Help! I am trying to get a mortgage on a house (first time buyer!) I have settled all my collection accounts on my credit except this one with Asset Acceptance, now the strange thing about this is bought my debt back in 2003. The original credit was First Consumers National Bank, they sold all this collection accounts to Asset for .07 on the dollar. THe original about with FCNB was around $1531.00, so that means Asset paid around $107.00 for it. After selling off their collection accounts FCNB went Bankrupt in 2003. Asset got the account in June of 2003. SOL was already expired at the time acquired the account, which is 3yrs in Alabama. Asset has sent me various notices over the years and they have harassed me on my job to the point my boss had to get on the phone with them and tell them to stop calling me at work (that was about a yr ago). I rec'd a "settlement" letter from them in Nov. 2006 for 70% off the $1879, for $559. I didn't have the funds at the time. So, I held on to the letter till I could get the funds up. I called them last week asking them to honor their letter, they it expired at the end of Nov. 2006 and they would only take 50% off now making it $939.00. So, I told them I didn't have that much money at this time, they told me the offer was only good for 10mins (huh?? 10mins?) Then they hung up on me. SO I did some digging myself and that's when I found out the original creditor was out of business. I called them back and told them that the SOL had ran out and they could not sue me, that the original credit was out of business, and this falls off my credit in 9/2007, so let's try to come to a agreement and I would pay them the $559.00 via mail, but I needed them to send me a settlement letter. They told me I was trying to do extortion against them.. Whatever, no I was really trying to settle this debt. I have to settle this debt or have it taken off my credit in order to get my house. I don't know what else to do. I have asked them in writing to validate the debt as well, but no response from them as of yet.

Where do I go from here?

If they are being that difficult with you now, imagine what it's going to be like trying to get a letter out of them afterwards if you do come to terms with settling the debt with them. Make sure that if you do pay them, that it's something you can trace. A personal check or certified check. Make copies of everything you send them and keep the copies. Also, send it certified mail with a return receipt so you have proof that they received it, and don't pay it until you do have a specific arrangement in writing before you pay. These are all things you will need as proof for you home lender if they will not send you a letter afterwards stating that they consider the account settled and closed.

Are you working with only one specific lender? Lots of home buyers fall into the trap that their own bank or their realtor's lender are the only way they can buy a home. There are tons of lenders out there, many who will ignore a single debt like the one you described. In many mortgage companies there is a specific department that can and will help you repair things like this, and can act on your behalf to cut to the chase without the threats and intimidation practices that collection agencies pull on debtors. So, as you've researched your collection, I'd also research working with a broker or mortgage banker who has a variety of lenders and a credit repair department.

Good luck to you.

KMS gave you good advice about trying to get the loan. Take a look at this thread elsewhere on this site:

https://www.askmehelpdesk.com/bankru...aus-51714.html

This will help you contact the collection agency, tell them to stop calling you and proceed only in writing. They can tell you its extortion and offer you a settlement for a limited time, but the bottom line is they can no longer sue, so they can go stuff it.

I look this place up on Budhibbs.com and they are on the worst collections list. However, I need to get this taken care of, I must move and I need to buy a house for me and My son. I have tried to work with these people and the banker has as well, they will not budge, keep in mind this rolls off my credit in 9/2007. I have sent them letter after letter asking for all the info to validate this debt and I get no answer, but the credit buruers keep saying they have verified they debt. I am gettting no where with them. SHould I call the Alabama Attonry General office?

Do a complaint with the FTC and Alabama Attorney General Office for their failure to validicate the alleged debt.
Show the mortgage or bank you have try to validicate the alleged debt and received no reply. Tell them its is pass the SOL and if they don't want to fund your loan find another compnay that will.

Send the debt collector antoher letter demand verification of the alleged debt, demand they produce the original. Tell them if the original is not producedthan they have no claim and if beyond the SOL they are out of luck to collect.

Just my opinion

These people decide to call me and tell me that they pulled my credit and see that I'm trying to get a house and that all settlement letters are now void and that the amount is now back at the origial amount... Can they do that? Also, they can not validate this debt because the original creditor is First Consumers National bank which went bankrupt in 2003 and the SOL had already ran out when they bought my debt, they also addmitted that too me as well and told me they would not remove it from my credit. Help! I filed a complainted with the Alabama AG office and the FTC, Asset said Well, "their FTC department would be in touch with me" What is that to mean?

What it all means is they are trying to intimidate you. Do not talk to them on the phone anymore. Correspond only by mail. Tell them that when they produce proof of the debt you will talk to them again.

Monitor your credit report and if it goes on the report contact the credit bureu and tell them it's a disputed claim. If your mortgage lender brings it up, tell them the same. Also tell them you are unaware of this debt and they have not shown it to be valid.

First off. If the sol is up 9/2007. Then by offering to pay a settlement reopens it and can extend the sol. Your best bet is to wait for the ftc and the attorney general to reply.
As for them contacting you by phone, you can tell them on the phone not to call you. To only communicate by mail. But for it to be recognized, you need to put it in a letter. Plus in writing, they can't deny they said something. If its past the sol it just might have to drop off your credit report. They won't send a settlement letter. But you can take all of you paperwork and send it to the 3reporting credit bueruroes and at least it'll get posted that way.
They are trying everywhich way to collect the debt, even passed the sol(in their case sh@@ out of luck) they dropped the ball and are trying recover. Check with the fair credit and collections act to see what else you can do. They are extorting you by not co-operating and holding up you house purchase. Actually the bank is. They know your situationa and as you've said they tried to contact the collection p0eople
Also, if you do reach a settlement and do pay it. The collection agency can sell the remainder of the debt to someone else to collect because the entire one has not been paid off to them.

This company is an absolute scam.:mad:

I received a letter about a debt which was long paid off. Send a certified letter like the one I found on the federal trade commission website to the whichever credit reporting company you received the report from. You do not have to send the letter to all three. After the dispute, the one credit reporting company is responsible for notifying the others. Explain that you settled your debt with First Consumers National Bank. Now they are bankrupt and unable to provide original documentation. Also explain that Assett Acceptance purchased the debt after they went bankrupt. They credit reporting company needs to respond within a reasonable time frame, generally 30 days.

Ask the credit company in writing to provide verification of debt and documentation from First Consumers National Bank. This would be part of the debt purchase if it was credible.

If an investigation doesn't resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.

Website How to Dispute Credit Report Errors

Ww w.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.htm

Also explain that you are concerned that this company allows their telemarketers to see your full social security numbers which I found out they do. Keep an eye on your credit report. I would not trust any person I spoke to at Asset Acceptance.

Hope it all works out for you :)