Collection Agencies - Finding out the info (Aktiv Kapital) - Canada

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RE: Finding out the info (Aktiv Kapital)

Postby footloose » Thu Jan 06, 2011 04:34:05 PM

If you decide to make a payment to Citicards after receiving their offer, be sure to get a Release Letter from Citicards stating that this debt has now been paid in full. Send one copy ( not the original letter ) to Equifax and one copy to TransUnion and request that they adjust their collection account section to show that this debt is now paid in full. But, please keep in mind that the collection account will continue to show on your credit reports for a period of 6 years from the date of delinquency. By paying off the collection account will not remove it from your credit reports; it only shows to readers of your credit report that this once collection account has now been paid. Also, paying off a collection account, has no effect on your credit score.
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RE: Finding out the info (Aktiv Kapital)

Postby kevt059 » Thu Jan 06, 2011 08:56:26 AM

Thanks for your reply footloose. This is very strange. I will have to call them and find out who has what this evening. How can they (citicards) even offer me the option to pay in full if they no longer own the debt ?

I just bought my report online for Transunion and it shows that the balance is $6863 under the collection accounts areas for AktivKapital ACQ yet citicards payment services say I can pay in full for $3771. Odd.

I did get a call back from that number I was told to call but it did not leave a voicemail and I was at work at the time.

If I accept citicards' offer to pay in full and get it in writing, can I then send the proof of payment to these agencies listed on my report in the collection agencies section ?

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RE: Finding out the info (Aktiv Kapital)

Postby footloose » Thu Jan 06, 2011 08:37:00 AM

Home Depot's store charge cards are issued by CitiBank Canada which is the financing arm of Home Depot. That is why when you called Home Depot to try to settle your account, you got "Citicard payment services".

I believe the information that you received from "Citicard payment services" is incorrect. Here is what I think has happened. When the card went into default, Home Depot assigned, not sold, the debt to a collection agency to collect on behalf of Home Depot. Usually, a collection agency will try to collect a debt up to 6 months. If the C/A has no success in contacting the debtor, the debt is then turned back to the original creditor. The creditor then contacts another C/A and repeats the process all over again. If after several attempts to collect, using a C/A proves to be futile, the creditor will write the debt off and sell it to a debt buyer such as Aktiv Kapital. I have never heard of a debt buyer purchasing a debt from a creditor, and after being unable to collect, turning the debt back to the creditor.

Keep us informed as to future developments. This forum has proven to be an excellent source of information for both members and readers with various problems and unique situations and how they resolved them.
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RE: Finding out the info (Aktiv Kapital)

Postby kevt059 » Wed Jan 05, 2011 12:43:48 PM

Well I tried to be proactive last night and called Home Depot which was called "Citicards payment services". They said that since the collection agency was unable to collect, they got the debt back ?! They say that it has been bounced to 7 collection agencies. They also said collection agencies buy it and send it back if they can't collect.

They also said I needed to pay the balance in full of $3771 but I told them I wanted to settle and they said they didn't have the authority to make that call so I was transferred to a voicemail which had a recorded greeting which states they will get back to me within 72 hours.

I've never heard of Citicards getting the debt back after it was with collection agencies already. Very strange.
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RE: Finding out the info (Aktiv Kapital)

Postby footloose » Wed Jan 05, 2011 11:53:23 AM

Aktiv Kapital is a debt buyer and has purchased the debt from Home Depot. Contacting Home Depot is a waste of time because they have written off the debt, sold it to Aktiv Kapital and are now out of the picture.

Keep in mind that the limitation period in Manitoba for commencing a legal action to collect on an unpaid debt is 6 years. As long as you and your wife have a steady source of income, Aktiv Kapital might seriously consider initiating legal proceedings in order to get a judgment against both you and your wife. You want to avoid this if you can.

I would suggest that you be proactive and contact Aktiv Kapital and tell them that you want to settle the debt. Because this debt is 4 years old, I would offer them 50%. Whatever amount you and Aktiv Kapital finally agree to, DO NOT PAY THEM A CENT until you receive an offer in writing signed by an authorized representative of Aktiv Kapital. If you make any payment BEFORE you receive this offer in writing, Aktiv Kapital will treat the payment as a partial payment on the outstanding debt and the offer now become NULL AND VOID

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Finding out the info (Aktiv Kapital)

Postby kevt059 » Tue Jan 04, 2011 02:52:00 PM

Hi, I have read some great info and have gotten some great advice on this site and I have just a couple of questions.

Backstory:

My wife and I recently got approved to purchase a condo but there is only 1 negative debt on my report which has a first date of delinquency as Jan 16/2006. My lending institution has attached the condition of taking care of this debt a part of the contract for approval. This debt was incurred jointly between my ex and I and I just need to settle it now to clean my record completely. My credit report shows it was assigned to Aktiv Kapital collection agency.

Should I contact them directly to confirm and offer an amount for settlement ?

How much should I begin to offer ?
Would it be smarter to contact Home Depot to confirm if this debt is still currently with Aktiv Kapital ?

The debt amount was for $3771 and I think it ballooned to around $6000 with interest. Any help is appreciated. I need to settle this sometime this week.
kevt059
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