Cashnet500/Global Payday Loans
Date: Sun, 01/06/2008 - 16:54
They actually reported my account to one of the credit bureaus even though I sent validation requests each time I got a collection notice, and each request was ignored.
I disputed the account with the CRA, and these jerks supposedly "verified" the account and had the nerve to put under Creditor Comments on my credit report to please contact them and listed their toll-free number.
I reported them to the BBB at the same time that I disputed the debt with the CRA, and they responded to the complaint by saying that I was confused, as they are not a third-party collector.
So, they are actually part of Cashnet500/Global Payday Loans, even though they listed themselves as the collector and Global Payday Loans as the original creditor.
At the end of the day, CRA would not delete item, so I'm back to square one.
The CRA has to provide you in writing about how they verified yo
The CRA has to provide you in writing about how they verified your debt. But first you need to start here:
Send a letter requesting validation to the collection agency.
If you don't know the address of the collection agency post them we can help.
Dispute the collection with the credit bureaus.
Wait 30 days to hear back from the collection agency. Most likely they will not respond or they will respond saying that they received your letter.
Only a letter which includes:
Proof that the collection company owns the debt/or has been assigned the debt, Complete payment history, starting with the original creditor, and Copy of the original signed loan agreement or credit card application is satisfactory.
If they haven't sent you satisfactory proof, send a copy of your receipt for your registered mail, a copy of the first letter you sent and a statement that they have not complied with the fdcpa and are now in violation of the Act. Tell them they need to immediately remove the collection listing from your credit report or you are going to file a lawsuit because they are in violation of the FDCPA, section 809(b).
Wait 15-20 days to hear back after this second letter to the collection agency. They will either remove it or not respond.
If they do provide a contract with a signature from the original creditor showing that you owe the debt, there is one more thing you can try: see if they are legally licensed to collect the debt in your state. Here is a good site to begin your search.
Not all states require licensing, however.
If you believe that they are not licensed, and licensing is required in your state, write them another letter and tell them they are in violation of your state's collection laws and are subject to prosecution and fines. Cite your state's fines and procedures in the letter. This is a last ditch effort, but works sometimes.
Hopefully that's all you'll have to do, as most collection agencies send you a letter agreeing to remove the listing. Then all you have to do is send a copy of the letter to the CRAs.
If the collection agency did not agree to remove the listing, then there's no mister nice guy.
File a lawsuit in small claims court against the collection agency on the basis of violating the FDCPA. Have the papers served to the collection agency. (You can find a paper server on the internet for about $25).
In the meantime,
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.
They may tell you that the request needs to come from the creditor. This is a huge load of crap. If they can't give you reasonable information on how they verified the information and the collection agency has provided you none, you can conclude there was no reasonable investigation performed.
Therefore they must be on the edge of "willful non-compliance" under the FCRA. Tell them so.
File a suit in either small claims, state or federal court. The basis of the lawsuit should be that the credit bureaus could not provide a satisfactory method of verification, or did not conduct a reasonable investigation.
Have the papers served. (You can find a paper server on the internet for about $25).
Notify the bureaus that you are suing them.
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.
Hope it helps! :wink:
Thanks for the info, that is very helpful. I rejected the respo
Thanks for the info, that is very helpful. I rejected the response that Allgate sent to the BBB, and just got a notification of the outcome today. The case has been closed, and now Allgate are saying they are not a part of Cashnet/Global Payday, yet in the beginning, they didn't deny this.
In my rejection response, I stated that that I had disputed and requested validation each time I got a collection notice, and even disputed with the original creditor, as they are not licensed in my state, illegal interest rate, rollovers, etc., and they never replied. I mentioned that this company is being investigated for their lending practices, more needs to be done about predatory lenders such as this, blah, blah.
In the end, Allgate said they are not affiliated with Cashnet/Global Payday loans, they asked me to contact them to sort this out, but said I never did, and they are deleting item from credit report.
Will have to check my credit report again to make sure this actually happened.