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socrateaser
socrateaser, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 37965
Experience:  Retired (mostly)
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I had a credit card that was charged off. It went to

Customer Question

I had a credit card that was charged off. It went to collections and I made payments and each year the company had to call to re-establish a payment plan for the following year. During the first year of payments the credit card company continued to charge interest and while the collection agency managed to remove it, it was only temporary and the CC company re-applied it. The last payment made was Oct. 2015 and the payment plan was supposed to be renewed. The collections agency called and I told them they needed to fix the interest issue first and they made arrangements to call me back the following week - they never did. Now the charge off has been removed from my credit report (7 years have passed) and this week I received a call from a new collections group (Global Credit & Collections) who claim the account was transferred to them a couple of weeks ago. I have not made a deal with them, but did tell them the amount they had listed as owed was wrong. The asked if I could provide documentation and I could mail it. I have not done so yet for two reasons: 1) They didn't provide me with proof they really have the account. 2) Global has an online reputation as a scam collections agency.
I'm not sure what to do. No new agreement for payments have been made. It's off my credit reports. If I begin new payments, it may repost to my credit report and kill my score (which I worked hard to build back up). Need advice. Thank you.
Submitted: 10 months ago.
Category: Consumer Protection Law
Expert:  socrateaser replied 10 months ago.

Hello,

There are numerous possibilities here, based on your stated facts. The principal possibility, in my opinion, is that if the original debt collector made an agreement for you to pay the debt, and you paid according to that plan, then you may have satisfied the debt in full, which would make any claim of a subsequent debt collector invalid.

My first move with regard to the new debt collector would be to demand (pursuant to the federal Fair Credit Reporting Act: FCRA) that they verify the debt, and provide: (1) proof of your obligation to pay; and (2) that the provide evidence of the assignment of the debt to their firm. If they can't satisfy both requirements, then I would ignore their demands, because they either don't have authority to collect the debt, or they aren't interested in doing the work to prove their authority -- which means that they probably won't be able to do that with the credit reporting agencies, and that further means that the debt will remain deleted from your credit report.

If they actually provide proof of the debt and their authority to collect, then I would need to review the agreement that you made with the original debt collector re your payment plan, before I could propose next steps. But, that may never become necessary, so you may want to try what I've suggested, and see what happens.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.

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