Expert: Creditwrench - 5/29/2008

Question
 I recently submitted a question that I was really hoping to get an answer to. I got an abrupt reply that "Sorry, I don't answer homework questions"
 This is a real life event for me and I am in need of some direction to go here... I will submit it again as written before. Please respond.

Dear Sir,
 I have a question regarding an old debt. I'll try to be brief, but as I tell you my story, you will understand my question.

 After a concurrent divorce and job layoff in 2002, I defaulted on a credit card that I owed about $1200.00. Some time later, I contacted the company that issued the card to inform them that I had obtained good employment and could begin to remedy my debt to them. I was told that that account had become a "Charge off". The lady I talked to from the credit card company told me that the account was dead, and in fact, they would not take any payment from me. So, right or wrong, I let it go.

 Almost two years later, a law firm contacted me via phone and told me that their client had bought that debt and they were collecting for the new debtor. I made a deal, over the phone for a settlement of $1,000.00 over three payments. I also expressed to the "lawyer" I was talking to my concern with who I was speaking to and wanted our deal in writing. He agreed to send me essentially an invoice on firm letterhead so I could begin paying my debt.

 I received nothing by mail and three weeks later, I received another phone call from a different "lawyer" in the firm demanding their $1500.00 immediately. In fact, he demanded my bank account number so they could take a "check by phone". I related to this person that he was only a voice on the other end of the phone, and that the deal was for $1000.00 not $1500.00. I told this person that I would pay the $1000.00 that was agreed upon when I received my notification in writing.

 This person got angry, and even swore at me...at which time I told them I would fulfill the agreement when I received my invoice and then hung up.

 I then received a letter from a local lawyer three months later saying I owed around $3500.00. I contacted him by phone and related the whole episode to him. He said he would get back with me.

 Seven months after that, I received a letter from this local attorney saying I owed $4900.00+ and that I had thirty days to respond to his letter.

 I wrote him, told him the whole story again, and offered again to pay the $1000.00 that had been agreed upon. I received another letter from him telling me that this is now a new debt owner of the account, and that they knew nothing of the $1000.00 settlement, and I am to answer him within ten days.

 What is my obligation here? Why haven't they taken me to court? Do I owe some company I never did any business with anything? After the account was a chargeoff? after the first debt collector did not follow through on the verbal contract? What should I do?  Thank you  

Answer
I can't tell you why they haven't taken you to court. Could be it is out of statute of limitations. What state do you live in? That can make a huge difference.

In any case you need to send them a validation/dispute letter.

Bill Bauer
405-684-9297
405-227-9423

The Creditwrench conference calls will start this coming Friday evening at 7 P.M. Central time. It is free and open to the public. There is no cost or obligation other than what it may cost you for the phone call itself. You can join in and ask questions or just listen or whatever you want to do.

Dial-in Number: (712) 432-1601
Access code: 508548#

You might also want to visit our message forum at http://consumers.creditwrench.com to get answers to questions you need answered before next Friday night.

If you live within driving distance of Oklahoma City you can also come to our monthly meeting of the Oklahoma City Chapter of Jurisdictionary meetings. They are held on the 2nd Thursday of each month at Coit's Root Beer Stand which is located on the corner of SW 24th & Western Ave in Oklahoma City. The meetings start promptly at 7:00 P.M. and last for 2 hours. Attendees usually arrive about half an hour early so they can enjoy a good meal at Coit's Root Beer Stand. The meetings are free and open to the public and we can discuss your problems as well if you like.

We are going to start holding mock trials so that you can learn some court room procedures.