[hardwired]

I just got a collection notice claiming I owe $72 to Prism Venture who I have never dealt with. Calling the number on the Collection notice they state is a Columbia House account and that the account was transferred to Prism Feb 28 and March 28, 30 days later they assign it to this collection agency.

The notice offers to accept 1/2 the claimed debt owed which I know is bad news.

I know I closed a Columbia House account many years ago and as far as I can recall I paid any debts owed. I would be tempted to just pay it but I fear if I do I am acknowledging I have this very late debt and it will damage my credit.

I called Columbia House and got their automated line, entered this old account # and the automated voice said to contact Prism. I looked up Columbia House on the net and see many consumer complaints with false charges and no customer service availability for any resolution to their claims.

What recourse do I have at this point and how can they prove the debt is legitimate or I disprove it since it's been at least 3 years? I don't even have an itemized bill for what the claim is for?

[RickJ]

Dispute it with the credit reporting agency(ies). They will require the creditor or the agency to either prove it's owed, or remove it from your report.

Here's a starter for you in disputing it:
https://www.askmehelpdesk.com/showthread.php?t=17570

[hardwired]

It's not on my credit report last I looked at it and I don't want it there as it will ding my credit rating hard.

The Consumer Rights Information on the back states"

Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume the debt is valid. If you notify this office in writing within 30 days from receiving this notice that you dispute the validity of this debt or any portion therof, this office will obtain verification of the debt or obtain a copy of a judgement and mail you a copy of such judgement or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

Should I dispute the validity of the debt and hope for the best or just pay the darn thing? $70 isn't worth risking my credit rating at this point but I don't want it to get dinged because I go and pay it acknowledge an old debt and they report it late or a Collection on my credit report. I feel like this is blackmail to a degree.

Going to check my CR right now if the account ever was listed. I doubt it since it wasn't revolving and never in collections.

[DrJ]

If they are willing to accept a settlement, offer a settlement. Write a letter stating the asking settling price and also state this:

"By accepting this settlement, you also agree to ignore any request from Experian, TransUnion, and Experian in regards to this account."

Do not pay or agree to anything until you get that letter signed by them.

By doing that, if you find that it DOES get reported to the credit bureaus, one simple dispute will remove it from your credit forever.

[hardwired]

I got burned by a settlement in the past where I paid less than the amount owed and it showed up as a chargeoff with the remaining amount shown as a balance owed. I later paid the remaining balance when I checked my credit report and understood what had happened. Of course the rep said it everything would be fine at the time.

Never pay less than as it will damage your credit and haunt you for a long time.

Is this tactic known to actually work? In my experience the credit bureau goes by whatever the creditor says and I have to show proof to the creditor for them to contact the bureaus to take it off the CRs.

What if a rep signs it and then it goes reported as a collection, they of course don't find this signed agreement document, and report to the credit bureau it was a legitimate collection? Is a rep's signature good enough to act bind the company?

[EDT]

Don't waste your time trying to deal with Columbia House, BGM (or whatever it is now) or any other third party, they will only give you the run around and frustrate the living daylights out of you. Copy the letter below and paste it into your word processor. This will work for ANY collection agency that is attempting to strong-arm you for a debt you do not owe. It will stop them dead in their tracks--immediately. If it doesn't, then file a complaint with the FTC (www.ftc.gov). THAT will definitely stop them. Send it to whomever sent you the bill.

In this letter, change the information in brackets [ ] to match your particular situation. Do not add other information to the letter--you have no need to volunteer information other than what is here. Do not attempt to argue your case, it will be futile. You are now putting THEM on the defensive. Once the letter is complete, send it CERTIFIED MAIL - RETURN RECEIPT REQUESTED (this will cost you about $5, but it is worth it). When you get the green card back (your proof that they received the letter), staple it to the letter and keep both in a safe place for about 5 years. Here is the letter:

-------------------------------


[Your Name
Your Address
Your City, State Zip code]



[Date]


[Name of Company
Address
City, State Zip code]

To Whom It May Concern:

I write regarding the debt you claim that I owe, Account Number [put account number here], in the amount of $[put amount here]. I do not believe I owe this debt. As you know, Section 805 of the Fair Debt Collection Practices Act requires that you provide me with all of the following information:

-The name and address of the original creditor
-The date of the original transaction
-The amount of the original transaction
-The date you acquired the debt
-The amount you now claim is owed
-The names, addresses, telephone numbers and social security numbers of all parties associated with this debt
-Proof that I owe this debt
-A copy of my State and Federal rights concerning this debt, including information on how to dispute it
-Proof that you are licensed in the State of [enter your state], as well as providing me with your [enter your state] license number.

As you are well aware, you cannot contact me further until all the information listed above has been provided to me in full.

Sincerely,


[enter your name]

Cc: [enter name of your state Attorney General]
Attorney General
State of [enter your state]