Ok, Im in NY and have a collection agency (Northland group inc) sending me collection bills. The bills are for a credit card debt that is over 10 years old, has been charged off 8 years ago, and no longer apears on my credit reports. Original debt was $300 and the bill is asking for over $2000. I have learned it is not legal for a collection agency to collect an expired debt, or put new dates on your credit reports. Having said that, I do wish to resolve this, and would like to send the collection agency a letter. Is is better in my situation to send a cease and dissist letter, to get them to leave me alone...or a validation letter, as the debt is expired, and more importantly, I would gladly pay the original $300 dollar debt to make all this go away. I will not however pay $2000 to a company I never heard of, on a debt that was charged off for $600 more than I actually owed. What a hot mess the state of the credit industry is in! Again thanks to everyone for your insights!
Validation letter...or a cease and dissist letter?
You have a lot of correct answers for a change.
Cadisney is incorrect. Just admitting to a debt does NOT restart the clock on the Statute of Limitations. It requires that you make a payment or charge on the debt, or actually sign a reaffirmation to continue the contract.
It sounds like you%26#039;ve done your research on this, good job.
But you also sound a bit guilty about paying this debt....don%26#039;t be! Remember, when you failed to pay this debt, the creditor gave you a choice. Pay the debt or they will trash your credit score for the next 7 years. Well you didn%26#039;t pay, and you%26#039;ve had bad credit all this time. You HAVE paid this debt back! Why pay it a second time?
So do what Crazy said. Send them a letter demanding validation. In that letter, inform them that you are aware the debt is beyond SOL, and any attempt to file a lawsuit constitutes fraud under the Fair Debt Collections Act.
But you also must include a %26quot;cease and desist%26quot; notation in your letter. While the creditor can may not have the right to sue you, they still have the right to contact you and collect the debt. The only power they have right now is the right to harass you, but once they get this letter they lose that power.
Good luck to you.
Validation letter...or a cease and dissist letter?
If you pay that debt you are validating it. Don%26#039;t. What you are experiencing is a phenomenon called %26quot;phantom debt%26quot; that Yahoo reported on earlier this month. They can call on you, and you have the right to tell them not to contact you again by telephone. The fine is $11,000 if they refuse. In fact, they can call on you forever; they can%26#039;t report to your credit report after the seven years (or however long it is based on your state).
Validation letter...or a cease and dissist letter?
Do NOT in any way shape or form admit to this debt or offer any kind of settlement. The second you do the statute of limitations starts all over again.
Tell them to leave you alone or you will slap them with a harrassment suit. Send a letter to this effect. There are laws in every state that restricts what a creditor can do.
Validation letter...or a cease and dissist letter?
The first link walks you through debt validation... It%26#039;s long winded but WELL worth it... The second link allows you to file a complaint against the collection agency if they don%26#039;t play by the rules... Make SURE you require all communications to be in writing!
Northland Group Inc has over 200 complaints against them with the BBB, so they are NOT a reputable company. Don%26#039;t let them bend you over!
Good luck!
Validation letter...or a cease and dissist letter?
Here is a website that may help:
www.ftc.gov/credit
Knowing your rights is the first step. Please understand that you will read in the Federal Trade Commission that debts do not expire, the regulation that after 7 years of inactivity, meaning the creditor does not update the trade line, then the information purges off a consumers report. I would the 1st one in line to spend a 10k credit card an then just move, don%26#039;t answer the phone or respond to my mail for 7 years ad the debt would be forgiven, nope that is not how it works. But what you can do is follow the FTC dispute process (there is a sample letter on this site) and dispute saying it is not yours. The creditor has only a certain number of days to validate the debt. Maybe this will work. I am honest, but everyone has a past that maybe they would have done something different, but can%26#039;t hold it over their heads for life.
Validation letter...or a cease and dissist letter?
If you are sure that the debt is past the statue of limitations (which it appears it is) then just send the cease and desist letter and move on with your life. Just make sure your letter clearly state the debt is past the SOL, that will if they attempt to sue for the debt, you can prove they knew it was past the SOL and they can be held liable.
Validation letter...or a cease and dissist letter?
Hi,
I used %26quot;Credit Solution%26quot; to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It%26#039;s legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://nanoref.com/linksynerg/vgivHQ
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