National Credit Solutions - Collections Account Dispute

[Gibson2687]

Hello,

I've been reading this and other forums all day after waking up to a credit alert from my credit monitoring service showing a new account in collections with "National Credit Solutions." Apparently the account is with Hollywood Video. Only showing up on Experian, not EQ or TU (at least not as of today).

I do not have an account with Hollywood video. They have been out of business in my area for years as it is. I have been reading about the "1-2 punch," whereby I send a Certified letter, return receipt, demanding validation or else delete this from my credit report. I already did an online dispute with Experian, which, from what I've read, will likely be fruitless.

My current lease is about to expire at the end of December and I had been preparing to apartment shop. Given that my Credit will get pulled wherever I decide to apply, I am really between a rock and a hard place here. I would assume that sending a DV letter will get this taken care of--but under what timeframe I do not know. I would consider a PFD just to save the hassle, but I'm not sure how long that takes either.

Here is what is showing up under Experian for this negative account:

Date Opened:
10/2010
Date of Status:
11/2010
Reported Since:
11/2010
Last Reported Date:
11/2010

Type:
Collection
Terms:
1 Months
Monthly Payment:
$0
Responsibility:
Individual

Credit Limit:
$16
High Balance:
N/A
Recent Balance:
$91
Recent Payment:
$0

At this juncture, I was hoping someone on here had dealt with this CA and maybe had some insight on how to proceed. Go ahead with a DV letter on Monday morning, and follow up with a letter to the CRA once I get the return receipt? Or try to negotiate PFD?

Thank you in advance.

[chane]

I would try the 1-2 punch and if that doesn't work, maybe a 2nd dispute. If that doesn't work, try a PFD.

[Gibson2687]

Thanks, Chane.

I sent the DV letter today, CMRR. When I get the green card back I'll send the letter to Experian and wait and see. Considering I never received the first letter or phone call regarding this alleged account I never had, I will be floored if I receive anything other than a confirmation of delete. I can't see a need to go beyond this stage--I just hope I'm right. Again, my biggest concern is how long it's going to take to get this removed. My hands are going to be tied if I have to apply for a new lease and this is still clouding my CR.

[algrande]

This situation is uncanny. I also got a notice from my credit alert on Sunday 11/21 about negative charge. It’s from Hollywood video and national credit solutions and all info is the same except the $. Mine was $15 for credit limit and $90 for recent balance.

After reading through the forum, I ended up sending a DV letter CMRR to the CA today and will see what happens. Was surprised that a collections item could just appear on my CR without any call or written contact from CA.

To clarify, once the green card comes back to me do I send the exact same DV letter to the CRA or do you need to draft a simple cover letter to CRA with brief explanation and attach copy of DV letter send to CA?

[Gibson2687]

Algrande: This has to be the most ridiculous thing I've seen in a long time.

I was also about to ask the same question as you. I don't know if we need to include the letter we sent to the CA in our letter to the CRA since the letter to the CRA should be very succinct--but we definitely include a copy of the green card. From what I've read in Chane's/Trish's old posts, you don't want to say very much to the CRA. My letter to the CA was not exactly detailed, but given my legal background, I'm very cautious about sharing communications I've had with a third party with another party, when both have interests adverse to mine.

The odd thing in my situation is that, all of a sudden, about a week or two ago, I started getting an insane amount of mail for someone who was obviously a past resident in my particular apartment unit--I certainly didn't open it, but there were plenty of letters from various companies (again, I didn't read it, so I don't really recall)--not just junk mail/coupon mailers. I don't know if this has anything to do with why, all of a sudden, without the first letter/phone call, I wind up with a collections account on Experian. Perhaps an address/name mixup.

Do you mind if I ask which CRA's are reporting the account in your case?

[algrande]

It's Experian, but I'll pull the other big two to see if I need to dispute the collections charge with them as well.

[JeremyKean]

Originally Posted by algrande

It's Experian, but I'll pull the other big two to see if I need to dispute the collections charge with them as well.

