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  1. #1
    Join Date
    May 2015
    Posts
    1

    Default Getting a Debt Removed from a Credit Report After the Collector Goes Out of Business

    My question involves collection proceedings in the State of: WI

    I had three accounts from USBank that were charged off back in 2010. They picked out portions of each negative account balance and retain an estimate of $1300/$2800 in debt on their books. The rest they sold to United Credit Recovery LLC in 2011. Here's my dilemma in trying to reconcile what generated the debt, who currently owns what and how to pay this to eliminate my reported information on ChexSystems:

    USBank's DDA Recovery Dept was unable to provide me with any sort of bank statement or transaction detail and referred me to the branch. However, the branch is only able to look back 18 months (unhelpful) and they referred me to telephonic customer service. They were also unable to provide any kind of transaction history. My next step is going back to Recovery, I guess. I was also given a general mailing address in St Paul, MN that I can send a letter and someone may contact me.

    DDA Recovery was also unable to accept payment on the remaining $1500 since it was sold to United Credit Recovery LLC. They provided me a phone number to call the collection agency to see if they still have my debt. The phone number belonged to a mobile that is no longer in service. After "googling" the business name, I located 3 more phone numbers - all inactive. Google states that this business is now permanently closed. BBB.Org states that the business is no longer active due to unlawful business practices. Apparently the owner, Mr Leonard Potillo, is facing up to 20 years of Federal prison.

    This is all great to know, but what are my next steps? I just want to pay this or have it disappear.

    Quick point: None of this debt is located on my credit report.

    Here are some references, if the gory details interest you:

    http://www.sigtarp.gov/Press%20Relea...ss_Release.pdf
    http://www.bbb.org/central-florida/b...rd-fl-90134501

    Thank you for advice.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,830

    Default Re: Bank Sold Debt to a Closed Collection Agency

    If you're talking about an entry that was added to your credit report by the junk debt buyer, and the debt buyer is now out of business, it seems reasonable to beleive that the defunct company won't respond if you file a dispute of the debt with the credit reporting agencies.

    If the debt was listed by the original creditor, it's difficult to know how they would respond if you disputed the debt -- it may be that they're in a position to validate their original report, but not the amount presently owed -- but you have no right to have accurate information removed from your credit report.

  3. #3
    Join Date
    Mar 2013
    Posts
    16,671

    Default Re: Getting a Debt Removed from a Credit Report After the Collector Goes Out of Busin

    This is not a legal opinion it's a personal opinion. Well, there's some legal stuff.

    Anyway, I don't see where you need to take any steps at all.

    Here's why.

    The statute of limitations for a lawsuit based on a contract is 6 years in WI. You wrote that the charge off was in 2010 but when was the default. Default is not when you made the last payment on time, it's when the next payment became past due and never paid. So figure out when that was and you'll know how much closer you are to the 6 year cut-off.

    However, that the accounts were charged off means that US Bank isn't likely to file suit.

    And, since the collection agency is out of business, it's unlikely that you'll be sued from there either.

    Lastly, the collection accounts aren't on your credit reports so there's no harm there. If the charge-offs are on your credit reports, their negative effect has likely waned by now and they will disappear at the end of 7 1/2 years.

    What's your current credit score?

    As for ChexSystems, there's probably nothing you can do about that and maybe no reason to throw good money down the toilet after all this time. If you have trouble writing checks then pay cash, use debit or credit cards, or money orders.

    That being said you might try disputing the entry with ChexSystems and trying to get it deleted. I found a few websites with information on how to do that:

    http://www.creditinfocenter.com/form...letter11.shtml

    http://www.chexsystemssolutions.com/...sample-letter/

    http://aaacreditguide.com/credit-rep...pute-letter-1/

    There's more like them but you get the idea.

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