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What does debt validation do with original creditor listing

Date: Wed, 05/14/2008 - 14:06

Submitted by anonymous
on Wed, 05/14/2008 - 14:06

Posts: 202330 Credits: [Donate]

Total Replies: 17


Another question... but I figured it was deserving of its own topic...

If I were to request debt validation and the collection agency is unable to validate the debt, what happens with the original creditor listing on my credit report?


The original creditors will not speak to me at all about this issue anymore. These are 3 different credit cards which havnt been touched in 2 years (I know i know... but i sure as hell learned my lesson).

I was going to start settling but I thought I would try debt validation to see if someone maybe dropped the ball somewhere.

How would validating with the original creditor help when they won't touch this anymore since they dont own it?


lrhall41

Submitted by on Thu, 05/15/2008 - 06:30

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You can't DV an original creditor (OC). You can only DV a collection agency (CA).

The DV to the CA puts the burden of proof on them to provide proof that they own this account that is yours, and that you defaulted on. The OC doesn't have to DV, because they own the debt.

Now... if you KNOW the account isn't yours, you can dispute with the credit reporting agency. But since these accounts ARE yours, and you KNOW you owe them, you can't DV the OC.

Because the CA couldn't validate the debt, they have to remove it from your report. Dispute the CA listing with the credit reporting agency. The OC has every right to report that the account was charged off, as long as they are reporting a zero balance. You can't dispute that. You could try talking to them, let them know that the CA could not validate, and they may help you out.

Then, you'd just have to wait the 7-7.5 years for that item to fall off.


lrhall41

Submitted by Seeing_the_Light on Thu, 05/15/2008 - 07:21

( Posts: 529 | Credits: )


You can do a Facta investigation letter with a original creditor.To enforce your rights,you must do the following. Send written dispute to each bureau holding report to dispute account.Once they have verified,demand each bureau send you a method of verification in writing. Once these two items are in writing,send a investigation request letter to the creditor citing the Facta amendment of the Fcra. They will have thirty days from receipt of letter to prove the account is accurate or remove it from the bureaus.


lrhall41

Submitted by cajunbulldog on Thu, 05/15/2008 - 07:28

( Posts: 4850 | Credits: )


actually, if the debt was sold to a CA, and the CA reports it on your credit bureau as well, then you can dispute the original creditor's entry with the credit bureau--tell them that this entry is a duplicate, that the same account is listed on your credit report twice. Many times they will remove it for that reason without much difficulty. The last time I came across this happening on a credit report I only had to dispute it one time and that was that--they removed it right away.


lrhall41

Submitted by skydivr7673 on Thu, 05/15/2008 - 16:06

( Posts: 2036 | Credits: )


They aren't obligated to remove the OC account. Technically, this is allowed. As long as the OC is reporting a $0 balance. It isn't duplicate. Under the FCRA, the OC and the CA it was sold to have the right to report at the same time, on the same account. But the OC must say $0 while the CA is reporting the amount.


lrhall41

Submitted by Seeing_the_Light on Fri, 05/16/2008 - 03:49

( Posts: 529 | Credits: )


I know I owe money on the account. I am sending a DV letter to verify the CA is not trying to tack crap on top of what I owe.

Now, if the CA was unable to validate or doesnt within 30 days of my request, that entry is removed from my credit report.

The OC will no longer talk to me about the matter because it has been 2 years since it was charged off. So how would I remotely affect that listing on my credit report? Or will it default to 7 years?

My concerns:
If I pay the CA, I can more than likely get the OC listing changed from charge off to paid or something along those lines. I would assume that is much better than having a chargeoff for 7 years since I was success with my DV letter. Which would lead me to believe the DV process could be more harmful in the long run....


lrhall41

Submitted by on Fri, 05/16/2008 - 11:48

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I don't think DV could be harmful, you have more to gain and really nothing to lose - with the OC at least.

The OC and the CA can report an account for 7 years after the date it first became delinquent. Since the OC sold it 2 years ago, then it probably first became delinquent about 3 years ago ??? If that's true, then they can only report for 4 more years.

It doesn't hurt to try disputing it. The worst case is they validate it, and so you got 4 more years left with it. A lot of these places have so many accounts in storage, and records gets lost when the accounts are sold -- that many will delete rather than take the time to verify. Since the OC can't recoup any funds from you, it's just a waste of time for them to dig up old records.

If either of them don't validate within 30 days, then yes it comes off your bureau.

The CA maybe will take the time to verify, because they are the ones who own it now, and they want to get paid. But if you pay them, then you can get them to agree to remove its account from your CR.


lrhall41

Submitted by DebtCruncher on Fri, 05/16/2008 - 17:22

( Posts: 2293 | Credits: )


Exactly debtcruncher, That is what a guy told me when I went to buy a car and he went over my credit report with me.

That was last year and I should have listened to him when he told me about debt collectors also. He told me they buy debts for pennies on the dollar and that I should send them letters to validate the debt if they are on my credit report and to pay them nothing. I think he said he used to work in the debt collection industry. Only now I am taking his advice.


lrhall41

Submitted by on Fri, 05/16/2008 - 17:59

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Just remember, you can't DV an original creditor. Validation is only for collection agencies to prove the account is yours by providing you with documentation they've received from the OC. The OC held the account in the first place, the only thing they would need to prove the account is yours is the fact that your name is on it in their records. Not hard to prove. That's why you can't DV an OC... only a CA.


lrhall41

Submitted by Seeing_the_Light on Sat, 05/17/2008 - 06:35

( Posts: 529 | Credits: )


Just got a response from Chase Bank from the "Validation Letter" Cease and Desist...They are telling me that they are the Originator which of course I knew that. I call myself deleting part that was referring to a 3rd party collection. Mainly I was asking them to provide "accounting info" and information on the origination of the loan etc.... They have stated that that will not provide any further response letters requesting general documentation.

So what Now????


lrhall41

Submitted by on Mon, 01/31/2011 - 13:49

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There is no such thing as a "limited C&D". It's an all or nothing deal. You can't ask for validation and for them to not contact you. They can ignore it and continue collection by whatever means they choose or they can cease communication completely (until the summons shows up). A cease comm referencing the FDCPA is only applicable to a 3rd party collector.


lrhall41

Submitted by NASCAR_Devil on Tue, 02/01/2011 - 08:31

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