Collection letter 2 years after discharge?

[BrokeStudent8]

Imagine my surprise when I came home today and opened up a collection letter. I filed for Chapter 7 in September of 2005, and was discharged in March 2006. The collection notice shows that the previous creditor was Citibank, who was on my mailing matrix when I filed.

Is there any sort of action I can take that will result in them paying me some sort of fine? I figure that this has to be against the Debt Collection laws, and if it is, I want to make sure that this Collection agency knows it. Has anyone else had this happen to them? What's the best way to proceed?

Thank you for your input.

[BrokeStudent8]

The CA isn't Citibank, it's some place called Northland Group Inc. What is really infuriating is that I just checked my credit reports, and I have an inquiry from some place called Vital Recovery Services. How can I remove an inquiry that they are making? Do they still have the right to pull my credit reports? The debt was discharged more than two years ago- ALL of it! Is that even legal for them to pull my report??

[treehugger1]

Vital is probably some Junk Debt Buyer that received your 'debt" in a package with hundreds, perhaps thousands of old debts. It is my understanding of the way it works is that when OC's dump (sell) the original debt and several first-in-line collection agnecies cannot collect on the debt, they package many debts into a portfolio and sell it to the JDB's for pennies on the dollar. As such, it seems reasonable that Northland/Vital has no idea that you ever filed BK, and is attempting to collect on a debt that was discharged. If I were you, I would contact Northland/Vital and explain to them that the debt was discharged and request they remove their query from your credit reporting agencies. Will they? Hard to say. You should also dispute the reported debt with all three credit bureaus, sending a copy of the discharged debt to them. If none of the above gets you anywhere, then you might have a case to sue them, provided you can find an attorney willing to take up the cause.

It seems as if your issue is becoming more and more prevalent as debt moves from seller to seller quite quickly these days. I would also guess that you did not declare BK while the debt was with the original creditor or first collection agency. As a result, the debt wound up in some "debt portfolio" purchased by a 4th or 5th party. I doubt the history of the debt gets transmitted with the debt itself. Unfortunately, it is probably your burden to clean this all up.

Just my humble opinion, and the best of luck to you.

[treehugger1]

But, alas, the burden of suit and "proof" will reside on the debtor. I'd attempt something easier first. In fact, why not exhaust all avenues and keep a thick paper trial, and then find an attorney to take the wind out of their sails!