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    raindad's Avatar
    raindad Posts: 7, Reputation: 1
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    #1

    Aug 30, 2014, 08:16 PM
    3rd party collector
    1st the history of the debt. I had a vehicle repossed in 2008. The vehicle now shows charged off on my credit from the original creditor. In 2011 Main Street Acquisitions company claimed to of bought the debit and sent a collection agency after me on their behalf saying pay us $14000.00 or be sued. So after saying sue me they countered for about half payable, in 12 months. I paid the total down to only oweing about $2300 dollars then took a paycut. I told the collector I was about to make another payment but it would be my last at the agreed amount in which he said no problem, after the payments made I'll tell M.S.A your about to file bankruptcy and need to settle before you do. So I called him after that and.. no call back from him! They of course wrecked my credit. Now fewmonths later a new collector is attempting to collect or M.S.A and sent the "attorney" letter. What do I need to do? I live in Missouri and can't find any laws pertainin to 3rd party collections. I'm trying to improve my credit.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Sep 2, 2014, 06:59 AM
    It appears that you may be viewed to have settled the debt in you discussions with Main Street Acquisitions company. So, if the new collection agency actually sues you, bring up the settlement as an affirmative defense.

    Hopefully you have written documentation of those negotiations.

    Did you tell him you were going to file bankruptcy? If so, it may be that a settlement was not agreed, but instead you merely indicated an intention to file for bankruptcy protection. I assume you didn't file?
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #3

    Sep 2, 2014, 08:42 AM
    First, a charge off has no bearing on you. Its simply a tax maneuver by the creditor to claim the debt as a loss. Second, if MSA bought the debt, which is very possible, they should provide proof of it before you paid anything. Of course that's too late now.

    So you had a settlement agreement but reneged on it before the it was completed. That means all bets are off. They can now come after you for the full amount of the debt plus interest.

    As for rebuilding your credit, that won't be easy. By settling, the debt can stay on your credit even though it would have been removed by now.
    raindad's Avatar
    raindad Posts: 7, Reputation: 1
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    #4

    Sep 3, 2014, 03:30 AM
    No, I didn't tell them I was going to file bankruptcy nor did I. MSA still ownes the loan but has 2 different agency they use appearently. I had no idea that a company could write off a debit owed to them then sell the debit. I owe the amount no doubt. So it sounds like my best bet is to contact this #2 collection agency an try a debit settlement. In the case of the repairing the bad marks on my credit I have heard you can "try" to put in the settlement agreement that once all moneys owed is paid to them you can request that they remove any past or future reporting to all the credit bureaus. What's the best way to request this so it actually happens? Is it truelly an option or is it once the bad payment history is there its stuck for several years?
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #5

    Sep 3, 2014, 03:35 AM
    Many people misunderstand what a charge off is. Like I said it simply allows the creditor to claim a loss against income for tax purposes. If they sell the debt, then the proceeds of the sale are counted as income. So a charge off has nothing to do with the debtor at all.

    Yes you can request whatever terms you want from the collector. They don't have to agree, however, and they hold the upper hand. But whatever settlement you negotiate, get it in writing.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,278, Reputation: 7690
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    #6

    Sep 3, 2014, 03:49 AM
    Yes, charge off, does not mean, it is not owed. Charged off, as Scott said, means that it was written off books, for tax purpose, but it is still owed.

    Yes, debts can be sold, or transffered or given to 3rd party collections.

    Any agreement, needs to be in writing, if it is not, it is not worth anything, collection agencies lie all the time.

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