Washington Mutual/ERC/Hilco Receivables

To start I requested twice a validation from Washington Mutual and never received it. Then I get this call from ERC (Enhanced Recovery Systems) out of Jacksonville, Fl.

John the collector says he is calling on behalf of the client Washington Mutual for the balance owed of 8200. I reiterated about asking for the validation and he says that they can’t do it. That THEY don’t actually own it but Hilco Receivables Owns it and they are just collecting a debt for them. So now Washington Mutual is no longer involved I suppose. He wanted me to make a full payment by transfer. I said I have 24 dollars in my checking account not over 8200 and I am not going to make a payment period or some such like that. I never admitted to anything.

So I am really confused here. How can they collect on something that they can not prove is valid? Should I contact Hilco Receivables. He said if we made a payment and were to pay this off that it would be reported positively. If it has already been charged off then how good can it do?

I just don’t know where to go or who to deal with?

So “Hilco Receivables” or SOMEONE has to provide validation. Otherwise, they can go jump in the lake. In fact, read them the appropriate part of the Fair Debt Act, and let them know that unless they provide validation, you can pay nothing and they need to stop calling you. Tell them you would truly love them to call again, as you would LOVE to own a collection agency, as you will do when they violate the law and you sue them!!!!

I think if I was you I would keep everything in writing. Get an address for “correspondence only” for WAMU, ERC, and Hilco and write them all the same inquiry type letter noting you’ve carbon copied each creditor/collector and wait for a response from each. This may help you get a better idea of the debt and who is holding it; the other thing you could do is order your credit report from annualcreditreport.com to see what it may be and who is collecting. Just some suggestions you could try.

They cannot legally collect without proof of the debt. Think about this, they threaten to sue. Then the sue, what are they going to tell the Judge? He/She owes because we say they do or because WaMu says they do? With out proof, the judge will laugh them right out of court.

Tell your harassers that with out proof of the debt, you will not talk to them again. You should do this in writing, return receipt requested as proof. Quote the Fair debt collections act in your letter.

And never, ever, ever give them electronic access to any account under any circumstances. They will, if they can, take more than you have in the account.

Best to you.

While I cannot offer legal advice

While I cannot offer legal advice, I know the types of things these people say so you can commit to something you can’t possibly do. I send 5 dollars a wk for a hospital bill – they told me this is unacceptable. They do not mail the money orders back. Good luck with your situation.

Usually, creditors cannot take money from your bank accounts unless they have filed a lawsuit and actually gotten a judgment, but they can try just about anything on an unsuspecting person. Creditors can get aggressive, but it usually takes some time for them to catch up to you, and you usually know they are after you and hot on ur tails by them filing lawsuits. You might want to contact Consumer Credit Counseling Services or Money Management Int. or a bankruptcy lawyer to see if you should file bankruptcy, but they will tell you if you are a good candidate for it or not. It could be time for you to bite the bullet and stop those creditors from calling you. It can be very difficult to get them to agree to your terms, ie amount owed or settlements. These people that are calling you get commissions based on monies collected (check out the movie “Maxed Out“). Hope that helped a little.

Do they accept your money order as part of the payment??. If they don’t send it back I’d say so. One thing, keep copies of those FOREVER as well as anything you get in writing from or to them.

NEVER accept any payment plan or settlement offer over the phone – if it isn’t in writing it is worthless. NEVER allow them electronic access to your accounts. If they say that is all they will take and they try to bully you, open a separate account somewhere (ING is good) and only keep your money for that payment in there.

What I meant was Money Management or CCCS would be able to tell if a person would be a good candidate for bankruptcy. And not all lawyers just want the money, many bankruptcy attorneys are overwhelmed with new clients right now and are more than happy to turn people away (they just don’t need the money or the added liability of another file sitting around). Matter of fact for most attorneys who specialize in this area of law getting rich is the last thing on their mind; bankrupt people have no money to give.

Need help urgently

I’m up to my head in debts and I don’t have a job to pay for anything. I’m tired of all the phone calls and letters of need to pay this and that. Need to get a job and need to do this and that. I’m so freaky tired of those people. I don’t have a job, I have a disabilities and I know it’s no excuses for not having a job in order to pay my credit cards, medical bills and etc. I have been looking and been turned down alot. Here are my problems, I’ve been discriminated against my disabilities and I can’t prove it either. I’m at my end of the ropes.

I need to write a letters to everyone that I owe to be more patience with me till I find something. They don’t want a dollar a month or 5, they want more than $250 a month till it paid in full, I have never agree to anything and they are constantly putting words in my mouth. My family can’t help me because they too are having problems paying their bills. This economy is terrible!! My husband is the only one working right now and he makes enough to pay the needy bills and groceries and that’s it. One suggested me to stop paying my electric or phone bills and start paying them, how dare them to tell me what to do. So, I just don’t answer the phone anymore. I understand that if I use my personal check that they might check into my bank account and try to get money out of my bank account without my approval. Is this true?? Please give me any suggestions and need help.

