Expert: Jason Shear, Esq. - 2/6/2010

Question
Hi Jason!  Greetings from Buffalo.

I contacted you about 2 months ago and you were helpful.  Thanks.

I have a development I am hoping you can help me with.  

In October 2009 I was contacted by Palisades Collection, LLC about a debt.  Long story short - I asked them to validate the debt, which I suspected was from a charge off (lengthy unemployment) in 2006.  I say "I suspect" because the original creditor (Providian) is never referenced, and I think they went through 2-3 mergers since then, ending up with Chase and being sold to Palisades.  Anyway, two months after requesting it, they sent me a copy of a blurry statement from 2006 (Washington Mutual) - it was hardly legible.  In the meantime I discovered that back in September of 2009 they put an entry on my credit report -- on debt that was never validated!  In addition, the amount they indicated there was $3000 different from what their initial collection letter stated ($9000 then and $6000 on my credit report).  I just sent them another letter (certified mail) indicating that their validation was inadequate, and that I considered them to be violating my rights under the FDCPA by trying to collect on unvalidated debt.

I was thinking, though, that now might be a good time to just send them a check, say for $500, and see if they will settle and just go away.  I'd also send a letter saying that, if they cash the check, I consider the account settled.  My big question is - will this somehow open me up to additional collection activity?  Is it better just to wait and see what they do next? I have limited cash to deal with this - maybe $1000 maximum. I know they could also sue me, which I obviously want to avoid.  

Jeffrey

Answer
Jeffery,

Good question.  Under no circumstances do you want to send them a check with the type of letter you outlined.  They would cash the check and still pursue additional collection efforts.  Moreover, the payment could be used as an acknowledgment of the debt and start the SOL anew.

If you don't want them to contact you anymore, just send them a cease communication letter.  
Do not worry if they sue you, due to the age of the account, they would not be able to prevail in a debt collection case.

If you have any other questions or concerns, please do not hesitate to contact me directly.

Jason Shear, Esq.
Attorney at Law
4160 Harlem Rd.
Buffalo, NY 14226
Phone: (716) 566-8988






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