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Expert: Michael Brotherton - 7/9/2008


Question
We were getting behind on our credit cards so we went and did a Morgage consolidation loan to pay off all our credit cards and the checks were mailed out. One of our cards sold out to a collection agency the week before we mailed our payment. We were not aware of that and mailed it to the credit card company. Now we are getting calls from the collection agency wanting the money that we already paid. When we call the credit card company they tell us they no longer have our account information and refer us to the collection agency. Someone got the money but they will not help us when we call. What can we do to stop the calls, and see that this account is credited for the payment that was made..and why does the credit card company not have to notify the collection agency when they receive full payment and no longer need to collect.No matter what we say they want full payment again.

Answer
You will need to provide proof the debt was paid to the original creditor. Did you pay by check, money order, or were checks cut by the lender when the loan was made. If this is the case contact the lender or the closing agent and ask for copies of the cancelled check. Send a copy of the check to the collection agency along with a copy of the HUD1 closing statement to show the debt was paid through a consolidation loan. This should do the trick.

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Michael Brotherton

Expertise

Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).

Experience

Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.

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