I feel like that I’m paying way too much credit cards premium, their interest rate got so high that I can’t pay it so I stop paying it. I know it’s wrong for me to do so, but they are over charging me. For example, they told me that I owe over $6,000 and I have paid more than $3,000 so I feel like I only owe $3,000. How do I get them to agree with me that I don’t owe that kind of amount??

How attached to your credit score are you? Personally, what I would do is just stop paying credit card bills altogether. Concentrate on your four walls – housing, utilities, groceries. After a few months, the credit card companies will turn you over to collections. Collections will then offer you a settlement. Usually half of what the credit card companies say you owe. At that point, you can begin making payments and take care of all of them. But, it does drop your credit score.

You can also tell them to quit calling you. Send each one a letter – certified, return receipt – stating that you wish to only be contacted in writing and they are not to call anymore. By law, they have to comply with that or you can sue them for harassment. You can also dispute the amount. Make them show you how they came to that figure they claim you owe.

Yes, they can get ahold of your bank accounts if you send them a check. The bigger, more ethical companies won’t do it, but some slimy ones will. Until you’re comfortable, pay them with a money order. You can also get a pre-paid VISA card at Wal-Mart and pay them off of that. I did the pre-paid VISA for one of my husband’s medical bills. The only way they’d agree to payment arrangements with me was to have a credit or debit card number to deduct from.

Otherwise, they wanted a grand total of $16,000 right then and there which just wasn’t possible. So, I bought the pre-paid card, set up the payments and made sure that I loaded the card with the right amount before they were scheduled to deduct. I did catch them trying to get money out at the wrong time – and once the wrong amount – but because it was pre-paid, they didn’t get anything. If it had been the debit card attached to my checking account, who knows how much they would have cleaned out.

I just have a random question

I thought the statute of limitations was only 7 years, yet I have gotten sued twice by two different companies after the original debt dropped from my credit report. I had a Capital One credit card back in 1999 and last activity was in July of 2000. I had lost my job and although it was only $200, I had to keep up with my mortgage, water, gas and lights the necessities now there is a credit recovery that bought the old debt and now they are taking me to court for $1481. They say it is because I had so many over the limit and late charges and interest over the last 9 years. They also said it will continue to earn interest if I don’t pay it. My question is is this legal?


You might want to contact a lawyer who deals in collections. Each state has different statute of limitations for collections; so, 7 might not be your number. And by activity do you mean charges on the account or attempts to collect? It’s likely the 2 lawsuits were filed within the allowable time and it they are probably legit judgments which could lead to garnishments, collection, etc. Have you actually been served court documents for this other $1481 collection?

You could have at some time re-initiated the start date of the statute of limitations or it could be, if you haven’t been served by the court, they are just threatening you. Either way, you might want to contact your local bar association to get in contact with a lawyer; the lawyer may even be able to give you a quick response over the phone.

I would consult a lawyer. As mentioned in a prior post the Statute of Limitations does vary by state. The longest time period is Rhode Island at 10 years, and the shortest
time period is at 3 years, with a lot of states being in the 3 year range.

What do you have to tell credit card collectors when they call?

Geez, they call now before a bill is one month late. They want to take money out of my account, if not, when I will pay and what is the problem why I haven’t paid? What do I have to tell them?? I just don’t know what to say and I think I may have been saying too much.

I can tell you one thing from my experience. Don’t keep money in a bank that you owe money to. They can just raid your account and take it all from you. It depends on the fine print, and no one ever reads all of that. Then tell the collector you can’t pay and not to bother you any more or you’re going to report them. Also tell them that you’re recording the call, actually DO record the call, and then hope they go over the line with you by threatening. Then you wind up with a good chance of winning a suit against the collector.

Are you talking about the origonal credit card companies? Or are you talking about a collection agency? IF it is a Collection Agency never ever EVER EVER EVER talk to them on the phone. Send a limited C&D letter Certified return receipt. Tell them that you have to have all communication in writing. NEVER discuss anything with them over the phone.

If it is the origonal creditor then you can simply tell them the truth. They will get it when you get it. They can not threaten you legally. Keep all your records and if it is legal in your state record their calls. So if they violate any laws you can then sue them and they will owe you. Also never give them direct access to your banking info! It has been known t happen that they will go in there and just take money out willynilly!!

Don’t let them have access to your bank account! If they will only work with you if you make automated payments, get a pre-paid VISA or MasterCard. Then, just put what they are allowed to have on there and give them that number.

