Long story short: Home got foreclosed on about 2yrs ago. Fast forward to the beginning of February, I get a collections company letter stating I owe an insurance company some cash, $14 to be exact, since the insurance was part of the mortgage payment. I replied back asking for validation of the debt without claiming I owe it. Today, I get a plain letter from the same collections company stating "validation" is 123 Anywhere Lane and there is the proof, pay us loser.
I know it is "only" $14, but how the path leads to me is what bothers me, as I don't recall a "bill" from that insurance company ever after the foreclosure.
So, should I just pay, state I need a receipt that will be forwarded on to anyone else, including the reporting agencies? Tell them to pound sand? Ask for additional "validation" and just further pee them off? Contact the insurance company that sold the debt to them and ask more questions and possibly pay them instead to avoid the layer of additional black marks on the credit report?
Talk to the insurance company directly and pay them directly if necessary.
I accidentally lost a medical bill in the process of moving and was later reminded by a collection agency. I didn't want to give those vulchers the time of day nor pay the extra amount they tacked on top of the bill. Medical office gladly took the amount owed, with no extra fees, while bypassing the third party collection agency. Gives a good excuse to tell the creditor in the next contact to berkeley off.
Yeah, I'd call the insurance company. Or just pay the $14. Seriously. How much is your time worth? Whatever you do, don't pay them with a check. Stick 'em with an AMEX, and if you don't get a receipt immediately, dispute the charge. If they don't take cards, tell them (in writing) to drop dead.
poopshovel wrote:
Yeah, I'd call the insurance company. Or just pay the $14. Seriously. How much is your time worth?
I have more time then money with E36 M3ty enough credit from all of this as is being an unemployed nursing school student. 
If your loan was escrowed, this is your former lender's problem - not yours. Tell them they need to talk to the mortgage servicer.
Ranger50 wrote:
poopshovel wrote:
Yeah, I'd call the insurance company. Or just pay the $14. Seriously. How much is your time worth?
I have more time then money with E36 M3ty enough credit from all of this as is being an unemployed nursing school student.
E36 M3, I gotcha man. Sorry. Didn't at all mean that as a slam.
So did you actually get the proof? If not and you have the time on your hands, write them back and tell them that they didn't provide proof and to go take a hike. If they come back, talk to your state's AG.
Then dispute any black marks they put on your credit record.
In reply to poopshovel:
That's OK. Can't know everything about everyone. 
Search around on Clark Howard's website. I think he's got some tips on how to write a proper "drop dead" letter.
FWIW, I recently did a refi and when they ran the credit check they saw I had an unpaid $63 bill.
I just told them the truth. Its a bill from ASSHOLE Inc. which I don't owe and I told them to go berkeley themselves. I've never missed a mortgage payment in the last 20yrs and 2 homes. Take it for what it is - I'm never paying them.
I got the mortgage.
BoxheadTim wrote:
So did you actually get the proof? If not and you have the time on your hands, write them back and tell them that they didn't provide proof and to go take a hike. If they come back, talk to your state's AG.
Then dispute any black marks they put on your credit record.
Well, I know them as a different named insurance company, via the Goggles. The only proof provided is that they contacted the company listed and "confirmed" the following "placement data" is correct, stating a previous address I may or may not have lived at, and an original placement amount of $14.00. The next two paragraphs state this:
"Furthermore, in the event we contacted you at an address that differs from the original placement data provided by your creditor, this would be due to data processing research that determined the above referenced mailing address is the most current for this account. If you believe this information is not accurate, please contact this office for personal assistance.
As of "this date", our client's records indicate the above referenced amount due remains outstanding. Please remit payment without delay. This is an attempt to collect a debt and any information obtained will be used for that purpose. This communication was sent by a debt collector."
Minus the date, word for word. No real "proof" outside of the first paragraph stating what I already said. No extra paper pages with original paperwork copies, no nothing.
yamaha
SuperDork
2/28/13 1:05 p.m.
Who the berkeley sends $14 to collections? 
