[tarapaige]

I currently have a debt that is in collections. I have no problem contact the credit agency, but I would much rather settle the debt with the actual business that I owe money to. Unfortunately, they are nowhere to be found! All of their numbers have been disconnected, their office is no longer open, and the credit agency can't even contact them. We sent a letter to them and still have received no response. We finally got the phone number of the actual owner so I am calling him at his home but he is never there and never returns my calls. My question is, is there a way to get this collections account removed from my credit report since they are unavailable for me to pay?

[RickJ]

If it were me I'd ask the agency to prove the validity of the debt. Typically agencies do not carry paperwork proving the debt - but they must supply it if asked.

So if the original company is out of business, then they might not be able to provide the proof to the agency, so the agency would have to drop it.

Try that... then you can do similar to have it removed from your credit bureau report.

NOTE: I am NOT condoning not paying bills owed, but in the case of an original creditor no longer in business, then I'd call the above not immoral.

[tarapaige]

Thank you for your response! As I look through the site I see many things about them having to prove validity of the debt. We have spoken to the collections agency and they don't seem to have bought the debt. If we pay the credit agency we have to pay an extra $500 because of their fees. We wanted to settle for only the amount owed and they tried to contact the original apartment complex, and told us we can settle but need to contact them. So I don't think they have bought the debt. Also... we are way past the 30 day mark, it has been almost two years since I moved out of this apartment. I withheld rent because the apartment leaked and floor flooded and molded. Since I have no proof of this anymore I cannot argue the debt.
Anyway... if the collections agency doesn't own the debt, the apartment complex must prove the validity. However, that takes us back to the original problem - they have apparently gone out of business and cannot be contacted. I don't think a person should have to try as hard as I have to pay someone! Isn't there something we can do since we cannot contact the apartment company? It has been about four months since we started trying to contact them.

[Fr_Chuck]

Ok if the credit agency can't even contact the orgainal business, if you send them any money, the person you actually owe the money to is not going to get paid,

And of course you never agree you owe anyone any money, You make them prove you owe the money, when they can't, they can not collect form you,

You are trying to do the right thing but honestly if you don't stop trying to pay someone so hard, you are going to get yourself into trouble and pay and not really pay on the legal debt.

So first get rid of the collection people by challenging the validity of the debt and make them prove it, which they can't. Then they are no longer in the picture.

And if you have the persons name and phone number it should be easy to get his address, so write him a check and mail it to him certified.

[tarapaige]

Thank you both for your responses to my questions, I really appreciate it. Just one more thing. If we send a check to the man's home, how do we know he will alert the collections agency that it has been paid and to get it taken off my credit report?

[chippers]

Typically as a rule of thumb, once a business retains a collection agency, they have nothing to do with collecting the payment. They pay the agency to collect the debt. If you call them, they will referr you to the collection agency.
What probably happened when the original business went out of business, the buyer sold the dead debt to an agency for collection. Which happens allot. Then the agency will try and collect on the debt.
I would do the following:
Write the agency and request validity of the claim. They have 30 days to respond.

Check with your state to see what the statute of limitations is for debt collection

Tell the agency to not call you and all corespondences are to be in writing. You'll need to write that in a letter for it to be recognized.

Send all communications by return receipt requested. That way you know the letters were received. No one then can say they didn't get it.

Check out the federal trade commissions web site regarding the fair credit and collections act. That will explain your rights.

If in fact the debt falls within the sol, and you do in fact owe it, contact a credit counselling service for assistance in working out a payment plan. They can deal with them better and keep the collection agency from giving you a hard time.

Your credit may take a hit but working with the credit counselling service to resolve it, the hit won't be as bad.

If in fact yo0u don't owe the debt or it's passed the sol, you can write to the three credit beaurues and request it to be removed. Remember to send the agencies all paperwork related to the debt.

If you do owe the debt and its PASSED the sol. Arranging a payment plan will extend the sol. And it'll stay longer on your credit.

Also if collection agency is willing to settle the debt for a certain amount, and you pay it, the debt is not viewed as satisfied and the remainder can be sold to another collection agency.

I am not advocating to not pay your debts, but I am advocating you find out about your rights.

[Fr_Chuck]

That is of course why you need to challenge their right to even bill you, demand they show proof of debt ( which they can't) thus they can not continue to bill you or collect.

But in general you have a signed receipt where the business owner signed for the letter plus a cancelled check. After you get the check back, you make copies and send to the collection agency proving you settled the debt with the original owner.

But that is of course why you need to challenge the debt, since if they bought the debt and own it, you can't settle with the original owner.

But with this it is a harder situation since you WANT to pay, getting out and not having to pay would be fairly easy on this one it appears.

[tarapaige]

Yes, I would love to not have to pay and save myself $1500. The collections agency never contacts us, and obviously neither does the original business. However, if I want the account off my credit any time soon, I will need to pay it. Thanks!

[mandrill]

I currently have a debt that is in collections. I have no problem contact the credit agency, but I would much rather settle the debt with the actual business that I owe money to. Unfortunately, they are nowhere to be found! All of their numbers have been disconnected, their office is no longer open, and the credit agency can't even contact them. We sent a letter to them and still have received no response. We finally got the phone number of the actual owner so I am calling him at his home but he is never there and never returns my calls. My question is, is there a way to get this collections account removed from my credit report since they are unavailable for me to pay?

I have 25 years credit/collections. Settling with the collection agency is just as effective as the original creditor in terms of your credit, however, I certainly would do 2 things first: 1) Demand validation of the debt. ) Dispute the debt with the credit reporting agency. If validation is unavailable, you do not have to pay, period. However, you would have had an initial 30-day window to dispute validity. (at least in US) but there is a grey area, and you are not likely to get much argument from the agency if you speak to their general manager. They generally will drop it from your credit history. The credit bureau must also report the debt as disputed, thereby making it a non-rated item.