Collection on CR without notification & OC Bankrupt

[timbernut]

Hi...I am new here but have been perusing this site for a while now and appreciate all the wonderful advise. Thank you! I have a situation that I seem to have a hard time finding an answer for.

I recently checked my CR and noticed a collection for $158...originally $87 plus late fees and interest charges. Called the number and asked what it was. CA told me that it was for a now bankrupt video store (can't pay OC). I asked why it was reported on my CR when no one mailed me, phoned me or anything to give me the chance to request verification. CA told they did not have to notify me at all before they put it on collections. I asked that they mail me the account details and that I would request verification from there. The CA offered to remove it from my CR if I paid the amount and stated that the call is being recorded and that he would honor his word. I stated that I did not trust his word because they did not try to contact me at all and just put this account on my CR.

So in short, can a CA report this on my CR without contacting me at all? If I send for verification and find that I do owe this....do I owe only the original balance of $87 or do I have to pay the late fees, interest, etc? And last, I am concerned that if I do pay this that they will not remove the collection and then it will be verified on my CR. I just really feel they could care less if it stays even if I pay.

I do not think adding this to my CR was fair at all and any advice is appreciated! I live in Ohio.
Thanks

[chane]

How old is it?

I probably would not pay it, but that's just me. If you have the money and want to pay it, get a pay for delete.

If it were mine, I would do the 1-2 punch. If it didn't get removed, I would then offer the pay for delete. I would work out a deal where I paid like half or what they say I owe. Negotiate, if you decide to pay it!

[timbernut]

Chane, thanks for your reply. The CA put the collection on my report in Oct 2010. I have the money to pay but I first want proof that the account was in my name, the amount show is valid, and also legal proof that they have a right to collect on behalf of the bankript OC. I do believe the account was mine but I am not sure the amount is correct. My only concern with paying it is that they will get their money and won't delete. If they had contacted me first, I would have validated and paid but now I don't trust them.

If I were to not pay, won't it continue to hurt my score? How do I make sure a pay for delete will work? (I'm in Ohio which has conditional restrictive endorsements)

Thanks

[chane]

It will only hurt your credit score if it's reporting. If they can't verify it, they can't legally report it.

The way to make a pay for delete work is to get it in writing or by using one of the methods here.

[Lian]

There is no prohibition against a debt collector reporting first to a CRA without any prior contact with you. However, reporting to a CRA is considered as an "initial communication" that triggers the requriement under FDCPA 809(a) that they send you dunning notice within 5-days therafter.
They are apparently in violation of FDCPA 809(a).

You dont need a dunning letter from them prior to asking for debt validation. I would send a DV letter to their address as reported in your CR.

State laws govern the interest and fees that a debt collector may assess on top of the original debt. You would need to consult your state civil code for details.