Complaint Review: ARA Asset Recovery Associates - Schaumberg Illinois

On Wednesday September 8^th 2010 at 8.54hrs I received a call from a Tammy King, who introduced herself as an Attorney  to collect a debt from my wife  supposedly on behalf of MBA credit card, for the amount of $8,718.67. Her collection company is ARA Asset Recovery Associates, PO box 4009, Schaumburg, IL 60168-4009 Tel 888 310 1550, Fax 888 315 1550

I identified myself as the husband and asked when the alleged debt was incurred, as I was not aware she had or has had a credit card with a balance of that amount, or comes to that such a high level of credit. The woman replied the debt was incurred in 2004. and she then started running her mouth,  I hung up.

A few minutes later, 9.02 she called back. She stated that $5,200 had been paid off the original debt which was $13,918.67. King said, "We are looking for $8,718. 67 which is owed, if you do not pay today, we will open proceedings to obtain a judgment and then put a lien on all your assets, plus make a record on your credit reports.

At the mention of $5,200 a bell rang in my head. I asked whether she was referring to a car that had been returned to seller in 1990. She went quiet for a moment, and then said that is correct. I asked her why she had referred to  MBA credit card, no reply.  I informed her that I had negotiated a settlement of the debt pertaining to the car for $5200 with a Mr. Green, in July of 2009.  I now am aware this was a mistake, because I was not legally obliged to pay because of the statue of limitations on the original debt.  I was assured The deal I made with "Mr. Green" By paying $5200  this debt would be wiped out. The company never sent me a receipt or a debt release, despite phone calls requesting same.

 Now, fourteen months later ARA are calling me again to ask for the balance of the debt. ARA refuses to acknowledge my explanation  I had settled  the debt when I paid $5200 .00.

I said, before you do anything more, I would ask that you send me a complete breakdown of all you are alleging, plus confirm the name of the person  I spoke to before, and who recorded my $5,200. She said I do not know the previous person you mention, we bought this debt from a company "now named" AMB,  they will not give you any information because they sold the debt.. I asked what would it take  settle this debt today?

After consulting with someone who could be heard in the background,   and replied $3,718.67

I asked, Can you not do better than that. Again she told me to hold on.

When she returned she quoted, $2,392.00 as full and final settlement, and would fax a settlement letter to me, but for it to be valid the money had to be paid by 14.00hrs Central Time that day.

I replied I will not pay, as I believed I had been tricked into sending the $5,200 on a promise of the debt being settled and receiving a final release. I considered this new approach was an effort  to exhort further monies from us when we had in good faith settled this debt in July 2009 by a telephone negotiation. There is no way I would have parted with $5,200 as a part payment.

I made a mistake, I paid money I did not have to, now I am being harrassed again for money on a debt that was supposedly settled, what are my options now ,please.