I know somebody that last year they got a notice in the mail saying that they are collecting for Capital one. That the debt was over 10,000 dollars but this person never once had an account with capital one.

Apparently this account was from 2002. They also said in the letter if it is paid now they will knock off 25 percent of the debt.

The letter was brought into the police station. They thought it was legit to contact capital one and find out what is going on. They could not find such an account on the file.

It was back and forth and back and forth between these so called collection agencies and capital one.

They kept asking for account numbers , etc... so many letters back and forth. About the Credit file record. They said that they need more info.

There has been no resolution and the second letter they sent out offered a 50 percent reduction in payment.

Also there is a discrepancy between the amount on the credit file and what they are trying to collect. The collection agency was really rude and nasty about it. They said call capital one because that is who they are collecting it for, mean while capital one does not think the account exists, but yet it is being reported to the credit report.

The police will not do anything until we contact capital one and get a list of charges from them which this person is unable to get.

If your question is what to do next (and I think that's the question) I would WRITE Capital One, copy to the collection agency (and Attorney, if there is one), DEMANDING written proof and confirmation of the debt AND amount - I would notify both (in the letter) that you are referring this to your State's Attorney General as an unfair collection practice. That gets a LOT of attention in NY. Send the letters return receipt requested. In NY this is not a Police matter.

(When I say you I mean your friend, of course.)

I had a very similar problem with CapOne after my divorce some years ago - debt showed on my credit report but I never had an account with CapOne. Played back and forth until State Attorney General stepped in. It got corrected in the snap of fingers and I never heard from them again.

Just out of curiousity, what State? I just received a list of collection agencies that are less than honest (in my business email).

It is actually Canada, The province of Ontario.
The collection agency letter came out of the blue. Never had any statements from Capital one, to know that there was ever a account that existed. It just seemed like a major scam to me when I found out about it.

Also, there were letters written back and forth between that person and capital one.

The only response is they requested more info about the account in question. Give us the account number.

That person had no account number because person never had an account with them. To top it off, we sent the letters from the collection agency to capital one with all our letters.

No response.

To add, I think it should be a police matter. Because it amounts to fraud. Especially if this account was opened up in this persons name without this persons knowledge.

This person needs to request a copy of the ORIGINAL contract between whoever opened the account and CapOne.

J9 is right - demand documentation and history on the account. In my area the Police are most reluctant to get involved in consumer fraud.

Hopefully someone in Canada will come by with other advice - but I would still send the return receipt letters.

This covers what is not allowed in Canada - but I have not read it and am not familiar with the contents. Prohibited Collection Practices In Canada (http://www.consumerbadcreditguide.com/collectionrightscanada.html)

Dang, I had a copy of the letter to send too. Don't know if I can find it, but I know who to PM about it. ;)

I appreciate every bodies answers here. It defiantly helps. The thing is every time this person gets in touch through letter or phone they say that the account is not on file or does not exist.

Maybe just sending all the information that that person has so far. Like all the letters between the collection agencies and the Capital one and the letters that were sent.

Send all the copies and letters to both Credit bureau agencies and maybe they can investigate and get some where with it. Possibly even remove it from the credit file if they realize that it is fraud... Maybe in the letter also request that they get the original contract from capital one if they are ever able to find proof that the account ever existed in the first place.

Hopefully I'll be able to get the official demand letter here for you soon.