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What does it mean when a Collections agency says they're a non reporting Third party??
I had a US Bank account and thought it was closed, two days ago I got a letter from Monarch Recovery Management saying I owe 500 to US Bank. There is nothing listed on any of my 3 credit scores referencing this. My question(s) 1.) Monarch when i called claims to be a NON-Reporting agency I was told they are a third party and don't own the debt or have anything to do with contacting credit bureaus. 2.) US Bank then told me the opposite and told me they don't report to the CB's 3.) If they haven't sent anything yet and I pay it in FULL will they send something into the CB's? 4.) Should I be nervous about going and paying it off in full with US Bank? Will they turn around and then send it to the CB's? Thank you one very confused and frustrated consumer!!
Just notified 2 days ago IMMEDIATELY called and began asking what I can do and if my information has been reported to the CB's all the answers where NO. Monarch Recovery Management says they are a NONE reporting 3rd party and don't contact the CB's. US Bank said they don't report to the CB's its the CA's that report??? HELP PLEASE!!!

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Since this is not on any of your credit reports, I suggest sending a letter to Monarch telling them you want a proper validation of the debt within 30 days of date of receipt of the letter (send it certified, return receipt requested).  Then sit back.  They know what they are supposed to send and just a computer print-out doesn't cut it.  They don't send proper validation, you don't have to pay.

I suspect Monarch is one of those 'junk debt buyers' and you'll find some interesting information on them if you do a search online. 

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Collection Agency impacting credit score

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I have a collection agency after me with an invalid debt. They have not validated the debt yet even after my multiple requests and threatening to report this to my credit history. I want to know id they can report this invalid debt to the credit bureau and impact my credit history/score? is there a way i can safeguard by being proactive and informing the CB or some government authority about it.

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Cease & Desist Letter

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My recommendation to you is to send a certified mail-return receipt Cease & Desist letter to the collection companies reporting on your credit report.  That is what I did and am doing (I have successfully had 3 removed [they were old medical bills from my cancer treatment]).  See the below.  It couldn't hurt and will cost you about $6 to the USPS per letter.

A work colleague of mine gave me a photocopy of a $1 book she found in the checkout line at the grocery.  It is called "Bye-Bye, Bill Collectors."  Don't ask me who published it, because I don't have that info.  What is in the book has saved me countless amounts of $, harassing phone calls, and time.  The below is a direct quote from the book and I would credit the author if I knew the name.

The very first chapter: Tip #1 DON'T PAY THE COLLECTION AGENCY

Debt collectors prey on your fear.  They know how to badger you until you send them a check. 

The truth is that you should repay ONLY the original creditor.  Never repay the debt collector.

"Debt collectors promise to delete all negative information from your credit report if you repay them," says Dover.  "They'll intimidate you until you do."  But if you pay the debt collector, here's what may happen:

You open yourself to repeated harassment.  You may still owe the original creditor even though you paid the bill collector!

You set yourself up for negative information on your credit report for seven years after the debt is paid.

Here's how that works: If you default on an account in 2002, it would be erased from your credit report in 2009.  If, however, a bill collector comes after you in 2007 and you settle the account, the transaction will then stay on your credit report for seven years from that point - until 2014!

In addition, debt collectors sometimes go bankrupt themselves.  If they haven't passed your payment on to the original creditor, you have to pay the same money twice.


When you understand your rights you have a better idea of what you should and shouldn't do when dealing with a debt collector or credit counseling service agency.

The Fair Debt Collection Practices Act was enacted in 1977 and updated in 1986.  The law is complicated, so here are some of the basic points.

Debt collectors may NOT tell others you owe money, contact friends, family, or employer, or use a postcard or letter with a return address showing it's from a collection agency.

They may NOT call before 8 a.m. or after 9 p.m., call you if they know you have an attorney, or call you at work.

They may NOT harass or abuse you physically or verbally or use obscene language.  They may NOT put your name on a "deadbeat" list and post it in public or the newspaper.  They may NOT advertise a debt sale on your behalf.

They may NOT make anonymous calls to you or call and hang up on you repeatedly.

They may NOT give the impression that they are with a government agency or the IRS.  They may NOT say they are from a "legal department," or indicate that a sheriff will come to your house to pick up a check or money order. 


