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If the collection comes back as "verified" from the credit bureaus, you now have proof of further collection activity from the collection agency. (The assumption is that the credit bureau contacted the collection agency to verify the debt.) Since the collection agency did not validate the debt, further collection activity is a violation of the FDCPA.

Contact the credit bureaus, and tell them that the creditors did not verify the debts under the FDCPA, and send copies of your proof. Request the method of verification, which is your right under the FCRA. It is crucial to contact the credit bureaus before filing a lawsuit. Make sure you state that the collection agency did not respond to your request for debt validation.

You can try sending them a letter to see if they will budge. They may tell you that the request needs to come from the creditor. This is baloney. They are basically being an accessory to the collection agency's illegal act of reporting you in the first place, and are teetering on the edge of "willful non-compliance" under the FCRA. Tell them so.

File a small claims suit in court on the credit bureaus, on the basis of defamation of character. This is the easiest thing to prove since the fact that a collection exists on your credit report hurts your character.

Have the papers served. (You can find a paper server on the internet for about $25). Here is a great link where you can search for the local office of the credit bureau near you:
llrx.com/columns/roundup14.htm

Notify the bureaus that you are suing them. You can use this letter. The credit bureaus will call the creditors and find out that there is a question about whether the debt is legitimate. They should delete it immediately. If you want more legal ammo, you might also try looking up similar cases to cite.

If you don't want to spend the $25 to serve the agencies (although it is well worth it in my opinion), make sure you note the case number and court in which you filed the suit when you notify the credit bureaus you are suing them.

I hope this helps everyone.

Link made inactive as per forum rules - Mike

Posted: Fri Apr 07, 2006 1:00 pm Subject:

Thanks kalevala316 for this great piece of information. In any case, a wrong collection entry must be removed from the credit file. This is a serious negative remark and its consequences over the credit are unbearable.

You must take every action to enhance your credit ratings. Be persistent and get things going. You will be able to resolve unclear things in your credit report

Posted: Fri Apr 07, 2006 1:23 pm Subject:

You are welcome Roxette!
I have been working on my credit report and in and all new information I get I will happily share.

mwtx · Posted: Mon Apr 10, 2006 9:19 pm Subject:

Credit reporters have been walking on thin ice. Most of the time it works like this: You find something funny (such as a collection agency) on your credit report. You dispute. The credit reporter emails the CA of the dispute. The CA just answers, "yes we have this account". The credit reporter says it's "varified".

Both the CA and the Credit reporting agencies open themselves up to lawsuites for violations of the FCRA. Fortunately in my state, Texas, the collection agency has 30 days to verify the validity of the debt, and if they don't by this time, they must contact all the people they've reported this to, and remove it from your report. This doesn't prevent them from trying to collect at some later date however.

Posted: Tue Apr 11, 2006 2:48 pm Subject:

You are right mwtx. Have you read the post by Kathryn? Cavalry is asking to get a written document from OC and verifying the debt with credit bureaus. OC is asking to deal with credit bureau. And credit bureau is redirecting to Cavalry again. What a mess.

BTW, why you I cannot see you as a registered member yet. Please join this forum.

mwtx · Posted: Tue Apr 11, 2006 9:42 pm Subject:

Thanks curlycarl. I paln to join the forum. I tried once very late a night, and something must have gone wrong.

As to Cavalry, they are notorious crooks. They place it on your credit report and mail the first demand letter later.

Believe it or not, I know someone who had a bit of success with Cavalry by writing the Phoenix BBB (online) and describing the matter. They also illegally list it as an open account.