You don’t *have* to tell them anything. They’ll whine and cry and beg and get nasty, but you don’t have to say anything. I agree with the person who said to write them a letter and tell them not to call you anymore. State very clearly that ALL communication must be in writing at a specific address.

GM Card – HSBC

Just wanted to know if anyone else is having problems with HSBC, GM Card in getting them to lower your interest rate and provide a reasonable payment plan. I worked with them to get a hardship term for 6 months where I could pay $500 a month, but they did not lower the interest rate and basically my balance continued to climb. Any tactics that I can use to get them to agree to lower my interest rate at this point?

They have given me a way to pay $3500 for three months in a row to cut my debt in half, basically forgiving them the rest…but if I had that much money to pay them, I would have paid them off by now. They say that since I can’t agree to the $3500, they will be sending my balance to a collection agency. I basically really do want to pay them off, but am about to throw in the towel due to their horrible attitude.

I even told them that Chase gave me 6% interest and $525 a month payments, which I’ve been able to make and have reduced my balance by more than $5000 in the last 18 months. I guess I’m not sure why they won’t work with me. Sorry to ramble. Thanks for listening.

I have heard this about them before. They are horrible to work with. I wish you luck. are you doing this in writing? Or on the phone? I was always told that you need to tell them to stop phone communication and only do paper communication. You can try surfing the balance to another card with a lower limit. And If you ever need money to solve problems with your business or to repair your house you better get $1000-$5000 loan online. They seem to be trustworthy and serious company. I have had positive experience with them.

Need help to get out of debt

Hi, I am a new reader to the blog. Am currently working and earning about $300 per month but over the past two years i have accumulated debt amounting to $2000 and this has affected me terribly as almost all the money am earning is now going towards servicing the debt. I need help to get out of this debt and advice on how to avoid debt next time.

How many hours are you working to earn that $300? If its less than 60 hours/week, then get a second job… You need to make more and spend less. Its as simple as that. Get on a written budget to live on that $300 and be firm with it. Then get a second or even third job and bail out of that debt as fast as you can… Save at least 500 dollars aside first and then pay your smallest debt first and work on up the line.

After that, use those extra jobs to pile up an emergency fund of at least three months of your expenses. As those are less than $300 a month it shouldn’t take you long.

Then you can begin to survey your chosen career and see if there is not a better way out of your income crisis.

Books to get from your library:
The Total Money Makeover – Dave Ramsey
48 Days to the Work You Love – Dan Miller

Deep in Debt with Questions – update

It is possible to get out of your “mess”, but it won’t be without some pain. You need a financial shield in place to protect yourself from the impact of creditor lawsuits once you stop paying them. This will put you in control and allow for a negotiated settlement of as little as 10 cents on the dollar. Further you’ll demand no 1099 on any forgiven debt and your account listed as paid in full. Most creditors are willing to accept this in lieu of nothing. Of course your credit will suffer, but it can be repaired and rebuilt.

Thanks for the responses. We contacted Chase with a 50% offer, but they said they wanted 85%. I believe we will counter with 65% and hope they take it. Although the original debt was with Chase 4 years ago, when the int rate went up I switched it to Advanta; and when that one went up I switched back to Chase (last May). So, they said they want more of the principle paid. We can’t sell the business until this is cleared, so we may lose the buyers. I really don’t want to file bankruptcy for this business.

Right now, I called a few of our other cc cos and lowered the int rate, albeit only 2%, but they said I can call back in a couple of months to see if they will lower it again. I’m going to contact a few more and see what they say.

I really don’t want to not pay my cc bills and have them calling me, so I will have to work to pay them back as best I can. However, we may have to go to a credit counselor and have them deal with lowering the rates even more. We were unable to achieve a settlement with Chase as we had hoped. I haven’t paid last month’s statement, and, of course, the rate went up and now the payments are even higher. They called a couple of weeks ago, and I said I would see what we had in the bank. Business is terrible, and now my husband is having health issues. If they had accepted our offer, he probably wouldn’t be having these problems.

Can someone please explain what is involved in this? …”You need a financial shield in place to protect yourself from the impact of creditor lawsuits once you stop paying them”. Will they actually sue us? Or, offer a settlement? They are now calling multiple times a day, however, I’m not taking the calls. They actually called 5 times on July 4th!!!

Call the executive offices of chase at 1800chase99 and see what they will do for you or file a complaint with the better business bureau.

URGENT!! Deep in Debt with Questions

Sorry, this is long….My husband has an LLC that we can no longer continue running. It never made any money because, unfortunately, we financed it four years ago with a credit card. We are in the process of selling it, but will never make back what we owe which is about $18,000 to Chase. The offer for the business is $8,000 and we may be able to sell the vehicle separately for $2,000…maybe less. We are current on the Chase payments, but only have $1,000 in the bank – that’s maybe two or three more months of payments. Do you think Chase will settle for $8,000??? The card is in the business name and has my husband’s name on the account.

