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Posted: Wed Jul 16, 2008 2:37 pm Subject: Question about debt validation

I had actually posted this in one of the announcement threads at the top, but I don't want it to get lost.

So here's a question:

Most of the information contained herein refers to 30 days after initial contact by the collector

I have 6 remaining items on my credit report that I am not sure what they are. To the best of my knowledge, I have never been contacted by these companies. All of these items have been on my credit for more than a year at this point in time. 3 of the 6 I had disputed with the credit bureau, and they are marked as such on my credit, although they still appear.

Am I within my rights to request that they either validate these items or have them removed?

Posted: Wed Jul 16, 2008 2:50 pm Subject:

You can request validation at any time. HOwever, outside of the initial 30 day window, they do not have to respond. I would word your DV stating that you had no knowledge of any account with them until you pulled your CR and that you consider this initial contact and expect validation to be sent immediately. They may or may not respond. If you are still within SOL on the alleged accounts and tehy are significant, it may be better to let sleeping dogs lie until SOL expires. IMHO

Posted: Wed Jul 16, 2008 2:53 pm Subject:

Yeah, my letters are worded to state that I discovered them by pulling my credit. I would let it go, except that I am looking to buy a house in the near future and they don't roll off until 2013.

Posted: Thu Jul 17, 2008 4:10 am Subject:

Then I would imagine that you are very much still w/in SOL. What state do you live is? How significant are the debts and which CA's(JDB's) hold them?

Guest · Posted: Thu Jul 17, 2008 4:32 am Subject:

I live in IL

The items listed are:

Certified Recovery - $430
Certified Recovery - $505
Certified Recovery - $430 (I believe this item is a duplicate)
NCA - $770
Paragon Way Inc - $585
Seattle Service Bureau - $1728

Posted: Thu Jul 17, 2008 4:33 am Subject:

Sorry, that Guest item above is me. I didn't realize I wasn't logged in.

Posted: Thu Jul 17, 2008 5:05 am Subject:

Still need to list type of debt & date of last payment to see which way to go on this.

Posted: Thu Jul 17, 2008 5:05 am Subject:

IL SOL is 10 years on written accts which CC's fall under. I would be concerned with the Seattle Service for $1700+ since that would be ripe to sue on. You could dispute the duplicate and that would likely drop but will also bring you back to the top of their list.

Posted: Thu Jul 17, 2008 7:11 am Subject:

Illinois Statutes of Limitation

Breach of contract for sale under the UCC: 4 years.

Open account or unwritten contract: 5 years. NOTE: Except, as provided in 810 ILCS 5/2- 725 (UCC), actions based on a written contract must be filed within 10 years, but if a payment or new written promise to pay is in made during the 10 year period, then the action may be commenced within 10 years after the date of the payment or promise to pay.

Domestic judgments: 20 years, but can be renewed during that 20-year period.

Foreign judgments are the same time as allowed by the laws of the foreign jurisdiction.

Tolling: A person's absence from the state or during the time that an action is stayed by injunction, court order or by statutory prohibition tolls the time limit.

Non Sufficient Funds (NSF or Payment of Negotiable Instruments) checks: 3 years of the dishonor of the draft or 10 years after the date of the draft, whichever expired first: 810 ILCS 5/3-118

Posted: Thu Jul 17, 2008 11:00 am Subject:

Cajunbulldog,

These are all payday loans that I have defaulted on. I am pretty sure that most of them are illegal loans in IL, but since they are in collections I will have to deal with them. Part of the reason I am looking at debt validation is to get a full accounting of payments made to them. I do know that the last payment made to any of them was Dec. 2006.

Additionally, the numbers listed are higher than the original debt, for example the $1700 was originally $500.

Posted: Thu Jul 17, 2008 11:19 am Subject:

Have you checked out our payday loan forum yet?That section has members with far more experience than I have.

Posted: Thu Jul 17, 2008 11:54 am Subject:

Yeah, I have some questions posted there specific to the payday loan portion of these items. Since I'm in IL, the debts can't be nearly as high as they are stating, and I may have overpaid on them. Additionally, none of the original lenders are licensed in my state.

The reason I also posted here is that I need to deal with the collections agencies. I especially need the debt validated so that I have the paperwork and a full record of payments (including any cash payments that wouldn't show on the bank account).

So I want to take a two pronged approach to them.

Posted: Thu Jul 17, 2008 12:06 pm Subject:

Sounds like a good plan.Push for validation and check your states laws on interest as I remember Debtcruncher stated the only companies allowed to charge interest after original creditor had to hold a specific license.

Posted: Thu Jul 17, 2008 12:21 pm Subject:

In IL, the CA cannot charge any interest, and the interest on the original loans wouldn't matter as they are all illegal lenders for this state. Not to sound like I'm trying to weasel out, I am fully willing to pay what I legally owe (the principle), and will even sweeten the pot a little if they erase all traces of these items off of my credit. My only concern is whether or not I can push them for DV.

I just saw something (today) that Madigan pushed through here about how the collector must always provide validation, with no mention of any 30 day limitations. I'm hoping that I didn't interpret that incorrectly. Since I have lived in IL my whole life, they have to abide by the rules here in order to take any action on me.

Posted: Thu Jul 17, 2008 2:01 pm Subject:

If you dispute with the CRA's and DV at the same time then they have 3 options: validate with you and the CRA, delete the item or tell the CRA the debt is good without validating. If they validate then you will have to pay them or sue them. If they delete you are golden. If they don't validate but tell the CRA the debt is good then you redispute with the CRA citing lack of validation and sue them for FCRA and FDCPA violations.

I am pretty sure they could not win since the PDL loans are illegal in IL according to your post.

Posted: Thu Jul 17, 2008 2:20 pm Subject:

Oh, I didn't think about sending a copy to the Bureaus. I'll have to add that into my letters.

I was just going to dispute with the CA and ask for DV

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