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 Credit Cards
Profile Image

Question By
billybob1994

0 Contributions
0 People Helped
What if I never received a debt collection notice but it's been in collections for 4 months?
I've severely fallen behind on payments for one of my credit cards. I got a notice from the bank that my account was being closed but I still owed them the money (obviously) after about 6 months. My first time logging onto this website, I see that the the bill has been turned over to collections (with a hefty amount of interest) without any sort of contact from either the bank or collection agency. I had moved to a new city about a year before the debt was sent to collections but I informed the bank of my new address because I was getting about 4 or so letters a week about my balance due. Do I have any sort of rights because I was never actually notified? What should I do?

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
3 Contributions
78 People Helped
Most Helpful Response

options

Helpful to 1 out of 1 people

First thing, you can contact the collection agency in writing asking them to vaildate the debt. You have the right under the Fair Debt. 

They  have 30 days to do so . Once that is done, you can call and negotiate a settlement.  The fact is the bank has sold this debt for pennies on the dollar to this collection agency. The bank is done with your account.  The collection agency is praying you won't pay so they can sue you and get more money than what you actually owe.    If you are willing to settle, offer them a settlement of no more than 20 to 30 percent of what they claim you owe.  If they agree , tell them you must have the agreement in writing and that it must state what you agreed to pay and that it will settle your debt in full and they will report it to the credit agencies as such.  That is very important.  Do not make any payments until they vaildate you owe the debt and they actually own it.   Banks are notorious for selling files to numerous agencies. You don't want to wind up paying one agency and then having another claim we own the exact same debt.

Result 1-1 of 1Results 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.