Expert: Christine Janklow - 6/19/2007

Question
Hi,
Five or so years ago my brother and I had a company that is now no longer in business.  At some point, I applied for and received a corporate credit card.  I did not sign a personal guarantee.  I believe that I did this application online and for some reason I don't have a copy of the agreement (I am usually very good at keeping these).  When the company folded approximately $8500 was due and when the credit card company started asking for money from me personally, I did send a certified letter asking for proof that I guaranteed this card personally.  Naturally, I received nothing from them except a return receipt proving that they received my letter.  After a year or so the credit co. put this debt as a chargeoff on my personal credit report (where it had never been shown as an account of mine before).  Collection agency after collection agency has called, sent letters, etc. trying to collect the debt which is now up to over $15,000 due to late fees, interest.  I even have a letter from the original creditor that states "After researching your dispute, including a review of our records related to the account, we were unable to clearly determine your responsibility of the account.".  They also said I could continue to dispute it if I signed an affidavit of fact for a fraudulent credit application.  However, this form did not apply to me.  I have written to each agency with the information and the response I receive is another letter from another agency that has purchased this "debt."  Two of the credit bureaus have removed the original creditor/debt from my credit report but state that they cannot remove the information from the collection agencies.  In addition, Trans-Union refuses to remove the original information and considers my dispute "frivolous."  I am growing tired of having to answer all of these letters and continue to have this mark on my record.  Is there anything I can do?

Thanks,
Lori

Answer
Lori:
Thank you for your question. I do understand the complexity of your situation, but do not have a simple answer to resolve it. I would suggest that you send a letter to the creditor where your debt originated validating that the debt and all expenses attached to it are your own. Thereafter, I recommend that you consult with an attorney in your area that has knowledge and experience regarding what is allowed under the Fair Debt Collections Practices Act (FDCPA.) One website where you can find such an individual would be
www.fair-debt-collection.com. I hope this helps resolve the issue once and for all. If you make no progress this route and can not stop collections proceedings, then you can always opt for commercial debt settlement to get the debt paid off at a reduction.

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Respectfully,
Christine Janklow