Partial Validation
Date: Thu, 07/19/2007 - 17:45
I received a response from one of them today. That only contained my original loan agreement.
Here's the problem. Both my ex and I took out loans for truck driving school. One in his name, one in mine. I co-signed on his to push it through (it was my way of getting out of a bad situation).
I went to great lengths to get mine paid off. I assumed the one they were trying to collect on was his, since he died last year. But the loan agreement they sent was mine not his. It was mailed to my married name which I no longer use.
They are also asking for $1100 more than what was listed on my credit report last month.
I did not receive the rest of the requested information:
* Explain and show me how you calculated what you say I owe;
* Provide a verification or copy of any judgment if applicable;
* Prove the Statute of Limitations has not expired on this account
* Show me that you are licensed to collect in my state
* Provide me with your license numbers and Registered Agent
* Proof that the collection company owns the debt/or has been assigned the debt. (You are legally entitled to collect this particular debt from me.) This is basic contract law.
* Complete payment history, starting with the original creditor.
So my question is, if they don't provide me with all of the requested information by the end of the original 30 days, do I need to submit a second letter requesting the info? Or do I just proceed to the next step?
They have more than 30 days to validate a debt. Have you tri
They have more than 30 days to validate a debt.
Have you tried contacting the origional creditor to find out what happened?
This looks to be a loan that may fall under education.FYI has a
This looks to be a loan that may fall under education.FYI has a good idea to contact original creditor and if it was federal backed,the US dept of education would be another place to get information from.
So how long Do they have to validate? I understood that they had
So how long Do they have to validate? I understood that they had to reply with the information within 30 days of receiving the request?
And no, this is not an educational loan. It was a loan made from the company that ran the school.
Update: The $1100 I referred to in the first post was from June 06 not last month. But I found a notice from Experian from the 12th of this month that United Resource Services posted derogatory information about the loan to the tune of $9645. The requested amount on the letter dated the 16th is $9730.
If I've been reading everything correctly, they cant post anything to the credit agencies during the 30 day dispute period right?
creddy-- there is no set amount of time for them to validate
creddy--
there is no set amount of time for them to validate the debt. The only thing the law states is that they must cease any and all collection activity until they provide it. This means that a CA can refuse to validate, simply stop all contact with you, and still be within the law.
As for the 30 day dispute period, not exactly. They are allowed to report to the bureaus at any time, UNLESS you have already sent them a validation request. They are legally allowed to report to the bureaus before you send them the request. However, if they already reported to the bureaus and then you ask for validation, they must add a statement to their report in your credit file to note that you are disputing the debt. I have yet to see a CA actually do that, but the law says they must.
Also, if you find that a company refuses to validate, but still reports the debt on your credit file, they are in violation of the fdcpa.
Ok so they had the letter on the 22nd of June and they reported
Ok so they had the letter on the 22nd of June and they reported to Experian on the 12th of July and do not have it listed as a disputed debt.
Through some further research tonight, I've discovered that they are not licensed to do business in the state of Arizona according to the Arizona Corporation Commission.
ok creddy, this is what happened there....they just broke the la
ok creddy, this is what happened there....they just broke the law. They got your letter, and then continued to make collection efforts. This is 100% illegal, the FTC is clear as day on this one.
I would send them another letter, again CMRRR. In this one, I would send two attachments--first, send them a copy of the first letter you sent. Then, print out the letter I am including below...here is a link to that letter, and be sure to include the "www." on the beginning of it when you go to it.
cardreport.com/laws/fdcpa/ftc-opinion/cass.html
Print out this entire letter, and explain that this FTC opinion letter has stood in court as a legally acceptable clarification of the FDCPA. Here is the part that you should highlight--
Quote:
II. "Is it permissible under the FDCPA for a debt collector to report, or continue to report, a consumer's charged-off debt to a consumer reporting agency after the debt collector has received, but not responded to, a consumer's written dispute during the 30-day validation period detailed in ???? 1692g?" As you know, Section 1692g(b) requires the debt collector to cease collection of the debt at issue if a written dispute is received within the 30-day validation period until verification is obtained. Because we believe that reporting a charged-off debt to a consumer reporting agency, particularly at this stage of the collection process, constitutes "collection activity" on the part of the collector, our answer to your question is No. Although the FDCPA is unclear on this point, we believe the reality is that debt collectors use the reporting mechanism as a tool to persuade consumers to pay, just like dunning letters and telephone calls. Of course, if a dispute is received after a debt has been reported to a consumer reporting agency, the debt collector is obligated by Section 1692e(8) to inform the consumer reporting agency of the dispute. |
This is clear proof that reporting to the bureaus while ignoring a validation request is illegal.
OK, now, in the letter itself, I would say something like this:
Quote:
(account info, such as account # and amount they claim you owe) To whom it may concern: I recently sent you a request for validation on the above account. This request was received by your company on 22 June, 2007, as shown by the return receipt card. To date, you have not responded. However, I have discovered that you have reported this debt to Experian, and my credit file indicates that you did so on 12 July, 2007. This constitutes a direct violation of the Fair Debt collection Practices Act. Under the FDCPA, it is illegal to continue any collection activity once a validation request has been received, until that request has been satisfied. You will find included in this letter a copy of the Federal Trade Commission opinion letter, which clearly agrees that derogatory reports to the credit bureaus do in fact fall under the category of collection activity. This FTC opinion letter has stood the test of admissability in court. Due to the above, I hereby request that you remove any and all references to the debt in question from any of my credit reports from the three major credit bureaus--Experian, Equifax, and Trans Union--that you have reported it to. I further request that this removal take place within 30 days from the date of receipt of this letter. Confirmation of said removal shall be mailed to me at the address located below. Should you fail to act in accordance with federal law on this matter, I will have no further choice but to seek legal remedy. You should be aware that each violation of the Fair Debt Collection Practices Act carries a penalty of $1,000.00 plus any actual damages incurred. Please resolve this matter. (your typed name and address here) |
Ok, something else I would like to ask. You said that you went to great lengths to pay your loan off. Then they sent you a copy of the contract for your loan. Is yours paid off? Or did I misunderstand what you typed? If it is paid off, then you can provide them proof and that should wrap it up.
Also, you must review your original loan contract. The amount keeps going up, and the only charges they can tack onto the original amount are charges, such as interest, that are expressly mentioned in your contract. If you did not agree to it in the contract, they cannot legally increase the amount due now.
Sorry to throw all this out at once, but you can ask me anything you need to and I will try to clarify the mess I just typed lol
If they are operating illegally, meaning unlicensed in your stat
If they are operating illegally, meaning unlicensed in your state, then inform them that you have knowledge of their wrong doings, and you advise them to make this go away, quietly.
Check with your state collection and/or finance codes as well.
Check with your state collection and/or finance codes as well. You might find more actionable causes there. If they are unlicensed, report them to the state AG as well as the regulating authority in your state.
Anthony, with all due respect, I disagree with your post. Allow
Anthony, with all due respect, I disagree with your post. Allowing them to continue conducting business in your state when they are illegally doing so will only leave the next victim wide open to this abuse. And the next person they call may not be as informed as we are about their rights and the law.
There is only one way to handle this situation--file complaints with the regulatory agencies and go after them for breaking the law. Otherwise, you may get your own issue handled, but the next time they will screw someone over....illegally....