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Original Creditor in Texas

Date: Tue, 02/02/2010 - 18:56

Submitted by goldenbast
on Tue, 02/02/2010 - 18:56

Posts: 2884 Credits: [Donate]

Total Replies: 4


I am not sure if I have posted this before. Now generally there is not much you can do with original creditors, however, something in the Texas code jumps right out at me:

Sec. 392.306. USE OF INDEPENDENT DEBT COLLECTOR. A creditor may not use an independent debt collector if the creditor has actual knowledge that the independent debt collector repeatedly or continuously engages in acts or practices that are prohibited by this chapter.

So you DO have some clout against OCs if they are using some of the more notorious CAs.

I tested this theory. I had a collection for a medical bill that was handled by NCO. Most of us know all about these jerks. Well I printed out all sorts of things about NCO and also included a transcript of a recorded conversation with NCO where they broke all sorts of collection laws. I pointed out that now they now about NCO and I expect them to pull the account immediately or they will see their name right alongside NCO's when I sue.

Well I got a letter back from the OC who apologized profusely and CLOSED the account permanently. I was very surprised...I figured they would pull the account back of course, but I had no idea they would close the account! Now I realize this was likely a fluke, but it seems the OC will take it seriously enough that they will pull the account back.

Something for Texans to use when dealing with a CA who is acting on behalf of an OC.


I think there should also be a law concerning the time that the collection agency can take in responding to a DV letter. I know Texas has a time frame of 30days. IMO that should be implemented in all the states equally.

I have seen this to happen that collectors though stop collection activities after receiving the DV but also ignore to reply to the letter. The negative then continues denting the credit report of the debtor.

Further, after a while the debtor starts getting collection calls from a different collector, which means he have to go over the process of demanding validation again. IMO it wastes both money and time of the individual.

What do you say?


lrhall41

Submitted by SC on Tue, 02/02/2010 - 23:05

( Posts: 3937 | Credits: )


I agree, although even in another state, if the CA ignores the DV but continues to report to the CRA you can still go after them, since the federal law states that only accurate info can be reported and that even verifying is considered collection activity. Texas just makes it much easier. But I do agree that federal law should adopt the 30 days to respond law.


lrhall41

Submitted by goldenbast on Thu, 02/04/2010 - 10:38

( Posts: 2884 | Credits: )