Baumblog EST 1968 - A blog for the Baumbachs who originated in Syracuse, NY

So I just did my annual duty of printing my full credit report. I also use a monitoring service. I used Experian's credit report this time....and noticed a "potentially negative" mark on my account that blew me away. I had a listing from "National Credit Solutions" that I had an outstanding collection account from "Direct Brands INC Music Serv". It said that is was opened in Feb of 2009 with an amount of $25 and it was now $169. I'm thinking--what in the world is this??

I googled the company. Guess who? BMG! I can't believe this! Back when I was ohhh...maybe 15, I did the old buy one CD, get 15 free or whatever. Remember those deals? I remember paying them too...I remember because they used to charge like $4 to ship each stupid CD, but I also remember feeling very cool writing out my very own checks. Of course I have not opened any new accounts with them--I didn't even know they were still in existence!!!

So I call the number for National Credit Solutions, and I get a message saying that I have called after business hours. Okay, it's 3 pm on a Thursday and I'm calling from the East Coast. Who in the world is not open for business at that time? Are they operating in Japan??!! Will I have to call at 3 AM?? I said as much in my very friendly message for the dispute center, option 306.

Where do I go from here? I filed a dispute with Experian. I'm going to be getting an auto loan in the next couple months...luckily my credit is pretty darn good, but I'm not putting up with this on there. It's ridiculous!!

Marc said about 1 hour later

Good luck with that, removing "potentially negative" things off your credit report is a PITA! Don't forget you need to dispute it with the other two major credit agencies (TransUnion and Equifax) as well.

I had to dispute a bill I received for a medical appointment when I was 16 (which isn't even legal to be charged that when I was under Mom and Dad's insurance) and it's still on my report. It says it's closed/paid, but it won't be removed for another year, since I didn't find it until I was 19 and it stays on for 7 friggen years!

I'll let GJ take care of the rest as I'm sure he's a pro in this area. :)
GJ said about 7 hours later

Already in contact with Kristen on this. Anyone else having this problem knows where to find me. :)
GJ said about 22 hours later

Some background, for those of you not named Kristen. This is a scam. National Credit Solutions is an organization run by one individual who isn't even a native English speaker and could well be located offshore. They do however have a pretty good understanding of US credit laws, and the credit business in general. The scam works like this: they buy old debt data from Columbia House and BMG. This data does not have SSN, it only has names and addresses (as well as amounts owed). They are doing a half-assed match to consumers based on address histories that are easy to obtain from the USPS and other vendors, and likely matching one debt record to several customers in the hopes of getting either a hit to the actual debtor, or a gullible consumer who doesn't understand the credit system but is terrified of a bad record in their file.

They don't even appear to bill the customer--instead, they wait for the customer to come to them and then try to get them to pay the debt. What I've told Kristen to do is send them a Debt Validation (DV) letter with a fair amount of legalese via Certified Mail Return Receipt Requested (CMRRR) informing them that they must furnish Kristen with a full accounting of the debts she is being charged with, and what proof they have that these are indeed her charges. If they fail to respond within 30 days, or fail to deliver the asked-for proof of debt, they are required by law to remove the credit filing inside of another 30 days. Generally speaking, they actually do this fairly quickly, because otherwise they'd get their asses handed to them in court and be shut down. This operation is actually "legal," so long as they respond to DV letters appropriately and clean credit records as needed. It's still scummy--but the sad fact is, one often needs to be scummy to get debtors to pay back what they owe. At the end of the day, the debtor did incur those charges--but the drawing in of people who aren't responsible and effectively allowing them to pay on the debt is still very sleazy.
Marc said 1 day later

How does that not constitute fraud? They are pretending to be a collection agency for a defunct company. Even when Kristen gets this cleaned up, it'll stay on her record as "closed/paid" for like 7 years right? Anyone who looks at her credit report from a subjective point of view may be getting a bad picture painted.

All I can hope is he goes to jail. Scammers who go to jail get treated like child molesters.
Geoff said 2 days later

As should spammers.
GJ said 3 days later

Closed/paid doesn't affect your credit. However, no, Marc, it will likely be removed completely as it cannot be attributed as Kristen's debt.

You'd be surprised what doesn't count as fraud in the financial sectors. It may not be moral, but legal and moral are two different concepts.
Kristen said 3 days later

Ok, put together the letter and will be mailing it tomorrow. I decided to do some elementary internet research on the company. Found out that the CEO is a guy named Brett Evans. Not only was I able to pull up his personal address and telephone number, but...drumroll....I found him on Facebook! Which clearly identifies himself as the President of National Credit Solutions! Hell, the company even has a Facebook page! Wow, this guy is just brilliant. And for the single ladies, he's 33, single, and looking. He likes soccer, dancing, country music, and spending money (especially money collected via coersion). Oh, but he has a kid. There's always something.

I cannot believe that he is not being harrassed daily. So tempting. The one thing going for him? I check his BBB score and it was a B. Perhaps the complaint I lodged will pull that down a little.
GJ said 3 days later

Brett Evans is likely a pseudonym, and likely so is the Facebook account. His command of English where I've tracked him down online is tenuous at best.
Kristen said 11 days later

Found this article interesting:
http://finance.yahoo.com/news/Learning-How-to-Fight-the-nytimes-3387084735.html?x=0&.v=1
GJ said 11 days later

Yeah, we know of this guy and his ilk, too. They're cut from the same cloth as Mr. Evans.
Kristen said 15 days later

Deleted! Got a response from National Credit Solutions and Experian telling me that the negative credit item was removed. Hummm...to sue or not to sue? It's worth a look.
GJ said 16 days later

That's great, Kristen! Glad it worked out well. Suing would be a tough sell--you'd have to show you suffered some kind of damage, unless one of the credit laws gives you some kind of opening. Talk to a lawyer who specializes in credit law specifically if you're really interested in pursuing this.

Marc said about 1 hour later

Very good answer!

GJ said about 2 hours later

If you ever see him hosting any kind of show on Discovery or PBS, you owe it to yourself to watch. He is a tremendous speaker that brings the subject matter (for him, usually astronomy) to life in a way few others have ever done.

Geoff said 1 day later

Nice perspective and very well spoken. He's got my vote!