Help with collections...

[BrettS]

I just found out that my wife and I both have small balances with collection agencies and I'm not quite sure how to deal with them, so I'm wondering what you guys suggest.

NCO claims that I owe them $56.54 from the NY State Throughway Authority. I just got the first letter from NCO about this and I don't think it's actually on my credit report yet. I called the NY State Throughway Authority to find out what this was about and they told me that on Christmas Day in 2005 I had a toll violation and I owed $6.54 from the toll and $50 in fees. I vaguely recall the incident and I think what happened was that the credit card associated with my EZ-Pass (NY's electronic toll system) had expired and I neglected to update it, so it wasn't valid when I went through the toll both on Christmas Day. I also remember dealing with this in early 2006 and paying them them for the toll (as I recall, they said that they would waive the fees), however, that was nearly 4 years ago and I no longer have any proof that I made that payment. The Throughway Authority doesn't have any record of that payment and refuses to take the account back from collections, so I have to deal with NCO on this one. Since I don't believe it's on my credit report yet I'm half inclined just to pay it and be done with it, since it is a low amount, but I also hate to let NCO 'win'. I'd also hate for them to add it to my credit report after it's been paid, but it's my understanding that if I pay it before it's been added then they won't ever add it. What are your thoughts on this one?

Second, RJM claims that my wife owes them about $65. This one is on her credit report (we found out about it because her bank reduced the credit limit on one of her cards and said that this was the reason). I don't think we've ever gotten anything from RJM, so I'm not really sure what it's from, but we can't think of anything that she owed $65 on. We haven't contacted RJM yet to get any more info because we want to try to come up with some sort of strategy first. From what I can see online it looks like RJM is pretty good about accepting and honoring "pay for delete" agreements, so again, I'm half inclined to just ask for an agreement and then pay it to be done with it, but I still hate letting them win too. Any ideas for me here?

Thanks much,
Brett

 

[AntePrincess]

I'd say it depends.

If I didn't owe it, I wouldn't pay it. I don't care about my credit report because I simply don't use credit.

However, if I did use credit, than I see no option except to pay and promptly in order to preserve my credit report, whether or not I owed it. The fact is, they're not going to let it go unless you have the equivalent of a receipt from them to the effect that the bill is paid, and they can simply punish you by damaging your credit report if you don't comply. You essentially have no recourse, certainly no recourse that would be less expensive than simply paying. So, in your shoes, I'd cough up the money, than complain about legal extortion to my friends over a beer sometime.

 

[wvjules]

www.creditboards.com

Very helpful people. Start with the newbies section then ask questions.

Do NOT talk to NCO or RJM on the phone...EVER!

Send them a DV with a limited C&D. (read more about these on creditboards.com)

 

[wvjules]

I'd say it depends.

If I didn't owe it, I wouldn't pay it. I don't care about my credit report because I simply don't use credit.

However, if I did use credit, than I see no option except to pay and promptly in order to preserve my credit report, whether or not I owed it. The fact is, they're not going to let it go unless you have the equivalent of a receipt from them to the effect that the bill is paid, and they can simply punish you by damaging your credit report if you don't comply. You essentially have no recourse, certainly no recourse that would be less expensive than simply paying. So, in your shoes, I'd cough up the money, than complain about legal extortion to my friends over a beer sometime.

Do not speak of which you do not know.

 

[DMickey28]

I'd say it depends.

If I didn't owe it, I wouldn't pay it. I don't care about my credit report because I simply don't use credit.

However, if I did use credit, than I see no option except to pay and promptly in order to preserve my credit report, whether or not I owed it. The fact is, they're not going to let it go unless you have the equivalent of a receipt from them to the effect that the bill is paid, and they can simply punish you by damaging your credit report if you don't comply. You essentially have no recourse, certainly no recourse that would be less expensive than simply paying. So, in your shoes, I'd cough up the money, than complain about legal extortion to my friends over a beer sometime.

How do you not use Credit? Credit is everywhere in our world today. Even if you don't use credit cards your credit score can get you in every corner.

Rental apartments
Mortgage
Auto Loans
Insurance companies
employment

 

[Shmily1]

I'd say it depends.

If I didn't owe it, I wouldn't pay it. I don't care about my credit report because I simply don't use credit.

