Hi All,
I've been attempting to clear up some small medical debt for the past year after being injured in 2009. In most cases, I know that I incurred the debt and take full responsibility for my inability to pay.
I offered a CA a settlement, in full, for a deletion of the account on my credit report(s). I included in the letter that I do not acknowledge the debt, but, in the spirit of compromise, would be willing to pay the 255$ that was reported in order to put all potential future headaches behind me. I did all this CMRRR. That was last month.
I received a notice today from a completely different CA referring to the "original creditor" as the initial third-party collection agency. This CA claims I owe 3,500$! I assume the first CA sold the debt to this company. The tradeline on my credit report still states I owe 255$ and has for the last two years.
So, if I try to validate the debt with this new CA, and they don't respond with the original contract, do I have a suit if they somehow "verify" this debt through the CRAs, and neglect correspondence to me? Moreover, with this new CA attempting to collect an outrageous amount, in respect to what I actually owe, do I have a legitimate violation of the FDCPA that would stand up in court?
Best Regards,
Bob
clearing up credit report
Hi Bob,
$255 amounting to $3,500 is I think not at all legal. The new debt collector must be adding fees onto the previous amount owed, as not mentioned in the original contract.
You can send a debt validation letter to the new collection agency, through certified mail, requesting a return receipt.
If the collection agency fails to validate your debt, but verifies the debt with the CRAs, you can definitely file a lawsuit against them.
Thanks,
Aaron