NCO Financial Systems Complaint - I Need Advice On How To Handle Shady Company . . .
Here's what happened . . .
I had a credit card account that was closed in 11/2004 and sold to NCO in 3/2005. NCO had contacted me soon afterwards, and I spent a month attempting to negotiate a settlement with NCO. On 4/30/05, I paid $1100 in order to settle the account which had a $1900 balance at the time. I now realize that I made a huge mistake by giving them my account information and paying over the phone. I also never received a letter from NCO stating that the account was settled.
I didn't hear from NCO for over 3 years, until they sent a letter to *my parents' address* in 11/2008. (I called the phone number on the letter and got transferred to several people. Each person told me that they had no information on this account or that I needed to call Citibank.) I made another mistake of assuming that this letter was a bogus letter.
I recently went to a bank on 4/14/09 and found out that this isn't bogus. According to my credit report, I now owe about $2700 to NCO!
I spent about 5 hours on the phone yesterday, trying to figure out what is going on. NCO admits to receiving an $1100 payment from me, and I have requested my past statements from my bank as proof of payment. However, NCO will not acknowledge my $1100 as settlement. They are asking for me to provide things that don't exist -- a receipt/letter documenting the settlement (which I never received) & a copy of the front and back of a check that I never wrote (because I paid using account numbers over the phone).
What do you suggest I do . . . ?
1. Should I continue to dispute this balance with NCO directly? I can send a letter summarizing everything that has happened and requesting that NCO acknowledge my 4/30/05 $1100 payment as settlement. I can also let them know that I will go to the State Attorney General.
2. Should I dispute the current $2700 balance on my credit report with the credit reporting companies directly? I have been told that the balance might be removed from my credit report early, because NCO isn't acknowledging my $1100 payment as settlement.
3. Should I attempt to settle the balance AGAIN with NCO in order to get rid of the balance and save time & headache? (This is assuming that I can get NCO to provide everything needed in writing.)
4. Is there another better option?
Am I screwed until the balance is removed from my credit report in 2011? Will NCO still be able to take any assets from me after 2011?
NCO Financial is the worst company that I've ever dealt with! Of course, I wish I had never gotten into this situation to begin with. I don't know what the best thing to do is now . . .
*** CORRECTION: The $1100 amount above is incorrect. The number was given to me by NCO staff during my numerous phone calls with them on 4/15/09. (The dates are correct however.) I received a copy of my April 2005 bank statement today (4/17/09), as well as copies of two checks made out for $2000 and $1400 in 4/2005. So I now have proof of payment! I have asked NCO to fax me my account history, showing original balance, payment history, and current balance due. I am waiting for a response . . .