I have a similar story right along the lines of a previous complaint http://usacomplaints.com/reports/0/317/RipOff0317419.htm
I had settled a $10,000 credit card debt down to $4,000 with a collection company named Receivables Management Solutions out of West St. Paul, MN. I agreed to make a first time payment of $1,000 with automatic withdrawals out of my checking account every month thereafter for $500 until the balance was paid. I made the $1000 payment on 10-23-07 and they proceeded to take payments on 11-23-08 and 12-23-08. Despite repeated requests I was never able to get the settlement in writing, the only document I have is a written letter stating our settlement terms, payment plans, account numbers. They obviously agreed with the terms because money was being taken out.
Now around January I get a phone call from Zenith Acquisition Corp saying they have bought my account along with 1,000's of others. They requested that I continue with the payment plan while they figured out and got confirmation from RMS of our settlement details. I told them that I would not send them any money until they sent me a bill showing the true amount that I owed. They sent a letter, but in the letter the balance was $9,300.
After numerous calls to RMS and Zenith, finally someone at Zenith notified me that there is a computer entry dated 10-22-07 which clearly states the settlement I had reached with RMS. Finally, I thought, they have the right info. They told me to go ahead and make payment because they have a record on their computer... That they just needed a letter confirming this information. So on 2-14-08 I went ahead and paid by phone $500 on a voice recorder where I stated that this is payment towards my $2000 remaining balance. The money was withdrawn by Zenith.
Now I get another bill from Zenith dated 3-17-08 and the balance is showing as $8800. I call them up and they explain that any old settlements are void and that I owe the full amount. They say that since they cannot get a letter confirming my previous settlement that the full amount is what is owed. This despite my letter to RMS allowing access into my checking account under specific terms, the computer entry on their terminal, and my voice recording allowing payment under terms of my previous agreement.
So now Zenith tells me to pay or they are going to ruin my credit. "I hope you don't plan on buying a car or a house anytime soon" is what one woman told me.
It seems that no debt collector is willing to produce any type of documentation. And us, the customers, end up having no choice but to make a payment or the ridiculous interest begins to accrue and you get reported to the credit agencies. I tried repeatedly to get a letter from RMS when I initially settled but they always transfered me to someone who said "we will send it to you as soon as possible".
When I spoke to a representative with RMS yesterday they said the original creditors have a right to pull any account at any time, thereby voiding any previous arrangements.in my case, that means I could settle, make payments, then have someone pull or sell my account and void any arrangement. Then I could settle again with another company, make payments, then have it sold again right before I have paid off the balance.
It seems that this process could go on indefinitely. Something is very wrong with that scenario. Sounds like some sort of pyramid scheme to me where everyone gets a chunk just by passing the account around.
One thing that all these companies have in common is that they will never send you any documentation. They always put you off or just plain say that they cannot or "are not allowed" to send you any documentation. What do they have to hide is my question?
I will also be retaining an attorney to find out what my rights are. Some options are to report them to the Better Business Bureau, the NY State Attorney General, NY State Consumer Protection Board, Federal Trade Commission, and your own states attorney general along with finding your own legal representation.
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