ItzMe asked:
A year ago I owned a small online business. I received a large chargeback (3K) due to fraud which has forced me to close the business down.
A year ago I owned a small online business. I received a large chargeback (3K) due to fraud which has forced me to close the business down.
I couldn’t pay this amount.
I just noticed that a collection agency for this debt pulled up my personal credit report (inquiry). Will they most likely report this debt on my credit report or did they just inquire to get my correct address, etc?
All of this happened over a hear ago.
Just to add that the business was a sole proprietorship and not incorporated.
How would I know if the collector owns the debt and if I can negotiate it?
Shannon
#1 by Anthony on September 19, 2010 - 7:23 am
Darlene
I’m going to assume both, but it will be only on the business tax ID #, not your personal. Collections really does not have the right ( unless you signed with them on a legal doc to pay back etc) to pull your fico for any reason so if you are taking hits on it @ 3 points per bureau you can go after them legally to where the court can force them to have it removed as wrong full inquiries.
As for the 3k charge back you can have a lien + atty fee’s and hardship put on the person/persons drivers license through the court in your state.
not overnight magic, but can be done
#2 by Slimick on September 22, 2010 - 3:18 pm
Tamara
This is definitely a sign that the debt collector is contemplating coming after you for this…..They pull your credit report to get contact info and to see your current financial status to determine if it’s worth their while to attempt to collect on the debt. .It’s impossible to know exactly what steps they will take.. If they decide to collect, here are some tips:
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When a debt collector first contact you, your first step should always be to request validation of the debt per your rights under the Fair Debt Collection Practices Act. Even if the debt is valid, request validation anyway.
Send them a letter via Certified Mail + Return Receipt stating:
Per the Fair Debt Collection Practices Act, I am requesting written validation of this alleged debt
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Tips for dealing with debt collectors
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* Get all terms of any settlement deal with debt collectors IN WRITING PRIOR to giving them your money. Never accept settlement deals over the phone…they’ll deny that any settlement was ever made once they get your “settlement” money and continue harassing you for the remainin balance.
* NEVER, ever give them your checking account numbers for making direct debits. This is an invitation to catastrophe. Once they have this info they can attempt to withdraw money from your account at any time
* Never pay debt collectors with your personal checks…Your bank transit + checking account number are clearly visible on the check. With this info they can attempt electronic debits from your checking accounts.
* Pay only via USPS money order…photocopy for your records
* Debt collectors LOVE to scare people with bogus legal threats. If they make any legal threats against you, immediately state the following:
Per the Fair Debt Collection Practices Act, I would like the full name of the attorney who will be taking action against me and his/her license # in the state bar association. I will be calling the state bar association to verify your attorney’s information.
#3 by Ted on September 25, 2010 - 12:36 am
Heidi
You can pull your own report and it should have contact information with the inquiry.
You can call the card company that was the original creditor and ask about repayment. They should tell you who they sold it to if they no longer own it.
Sorry to say, a sole proprietorship means it’s your personal debt.