Complaint Review: Merchants Credit

Send a request for validation of the debt. Tell them the only validation you will accept is a contract signed by you and an account history.

Send it certified mail, return reciept requested.

Then send a cease communication request by the same method.

Most states have a statute of limitations on the length of time a debt can be collected on. Once that time passes you are no longer legally obligated to pay. I believe Illinois is between 5-10 years. Do some research on the internet or contact an attorney - something that old is most likely their loss at this point.

As someone stated, these calls are attempts to collect old debts. They are referred to as Zombie debt collectors and they walk a thin line on being illegal. Many people would be surprised to find two or three of these on their credit report if they have any old debts and even more surprised when you find them and you don't have any debts.

Debt expires from your credit report 7 years from the date of your last activity with the company and the statute of limitations (how long they have to sue you for debt) usually expires in 4-5 years. Companies want to recoup any portion of the debt they can and so they sell your accoubt/debt to collection agencies for a small percent of the debt. (ie: You owe $150 but haven't paid anything for 5 years, a collection agency offers them $15 for the account and proceeds to harrass you and try to get you to pay the $150 or more back)

You should NEVER talk to these people. Any action on your part (even an acknowledgement that you used to owe the amount, sometimes) can reopen the account and restart the clock on that 7 year limit. If you say anything to them it should only be for them not to contact you anymore. If they continue, you should ask for their address and send them a certified letter stating that you dispute this as a fraudulent account, you do not owe them anything, and that they are not to contact you anymore. You should also obtain your yearly credit report from Equifax (and other bureaus) and if they are listed on there you should file an online dispute and have it removed.

I recently checked my credit report and found that a $500 loan that was over 9 years old was listed on my report 3 different times. Once as a charge off from the original creditor and twice as a collection agency, both of which listed false dates of last activity and fraudulent amounts. I had them removed but nothing was done to the companies.

The sad thing is that they are so deceptive that they frighten many people by threatening lawsuits, property seizures, and even prison. This is illegal for them to do, but many people are so scared that they either pay the whole amount or agree to make payments, which opens the account and makes it new again. My advice is to do as the person stated above: press and hold one of the keys on your phone down until they hang up. They will stop calling eventually. Also, if you care about your credit you need to check because there is a good chance they are reporting this negative information to the credit bureaus, who don't do much to verify that a claim is valid unless you make a complaint.

As someone stated, these calls are attempts to collect old debts. They are referred to as Zombie debt collectors and they walk a thin line on being illegal. Many people would be surprised to find two or three of these on their credit report if they have any old debts and even more surprised when you find them and you don't have any debts.

Debt expires from your credit report 7 years from the date of your last activity with the company and the statute of limitations (how long they have to sue you for debt) usually expires in 4-5 years. Companies want to recoup any portion of the debt they can and so they sell your accoubt/debt to collection agencies for a small percent of the debt. (ie: You owe $150 but haven't paid anything for 5 years, a collection agency offers them $15 for the account and proceeds to harrass you and try to get you to pay the $150 or more back)

You should NEVER talk to these people. Any action on your part (even an acknowledgement that you used to owe the amount, sometimes) can reopen the account and restart the clock on that 7 year limit. If you say anything to them it should only be for them not to contact you anymore. If they continue, you should ask for their address and send them a certified letter stating that you dispute this as a fraudulent account, you do not owe them anything, and that they are not to contact you anymore. You should also obtain your yearly credit report from Equifax (and other bureaus) and if they are listed on there you should file an online dispute and have it removed.

I recently checked my credit report and found that a $500 loan that was over 9 years old was listed on my report 3 different times. Once as a charge off from the original creditor and twice as a collection agency, both of which listed false dates of last activity and fraudulent amounts. I had them removed but nothing was done to the companies.

The sad thing is that they are so deceptive that they frighten many people by threatening lawsuits, property seizures, and even prison. This is illegal for them to do, but many people are so scared that they either pay the whole amount or agree to make payments, which opens the account and makes it new again. My advice is to do as the person stated above: press and hold one of the keys on your phone down until they hang up. They will stop calling eventually. Also, if you care about your credit you need to check because there is a good chance they are reporting this negative information to the credit bureaus, who don't do much to verify that a claim is valid unless you make a complaint.

Perhaps this is related?

You said you did not have any loans or debts with them. Did you have a checking account? What happened is that collection agencies were giving employees lists of names. For every name that the person could match with an account or an address, they got $10 and so sold info to the collections people. I'm sure that information icluded ssn numbers

I'm amazed by the number of folks who actually try to pay these Credit cards off.

When they changed the terms THEY voided the contract.

Simply don't pay them, write to the credit card company and state "These new terms are unacceptable, I DISPUTE THESE CHARGES (Magic phrase)

And then simply calculate your interest yourself, when you have paid off the loan at THE ORIGINAL INTEREST RATE, stop paying (Do not forget to include the interest that they charge on the interest, Ir's a huge sum)

What can they do?

They've already ruined your credit.

They've reported you to the credit reporting companies.

And as the sum remaining IS DISPUTED (again magic words) they can't collect.

Oh they'll try, turning the remaining sum over to a collection agent (Illegal for disputed, but they don't bother following any rules) and trying to jack up endless "Late" and "Overlimit" fees, just ignore them. They've already hurt you as much as they can.

You see credit cards are considered "Signature" loans, meanung there's nothing backing them up, such as when you get a home loan and the property is collateral, but "Signature" loans have NO collateral to go after.

That also means that they cannot Garnish salary, put a lein on your property, or all the other lies they will tell you that they "Can" do, (They Lie).

The best tactic I know of is that when the collectors call, state that there is no ammount fue, this is in dispute and then hit the 1 button on your phone, and hold it down (It screams in their ear) untill THEY have to give up.

I've also had good results by using the star 69 feature to recall the collectors, and let the 1 button trick scream in THEIR ears untill THEY again give up.

I actualy had one to put my telephone number on "Do not receive" to their office, a clear success.

Just use this tactic when they have nothing to collect, (Home, car, property, etc) and be sure to state "This is in dispute and unowed" EVERY SINGLE TIME THEY TRY TO FORCE PAYMENT OF THEIR THEFT.

That should put these thieves out of business shortly,