Debt Validation Question
Date: Thu, 03/10/2011 - 07:59
[COLOR=black]"If they validate the debt, the collector is required to send a copy of your agreement with the original creditor. Under FDCPA, debt collectors are required to send you a debt validation notice within 5 days of contacting you to collect a debt."[/COLOR]
[COLOR=black][FONT=Arial][/FONT][/COLOR]
[COLOR=black]IAG called me on February 15th to notifiy me of a debt. I requested a verification of the debt, which they emailed me...and it simply stated who the OC was and how much is owed. So on February 16th, I sent a debt validation request via certified mail stating that I wanted copies of the following (as per a sample vaildation letter found on this website):[/COLOR]
[COLOR=black][FONT=Arial][/FONT][/COLOR]
[COLOR=black][FONT=Arial][COLOR=black]1. [/COLOR][COLOR=black]Agreement with your client that authorizes you to collect on this alleged debt. [/COLOR]
[COLOR=black]2. [/COLOR][COLOR=black]Agreement that bears signature of the alleged debtor where the debtor promises to pay the original creditor. [/COLOR]
[COLOR=black]3. [/COLOR][COLOR=black]Complete payment history on this account, to prove that the amount you wish to collect is accurate. [/COLOR]
[COLOR=black]4. [/COLOR][COLOR=black]Please provide your company letterhead with your complete address, both physical and mailing.[/COLOR]
I received my certified mail proof of delivery receipt on February 22nd. I still have not received anything back from them; however, they have sent a fax to my HR department at work to verify my employment (but my HR department gave me the fax and said that they will not verify employment without my written consent).
So my question is:
1) Have they passed the time limit that they should have validated my debt by sending the requested documents? If they received the request on Feb. 22nd as documented by my certified mail receipt, 5 days later would have been Feb. 27th, and then a few days mailing time to reach me. It is now 16 days post-request.
2) If the time limit has passed, what does that mean for me? What should I do? I believe I also read that if the time limit had passed, I should send them a statement of such by certified mail, and that at that point they can no longer legally collect the debt....am I correct?[/FONT][/COLOR]
Is this for a credit card debt or a payday loan? If it's a cred
Is this for a credit card debt or a payday loan? If it's a credit card debt, then it's possible the collection agency will not/cannot verify the debt. They will either send it back to the original creditor who will then most likely give it to another collection agency. Then you'd have to go through the same scenario. This happened to me with my sprint bill. It went through 3 collection agencies; none validated it.
If it's for a payday loan and that loan is illegal in your state, then they will never validate it.
It is for an internet payday loan which is illegal in my state o
It is for an internet payday loan which is illegal in my state of SC. Internet payday lenders in SC must be licensed, and according to the Board of Financial Institutions, they have not licensed ANY internet payday lenders. Only store-front payday loans are legal. So, that being the case, and if they never validate it, can they continue to call me, send faxes to my work, etc.....? What should I do at this point?
If you've already paid back the amount you borrowed, you send th
If you've already paid back the amount you borrowed, you send them a Cease and Desist letter, telling them they are illegal in your state. If you owe some portion of what you borrowed, you make arrangements for paying ONLY that. Do not give them any account information. You can repay via money order or prepaid Visa.
If you've overpaid, request a refund.
What's the name of the lender? Just want to make sure it's actu
What's the name of the lender? Just want to make sure it's actually a pdl and not a CSO.
The PDL was PayDay One, but they have turned it over to collecti
The PDL was PayDay One, but they have turned it over to collection with International Asset Group. IAG is who I sent the certified request for a validation.
OK, well PayDayOne is not a payday loan. They are a Credit Serv
OK, well PayDayOne is not a payday loan. They are a Credit Service Organization (CSO) and they ARE licensed to lend in SC ("http://www.paydayone.com/south-carolina-loan-cost-and-terms.aspx"). I would definitely have the CA validate the debt but you will likely have to pay this. Your best bet is to negotiate a settlement.
OK, but since I requested a validation, and it has been 16 days,
OK, but since I requested a validation, and it has been 16 days, how long do I wait for the validation? And what if they never send it?
They must stop all collection activities during the validation p
They must stop all collection activities during the validation process. They will either send you a copy of your contract, which would be validation or they'll send it back to PDO. Just keep track of any communication since the date they received your validation request letter. In the mean time, I would call PDO and see if you can work out a settlement and payment arrangement. I was able to pay off my loan with PDO by splitting it into 5 equal payment that I paid over my next 5 pay dates. They're usually pretty easy to work with. I would try giving their corporate offices a call and try to work something out.
Do you have the contact info for their corporate offices? I did
Do you have the contact info for their corporate offices? I did send customer service an email (before I knew that it had been turned over to collection) and they said since it had been turned over to collection, I would need to contact the CA.
For learning purposes, how do you determine if a company is a CSO vs a PDL?
The contract generally will state which they are. You can also c
The contract generally will state which they are. You can also check the licensing database(s) in your state for lending and or your state's department of consumer affairs.
Just call their customer service department. 866-580-1226. If they have sold the acccount to the CA, you'll have to deal with the CA.
FYI....they are not required by law to send you anything but pro
FYI....they are not required by law to send you anything but proof of the debt. Read the FDCPA. They do not have to provide an accounting, or proof that they are authorized to collect.
I got all the wording for the debt validation from a sample lett
I got all the wording for the debt validation from a sample letter on here...... also this was what I read on this website "Under FDCPA, debt collectors are required to send you a debt validation notice within 5 days of contacting you to collect a debt"...I dunno, it's all confusting to me!
No, what the CA is required to do within 5 days of first contact
No, what the CA is required to do within 5 days of first contact with you is to send a Dunning Letter. This is basically a letter of collection that tells you they are attempting to collect a debt, any info they obtain will be used to that purpose and if you dispute any portion of the debt you have 30 days to request validation or they will assume it's valid. As far as the letter goes, I don't particularly care for the samples provided on this site. I keep it short and sweet. Otherwise (in my opinion) you come off sounding like an arrogant, demanding ass. :) I usually just say "I dispute the validity of this debt and request that proper validation be sent to me as per my rights according to federal law."
The sample provided on this site is wrong and needs to be correc
The sample provided on this site is wrong and needs to be corrected. All these form letters do is tell the collection agencies you are copying things of the internet blindly and have no clue on what the laws are.
Hello Soaplady, If you feel that some changes are required in
Hello Soaplady,
If you feel that some changes are required in our sample letters, feel free to update us about them. You can also provide us with a sample letter which you feel is correct. Our concerned department will go through it and modify our letter if it is found correct.
Hate to say it, but the "concerned department" should know that
Hate to say it, but the "concerned department" should know that the letters are bad and should be able to correct it themselves. We have discussed it in this forum that those letters are misleading and that they do not follow what the FDCPA says about requirements.
DV letters are not rocket science. "I am requesting that you validate this debt" or "I am disputing the validity of the debt" followed by a reason IN PLAIN ENGLISH is all that is required by law. The CA's know the law, you do not need to quote it. When I worked collections, we would get variations of this letter and laugh, some people did not even bother to fill in the XXXXX or left the name of the previous creditor.