Collection agencies and Credit Cards

[Drew99GT]

So my parents used to have a credit card through their local bank that was issued through MBNA (the worst bunsh of scum [censored] on the planet). MBNA (recently bought by US Bank thank god) had a storied history of screwing with people, and one thing they did was stop mailing out statements. Well, my parents fell victim to this and got behind on the card because they didn't know how much to pay. Anyhow, they ended up settling the debt and MBNA closed the account and waved the late fees because my mom [censored] them out.

Fast forward to yesterday. My Dad gets a letter from a collection agency - LVNV funding, the worst bottom feeder collection agency out there. They want a thousand bucks but are willing to settle for 300. So after some research, the balance they say we owe is the amount my parents paid off and the amount they're offering to settle for is the amount for the late fees that MBNA waved. I just called US Bank and they show that account as closed/settled.

This little sharks from LVNV have also put this on my parents credit reports.

Thankfully US Bank is going to send us a letter saying the account was closed in good terms and I'll forward it to LVNV along with a nice letter telling them to [censored] off.

Something really has to change with debt collection in this country. I know a lot of it is legit, but much of it isn't, and these [censored] collection agencies like LVNV are instigating outright fraud in our case. They're just out to get 1% of the people they harass to cave in.

Thanks to our good friends in Congress who are bought and paid for by the credit card banks and the credit reporting agencies, I have no faith that this [censored] will ever stop.

 

[Johnny]

Be sure you send a copy of the US Bank letter to the three different credit bureaus with a note that the LVNV stuff needs to be removed.

 

[Drew99GT]

Originally Posted By: Johnny
Be sure you send a copy of the US Bank letter to the three different credit bureaus with a note that the LVNV stuff needs to be removed.


According to the fair credit reporting act, if LVNV can not prove they are legally entitled to this debt, which they aren't, then they have to report it to the credit bureaus as settled.

From the reading I've done on these scum, they'll likely sue my parents, but it'll take 5 minutes for the judge to see this is fraud.

I want to sue them for pain and suffering! My blood pressure is so high I'm about to have a vein burst.

 

[jdeare]

I thought MBNA was sold to Bank of America? I'm pretty sure that's what my old MBNA credit card became anyway.

Last year some debt collection agency got a hold of my phone number and started calling every day for a person I never heard of. I told them that person was unknown to me and to stop calling, they said OK and kept calling. Eventually I stopped answering, but before that the caller accused me of being the person they were actually looking for.

I ended up having to change my phone number.

I wish you luck...

 

[brianl703]

These debt collection agencies buy old debts for pennies on the dollar and then use high pressure scare tactics to try to collect.

 

[Cutehumor]

Originally Posted By: jdeare
I thought MBNA was sold to Bank of America? I'm pretty sure that's what my old MBNA credit card became anyway.

Last year some debt collection agency got a hold of my phone number and started calling every day for a person I never heard of. I told them that person was unknown to me and to stop calling, they said OK and kept calling. Eventually I stopped answering, but before that the caller accused me of being the person they were actually looking for.

I ended up having to change my phone number.

I wish you luck...


I got VOIP your life, I block all telemarketers. I'm on the do not call list, but since I have a credit card with HSBC, chase, and citibank. they telemarket me, so they are blocked, once I see their phone number on my caller ID.

 

[Boomer]

Also, send copies of everything to the attorney general in your state. That will help you out as they will get involved.

 

[Drew99GT]

Originally Posted By: jdeare
I thought MBNA was sold to Bank of America?


You're right. My bad. Cripes, and I got off the phone with a BOA customer service person a few hours ago.

 

[hate2work]

MBNA was bought by Bank of America.

Johnny is right, YOU should send the letters to the CBs, don't rely on the collection agency to do that for you.

Here is a guide for correcting the credit report.

http://www.cardratings.com/howtocorrectcreditreporterrors.html

Good luck-

 

[Drew99GT]

Originally Posted By: brianl703
These debt collection agencies buy old debts for pennies on the dollar and then use high pressure scare tactics to try to collect.


See, that's what's confusing. There was essentially no debt to buy!

From the research I've done, the collection industry also buys and sells information on potential bad debts as well as debt itself. We're thinking the info is still out there that my parents did not pay off the card and these schmucks bought that information not knowing it was paid off. Regardless, I'm going to hand their asses to them on a platter.

 

[bdcardinal]

send a certified return receipt letter to the collection agency requesting proof of the debt owed. if they cannot provide it, they are in violation of the fair credit reporting act, and you can get up to $1000 in penalties if they continue.

if you are a member on stangnet, there is a big thread in the banana hammock republic section about this.

 

[dwendt44]

Supposedly, if you tell them to stop calling, they are required to stop.
Many collection agencies don't care about the rules since most folks don't know their rights or the rules.
Yes they are required to prove you owe the debt.
If they have the wrong name, etc., they should also quite calling if you demand that they do so.
If they persist, report them and tell them you are doing so.
While the CC companies have friends in Congress for the last few years and have managed to get protection from some bankruptcy laws, they still can't harrass you.

http://clarkhoward.com/liveweb/shownotes/category/12/103/358/

 

[Pablo]

Argghh more credit card horrors. I say just don't use them if they are gonna cause so much grief....or as I said before, they "loan" you money so be ready for the abuse.

 

[crinkles]

best vote is the one you make with your feet. don't use them. sometimes that is not possible though.

 

[MarkC]

Don't assume they will sue you...in court. Most cards come with an "arbitration clause" which means you'll fight them in arbitration with the deck severely stacked against you. The percentage of people who prevail against the collectors in arbitration is very low. However, they still have to go to court to get their "award" confirmed.
Know the rules and the way the game is played and fight back hard. Often, a collector will back off if you fight back.

 

[Solo2driver]

Scum scum scum. Having difficulties of my own with that. Good luck!!! Take up a relaxing hobby like indoor shooting, only use their letters as targets. Optional-- mail used targets back to them. I think they'll appreciate the humor

 

[MarkC]

This is a good resource, the forums are packed with people who know what they're doing.

http://www.creditinfocenter.com/

 

[Mr Nice]

Watch the segmant on Dateline about Collection Agencies.

You can download the segment from their website.

 

[firemachine69]

Adding debt on to more debt never made sense to me!

 

[oilyriser]

Sue them for libel if they post a false report to a credit agency.