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Question
I recently received a collection notice regarding a debt belonging to my last employer. One of my duties at my previous job was to authorize and maintain our yellow page listings in the local phone book. This debt is regarding one on those phone book listings.
I lost my job about a year ago when the company went out of business. Apparently the former owner filed for bankruptcy but never paid this bill. According to RMS collections I am legally responsible for this bill since my name is on the authorization for the listing. I explained to RMS that I did not own the company but was merely acting on behalf of the company. They have insisted that the contract for the phone book listing specifically holds me accountable if the business owner doesn't pay. Of course they have threatened to ruin my credit if I don't pay. I find all this very hard to believe. Can you tell me if this can really be true?
Hello Ted:
In theory, it is possible. They are talking about a personal guarantee. If it is deemed that you personally guaranteed the debt, you could be held liable. In a case like this, I think it is unlikely, but possible. The key would be if you ever entered into a contract - likely a signed contract is needed - to be a guarantor of this debt. Did you do so?
If you didn't, your option is to fight it through traditional means. This includes credit repair, lawsuits, and negotiations. The specific steps you take at this moment are difficult for me to say. You may need to ramp up your language through sending of threatening certified letters demanding they stop collection activities. You could also use credit repair to ask for debt validation under the FDCPA. This means sending them a certified letter demanding they prove you owe the debt and that they are legally allowed to collect it.
These steps may get them off your back, but an additional goal is to start a paper trail showing you have disputed it and lay the foundation for possible legal proceedings down the line.
Good luck, I hope this helps. This is also a possible case for professional credit repair, so it is services we provide for as little as $19. Contact us at www.ficofighter.com if you are interested.
Regan
www.ficofighter.com
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Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA University of Minnesota
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