However, if I did use credit, than I see no option except to pay and promptly in order to preserve my credit report, whether or not I owed it. The fact is, they're not going to let it go unless you have the equivalent of a receipt from them to the effect that the bill is paid, and they can simply punish you by damaging your credit report if you don't comply. You essentially have no recourse, certainly no recourse that would be less expensive than simply paying. So, in your shoes, I'd cough up the money, than complain about legal extortion to my friends over a beer sometime.

You don't have insurance, a job, or a house payment/ rent? Your credit score can get you at each of these things so it's hard to believe that credit doesn't effect you or that you don't "use it".

I second Creditboards. If you can understand all the abbreviations, it is helpful.

 

[Blue.Fairy2]

what is RJM?

 

[JAM61]

You or the credit card company should have a record of your payment if it was done with a check or plastic. If you cannot find your records then I would just pay the amounts (since they are small) before your credit record is tarnished a tiny bit - it's not like you owe $6500!

Good Luck

 

[wvjules]

OMG People, stop telling him to pay it. It is not that simple and he will be doing more damage to his credit than good by following your advice.

It is the job of NCO and RJM to prove to you that you owe them the debt. Do not provide them with that information. Geeze! You are doing their job for them. Know your rights and know when they are violating them.

Please, please do not take the advice of those on this thread. Go to creditboards. They are the experts in these matters.

 

[BrettS]

You or the credit card company should have a record of your payment if it was done with a check or plastic. If you cannot find your records then I would just pay the amounts (since they are small) before your credit record is tarnished a tiny bit - it's not like you owe $6500!

Good Luck

Unfortunately it would have been paid with the debit card from a bank account that was closed two years ago. I certainly don't have any records and while I may be able to get old statements from the bank it would probably take more time and money than I'm willing to invest for $56... especially since it would only show that I paid some money to the NY State Throughway Authority and not necessarily paid off this debt.

Like I said above, I am kind of inclined to pay it to make it go away (and I would make sure that that it will go away before I pay it), but even though it is a small amount I hate to do that just on principle alone.

 

[wvjules]

what is RJM?

RJM and NCO are collection agencies.

OP, are these companies legally licensed and allowed to collect debts in your state?

What is the date of the last payment for the account that RJM now has? (They need to provide you with this information) What is that account? It may be past SOL and you don't owe anyone a dime.

A paid collection looks just as bad on your credit report as does an unpaid one. Additionally if you pay the one that is on your wife's report it will reset the clock, so to speak, and the date of last activity will update and tank her scores even more which inturn might result in more adverse reaction from other creditors.

Would you pay anyone that said you owe them money without first having proof that you do actually owe the money?

Be an informed consumer!

 

[Blue.Fairy2]

RJM and NCO are collection agencies.

OP, are these companies legally licensed and allowed to collect debts in your state?

What is the date of the last payment for the account that RJM now has? (They need to provide you with this information) What is that account? It may be past SOL and you don't owe anyone a dime.

A paid collection looks just as bad on your credit report as does an unpaid one. Additionally if you pay the one that is on your wife's report it will reset the clock, so to speak, and the date of last activity will update and tank her scores even more which inturn might result in more adverse reaction from other creditors.

Would you pay anyone that said you owe them money without first having proof that you do actually owe the money?

Be an informed consumer!

ty and great advice.

 

[NVDisMom]

OMG People, stop telling him to pay it. It is not that simple and he will be doing more damage to his credit than good by following your advice.

It is the job of NCO and RJM to prove to you that you owe them the debt. Do not provide them with that information. Geeze! You are doing their job for them. Know your rights and know when they are violating them.

Please, please do not take the advice of those on this thread. Go to creditboards. They are the experts in these matters.

DITTO! DITTO! DITTO!
Do not pay either of these without first making them prove you actually owe them. You may very well have paid these at some time in the past. Collection debts like these are sold between companies like these all of the time, and sometimes they will try to collect something that was already paid to the previous owner or what have you. Collection companies are not known for doing business in any sort of legitimate manner. You could pay them off and in a couple, few, ten years end up with a different company colleting the same debt all over again. They play on your fer of protecting your credit rating. There are state and federal laws that you can use to protect yourself. If you find you owe the debt, fine, pay it. And keep your records FOREVER!

OP, for your own sanity in the future, visit the the creditboards, read, learn, take their advice. It is sound advice that will save you money, time, and frustration. By following their advice you are invoking consumer laws that are there to protect you.

