MRS collections agency?

Question

I have 2 credit cards with Chase that are in collections. My problem is that I asked a MRS rep for a paper or statement showing me the exact amount I owe on both cards and that I would pay it after I had that but she refused. I even called the collections agency myself so it was weird that they would be so rude. Now I'm getting about 5 automated messages a day on my cell.

I know that my FICO score will increase if I pay these debts off but I've read some horror stories about MRS so I'm not sure what action to take.

Answer 1

Contact a lawyer.

Answer 2

First of all, once a debt hits a collection agency your FICO score will NOT improve if you pay it off.  The only way your FICO is going to improve is if the collection agency's negative tradeline is removed from your credit report.  This happens on its own 7 years after the date you first went delinquent on the credit cards.  Sometimes you can negotiate for a pay-for-delete with the collection agencies.  Unless you can get a pay for delete there is no way on earth you should pay them.

Legally they are required to prove that you own the debt.  If they refused, then they may very well have no such proof.  Many times junk debt buyers will buy debt from other companies with little more than a name to go on.  Your first course of action should be to write them a DV letter.  If you google it, you'll discover there are lots of samples to be used.  A DV letter is known as a dispute and validation letter.  This gives the collection agency 30 days to validate the account and prove that the debt is yours.  The burden of proof is always on their shoulders.  A printout of your name and the amount does NOT constitute proof (many like to try this to fool the consumer).  During that 30 day investigation period the collection agency is not allowed to call you or harass you concerning debt they are supposed to be "investigating".  At the end of that period if they cannot provide you with proof, you need to write the Credit Reporting Agencies (Experian, Equifax, and Transunion) and explain what happened.  Include a copy of your credit report.  Include also the green card from where you mailed the DV letter to the collection agency (you must send it CRRR to get the green card).   The CRAs will then investigate the account.  If the CA cannot provide the CRAs with proof then the tradeline will be removed from your credit report.

If you cannot afford to pay the debt but can afford to pay it before the 7 year drop off period is over, do, but ONLY if they agree in writing (and signed) to delete their tradeline from your credit report once the debt is paid.  If you "settle" make sure that they also agree in writing not to sell the remainder of the debt to another junk debt buyer.  Never call a CA from your home phone.  New software allows them to see your telephone number even if it is a private number or manually blocked.

Best of luck