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  1. #1
    Join Date
    Oct 2006

    Default Zombie Debt Question in NC

    When applying for a home loan in 2002, a collection that was not posted on any of the standard credit reports showed up on Transunion 3. I was told I had to pay in order to get the loan, so I spent several days tracking the collections agency down and was able to get a statement which said I had a Sprint account which had been charged off in 1997 with a balance of $170. I had never had a Sprint account, but I paid anyway to get my home loan. BTW, the collections agency could never provide any documentation from Sprint saying I had ever owed anything.

    Six months later, another collections agency tried to collect for the same debt. I sent them the proof I had of payment (release letter, mail receipts, copy of cancelled check). They responded saying that was a differnet account. Apparently, the first collections agency sold the account to another creditor using a different internal account number, but the original Sprint account info was exactly the same. That was the last I had heard from that collections agency. Six months later, another agency was tryng to collect.

    Four years later, this is still going on. The amount I supposedly owe has grown to ~ $300 and I am afraid that one day they will try to take legal action against me. I know the SOL has expired and I have proof of paying, but I have heard that they can still try to get a judgement on me. What can the creditor or collections agency legally do and what should I expect them to do. I would like this to stop, but I feel if I take it to court, the account will just be sold to another creditor and the process will begin anew.

    Thanks for any advice you may have on this matter.

  2. #2

    Default Re: Zombie Debt Question in NC

    Basically they will just keep hounding you and the credit reporting agencies keep dealing with these outlaw agencies. I suggest you make up a standard demand for verification letter and just keep sending it out. They are not going to sue for 300 and it is too old.

  3. #3
    Join Date
    Oct 2006

    Default Re: Zombie Debt Question in NC

    Thanks for the advice. What is the best way to handle the verification letter? Should I send a standard nondescript verification letter or should I say that I have paid and send the proof as I have done before? I don't want to give them more information than they already have, which appears to be nothing.

    I am concerned because the "creditor" has never provided me with any information besides a piece of paper from their office that says I owe them money. This was sufficient proof for the CRAs at the time. Would this also hold up in court? Sue for $300, probably not, but at the rate the debt appears to be increasing (no info here either) it could be a high enough value one day for them to take action.

    Thanks Again!

  4. #4
    Join Date
    Oct 2006

    Default Re: Zombie Debt Question in NC - Update

    An Update Regarding the Collection Activity - North Carolina

    After my last DV letter, the current creditor, LVNV Funding, through it's own collection agency, Resugent Capital Services, sent a validation and verification letter. The first page includes a payment slip and says "Enclosed please find an original validation of debt that verifies the debt." Also included on this page are their North Carolina Department of Insurance permit numbers.

    The second page has the heading Validation of Debt with the date and my name under it. The validation consists of the following:

    "The account of MY NAME aquired from OSI/Gulf State Credit is now owned by LVNV Funding LLC.

    At the time the account was acquired from OSI/Gulf State Credit, OSI/Gulf State Credit advised that the balance was $XXX.XX. Since that time, additional interest, fees, payments, credits and offsets, if applicable, have been allowed, for a current balance of $XXX.XX. "

    This is the first time I have ever received a response to a DV letter. What they have provided seems consistent with what is generally required by law as validation, but there is nothing telling me who the original creditor is, what I owe money for and how the debt was calculated. They are not reporting to the CRAs and appear to be operating within the law so far.

    I am unsure of how to proceed at this point. Should I keep sending DV letters, send a C&D letter stating SOL or just do nothing?

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