Granted Capitol One did that to me for less when I paid off my credit card. An alleged $4 charge for paying it off and closing the account that wasn't mentioned, 6mo passed then I get an angry letter in the mail claiming I had to pay them $962 or it went to collections......I laughed, contacted my state's AG, provided documentation, and haven't heard from them for 4 years now.
IIRC "they say you owe the money" isn't proof. I'd take poopshovel's advice and wander over to Clark Howard's website.
Who the berkeley sends $14 to collections?
Me. And I'm the "collections department." There's a reason why the "Losses from unpaid invoices" line on the worksheet from the accountant reads "$0" every year. I gets the monies. I have been known to park in people's driveways at 8AM.
^ You know this doesn't surprise me at all 
Cone_Junky wrote:
Talk to the insurance company directly and pay them directly if necessary.
I accidentally lost a medical bill in the process of moving and was later reminded by a collection agency. I didn't want to give those vulchers the time of day nor pay the extra amount they tacked on top of the bill. Medical office gladly took the amount owed, with no extra fees, while bypassing the third party collection agency. Gives a good excuse to tell the creditor in the next contact to berkeley off.
If a debt collector is after him, the insurance company has already discharged that debt. He could call them to confirm that the debt did, in fact, exist, but he cannot pay the insurance company. He would have to pay the debt collector.
As an aside, I never thought a company would discharge such a small debt to a collector.
poopshovel wrote:
Who the berkeley sends $14 to collections?
Me. And I'm the "collections department." There's a reason why the "Losses from unpaid invoices" line on the worksheet from the accountant reads "$0" every year. I gets the monies. I have been known to park in people's driveways at 8AM.
Park in people's driveways? Is that legal?
Sky_Render wrote:
Cone_Junky wrote:
Talk to the insurance company directly and pay them directly if necessary.
I accidentally lost a medical bill in the process of moving and was later reminded by a collection agency. I didn't want to give those vulchers the time of day nor pay the extra amount they tacked on top of the bill. Medical office gladly took the amount owed, with no extra fees, while bypassing the third party collection agency. Gives a good excuse to tell the creditor in the next contact to berkeley off.
If a debt collector is after him, the insurance company has already discharged that debt. He could call them to confirm that the debt did, in fact, exist, but he cannot pay the insurance company. He would have to pay the debt collector.
As an aside, I never thought a company would discharge such a small debt to a collector.
I am far from being a genius, but if you look at how the "validation" letter is written (and copied above), it doesn't read that way if you look at it long enough. Stating things like the "our client's records indicate" muddies up the waters between a clear cut bought for a nickel debt or just another arm of the company dealing with collections.
Sky_Render wrote:
poopshovel wrote:
Who the berkeley sends $14 to collections?
Me. And I'm the "collections department." There's a reason why the "Losses from unpaid invoices" line on the worksheet from the accountant reads "$0" every year. I gets the monies. I have been known to park in people's driveways at 8AM.
Park in people's driveways? Is that legal?
Right up till they tell me to get off their property, which has never happened. I've never had anything but a big smile on my face or not been polite. It just sends a nice subtle message.
Just a thought: If the statute of limitations on the debt is, say, 2 years, and you are past that, they can't sue you for anything related to that debt. Now, if a collection company sends you a bill for $14 and you pay that, you have reset the clock and they can sue you tomorrow.
Dr. Hess wrote:
Just a thought: If the statute of limitations on the debt is, say, 2 years, and you are past that, they can't sue you for anything related to that debt. Now, if a collection company sends you a bill for $14 and you pay that, you have reset the clock and they can sue you tomorrow.
I was very curious why they would so adamantly want a $14 debt paid.
They have to provide actual documentation showing you own the debt and they they also OWN it.
The Consumerist has multiple articles about this.
http://consumerist.com/2007/07/18/sample-letter-for-disputing-a-debt-collection-notice/
And the Clark Howard version (actually linked from consumerist.) According to them (consumerist,) if they continue to harass you, you can cash in in small claims court. Woohoo!
http://www.clarkhoward.com/news/clark-howard/consumer-issues-id-theft/sample-letters-drop-dead-letter/nFbC/
