Question about debt collectors and credit scores “updated”

[zacattack]

So question for the lawyers and accountants if there are any here. A few years ago our basement flooded. We had a company come out to quote repairs and cleanup. Well they came out took measurements and left a air purifier in the basement. We didn’t hear back for a few days so I started calling them, they never returned any messages I left. Had another company come out and tell us we just needed repairs at this point and the air purifier was just wasting electricity. I think about 2 months after they first came out company a come by with a quote for emergency services that was outrageous, we could’ve had a really nice basement for what they wanted to charge. Anyhow told them to take their purifier and leave.

Well we get a bill for the purifier a little later, tried to call them and talk about it but phone calls go unreturned for a year and a half. Until we have a lawyer call them to get them to stop sending the bill every month. Well now they are threatening to send the bill to a collection agency. We have no contract with them for anything. I think our options are to either take them to court and get them to stop or let them send it to a collection agency and have them prove we owe a debt. If we go the second route how bad will it hurt our credit score? My wife’s is in the 700’s and mine is around 800.

Any other advice is also appreciated.

 

[bsnedeker]

Let them send you to collections, then dispute it with the credit card companies. If there is no contract between you it's not legitimate.

I had this exact thing happen to me once. Debt collector called me up, I asked him to email any evidence they had that I had ever signed up for this service....long pause...."Sorry to bother you, have a nice day sir". Very satisfying!

 

[hodgeman]

If there is no contract, there's no way to prove you owe anything.

I doubt collections would even touch it, it's uncollectible.

 

[KoolBreeze]

I’d tell them to pound sand and not worry about any further until they escalate it.

 

[kfili]

I'm not a credit repair expert but I run peoples credit every day for my career as a loan officer. That being said I always do what I can tohelp repair credit when the need arises. That said, it sounds like they have no basis, if you have your end of items documented (i.e dates you tried to reach them and lack of repsonse, ect) and they have nothing, then great. If they do have some right and it does go to collections it will have a big impact on your score. The better the score the more it hits. If you dispute and it's removed then you back to where you are now. Only really a problem if you are immediately in the market for a mortgage, car loan or something else before its resolved.

 

[bohica17]

Sounds like a all to the BBB would help, we had to get out of an ADT contract that they couldn’t service fought and fought. Called the BBB within a week it was handled.

 

[zacattack]

I'm not a credit repair expert but I run peoples credit every day for my career as a loan officer. That being said I always do what I can tohelp repair credit when the need arises. That said, it sounds like they have no basis, if you have your end of items documented (i.e dates you tried to reach them and lack of repsonse, ect) and they have nothing, then great. If they do have some right and it does go to collections it will have a big impact on your score. The better the score the more it hits. If you dispute and it's removed then you back to where you are now. Only really a problem if you are immediately in the market for a mortgage, car loan or something else before its resolved.

Thanks for the info everyone.

All they have is an invoice they sent us two months after they left the purifier. I’m guessing that’s not really enough from my understanding?

 

[Carrot Farmer]

Turn them into state contractors board


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[neverforget]

Not a lawyer ... but it sounds like they were out for a quick scam, most likely they have no documentation to back up their claim...

 

[BRTreedogs]

Send them an invoice for harassment, mental anguish.

 

[Bubblehide]

Debt collectors are the scum of the earth and once they purchase a debt, they don't care if it is legit or not. As such, I would try and end this now. It is illegal for the company to threaten debt collection with no intention to follow through. I would send the contracting company a certified letter letting them know you never signed a contract with them, and thus they have no legal claim, and to immediately cease and desist, or you will take legal action against them and also seek pain and suffering for stress and worry. If they continue or do send this to collection, I would hire an attorney (if you do not already have one) and file against them. I would also file a formal complaint with you state contractors licensing board. I would do that latter immediately as it is more leverage for this company to let this go.

Best wishes!

 

[Kevin Dill]

I dealt with a debt collector once. Called him a barking dog and referred him straight to my lawyer. Instant mashed potatoes.

Regarding a bad contractor, I would jump on that guy's back with both feet and completely flog hell out of him via every reasonable avenue.

