Collections targeting fraud victims

First of all you need to understand somehting. collection agencies have no secret button that goes out and seeks fruad or id theft victims. As far as they are concearned this is your debt and it's their job to get you to pay it. How are they supposed to know it isn't?

A collection agencies does not have access to the origional paper work. Most communications from their client it either by phone or computer. Contact Sallie Mae and begin the process to get this cleared up. I won't lie. It could take a very long time. Espcially since you have enjoyed the benifit of a student loan that has been reporting paid on time for the last 11 years.

You need to pull a credit report on yourself from all three agencies (Experian, Trans Union, and Equifax)to find out what else could be wrong on there as well. And start that process also.

It's possible you might also need to file a police report but I'm not entirely sure.

If you have requested validation of the debt from Zwicker, then by law they must CEASE all collection attempts until they are able to provide that validation and proof you co-signed on the account. They can not just arbitrarily decide to resume collections when they want or if they can not legally validate that debt:
[quote] 809. Validation of debts [15 USC 1692g]

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) If the consumer notifies the debt collector in writing within the thirty-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.

(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer[/quote]

You have thirty days from the first written notice to dispute the debt. They only have to obtain the requested validation and provide it to you, there is no time limit set on them to do this, but until they do they cannot attempt to collect.

FYI is right in one regard, most collection agencies DO NOT have this information when they call you or send you that first written notice. Once you request validation, they are legally required to OBTAIN that information (I.e. go back to their client and ask for it, then forward it to you once they receive it from their client. Until that time, they must cease collections. Failure to cease collections, or resuming collections without providing the requested validation IS A CLEAR violation of the fdcpa, and they can be sued for up to $1000 per violation plus damages.

If you let the thirty days pass without making this request in witting, you can still request the validation, though you may have to take it up directly with SallieMae.

Excellent information Clay. It is very helpful. Can you tell me what law you are referencing? Would I say this is section 809 of US Code 15-1692g ? Is this the fdcpa?

Also, can they litigate without giving me the written documentation? I was contacted by phone almost 30 days ago and they claim they are going to take me to court, but I do not have any paperwork and so I have not responded.

This is a real problem nowadays. Accounts opened fraudulently are often sold to debt buyers and they go behind the victim. When the victim shows sufficient proof of the fraud happened in past, the CA sell the debt to another agency and again it comes behind the victim. How can creditors and collection agencies sell a debt that is fraudulently occurred? I covered a similar stuff in my blog just few days back, check it too.

I think there should be some voice against this ill behavior of collection agencies and there must be some stronger laws for consumers.

Chuck

Since the collection agency is not assisting you in the validation process, I would contact Sally Mae and ask for validation.

Also you'll need to pull a copy of your credit report, and if said item is listed, dispute it. That'll notify the credit bureaus that you are claiming said item is not yours.

Additionally, if item is on credit report, or you get verification, you will want to file a police report. It is considered fraud, and the police will launch their own investigation. This will help your case if it goes to court.

Regards
Mike

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