Violation of FDCPA? Also seeking advice for next steps...
Date: Sun, 05/06/2007 - 16:39
First a recap of what has transpired since 1/9/07 until today... my questions are at the bottom.
RECAP:
Arrow Financial called me at home on 1/9/07 (my residence of 2+ years at that time) and said they were collecting on an old debt for Carson Pirie Scott (dept store). I have never opened an account with Carson Pirie Scott and asked Arrow to send me written verification of the account they are calling in behalf. Arrow is located in IL... I am in WI. The Arrow representative says I will have a letter by the end of the week.
1/16/07 - no letter from Arrow yet so I call them to inquire. I am told that the letter has not been sent yet but will be sent this week... should be arriving by the end of the week.
1/22/07 - no letter from Arrow yet so I again call to inquire... I have no knowledge of the debt they are claiming I owe and want to take steps to get whatever issue they have resolved. They advise the letter still has not been sent but should be sent soon.
2/2/07 - Arrow letter dated 1/29/07 finally arrives with limited information (original creditor, account # and balance) and says I owe $686.90. This letter did not include what I know today is the fdcpa's required debt validation notice advising that I had 30 days to dispute their claim in writing.
2/5/07 - I call Arrow to advise the letter had arrived and ask for detailed validation since the info in their letter was so vague. I needed their proof that this account belonged to me. Arrow rep says they will mail the requested details and also proposes a 'settlement' offer of only 65% of what they say I owe. I tell them I will review the letter when it arrives and advise my next step based on the details I receive.
From mid Feb thru late March, I made a few follow-up calls asking for validation but no letter ever arrived.
On 4/12/07 - I finally received a letter from Arrow including the same vague details (original creditor, account # and balance), now says I owe $704.26 and includes a written proposal to settle for $457.77. This letter also did not include what I know today is the FDCPA's required debt validation notice advising that I had 30 days to dispute their claim in writing.
4/17/07 - After doing a little homework on the internet about how to deal with debt collectors, my next step was to send a letter to Arrow via certified mail stating that I was disputing their claim and requesting written validation to prove that I was the party they claimed owed this dept. I specifically asked for 1) Identity of the original creditor 2) Letter of sale or assignment from the original creditor to Arrow 3) Proof that the Statute of Limitations had not expired on the account 4) What the money Arrow says I owe is for 5) Explanation and your detailed calculation of what Arrow says I owe 6) Agreement that bears my signature agreeing to pay what Arrow says I owe 7) Proof that Arrow is licensed to collect in my state 8) Arrow's license numbers and Registered Agent.
5/4/07 - My third Arrow letter arrives saying that they received my request for validation but that per FDCPA 15USC1692, I only had 30 days from the receipt of their first letter to request validation. They also say that since I did not dispute in writing within 30 days from receiving their first letter, they are entitled to assume that my debt is valid and continue with their collection efforts.
QUESTIONS:
- The first letter I received from Arrow was dated 20 days after their first contact (phone call with me). This appears to be a violation of FDCPA 15 USC 1692 which requires written notice within 5 days... is that correct?
- The first letter and following letters from Arrow did not include anything even resembling a validation notice advising that I had 30 days from receipt of their letter to dispute their claim in writing. This also appears to be a violation of FDCPA 15 USC 1692... is that correct?
- The last letter I received from Arrow last week says that they are entitles to assume my debt is valid since I did not dispute earlier. This also appears to be a violation of FDCPA 15 USC 1692... is that correct?
I have checked my credit reports and see that this account with Arrow is listed.
Since I am getting nowhere with Arrow, I think my next step should be to contact each credit bureau to ask them to validate the debt or remove it from my report. Do you agree? If the above items are, in fact, FDCPA violations should I mention the violations in my letter to the bureaus to help plea my case? Do you have any other suggestions on how I might find resolution and get this account off my credit reports?
I am newly married and my husband and I would like to purchase a house next year to start our family. This item on my report is a big red flag and will hurt my efforts.
Again, I truly appreciate any advice you can offer to me in this situation. Thank you in advance. Lisa
Hi Lisa
ok, about your questions....
1--the fdcpa stipulates that after initial contact, a debt collector MUST advise you of your right to request validation, and to dispute any portion of the debt in question. They clearly did not do this, which puts them in violation. That disclosure MUST be included in the letter they mail you. It doesnt have to be on every contact they have, but it does have to be on the first one. It isnt so much that the letter you requested took 20 days--that is acceptable. It is that after initial telephone contact, that law requires them to send notification of your rights by mail within five days. So you have a violation on their part there.
2--The 30 day claim they are trying to make would normally mean something. But in this case it does not hold water, since they failed to advise you that you have those 30 days to excercise your rights. They failed to disclose what those rights are. They are in violation, not you.
3--they are in fact entitled to assume the debt is valid, which doesnt mean much anyways. the law states that no court can assume the debt is valid just because you did not dispute it. But the debt collector's only purpose for saying that is so that they can proceed with collection efforts against you. But then again, they failed to notify you of that right, so it is on them.
Keep this in mind--if requested, a debt collector MUST validate the debt. The fact is that you did request it. And they failed to properly do so. Also, if they try to take you to court, keep in mind that they will be required to show proof to the court that the debt is in fact legitimately yours. Since you are aware of the original creditor, I would contact that original creditor personally and speak to them about this. If you can obtain any kind of proof or statement from them that you did not have any account with them, you can send a copy of that to this CA. When you send it, send a letter with it demanding that they cease and desist contact with you--they are also bound by law to obey that as well.
Me personally, I am at the point where a CA that violates the law with me is gonna get sued, whether I owe the debt or not. They can be ordered to pay you up to $1000 for violating that law...food for thought. hope this helps, let us know how it goes.
There is also case law such as Fields vs Wilber Law Firm which h
There is also case law such as Fields vs Wilber Law Firm which hold the letters you were sent "confusing", and they must tell you why the amounts owed are different, and how add on fees were calculated. They are probably slow, because if this is some very old puchased debt, they can't provide any proof. See my post on "Proper Valdation".
This is something that has been happening to me since November o
This is something that has been happening to me since November of last year. Not with Arrow but with another collection agency. It took them two months to send the first debt validation request to me. They contacted me by phone first and did the cordial threats. I did not let them intimidate me. When I contacted them by phone thirty days later, they said they would send me something in the mail. I called them a couple of weeks later and I was told the debt went back to the original creditor. Awhile letter I got a letter from them with a sketchy attempt to validate my first request. I followed up with another letter because the amounts were different. I have heard nothing back to date but I have been working with the original creditor since the account was not sold.
