How can I quickly solve this collection issue?

We periodically check my husband's credit report because he's had ID theft in the past. Today I pulled it and there is a new collection that has been on for 3 months. I contacted the agency and it was a debt from US Bank from 5 years ago, and it took them that long to get it on the credit report. We paid the debt back then but there was no record of it being paid. We also found out the collection had been sold 3 times to different collection agencies, however, we never received any notice. They had our current address, because they mentioned it on the phone. I have a feeling they sent it to our really old address that we haven't lived at for 5 years. But still, don't they have to get something in your hands stating what you owe and that they are the collection agency? We recieved nothing, and just found out by coincidence. The original debt was $218, but now with fees and interest it is up to $319. It's very unfair, and I want to settle but don't know how.

Answers:
What state are you in? The statute of limitations for reporting the original debt is different in each state. A lot of collection companies send or put this on your credit to get you to acknowledge the debt. Then you owe the debt again until proven otherwise is their attitiude. These companies especially like small amounts that most people will settle for rather than go thru the following hassel.

Use return receipts from the US Postal service for all correspondence.

Contact US Bank by letter with return receipt US Mail. Explain you would like a copy of the record indicating this was paid ( you may say you need it for your IRS tax records). Also have the bank send a copy of the record to the 3 bureaus. Request this be done within 30 days and proof be sent to you.

At the same time send an inquiry to the 3 credit bureaus to have the collection agency prove the debt to the bureau. The bureau has 30 days to inquire into the matter and send proof to you.

Send a copy of the bureau inquiry and the US Bank inquiry to the collection agency. Never indicate you owe the debt. Always indicate you are inquirying about a previously paid debt.

I don't like speaking to collection agencies unless it is to confirm written information. Otherwise it always comes down to a he said/ she said.

Always keep a diary of dates information is sent and all return receipts. Once this is resolved keep the information in a separate envelope for 10 years.

This should resolve the situation. Please feel free to cdntact me with questions or for more information.

Good Luck,
Chris C
Real Estate Broker/Lender
Do not settle - make them prove that you still owe the debt and contact the credit bureaus to contest the debt. What you probably are dealing with is what MSN Money calls zombie debt collectors. They try to collect on debts that people don't really owe anymore or very, very old debts. This new addition to your husband's credit report will not factor very much into a lender's decision, especially when you note that you have challenged the debt. Do read the information on collections on MSN Money - it's full of good information and resources.

Do not send any money to the collectors or anything acknowledging that it is your husband's debt. Dispute the debt with them and all three of the credit bureaus. I would also request that the collections group only send you information in writing.
Hello, Sorry to hear about this problem your having.

I have been helping people for years with problems like this.

First thing you need to do is send a letter to "validate the debt" I have provided a link below. Next please please do not talk to them on the phone. I have had clients get really screwed this way. Sometimes the collector will assume this is a renewed promise to pay and re-age your account.

Second, make sure the collection company notes this account on your credit report as being disputed.

There is a whole list of things you can do to get this off your back. Also do not worry to much about your credit report. This can be deleted at any time do not let the collector pull your leg.

This item can only stay on your report for a Maximum of 7.5 years from the date of first delinquency.

I am more than wiling to help I do not charge I can forward you any info you need. Also check out this list and see if the collector is on it. www.budhibbs.com
Hi,
I used "Loan Web" to consolidate my debt.They managed to reduce my debt up to 58%.It's legitimate.I came accross this company on NBC News Special Edition.Check it out here:
http://www.dpbolvw.net/click-1813149-102...

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