Send him an email, a certified letter and a regular letter. Detail everything you have on him. Be specific with dates and times. Don't be nice...be terse and sharply to the point. Tell him what you want him to do or want from him. Tell him exactly what you're prepared to do if he doesn't respond in the affirmative. I personally would threaten him with notifying your state attorney general, state contractor board, your attorney, the BBB, his local law enforcement (to see if other complaints exist) and with letters to his neighbors if possible. Also, in the letter I would specifically ask him if he would like you to make referrals to any local or state taxing authorities so they can double-check his compliance. While you're at it ask for a copy of his contractor license and liability insurance....not to mention state business license. Ask him if he's square with his state workers compensation or needs to have them notified.

Give him a drop-dead date to respond, and then get ready to carpet-bomb his ass is he blows you off.

Obviously....these guys don't deserve more than a strong chain and some kibble in my book.

 

[Where's Bruce?]

Bubble & Kevin give solid advice and it just so happens there's a guy in my town with my name who never pays his bills. It almost prevent me from closing escrow on my home decades ago and I was forced to learn how to handle these people. I was often unaware of the collection effort until I saw it on my credit report because their notices were mailed to the actual debtor's address. Here's the letters:

DEBT VALIDATION DEMAND LETTERS



Softball letter:



Dear Sir/Madame:

Thank you for your recent inquiry. This is not a refusal to pay, but a notice that your claim is being disputed. This is a request for validation made pursuant to the Fair Debt Collection Practices Act.

Be advised that I am not requesting a "verification" that you have my mailing address, I am requesting a "validation"; that is, competent evidence that I have some contractual obligation to pay you.

This notice shall also serve as a limited cease and desist order and a demand that all future communication be in writing, via certified USPS mail.

Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees, if incurred.

Sincerely,



Hardball letter:



To Whom It May Concern:

I am formally requesting that you validate all tradeline notations you have submitted to the major credit reporting agencies by “NAME OF COLLECTION AGENCY” or “NAME OF ORIGINAL CREDITOR” for me, YOUR NAME, for account number XXXXXXXXX.

Due to possible inaccuracies in these CRA reports, I must demand that the validation I hereby lawfully request be in the form of a notarized statement by a person with original knowledge of the debt as it was constituted and who can testify that the debt was incurred legally, was not subsequently disputed as a result of returned, faulty, or recalled consumer products, was not utilized as a profit-loss tax deduction during the period it may have been payable, and was not claimed as a loss with any insuring entity during the period it may have been payable. Please be advised that I am not requesting a verification that you have my mailing address; rather, I am requesting validation, i.e., competent evidence that I had some contractual obligation sans consumer protection encumbrance which incurred the original claims associated with this tradeline.

I have enclosed two documents which will verify my address: a photocopy of a [YOUR STATE] Driver’s License and a photocopy of a recent [NAME OF UTILITY OR TELEPHONE COMPANY] statement.

Please know that you have 30 days from the tracked and confirmed delivery of this lawful notice to either answer these demands or to remove the associated negative tradeline notations from the CRA reports. Any other action may constitute evidence of your intent to abridge one or more civil or other constitutional rights. Please be further advised that continued unsubstantiated reporting of possible inaccuracies to third parties may provide a basis for civil and criminal complaints being filed in accordance with FDCPA, FCRA, and other federal statutes.

I look forward to a timely and amicable resolution to this matter.

Sincerely yours,


Filing a formal complaint with the state licensing board will make any collection agency drop the case. Then blast the service company on review sites and BBB. Make em rue the day they F'd with you.

 

[zacattack]

Thought I would give an interesting update. Have not been contacted by any debt collectors. Got a bill today in the mail from the company, with an additional mysterious charge.

 

[kfili]

Thought I would give an interesting update. Have not been contacted by any debt collectors. Got a bill today in the mail from the company, with an additional mysterious charge.

Sounds about right. Debt collectors would probably do the same thing. Anything reported on your credit report yet?

 

[Bubblehide]

Have you taken any action?

 

[roadrunner]

Call the local Sheriff's office and have them possess it as abandoned property and then send a copy of the report back to the sender of the invoice the next time you get one.

Guarentee the bills will stop.

 

[zacattack]

Sounds about right. Debt collectors would probably do the same thing. Anything reported on your credit report yet?

Not that I have seen.

Our lawyer said to take no action and make the company do everything and see what steps they took and then we could plan from there.