 

[NVDisMom]

.

 

[AntePrincess]

How do you not use Credit? Credit is everywhere in our world today. Even if you don't use credit cards your credit score can get you in every corner.

Rental apartments
Mortgage
Auto Loans
Insurance companies
employment

No loans of any sort, credit cards or other financing, self-employed, and healthcare is covered through an HSA. We didn't set out to be credit/debt-free either, it was just the result of how we already lived.

It's neither here nor there to the question, anyway: what will happen if Brett balks at paying these two sums which have been sent to collections and he can't prove that he doesn't owe them? Do you think they'll let it go out of the goodness of their hearts or are they going to hurt his credit score? Can he afford for his credit score to take a hit?

 

[ctinct]

OP, please listen to WVJules and NVDisMom.

The collection agencies have to prove you owe the debt. There is a very good chance you don't. They COUNT on people saying, "Oh, well, it's just a little amount, so I'll just pay it to make it go away." However, paying it does not make it go away.

As someone above said, NEVER talk to these people on the phone---communicate in writing only, with proof of receipt from the post office---otherwise, they may claim they never heard from you. They only have a certain amount of time to provide proof that you owe the debt. Really, the credit board forum mentioned by previous posters is a great resource. It can be a little intimidating, but you need to educate yourself on the shady and illegal tactics used by collection agencies.

BrettS, YOU do not have to prove that you don't owe the debt. THEY have to prove you do, and there are certain limitations on what counts as proof. In other words, "because we said so" isn't proof.

 

[Planogirl]

I agree with everything said here except the part about calling them. I see nothing wrong with calling them just to get information just don't tell them a thing about yourself. You already know about the first item so write them and ask them to send you documentation and to only contact you by mail stating "per FCRA". You can ask RJM for info by phone or mail but either way, do write them and ask for documentation and to only contact you by phone just as you did the other.

If you discover that the bills are yours, you can negotiate removal if they are paid but get this in writing! Word of mouth isn't enough later on when you discover them still on your credit report.

 

[Chicago526]

I actually recommend this forum (see link below) over credit boards. I found credit boards to be hard to read and the posters there not as friendly to newbies. This board, for me, is much easier to figure out what one should do and the posters are happy to clarify things for newbies with questions.

http://www.debt-consolidation-credit-repair-service.com/forums/index.php

Also, I have heard that debts under $100 no longer "ding" your score as of 2008. They are still on your report but if someone is just looking at your score, bad debts that small won't factor in. Assuming the rest of your credit is fine and you don't need loans anytime soon, it may be that the best thing to do is nothing. But I'd get advice from the other posters there 1st.

 

[Leajess99]

I agree with everything said here except the part about calling them. I see nothing wrong with calling them just to get information just don't tell them a thing about yourself. You already know about the first item so write them and ask them to send you documentation and to only contact you by mail stating "per FCRA". You can ask RJM for info by phone or mail but either way, do write them and ask for documentation and to only contact you by phone just as you did the other.

If you discover that the bills are yours, you can negotiate removal if they are paid but get this in writing! Word of mouth isn't enough later on when you discover them still on your credit report.

I would NEVER call NCO as they are scumsuckers in my opinion. I actually had one get nasty with me and it was not even my debt they keep calling about. When I hung up on her she called me back and started harassing me even more. Now I have just come to ignore them and not even answer the phone when I get out of area calls. I did have another collect agency try to get me for something that was way old and when I reqyested proof they forwarded the account to their legal people in Massechussetts. I sent them the letter and they forwarded the account to a law firm in a another city close by. I sent them the certified letter as well and they continued to call. I involved the State Attorney General and threatened the last caller with taking them to court for $10,000 since they were in violation of the Fair Debt act. I have not heard from them since and i keep checking to make sure they are not trying to go to court without notifying me.

Many of these collection agencies buy "junk debts" that they think people will just pay off. I had a friend agree to pay a portion of a debt from when she was 18 which in this state would be past SOL by several years.

 

[BrettS]

Thanks for the advice guys... I spent a bit of time on the creditboards yesterday and I've prepared two letters for each collection agency that I will send with a return receipt request when I can get to the post office later today.

I don't have any need for credit in the near future, so I can definitely afford to spend a bit of time fighting these.

Thanks,
Brett