I have a rental collection that is about 3 years old, about $450, what should I do?

Question

This completely shocked me because I just found out YESTERDAY. I called the collection agency and they said all notices sent were returned back to them. They sent it to the apartment where I used to stay at but the apartment manager had my new address and I never received ANYTHING saying that I owe them. I paid all rent so I'm thinking it can only be in damages?? So I told the collection agency to send me what it's for and I'm going to call that apartment manager back so she can tell me what it was for. Either way I'm screwed because it was up there for so long. How should I go about having this removed? Since it is old can I tell them I'll settle by only paying 50%? I just need some good solid info so I can clean this up because I need an apartment asap.

Answer 1

Pay it

Answer 2

Do not give them any access to your bank account. Tell them that any settlement must be in writing from both collection agency and the Original lender. Any deal made must be in writing. If you decide to settle send them a money order and keep for your records (or cashiers check).

Answer 3

Since the apartment manager had your forwarding address, they should have sent you an itemized list of damages.  You may want to check with the landlord/tenants laws in your state.  Some have very strict requirements on damage notifictions.

At this point in time, it will be very difficult to disprove specific damage claims and you could spend a lot of time going back and forth.  For starters, send the apartment manager a letter instead of just calling -- you want a paper trail.

It might just be in your best interest to send the collection agency a pay for delete letter.   Specifically say "This is not an acknowledgment of this debt but an attempt to expedite removal from my credit file."  Offer them $100 (a little less than 25% for a 3 year old debt) if they will remove the item from your credit.  Ask that an authorized agent sign and return a copy of your letter as indication of acceptance of the offer.  Put lines at the bottom of the letter for signature, date, and print name.

They may send a counter offer but don't pay more than $150.   Remember they would have to take you to court and actually PROVE those damages to collect the whole thing.  Depending on the Statute of Limitations (SOL) in your state, it may be too late for them to sue.

Answer 4

First thing to do is to get them to provide you the details of the claim.

Tell them you are happy to pay for all payments you are liable for but you will require the itemised details for your accountant to process payment.

Also advise them that you have checked with the Rental Advisory Service ( find out if such a group exists but carry on regardless) and that you have been advised that you are not legally required to pay any outstandings.

It's all a bluff but don't tell them.

You have nothing to loose.

Good Luck. Rod