What happens if a creditor closes your account?

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I stupidly signed up for this vacation package with this company called TAN about two years ago. Well I paid on it for a little over a year (around $ 800), the last 8 months i have not made any payments. And even though i financed this trip, it did not appear on my credit report.

Well, I called today to go ahead and try to make arrangements to start making payments again on my account (owe about $ 2000) and the manager said my account has been closed and i do not owe anything. So, I asked am I going to owe something in the future? He said no and they wont continue trying to collect. I noticed they have stopped calling me too.

What happens now? It seems weird that any company wont go thru the legal process to collect. Should I not worry about this debt anymore? Do you think they will sell my debt and someone else will be trying to collect? Or is this TAN vacation people so nice that they will just close my account and forfeit any further payment without any justice? I dont want this to come back and bite me later.

Thanks for help!

1 Comment
  1. Reply
    Net Advisor
    November 10, 2011 at 4:47 am

    What does the terms of the program say in the event of default?

    Call back and get all of it in writing. Write the name of the person you spoke to, the date and time of the call, a reference number, and you may want to record the call for a legal record. You need to disclose that you are recording this call before you go into anything as a matter of record. They can decline giving consent to the recording of the call. Don’t make a big deal about it, don’t ask if it’s ok, or if they agree to it, be passive, state that this the call is being recording for a record, and then quickly jump to your questions.

    If they don’t give this info to you in writing, you can send a certified letter and notarize it summarizing the original phone call you made and what was said.

    You may want to add:

    “Based on the said conversation (state the conversation as above, citing the day, date, and time you called and person’s name), TAN states I have no liability in this transaction, and it is assumed canceled and I have no further financial or other obligation with TAN, it’s representatives, agents, subsidiaries, or assignees, etc. If this is not correct, please state any legal claims within 30 days for my review. If no response is received from TAN et al, then the matter is assumed forever closed.”

    This MAY help you in the event someone tries to collect money from you on this later. You are attempting to create a legal defense in advance.

    Disclaimer: This is not legal advice. Always seek a qualified legal advisor for legal advice.

    Good Luck!

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