Validation letters to the collection agency

You should still send the debt validation letter...It's good to have for your records, and this way you'll know the EXACT amount owed, which leaves less room for funny business later on.

Hi Guest,

Your creditors have charged off the accounts. This possibly means that the accounts have been sold to some outside collector for further collections. This is the reason you are getting calls from CA. In order to know the actual agency responsible for recovering the amount, you must send the debt validation letter. This will help you in identifying them with a real purpose. A company making genuine collections can still take actions if they want to after you are enrolled in a debt settlement program.

Send your letter through certified mail with return receipt requested for records. The company will be further required to give you the proper details of the debt before you make a payment. Keep a check on your credit report also for knowing the companies in your file with valid purpose.

John,

Ok, Sears charged off my acct and now CA is calling. My debt settlement company will be trying to settle in the future.

So, does the debt settlement people have to settle with the CA's or Sears? And can a CA sue me and take me to court and put liens on my house?

I think I recall Jedi telling me that since I am involved in a debt settlement company that the judgement would get thrown out (if they tried to do that.)

This is just so all new to me, I get confused and don't understand. Isn't CA trying to collect the money for Sears? or did they buy the loan and now they want their money back? I don't understand it all.

I guess I want to know this: My credit card companies know I am in a debt settlement program.

What do you think the CC companies will try to do to me?

What do you think the CA's will try to do to me?

Linda,

A creditor hires a collection agency when they are unable to recover the amount within the stated time. Sometimes, to recover the money, they hire one of their internal collection agencies. If this doesn't work, the account is sold out to an outside collector who in turn takes the responsibility of collection. Now, they become the owner of the account and they don't have to send anything to the original creditor.

In your case, you need to know if the account is sold out by the creditor or a collection agency has been hired for the purpose. You can contact the OC and get these details. If they have hired an agency, you can still work out payment plans with them and won't have to deal with CA. Your settlement company can send the payments to the OC. The creditor will take your records back from the CA.

A CA has the legal case only if the account is sold out to them. If they have been only hired, they can't take any legal actions. In case, they are unable to recover the debt, they will send it back to the OC who will make further decisions.

Let me know if you are clear till this point. Ask your settlement company to get in touch with the OC. If the account is included in the program, your counselor will be working out the arrangements with the OC. Ask your counselor to get the facts straightened out from the CA. Their should be a valid reason with the CA and all account details before attempting collections.

John...

Just as I get to thinking that I understand, I get all confused again.

Ok...my settlement company tells me to fax over every letter I receive in the mail.

Do you think the reason they request this is because they are the ones handling my case and know what is going on?

Do you just suggest I do as the company tells me and not worry so much into what is "actually" occuring and start "trusting" the company I am paying monthly to help me?

My parents and family keep telling me to just do what they tell me and go on and not to worry, but I kind of want to know what is taking place, but it just is worring me and I can't sleep at night. ~I think I need prozac~

Linda

Relax and take a deep breath you have already taken a huge step by getting a settlement company to take charge.

By faxing your paperwork they are able to know who to deal with. Just make sure you keep copies of all paparwork.

Because your CCs are just recently charged off most likely the CAs are assigned to collect and have not bought the debt.

Keep in contact with your settlement co. and they will be able to walk you thru it.

an 85 year old widow on a fixed income and being taken to court for a balance.

Rene, you need to check the SOL period of this account. This debt will surely be out of the SOL period if you have not made a payment activity within the legal timeframe. Notify about the expiry of SOL in writing to the company attempting collections. Send your letter through certified mail with return receipt requested. When the matter is taken to the court, you will have proof of your actions taken

I sent by certified mail a letter to the above requesting debt validation over 30 days ago. I have not received anything from them. However, I requested my credit files and find arrow financial services have updated my files with new information. What do I do now??

Louise,

Welcome to the forums. :)

Let me understand this first (my first morning cup of coffee has not kicked in first so forgive me). You've sent the debt validation letter to the arrow financial services without a response from them? And they updated your credit files with new information? I believe that is illegal to do. From what I understand, the collection agency must give you a validation of debt because without it, they can NOT report to the credit bureaus.

Good morning sapphiredreams and thanks for responding so quickly.

You are absolutely correct in your understanding.

You are welcome. :)

Here is some information from the FDCPA

[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]

Where you sent them a debt validation letter, they can't legally do anything to your account for 30 days and they have to cease all collection activity til they validate. They are in violation for updating your report before validating.

Hi Louise

Highlight this item and place it on dispute with the credit bureau reporting it. Send a copy of your debt validation request and a copy of the green receipt for proof. The bureau will get a better picture on Arrow Financial and verify the item in your file. If your dispute is found correct, the negative info will be deleted from your file.

To everyone who responded, thanks for the information. I have done everthing that was suggested.

