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Dasboot · Posted: Thu Jun 12, 2008 11:41 am Subject: Validating debt in Texas

How is the validation process different in texas as opposed to other states? I think I read that in texas, the collection agencies MUST reply in some way or form within 30 days if validation is requested.

My quesiton is: what happens if they dont reply?

Posted: Thu Jun 12, 2008 3:43 pm Subject:

I don't know what your process is, Das Boot, Smile

but it all depends on your state law. If you're just going by the FDCPA, then use that. If they don't respond with honor, that's how you start creating your case to (a) sue them, or (b) respond if they sue you.

What's your situation? I have a little experience making DC's go away, if you wanna PM me I can share

If they don't reply? You're home free, alleged debt-wise. sometimes it just gets sold to another DC

Posted: Fri Jun 13, 2008 5:15 am Subject:

You will want to google the Texas Finance code concerning debt collections & credit reporting.Your state has some great consumer laws & you will want to reference those laws instead of federal law when you send your validation letter to them.

Guest · Posted: Fri Jun 13, 2008 8:08 am Subject:

If they don't validate the debt, it is invalid. If they then try to collect, it is a violation of FDCPA. If they sue you, it is a frivilous suit, and you can get sanctions.

Dasboot · Posted: Fri Jun 13, 2008 8:18 am Subject:

Hmm, I did not reference Texas Finance Code in my initial DV letter because I was not aware it was stronger than the FDCPA and used a template I received from this site. Sad

Would I need to have mentioned it in my DV letter for them to be bound by it? Or does it just make me look a bit scarier to mess with? lol

I know that the fdcpa does not give a time frame in which a CA must respond with DV information, but when I looked up the TFC it states:

"Not later than the 30th day after the date a notice of
inaccuracy is received, a third-party debt collector who initiates
an investigation shall send a written statement to the individual:
(1)denying the inaccuracy;
(2)admitting the inaccuracy; or
(3)stating that the third-party debt collector has
not had sufficient time to complete an investigation of the
inaccuracy."

Seeing that it says not later than the 30th day, if I do not hear anything from the collection agencies within said 30 days, does that completely invalidate the debt? Could they come back in a month or so and say "oh look what we found!"?

Posted: Fri Jun 13, 2008 9:01 am Subject:

Send them a follow up letter citing the texas finance code and it will start the thirty day clock to either put up or shut up. You can also go to the attorney generals web site & find out if they hold the required bond which is required.

Dasboot · Posted: Fri Jun 13, 2008 9:58 am Subject:

does the fact I didnt mention the TFC in my validation affect their adherence to it?

Posted: Fri Jun 13, 2008 10:10 am Subject:

Your first letter references federal law.Send the second modifying it to include state law.Do a forum search here for goldenblast posts. The poster is also from Texas.

Dasboot · Posted: Fri Jun 13, 2008 11:45 am Subject:

Sorry Cajun, I guess im confused.

Why do I have to send another letter explaining the TFC? Just because I dont mention this law doesnt make the CA exempt from abiding by it correct?

Ignorance of the law is not exactly the best defense and I dont see why I should be informing a CA of the laws of my state.

Im not fighting with ya, just curious Smile

Posted: Fri Jun 13, 2008 12:34 pm Subject:

To file suit for violations of the TFC,your letter must reference it and if they should violate you will be required to give them a 60 day cure period. Your state laws have a lot of teeth in them once you understand how it works.

Dasboot · Posted: Sun Jun 15, 2008 11:06 am Subject:

God i love being a Texas, lol.

Dasboot · Posted: Thu Jun 19, 2008 1:49 pm Subject:

Yet another question... per the TFC, it says:

If the third-party debt collector states that there has not been sufficient time to complete an investigation, the third-party debt collector shall immediately:
(1) change the item in the relevant file as requested by the individual;
(2) send to each person who previously received the report containing the information a notice that is equivalent to a
notice under Subsection (c) and a copy of the changed report; and
(3) cease collection efforts

Is this essentially saying the debt is invalid? I could not find a point in the TFC where it says that they could validate it at a later time, jsut that the change must be noted and collection efforts ceased.

Posted: Sat Jun 21, 2008 5:49 am Subject:

No. If they do provide validation at a later date, then collection efforts can resume.

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