Bills Logo

Debt Validation & Mann Bracken Debt

Mark Cappel
UpdatedApr 18, 2024
Key Takeaways:
  • Learn about the debt collection process
  • Understand what happens to your debt, when it is passsed from creditor to creditor
  • Review the steps for validating a debt and disputing a debt

I had a payment plan with a bill collector that ceased operations. A new collector says my contract is void. Who is right?

I owed MBNA $10,800 which I was unable to pay due to serious medical and financial over-extension in 1999. I was able to settle with other creditors or pay off the smaller debts years ago but MBNA was sent to an attorney to handle. I have a signed contract from 1/2004 stipulating that I would pay $50.00 monthly until the bill was paid off or a settlement agreed upon. There was to be no added interest or late payments as long as I paid on time. Since that time I have paid the debt down to $ 7,100 and have consistently paid this amount although the debt has been sent to two other collection agencies in the last two years. One of these agencies was Mann Bracken which has evidently gone under at this point. I have recently received a letter from a new attorney that is demanding payment in full and actually stating that I owe $400 more than my records show. My last payment to Mann Bracken was 1/29/10 which was sent without any knowledge that they had filed bankruptcy and it has not been cashed as of today. The previous payment in December just cashed in early February. I have sent a faxed statement to this new attorney that I dispute this debt due to the amount and I did call to verify that they received the letter. What are my rights in Texas with a credit card debt that was originally charged off in 1999 and it is still showing on my credit record as a charge off but also shows that I have made payments up until 9/09 on the current credit report that I have. Since I have a contract which I have upheld am I safe from a lawsuit and what can I do about the check which is in limbo somewhere.

First, put a stop-payment on your most recent check.

I am assuming when you state you signed a contract that you are referring to an agreement with the first collection agency. I am assuming Mann Bracken was the second collection agency. The amount in your settlement agreement was a payment of $50 per month from approximately January 2004 to date. However, Mann Bracken appears to have ceased operations and the last cashed payment was for December 2009. Your balance seems to be correct based on the dollar amounts owed and paid.

Information on Collection Agencies and Statutes of Limitations

A collection agent is either a creditor or is a representative of the original creditor. Both collection agents and creditors are bound by federal and state laws concerning the collection of debt. For a basic guide, see the resource Collections Agencies, Collections Laws and Your State's Statute of Limitations to understand the collections process.

Assignment of Debt

Most consumer debt contracts give the original and subsequent creditors the right to assign the debt. A collection agents buying a debt will do so for 5 to 50 cents on the dollar. The collection agent has the right to collect the entire balance due plus interest (state laws set the rules in this area).

A third party purchasing a collection account must abide by previous contracts between the parties. If a debtor creates a settlement agreement with a creditor, all subsequent assignees of the collection account take the account subject to its terms.

Therefore, if a debtor has a legal contract with a previous debt collection agency, then any current party attempting to collect the debt is bound by the terms and conditions of the contract. Assuming that a contract stipulated no interest to accumulate or other fees, then the current agent may ask for immediate payment in full plus additional fees, but the debtor has no obligation to agree to the new terms.

Collection agents can buy a fully documented account, which includes all of the invoices and records of the original creditor's collection efforts. Or, the collection agent can buy a bare account with little documentation. A fully documented account is worth a lot more than a bare account. More on bare and fully documented collection accounts in a moment.

How to Ask for a Debt Validation

If a collector demands payment of a debt an individual does not owe, or more than they owe, under federal law the individual can dispute the debt in writing. The formal terms are "debt verification" or "debt validation."

According to the FDCPA's Section 809(b), 15 U.S.C. § 1692g(b), if the consumer notifies the debt collector in writing within the 30-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

You can find a sample debt validation letter at the Debt self-help center.

If the debt collector has a bare account and the consumer seeks a debt validation, the collector has no means to validate the bare account debt. Without validation, the account is noncollectable if the debtor asks for the validation and does not receive it. That is why is is wise for a debtor to ask for a debt validation when a debt collector attempt to collect on an old debt -- the chances on the debt account still containing the full documentation diminishes with each passing day and with each debt collector who handles the file.

Debt Validation and a Mann Bracken Account

It is unclear from your message whether you sent the newest collection agent a debt validation letter. A debt validation letter will ensure that the new agency has a legitimate, legal right to collect the debt it claims you owe.

Debt validation is especially important in this case given the uncertain disposition of the collection accounts owned by Mann Bracken. It is imperative that former debtors of Mann Bracken validate the debt when the new collection agent makes its initial contact with the debtor.


I suggest that you continue to put aside the $50 you were paying. Quite often many of these collection agencies (law firms included) will negotiate a lump-sum settlement for 40 cents on the dollar. If you are able to, you may want to consider this if the new collection agent validates the debt.

You mentioned you are a Texas resident. The Attorney General of Texas offers a Web page devoted to debt collection. makes it easy for you to apply for traditional forms of debt relief.

I hope this information helps you Find. Learn & Save.



Dealing with debt

Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Auto loan debt was $1.607 trillion and credit card was $1.129 trillion.

According to data gathered by from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

Collection and delinquency rates vary by state. For example, in Idaho, 14% have student loan debt. Of those holding student loan debt, 6% are in default. Auto/retail loan delinquency rate is 3%.

While many households can comfortably pay off their debt, it is clear that many people are struggling with debt. Make sure that you analyze your situation and find the best debt payoff solutions to match your situation.



BBill, Feb, 2010
You are conflating two separate issues -- the amount of time that a derogatory item can appear on your credit report (7½ years from the date of first delinquency) and your state's statute of limitations for asking a court to render a judgment regarding delinquent debt. See the reource Charge-Off & Credit Report for a more thorough discussion of these separate issues and your rights.
wwilliam palmer, Feb, 2010
it has been 7 years from my last payment on a credit card i have delt with 5 collection agencysand each time they have sold the debt the cc company took money out if my checking account without my authorization and i think thats against the law. now this last collection agency calls me 5 times a day at work and tells me i still owe someone told me yhe debt is no lomger valid because 7 years have passed from my last payment