I have sent several debt validation letters to various agencies,t, and none have responded back to me. However, I all three of the major Credit Reporting Agencies have deleted the majority of those companies from my credit files. Thanks alot for all the information and I have certainly learned how to do detail research. I hope this is encouraging to others.

Charge off or written off does not mean you no longer have to pay the debt. It is a accounting procedure, which mean the original creditor is done dealing with you directly, and they have sent your account out to a collection agency or attorney for handling. The date that the debt was charged off is important as that is the date that determines the beginning of the SOL for Collection and for reporting under the FCRA. Also after a account is charged off, they may actually sell your debt to a debt buyer for collection. In this case, they no longer own the debt, and are not legally obligated to work with your their FORMER customer / client. A junk Debt buyer IS NOT considered, nor are the afforded the rights of an original CREDITOR. Under the fdcpa, junk debt buyers are still considered COLLECTORS.

180 days (roughly 6 months) is pretty delinquent. Most companies will charge you off at 90 days, and recently I have seen a number of companies who are starting to do it at 60 days.

We sent out a debt validation letter (one we felt requested the correct information for the account) to asset acceptance llc on 11-25-05 to Deb Everly at:
28405 Van Dyke Ave
Warren, MI 48093

Keep in mind this letter was sent after many attempts to obtain account information via the phone and in writing to Asset Acceptance LLC, with them requesting we "prove" we didn't owe the debt!

The letter is below.


DATE
YOUR ADDRESS HERE

Attn: Deb Everly
Asset Acceptance LLC
28405 Van Dyke Ave
Warren, MI 48093

RE: (your account number here)

Dear Ms. Everly,

This letter is being sent to you in response to a notice sent to us and received by us on 11-17, 2005. A call was placed to the toll free number listed in the notice. It is our udnerstanding by one of your reps that it could take up to six months for your company to locate the original creditor information. We find this to be questionable.

Be advised that this notice is being sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809(b), that your claim is disputed and validation is requested. Also be advised that if your company, like so many other debt collection agency practices, has obtained my social security number illegally, we will pursue damages. I (husband name) share the same legal name of my son and Asset Acceptance LLC is not the first debt collection company to pursue me for my son's bad debt.

This request is NOT a request for "verification" or proof o my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section of the Fair Debt Collection Practices Act. We respectfully request that your offices provide us with "competent" evidence that We have any legal obligation to pay this debt.

We cannot, as you've demanded, pay a debt that we cannot possibly confirm or deny as being our's unless you are willing to respond with our numerous attempts to gain information about this debt.

Please provide us with the following:

What the money you say we owe is for,
Explain and show us how you calculated what you say we owe,
Provide us with copies of any papers that show we agreed to pay what you say we owe,
I dentify the original creditor, with their legal business name and legal address,
Proved the statue of limitations has not expired on this account in the state in which the debt was incured,
Provide/show us you are licensed to collect in our state and provide us with your business license numbers and the registered agent's name and legal mailing address.

At this time we will also inform you that if your offices have reported invalid information to any of the three major credit bureau's (Equifax, Experian or TransUnion}, this action might constitute fraud under both Frederal and State Laws. Due to this fact, if any actions that your company takes places a negative mark on our credit report by fraudulent information provided by your company ro the company you represent, we will not hesitate in bringing legal action against you for the following:
Violation of the Fair Credit Reproting Act
Violation of the Fair Debt Collection Practices Act
Defamation of Character

The suit will be filed in the state in which we reside.

If your offices are able to provide the proper documentation as requested in the following declaration, we will require at least 30 days to investigate this information and during such time, all collection activity must cease and desist.

If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this accou8nt must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to us immediately, if you have placed this with any of the three major credit bureau's.

Again, we have made sure that all calls to your company would show on our phone bill as well as documentation of all corrospondences via the USPS.

Best Regards,

(husbands name)


What response do you think we got to this letter?
We got a letter telling us that we needed to send them a copy of a police report, a letter from the original creditor stating the account was fraud (which assest acceptance never sent us, so how could we?), and a notarized fraud affidavit......

They refused to send us even the name of the original creditor.

We contacted the Attorney General in Michigan and filed a complant.

Mr. Mike Cox
Office of the Attorney General
State of Michigan
P.O. Box 30213
Lansing, MI 48909

Mr. Cox sent us an email with a letter from Asset Acceptance LLC from their Corporate Counsel
Doreen L. Hoffman

Guess what else they sent him?
All the information on the account that we had requested from them on numerous occasions.

The debt is twenty years old and we had filed bankruptcy over eighteen years ago.

Mr. Cox was most helpful in this manner.

Because of Asset Acceptance's reluctance to cooperate with our numerous attempts to gain information about the account, we are taking all this information to our lawyer and allowing him to deal with it.

That's our story......we wish everyone well when dealing with this company.