Can someone explain the two separate letters I received for a debt collection?

I am going through a divorce after being a stay at home mom/student, and I have no income of my own except for student loans. My student loans were a total mess this semester, and I have had a total of $5 in my bank account for the last 2 months, so of course I have not been able to pay my bills.

I received a letter from a debt collection agency Saturday, but then received a letter from a different lawyer today both trying to collect the same debt. I still only have $5 in my checking account (which should hopefully change this week), but there is no way I can afford the entire amount unless I live on about $100 per month for about 6 months. ( have tried to find a job, btw, but I moved to a large college town at mid-semester, so there is nothing open. I even talked to a career counselor who said it would be pretty impossible and to just wait until at LEAST summer, but fall is better).

Anyways, what should I do as I know I do not have to pay both of them?

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  • 1 decade ago
    Favorite Answer

    Receiving two letters for the same debt is not uncommon. Here's why. . .

    The original creditor determined that the account was no longer collectable and decided to "sell" the account to an account receivable recovery specialist [ARRS] (aka debt collector). The account went into a pool of accounts and the process of collecting was in play. The first ARRS also used a third party (forth party to you) to collect as well. This creates the two letter conundrum. As well, this also gives rise to multiple entries of collection on your credit report - it is simply the incomplete reliquishing of accounts between collectors. The more collectors involved, the more letters and the more entries on your credit report.

    Once you are financially able, talk to the original creditor about reinstating the account to settle it. If this is not possible, then reach the first "third-party" which contacted you as they have the rights of the original creditor. Make payment arrangements that do not involve the use of wiring your money from your personal account or sending a check (i.e., use a money order) to satisfy the payment.

    Once you've received the "paid in full" letter, wait 30 days to request your credit report. You should see the account written off from the original creditor, the balance bought to zero on the second creditor, and also the other party's balance brought to zero (sometimes the entry goes away altogether). If the entries are not correct, notify the credit reporitng agencies to make the correction.

    Keep copies of everything including the money order. Good luck and I hope things get better for you.

  • 1 decade ago

    Stay after the job search. Your career counselor needs a new career because that is the stupidest thing I have ever heard. You are what the industry calls insolvent today. No hope of collecting on the debt anytime soon. Throw the letters away and make zero contact with them until you are in a position to make payments or settle for less than the full balance. Focus on children first, school second and creditors dead last. I believe everyone should pay their debt but in this case they will just have to wait.

  • 1 decade ago

    First of all do not get upset. Collection agencies use cohercion to collect debts, after all, they are paid by commision. It is not unusual for junk debt collectors to also use attorney collection networks. These are firms that are bogus and will send out letters to intimidate you.

    Second. How old is this debt? It may be a time barred debt that they can not legaly file suit to collect. (this would be determined by your states statute of limitations).

    Worst case scenario, even if they do file suit to collect, when you go to court, tell the judge your financial situation, can't get blood from a stone. The courts take into consideration ones employment situation and could grant a contiuance until you are gainfuly employed.

    What ever you do. DO NOT TALK ON THE PHONE, AND DO NOT AGREE TO A PAYMENT PROGRAM until you find out if this debt is time barred. If you do, you can re-set the clock on the states SOL.

    Here are some links to help you with this.

    http://www.ftc.gov/bcp/conline/pubs/alerts/timebar...

    Information on time barred debts.

    http://www.ftc.gov/bcp/conline/pubs/credit/crdrigh...

    Credit and your consumer rights.

    I invite you to join the following Yahoo group "DontGetRippedOff" dedicated to helping those in financial trouble, Here you will find information to help you with debt collection agencies.

    http://finance.groups.yahoo.com/group/dontgetrippe...

    LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

    Source(s): http://www.access.gpo.gov/uscode/title15/chapter41... US CODE TITLE 15 CHPT 41 CONSUMER CREDIT PROTECTION
  • Anonymous
    1 decade ago

    I'm going to make a bet the Accredit One is a collection agent himself. The cause is correct but his solution os terrible.

    Last time I checked the law, it was illegal for someone to collect a debt they do not have a legal right to collect. Coming up with excuses for the creditors goof-up is a sad excuse.

    What you actually have is two collection agencies fighting each other for the right to collect your debt. Let them fight it out between themselves. Send both agencies a letter demanding that they validate the debt, and prove who has the legal right to collect.

    Also, what you need to do is double-check your credit report and make sure there are no duplicate reports on this debt. If so, file a dispute and have them deleted. It's illegal for them them to file duplicate items.

    And read the Fair Debt Collections Act, so you know the law and understand your rights.

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  • 3 years ago

    This letter became a " fishing " letter. they did no longer comprehend which you have been an identical individual they have been searching for. each and every physique with an identical call could have have been given an identical letter. The financial employer offered the debt and those speculators purchase the debt and chase for fee. in case you get to any extent further, do no longer respond. i could forget approximately them. enable them to take it to court - which I doubt - however the bailiffs would be unable to be sent on your homestead earlier that is been to court.

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