Author Topic: Dealing with a Collection Agency  (Read 46442 times)

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Re: Dealing with a Collection Agency
« Reply #75 on: April 28, 2014 05:55:35 PM »
The following is a situation I've been dealing with for 2 years now, and it has been at a law firm/collection agency for about 6 months.  I'm wondering how to proceed:

It's regarding a HELOC that I fell behind on and stopped paying when my wife got cancer.  At the time, my first mortgage was nearly underwater but now home values have risen.  I was hoping I could settle for a percentage, but am not sure how to proceed.

State: Illinois
Home Value - 430,000
1st mortgage - 350,000
2nd mortgage (Heloc) - 145,000
lender - RBS/citizens

Stopped paying in August of 2012. Charged off in March of 2013.

Sent by OC to 1st Law firm in Sept 2013. OC still owns debt.  I never talked with this first law firm, did not request debt verification, and they forwarded the file to their counsel in Illinois since they don't practice in Illinois. It's another law firm/collections agency.

Should I be worried about this? My house has appreciated to about $80,000 over what I owe for the first mortgage.  That still leaves the loan around $65,000 underwater, plus the costs of REO.

I sent a debt verification letter in December,and got the notice that they received it.  Since then, I haven't heard from them.   

I want to attempt a settlement since home values are rising, but am not sure if I should wake a sleeping dog at this point.  The SOL for this is 10 years in Illinois, though, and it was charged off in March of 2013.

I believe they have a right to pursue a judgement for breech of contract.  Is this true?

Why wouldn't they verify the debt?  Is it because they are the second law firm/collection agency that it's been referred to?  They don't own the debt, they are just collecting on it.

Should I contact them to settle?  Wouldn't this imply that the debt is valid? 

Any advice?

Bruno the JDB Killer

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Re: Dealing with a Collection Agency
« Reply #76 on: April 28, 2014 06:05:43 PM »
Why wouldn't they verify the debt?

Because you did not follow the proper procedure. You need to read the validation section of the FDCPA. It's very short.

They can sue you, although it doesn't make much sense unless they are going for wage garnishment / bank levy. They already have a lien on the property.

I am not an attorney. Any information I post is strictly my opinion and should be treated as such.


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Re: Dealing with a Collection Agency
« Reply #77 on: April 28, 2014 09:48:09 PM »

Thanks for your response, but I am confused by it. 

I requested verification of debt by certified mail within 30 days of receiving the dunning letter from the law firm that had been assigned by the OC to collect.  Isn't that the correct process?

They haven't responded, and they haven't attempted to collect.

If they don't verify, they have to cease collections attempts.  Does this include suing me?


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Re: Dealing with a Collection Agency
« Reply #78 on: March 30, 2017 05:58:09 PM »
I tried disputing my private student loans (which were sent to CA's) but the accounts were verified as belonging to me (of course, they are). So this hasn't worked.