Banks...do we really need them?

[moreeka]

I opened a bank account at a local bank for purpose of buying used car for daughter and told them so. No problem.She was 17 or 18 then. I bought the car, closed the account and forgot it. Two years or so later a collection company sent daughter a collection notice her account was overdrafted. ( I believe the bank forgot to close it and an audit caught it) The bank then refused to answer any question she posed about the debt stating that it was now a collection problem. They (collection agency) began to write and call us threatening us and her.Her Dad wrote agency and asked for proof of debt.
That we never got.
We did get same pattern of phone calls, threatening, demanding.
We checked her credit report...nothing. Called and called and wanted to know daughter's location. Told them she went to Texas which is the truth.
then nothing for months.
Recently got a letter stating a new collection agency(legal dept) is going to sue her for the amount in our county. Stated for overdraft.
Said they would settle for half of debt from us.
What can we do?

 

[dee_dub]

Ask them for a proof of debt. If they produce it, contact the bank, settle in with a good book and a mug of tea, and be prepared to spend hours on hold and with various customer service agents resolving the situation.