Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Paying Your Bills
Profile Image

Question By
monkeybear87

3 Contributions
1 Person Helped
Qustionable debt collector! HELP!
I used to have a debt with a collection company, LVNV Funding, that had a debt from one of my credit cards. However, it has been over 7 years, and I very recently (within the past month, and about 3 months before that) checked my credit report with all 3 bureaus, and NONE of the bureaus even show this debt anymore. However, I keep receiving letters from different collection agencies claiming they have taken the debt from LVNV Funding and I owe them $633.12. What should I do? I know this debt is no longer on any credit report, and I do not want to blindly pay a company I've never even heard of.
what would be the best solution to this?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
3051 Contributions
2786 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

Best solution is to ignore them.  These folks bought the debt for pennies, hoping you'll be dumb enough to pay them.  Just toss the letters in the trash where they belong.  If they start calling & harrasing, then file complaint with the FTC and the Consumer Financial Protection Bureau (and tell them you're going to do that).  

Top Contributor
7356 Contributions
3808 People Helped

Helpful to 1 out of 2 people

And, at over 7 years old (thus vanishing from your credit report) this debt's statute of limitations for collections expired a long time ago. To the trash they go!!! 

2 Contributions
0 People Helped

Zombie Debt

This is referred to as Zombie Debt. Credit card companies sometimes "sell" the debt they were going to write off, and might get .01-.05 cents per dollar bought this way. The company will then harass you, constantly, ruthlessly, often to the point of being illegal, After 7 years of no activity it falls off credit. Otherwise, until then, they hijack your credit score and basically keep reporting the full debt as past due to your credit. You can protest the debt to the debt reporting agency, but that keeps you on their radar as well. It is possible they will sue you for the ammount, but after 7 years they have no chance of winning. You can probably demand it be removed at your credit bureau after the 7 years has passed.

If you buy a house in that 7 years, often you'll be stuck paying off the full ammount to get your mortgage loan. that seems to be the waiting game they play to see who they can force into making a big payday off of the debt purchase. Oh and by the way, if any of this ammount was included in a bankruptcy then the item cannot be collected so don't let them try to collect things rolled in from an old bankruptcy.

I have a couple zombie debtors on my credit that i'm waiting on the 7 year mark on. I had to send them a lawyer letter to stop the harassment, but they may sue me still. If so, then we'll go to court and i'll bring my doccumentation from the harassment!

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.