I am dealing with a junk debt buyer. I know they have to follow the FDCPA as per the FTC Arbuckle opinion letter however, I have a question about the 30 day time period and reporting the debt on my credit report. I never once received any communication from the JDB/CA it just showed up on my EQ and EX reports. When it did, I immediately sent them a DV/dispute letter. They never responded. I disputed the accounts with EQ and EX and they came back verified. I sent them another DV/dispute letter and 2 weeks after they got it, they reported the debt to TU. The Cass FTC opinion letter clearly states that it is a FDCPA violation to report or continue to report the debt after receiving a dispute notice from the consumer. However, the letter says "during the 30 day validation period". Now is the JDB/CA still in violation since I don't know if it was within 30 day period since they never mailed me anything? It was within 30 days of it being reported on my credit report. I know the FDCPA says that failure to dispute within the 30 day period is not admission of liability by the consumer but would this still be considered continued collections? I know I already have them on not marking the debt in dispute when they got my letters and by verifying the info with EX and EQ. I just don't know where to go from here to get this off my reports as I know this debt is 100% not mine. The JDB/CA won't answer my letters and they just keep verifying it with the CRA's. Thank you!!
A CA is not required to notify you within xx amount of days upon receiving a DV letter from a debtor. If they are reporting to your credit report then they must mark the account disputed to comply with FCRA. Have you called them and talked to them? If they have not marked the account as in dispute then you have grounds for a lawsuit, just sue them.
Thanks, I know they aren't required to notify me within a certain number of days. I was referring to the consumer having 30 days to respond to the initial letter from a Collection Agency to notify them that I am disputing the debt. Since they never sent me a letter I was wondering if the continued collection would still apply in this case?
Are they calling you? Sending you letters? If not, then no it is not continued collections, they are only in violation for not reportin as disputed.
No they have never contacted me. Wouldn't them contnuing to verify the collection account on my credit report with Equifax and Experian be considered continued collection? How can they verify the account is correct when I sent them a letter disputing it and requesting validation before they ever verified it with a CRA? Thanks!
If they could just ignore your validation requests by not contacting you (and collect by just leaving it on your reports until you have to pay it, for example, when you finance a mortgage), they would defeat the very consumer protections FDCPA is designed to provide. Merely marking the account as in dispute is not a substitute for reporting accurately, or for ceasing collection until validation is provided. What are you supposed to do, wait until they send a collection letter before you dispute a damaging entry on your credit reports? They were required to send you a letter within 5 days of "first contact" outlining your FDCPA rights to dispute and request validation. That first contact could have been a phone call, it could have been the first notification letter itself, or it could also be your letter to them. They cannot avoid those obligations simply by ignoring their responsibilities to send that notification letter (itself an FDCPA violation). In the absense of sending that letter and you receiving it, they have no basis to claim that your 30 day period to request validation will ever pass, hence all validation requests you send will be timely. Was your DV letter sent CRRR? Have you verified that they received it? If so, your next step is to dispute the debt thru the CRA on which they are reporting. Since you have requested validation, and presumably they received your dispute and request before 30 days has passed from you receiving any communications from them (so far you have received NO communications from them), your dipsute and validation request is "timely", and they are prohibited from continued collection, including "verifying" the debt to the CRA, until they validate. If they "verify" and have not validated to you, they have violated FDCPA. Putting a collection TL on your reports, or verifying one that is already there to keep it there, IS collection. See, for example: http://www.ftc.gov/os/statutes/fdcpa/letters/cass.htm You might find these other FTC opinion letters useful: http://www.ftc.gov/os/statutes/fdcpa/letters.shtm It appears that you have done the above, yet they have "verified" without sending you validation, which would be continued collection prohibited by FDCPA. "I know this debt is 100% not mine" Since you know it is not yours, and both disputing the debt and requesting validation from the debt collector, and disputing thru the CRA, have NOT resolved the matter, you may have to sue them. How much damage is this doing to your credit? How long has this been on your reports, has it prevented you from getting credit, or has it resulted in higher rates for credit? What effect has this had on your FICO scores, and is this the main negative item on your reports?
This debt has been on my reports since the begining of Jan. 07 and it has dropped my credit score roughly 30 points. It varies + / - a few points depending on the CRA. I haven't applied for any credit so I can't say it has prevented me from getting any. However, I know if I were to apply for a credit card or loan it would have a big impact on rate if I even got the loan at all. This is the only negative mark on my credit reports since 2002. I have sent all communication to them via CMRR and I have gotten all the green cards back with a signature of someone from their office. I am just a little nervous to sue since in my county/state if it is under $5000 you have to file in small claims court and I have never done that. Granted I know they are more than likely to settle since the total debt they are trying to collect is about $600, but I wouldn't really know what to do if they actually showed up for court. Thank you!
Are you sure that you're reading it right? In my state you can only use small claims court for amounts UP TO $4,000. I've seen many suits filed in US District Court for less than that (until you add in attorney's fees, I suppose). Small Claims court should be eaiser than district court. Just document everything and stick to the facts and the law. The law says this. They did that. period.
Yeah, I double checked by calling the local court office. $5000 and under, has to be in small claims court. You then later have the option to bump it to what they called federal but since I can only sue for $1000 it hopefully will be easier in small claims like you said.
Federal Question = Federal Court... Federal Courts are more knowledgeable than small claims/magistrate courts about federal questions.
You are getting misinformation from your local court. States cannot place a restriction on what cases can be filed in Federal District Court. Federal District Court is ALWAYS a proper forum for FCRA and FDCPA cases, without regard to dollar amounts, as stated specifically in both FCRA and FDCPA. Federal law would override state on the matter, if a state even tried to pass such a restriction. Even when filed Federal, your attorney may also add claims under state consumer protection laws, on top of federal claims. You have already played nice. It didn't work. Go see an attorney. That is what they do for a living. Both FCRA, and FDCPA provide for awarding of attorney's fees. The possibility of paying damages, both real and statutory, and your attorney's fees as well, should push them to settle quickly. There is no advantage on waiting or communicating further. You already did that, they violated, and delay in resolving this only increases your damages from their illegal behavior. You may not get full compensation for damage done, so the sooner you go to court, the faster you limit your damages. You are looking for an attorney with expertise in consumer debt law, specifically FDCPA, and FCRA. You already have the paperwork on a case to hand him. See, for example: www.naca.net
Thanks for the link. Unfortunately their are no attorneys with that expertise in my state. Can one out of state help? Thanks!
Try contacting your state bar, as they would have a list of all attorneys licensed to practice in your state, probably with areas of expertise, even if they lived outside of your state. You might also try attorneys that handle bankruptcies, as they practice in the Federal courts, and often deal with consumer debt litigation. Or look for consumer protection law attorneys, as they also often handle this type of litigation. Alternatively, determine what states are within the Federal District Court region that includes your state, and try consumer law firms in those neighboring states. Attorneys can be, and often are, licensed to practice in more than one state. Note: I am NOT an attorney. The above is how I would search for a solution.
