now proceeding accordingly.

I agree with clydesmom - Take the 27% offer and run.

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