How I can resolve this credit problem?

Question

There is an account that is in creditor collection.I do not know the origin of this past due account. I have never being notified of any debt.

Answer 1

Well, you have the right to get all information about the debt at any time.

Ask any company involved in the collection to define the original business immediately.

Answer 2

Sorry, but all the answers here are either confusing, incomplete or not accurate at all.

Understand that if there is an inaccurate report on your credit history, it's either due to an error on the bureau's side (someone else with similar name, etc...) or you may be a case of identity theft.

If it's ID theft, you need to jump on this problem immediately. It's like cockroaches...once you start seeing signs you can count of the problem being much worse. They may have several fake accounts in you name.

So your very first steps are as follows: Go to http://www.annualcreditreports.com and get a free copy of all 3 of your credit reports. Examine them carefully for any errors.

Do a search on the net for the Fair Credit Reporting Act. You need to understand how this law works and the procedures.

Start contacting people. ACCURATE RECORD KEEPING IS IMPORTANT. I can't say enough how important it is to get names of who you talk to. Send letters whenever possible, and send them by certified mail.

Contact the creditor who listed this on your report and explain it isn't your account. You will know right away if this is an error on their part or not.

If it appears you are the victim if identity theft, go to http://www.ftc.gov and read the info on identity theft. It also contains an affidavid you will need to send to creditors.

If they won't cooperate and remove this listing, then we begin playing hardball.

Send the creditor a "demand to validate" letter. They must supply you within 30 days all contracts, bills, receipts, and everything used to calculate this debt.

Send the credit bureau a dispute letter.

If after all these letters are sent, they continue to list this on your credit report, sue them. It's a simple matter to do it in small claims court, and you can get $1000 from the creditor and the bureau, plus any damages this negative report may have caused. you.

I've had the same thing happen to me. The creditors wanted to be jerks about it, so I sued them. Got $1000 from the creditor and $200 from the bureau. It's easy, but you MUST follow the procedure and keep accurate contact records.

Answer 3

You need to start by having the creditor provide the original debt then you can move forward. If you have moved recently or frequently you may have been notified of the problem but not had the letters catch up with you and end up undeliverable by the post office. If you do not recognize the debt or know that you are not the person who incurred it, or is the responsible party for someone else who had the authority to incur it on your behalf, then you may be a victim of identity theft and should notify one of the three credit bureaus, like TRW and the police.

I hope it is just a mistake but if it is not take care of the debt quickly and attach a letter of explanation to your credit report to explain why you were late in payment if you had extenuating circumstances.

Good Luck!

Answer 4

Have you pulled your credit reports to see if an original creditor charged off a debt and sold it to a collection agency?

If not, you should.

You should also find out what the statute of limitations is for your state.

I would suggest sending the collection agency a debt validation letter.

I would also suggest checking out the site that I've linked. There is alot of useful info on that site that may help you.

Answer 5

There's no short answer to your problem, since this depends on a lot of factors:

For one: Is the account out of SOL (statue of limitations) - depends on what state you live in?

My suggestion to start with is send a Debt Validation letter to the creditor. You can find out more information on what is contained in a DV on places like creditnet.com and creditboards.com.

You can also search there about the creditor themselves, and get a little background info on them as well... ie, if they are scum debt collectors or if they follow the law.

Know your rights - you do have rights when it comes to collections! http://www.ftc.gov/os/statutes/031224fcra.pdf

Once you send a DV letter they have 30 days to respond with actual proof that the debt exists. A lot of creditors like to get out of this and send you print outs, and things that don't exactly validate the debt. Check the 2 links I sent above for more info on what exactly constitutes validation.

Also, stay off the phone. Do not talk to them on the phone. You can restart a SOL date by acknowledging the debt. Request to them in writing in your DV to contact you by US mail only. That way not only do you have proof of everything in writing, you can't be suckered into anything they tell you on the phone!

Again there really is no "short" answer - check out the links above for more information that might help you make a better decision as to what to do.

Good luck!

Answer 6

Easy...file a dispute with all 3 credit bureaus online. They will contact the creditor and if the creditor has no record of you or mis-information, the bureaus will remove the account.

You must have a copy of your credit report, the name of the creditor and the account # involved.

www.transunion.com
www.experian.com
www.equifax.com

Answer 7

If you are in collections, the collections agency is bound by law to give you a copy of the unpaid bill. You can also contact one of two big credit reporting agencies and forward them a copy of the collection notice and I believe they will give you a copy of your credit rating free. Below are few links - the first that explains credit and how to fix bad credit, the second National Foundation for Consumer Credit (they may be able to point you in the right direction). The last two are two of the biggest credit reporting agencies.

Answer 8

Contact anyone of the three major credit b. and let them know of the situation, that will usually take care of the problem or they will at least give you the creditor's information.

Answer 9

Check your credit scores and rating ASAP. The relevant companies are Experian, Equifax and TransUnion. In most states now you can get your report for free. Any outstanding debts should be dhown here and this should give you a clue. Maybe someone has used your credit illegally?

Try here for more info:

http://www.consumeraffairs.com/debt/your_credit_rating.htm

Answer 10

Contact the credit reporting bureau where you found this collection listed and challenge the validity of the information. You can get information on their website on how to go about this.