How would you go about it, since we are not delinquent…yet. We would prefer not to stop paying them, but just end it as quickly as possible. We need to make a decision on the sale by tomorrow. I don’t think we will get much more if we don’t accept this offer, it’s a rental business and the inventory is four years old and depreciates quickly.

Our only other option is bankruptcy for the company. Since the new owners would be keeping the same business name, we would prefer not to have to file bankruptcy.

In addition, we owe over $40K on several other credit cards. I work part-time for a paycheck (and the health insurance) during the school year only, and part-time without pay in my husband’s other business (dba). That business would do much better if we weren’t paying on all these credit cards. I’m trying to obtain other part time work as well, but no luck yet. I’ve been looking for quite a while.

I got a notice that Chase is raising the interest rate on several of our cards. Citibank already lowered our limit since we don’t use it. We only use 2 or 3 cards for business purposes only, so I expect the other cards will all be doing the same since we are just trying to pay them off and don’t use them anymore. Yes we did a lot of transferring balances, very poorly managed though.

I know it looks like we should file bankuptcy, but I’d really rather settle most of these cards than go through that. We are current on all the accounts, although we’ve paid several late fees this last year. There’s just too many cards to keep track of. I received $20K from my father’s estate recently, and we’ve just been hanging onto it in case we fall behind on the mortgage, as his other business may very well slow down due to the economy. With the increased interest rates, things are beginning to spiral out of control even more. Any chance I could settle the $40K for $10K so we would at least have a cushion and not fall into the credit card trap again?

I tried setting up a plan on my own to pay things down, but with our erratic income that may be difficult to do. And, now with the raised interest rates, it could be impossible. I never know how much I will have by the end of the month.

I’d appreciate any advice, especially regarding debt settlement. I’m very leery of going through a company to do this and would love to hear from people that have done this on their own. I am desperate to get out of this mess!

Question on selling home to flipper type buyer

I have learned alot from this blog and hope someone here can help me with this. My husband’s dept is being disorganized and a few people will be offered new jobs in TX, we’re in GA. We have no idea if we’ll go to TX or not. Info is being slow to come from higher up. He’s a federal employee. We know we need to get rid of our home no matter what. We owe $113,000 on the mortgage. The house is in need of repairs, foundation, plumbing, and a few other things. The homes in our neighborhood when selling, are going for $160,000 to $200,00. We have too much debt to put any money in making repairs. So are wondering about contacting some of those ads that”buy ugly houses”. Has anyone ever had dealings with that type of transaction? What should we know going into something like this? What should we be wary of? I just want to get out from this house. All we care about is getting enough to pay the loan off. I appreciate any insights you have to offer.

Before I did that, and I don’t trust those companies anyway, I would list the house and price it about $10K below what the others are selling for. Make a list of the issues that are huge, like the foundation, and disclose those. Let the buyers negotiate from there. They may want you to knock of $20K, but you would still get it sold. We are selling our house. Last Summer, we put $25K into shoring up our foundation and the garage floor is sinking and the driveway would cost $10K to redo. We are lsting our house at normal price, maybe a little below, and let the buyers negotiate. We may lose a little money on top of the $25K we can’t recoup, but we will get out of it. Also, disclose eberything and see if you can get them to sign off on it “as is”. That way, they can’t really come back to you and say we want money becaue of this, that and the other.

My opinion is that you should put the home for sale, rent in the new state to which you move and wait for the house to sell. if you haven’t made improvements or maintenance to it, it will be tough to sell it unless it is in a prime location where you live. so it will take a long time to sell it. flipper style buyer, in my opinion, would be a person who makes a living buying homes in bad conditions in good neighborhoods, improving them and then selling them.

you would have to investigate who these people may be, but it may not be easy because they could be a real estate person, a person with an architecture background or a contractor. you may have to ask by word of mouth who makes his or her living that way in your town. some of these people are willing to live in these homes while they are improving them, then sell them and move to their next project. you could otherwise try selling to a new home buyer that has the energy and time to repair it. sometimes flipper type buyers buy on speculation new homes being built by developers, with the hope of selling them when the homes are completed.

I have friends who have lost a lot of their savings because they were enticed to plans like those, just before the housing market turned sour last year. but that is not your situation. you should at least spend time and energy in making the house as presentable as possible, doing things you can manage, like painting, maintaining the yard, removing clutter. one guy i knew who would live in houses he was repairing until he sold them was a good gardener, so he used to make the garden very attractive while reparing and painting the house.