Now that you know your rights, it's your turn to take the offensive.

1st Step: Ask the person who is calling the following questions: Name and title of the person, name of the company, mailing address and phone number.

Be polite but firm.  Tell them you are trying to work things out.  Getting this information is essential for the following steps.  Don't even talk to them until you get this information.

2nd Step: Once you have received this data, you will write a Cease & Desist letter (see Tip #7) and send it via certified mail, return receipt requested.  This will cost you under $10 (updated with 2015 postal rates) but the investment is well worth the effort.

3rd Step: Keep notes of every phone call you make and receive - the date, time and nature of the conversation.  Get the name of the personal calling.  Also note the date the Cease & Desist letter was mailed and the certified number (KEEP YOUR RECEIPT - 2015 USPS now has email return receipts).  When the green card (2015 or email return receipt) comes back to you , note the name of the person who signed for it and the date.

4th Step: Under federal law, the collection agency may NOT contact you again by phone once they receive the Cease & Desist letter!  If they do, they have violated the Fair Debt Collection Practices Act.  By keeping a record of their calls, you can turn the tables on them once and for all.


By law, once the debt collector receives the Cease & Desist letter, he or she MUST stop calling you.

To ensure that your creditors receive it and to know when it was delivered, send it certified mail, return receipt requested (2015 email return receipt is available and cheaper than the green card).  This will save you countless hours of aggravation.

Here is a sample letter:

To: Name of the debt collector Company and address

RE: The debt being collected (Visa, MC, etc)

Dear Sir or Madam:

You are hereby notified under the provisions of Public Laws 95-109 and 99-361, also known as the Fair Debt Collection Practices Act, that your services are no longer desired in this matter.

1. You and your organization must CEASE & DESIST all attempts to collect the above debt.  Failure to comply with this law will result in my immediately filing a complaint with the Federal Trade Commission and this state's Attorney General's office.  I will pursue all criminal and civil claims against your company.

2. Let this letter also serve as your warning that I may utilize telephone recording devices in order to document any telephone conversations that we may have in the future.

3. Furthermore, if any negative information is placed on my credit bureau reports by your agency after receipt of this notice, this will cause me to file suit against you and your organization, both personally and corporately, to seek any and all legal remedies available to me by law.

Since it is my policy neither to recognize nor deal with collection agencies, I intend to settle my account with the original creditor.



Once they receive the letter, you can expect one of the following:

The debt collector will turn your account back to the original creditor (Personal experience - this is what happened to me 99% of the time).  Wait to see what they do.  You are in a good negotiating position at this point.

The debt collector will turn your account over to an attorney.  If they threaten to sue, send a Cease & Desist Letter.  If they sue you, they sue you.  You still don't have the money to pay.

The original creditor will realize they cannot collect the debt and will "write off" your account as uncollectable.  It will roll off your credit report in seven years.

Tip #10 (partial) UNSECURED DEBTS

Unsecured creditors have nothing to fall back on except your signature promising to pay.

If you can't pay on an unsecured debt, the creditor is often willing to bargain. 

(This is why it is IMPERATIVE to get the Cease & Desist letter to a collection agency so they send the debt BACK to the original creditor. For many unsecured debts, the original creditor doesn't bother reporting to credit agencies [in my personal experience]. Only the collection agencies report. If you get the Cease & Desist letter to them before they report [usually required within 30 days of their original letter or telephone call], they cannot report without violating the Act.)

Good luck - so far these letters have helped me.

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At this point I have sent the cease and desist letter to the collections agency and followed up with a phone call. They continue to tell me that they have contacted the original lender to confirm that my account was closed and will give me an answer as soon as possible but that I would have to contact them. They can no longer contact me due to my letter. I explained to the collection agency that I requested collections to stop but that it's ok to send me a letter to confirm my account was closed. They said they can't even to that. I want a letter from them stating that my account is closed because I do not trust that they will close it. I learned my lesson when the original lender told me it was closed and two months later I get a letter from the collection agency seeking payment for an account that's supposed to be closed. It's extremely frustrating. I'm now waiting for the original lender to finish their investigation but I have no faith in these people. They play with your life for kicks.

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