You are on the right track with the 1-2 punch, one thing i would add though, is you need to have a credit report pulled with experian on the ending of the 5th day. The report must say "item is in dispute" or you have gotten the leverage you need, since that is a violation of FDCPA

[Gibson2687]

I'm still waiting on the green card as of today. The online tracking had an expected delivery date of last Friday. Must be sitting in the PO Box.

As far as the other two CRA's, I pulled them the same day my credit monitoring showed this garbage and they were clear. I imagine if it shows up on the other two, the credit monitoring will pick up on it. I really don't feel like paying another $25 to pull EQ and TU again....

[Maggiee]

I reviewed my credit report today only to find out that my credit score went down approximately by 70 points due to collection account that appeared out of nowhere. Account belongs to National Credit Solutions based in Oklahoma City that was opened by NCS on August, 2010 and reported To Experian in October 2010 (but apparently the original claim is from 2005 from Columbia House for DVD balance of $62.00).

First of all, I do not order not receive any DVDs and I am certain I did not receive any Invoices, I am sure I would notice five (5) years worth of invoices from Columbia House.

Moreover, shouldn’t National Credit Solutions after acquiring or purchasing my so called “debt”/”account” that should even exist, attempt to contact me to advise me of their alleged claim instead of going straight to Credit Reporting Agency and destroying my credit? I am actually still at the same address.

I called National Credit Solutions and was advised that the only way for my credit to be restored is to pay $62.00. It is the matter of principle… why should I pay for item that I never acquired; it is $62.00 worth of debt that I was never informed previously of. Would National Credit Solutions be able to actually remove this entry from Credit Report?

At this point, I already disputed the claim on-line with Experian but it will take 30 to 45 days for them to investigate the claim and in all honesty I am in no position now to wait that long. Please help…

[Gibson2687]

I'll give you a brief answer, then encourage you to read through some info here on the forums, especially the beginner's guide, that will be very helpful.

As far as restoring your credit quickly, you are at the mercy of the process. The only people that can remove the collections account from your credit report are the Collection Agency and the Credit Reporting Agency, at this point. So what do you do? First, you send a Debt Validation letter (DV is the short term lingo) to NCS demanding that they validate the debt within 30 days as required by law (for more info on this, see the beginner's guide on the forum). You will want to mail that letter Certified with Return Receipt. When you get that return receipt back, you mail it along with a dispute letter to Experian or any other Credit Reporting Agency that is reporting this alleged debt (more info on dispute letters is also in the beginner's section).

Now, since you have already initiated an online dispute, you need to wait 30 days before sending that letter to Experian (to my knowledge, a more experienced member may be able to chime in), otherwise they're going to treat your letter as "additional information" and just extend their deadline to respond to your initial dispute by 15 days. By waiting 30 days, the letter you send is a new dispute. Now, they may delete the account after the online dispute, but if they don't, you proceed with the letter as described above.

The important thing is to go ahead and get that DV sent to NCS.

I know this is a terrible situation, and I'm in the same boat. I never heard the first thing via mail or otherwise about the alleged account with Hollywood video, it just popped up on my credit report and hammered by Experian rating. Unfortunately, this kind of crap happens and your remedies are limited. You can certainly seek an attorney if you truly feel like you never had this account. You may find counsel who will take your case on contingency, but the first thing is to send these letters.

You also have the option of arranging a "pay for delete." That option basically means you pay them what they claim you owe and in exchange they remove the item from your credit report. More info on this in the beginner's section as well. This may get you quicker results than sending letters if the $60 or so is worth it to you. The dispute process can drag out to 60 days or more--but if you arrange a pay for delete, you could wrap things up inside of a month, it just depends.

Read the beginner's guide carefully. Get knowledge on a Debt Validation Letter to be sent to NCS, the dispute letter to be sent to Experian and if you want to consider it, read up on pay for delete.

Best of luck--I hope all of us dealing with NCS get our reports cleaned up in a hurry. I know how rough it is when you have a clean credit report save for one bogus, fraudulent account screwing it up.