Okay,

So there are a few factual errors that are usually assumptions made by internet research that is sometimes faulty.

The main one I want to deal with is "If the original creditor is in your credit file, the collection agency has no right to put themselves in there." this is only partially true.

If the origional creditor already has a bad debt listed to your bureau, but then lists it with a collection agency - then the origional listing should be removed as the new listing is more factual. The majority of creditors protect themselves by adding clauses in their contracts that say they can provide your information to a collection agency and subsequiently the credit bureau.

For the guy with the awesome credit and the small debt - I would wait. Don't give them anything in writting. The "date of last activity is not only in reference to the date of last payment - but the last acknowledgement of debt" this can be a written agreement to a settlement or offering a payment plan, also if their calls are recorded they could technically use that as it is verifiable. In Alberta - they have 2 years from the date of last activity to sue you, but the statute of limitations on how long they can contact you for payment is 7 years.

Realistically - no one will sue you for $200.00 - but they are unable to have marks removed from your bureau because they need to justify that it was listed to collections in error - and that can only be done if it is not a true and valid debt. It sucks, no way aroud that.

Also, your score might be skewed by the bad debt on your file, but creditors look to so much more - and the detbs that are in good standing will count in your favor. I will say that if you actually want to go for a significant loan or mortgage - then pay it.

They can't remove it so don't ask. If it is a "collection item" then they can remove it but if it is in your trade lines then the agency and original creditor will not "remove" anything.

It's a called a credit history for a reason. They can show delinquent accounts as paid, removals are usually only when someone has an error showing on their credit.

Get it in writing.

I would get the supervisor to send you an agreement that they will accept $162.00 to settle. If the original creditor is in your credit file, the collection agency has no right to put themselves in there. I would search on Google pipeda act and read up on some on the privacy laws.

Ok, so I got a call, the first ever from a collector and he tells me the letter I sent to offer settlement wasn't received. Then he tells me that I had defaulted on a payment in January. Thats funny, I said because I have never talked to anyone at your company before and on the date I supposedly did this, I was in Mexico.

Anyway, I emailed a letter over the weekend and told them if someone didn't provide an offer or the original contract, that I was going to make a complaint with Alberta Consumer Affairs.

I got a call from a supervisor this morning. So this guy asks what my issue is and tells me I owe $230 with the interest on a $162 debt. After he rattles off all this crap about how they can charge interest and finally lets me get a word in, I say, well I can pay you the $162, plus... a $300 administration fee, if you remove the item from my credit file. He's quiet for a ew seconds and says, I can't do that, it's illegal. I cannot reverse the report.

Anyway, he argues for a few minutes, and says what he can do, is wave the interest if I pay the $162 right away and they will update my credit reports as paid.

Anyway, I think the guy is full of crap as I have made offers to collectors in the past for removal of an item with a settlement which all have accepted. Anyone know where I can find out more in Alberta?

Call up the president of the company.

http://www.cbvcollections.com/Downie.html

Here's a quote from his bio:

"He is active in the Vancouver business community and various Greater Vancouver charities. He is also involved in the following organizations: Credit Counselling Society of B.C., The Vancouver Club, Vancouver Board of Trade, World Loppet Society (Master), World Presidents’ Organization and the Y.M.C.A."

Credit counselling socient of BC??? huh? what?? excuse me?

How old is the debt and when was the lat time you made a payment on the account? If the last time you made a payment on this account was over two years, you will be stats barred. The statute of limitation in Ontario to sue someone is two years.

I have had much the same experience. I had an old and forgotten debt, received a bill out of the blue and while I was away, only to find it had been turned over to CBV and they wanted double the original amount!

I wrote, faxed, demanded a copy of the bill and just told them produce it or we meet in Court. They don't respond to anything!

Are CBV a bunch of trained monkeys or what?

Talk about frustrating, I have a Telco (telus) bill that showed up on my credit file over a year ago for $120 which has knocked my credit score down to 670 and I am considered 'poor' credit. Forget the fact I have $6,000 in credit cards, a $15000 car loan (at $6000 owing), and a $12000 motocycle loan ($4900 owning). I have never had one late payment, EVER with these creditors. I did hower have bad credit in the early 90's that I completely cleared up. I am in Alberta.

Says CBV Factored and I have nevere had a letter, phone call or anything on it. I also called Telus and they said the debts were sold and I would have to contact CBV. Round and round we go. The says last activity was jan 2005, but I don't even know what the debt is for, yet alone when a date of last payment would have been. I think it was a final bill from when I moved as I cancelled Telus phone and went to Shaw digital.

So first thing I did was write TU and Equifax and state it was not mine. They reply it was factual, then I see the debt is updated to say the balance was $260.

So I call CBV and leave a message with the number on the account. No one calls me back.

Next I write them a letter for the info on the debt. No one writes me back.
Next I email them. Nothing.
Then I faxed Calgary and Vancouvers offices. Nothing.

Finally two months ago I wrote them a letter and sent it registered stating I wanted to pay the debt and offered a $300 administration fee if they would REMOVE the debt from my credit file, and I mentioned it was factored and not owned by Telus any more.

Can you guess the reply I got? Nothing.

So I am going to write another letter and this time tell them, that if a response if not received within 30 days, I will file a consumer complaint.

Now, my question is, that if it goes as far as a consumer complaint, which will probably get me no where, what's better?

1) To wait until Jan 2011 when it drops off according to what they have?

2) Pay the debt and get it updated as paid?

I am worried at either choise as I have excellent credit if it wasn't for this crap and if it's updated as paid when they will sent the date of last payment too, and then I got be stuck with this on my credit file for even longer. And the amount of $120 is rediculious to have my credit affected.

I had some good experiences with bill collectors and some bad ones but at the end of the day; I did the get the settlements I was seeking. If you feel that your being treated unfairly you can always ask for another bill collector in their office by asking a supervisor. Here is something else you can do; is calling the creditor or the ombudsman and complain that the collection agency that is working on their behalf is being rude and unprofessional. The creditors do not like collection agencies that are out of line. I had a collection agency use the creditors name in a negative way; when the creditor found out they sent me a letter of apology and settled my debt for 10%.