Maybe someone could please tell me whats going on. I sent CA validation letter. Noted as Cap 1 on all 3 CRAs. I received a one page letter that reads. "thanks for your correspondce. We forward your request for documentation to our client Cap 1. The CA wil forwad the documentation to you as soon as we receive. The CA has suspended collection activity on this account." Letter dated 1/15/08. Their 30 days to respond expires on Jan 31. I was expecting either some kind of validation or no validation. What does this letter mean? what should be my next step...wait until Jan 31 and send second letter? Is this letter considred no validation? Also, re same CA, I requested re-verification via EQ only (running out the door -not enough time to do the other two). To my surprise today, report updated to read disputed by customer and my score decreased by 2 points. Is this decrease automatic when online disputing? I was surprised to see my scoe decreased. Once the dispute is resolved (hopefull via validation dispute) do I get the two points back? By the way, I don't know who strated this site, but THANK YOU! Its been a big help thus far in my efforts to clean up my CR and rebuild credit. I was able to remvoe an old judgment and an old collection account that was paid on agreed except the last payment. OC said I owed, I didn't belive so. They reported and ruined credit - two years. Thanks again.
The letter says basically that they are complying with the FDCPA and was sent as a courtesy (it's not legally required). The steps they describe sound like they are in compliance with the FDCPA. The CA can take as long as they want to return the information to you. There is no legally defined time limit for a response to your validation letter. From the FDCPA, once they receive your dispute and request for validation, they must stop all collection activities until they send you the required information. If they stop collection activities, which includes removing the entry from your credit report, BTW, they can send you the information whenever they want or not at all. The agency might just send the account back to the OC. Once you have sent the dispute and request for validation, the only restriction is that the CA cannot continue collections until they have complied with the requested validation.
Oh I see. So, if my CR shows Cap 1 as reporting does the CA has a duty to remove the entry? I called Cap 1 and they said they just tranferred the debt to CA. That's why I sent them the letter.
If the OC (Cap 1) sends the debt to collection, they can report the debt as being delinquent, sold, charged off, etc. for as long as they want and the negative entry can stay on your report for up to seven years. The FDCPA and the validation rules apply only to 3rd party collectors (e.g. collection agencies and lawyers acting as collection agents). The FDCPA is a pretty easy read as legislation goes and it lists who it does and doesn't apply to. If the OC has sent the account to a CA and you ask for validation, the CA must follow the process they described in their letter to properly validate.
Oh I see and understand. Now, I'm just waiting for a response. How long should I wait. 30 from original request for validation or 30 from their response that they are sending it to the OC for validation. If I don't get a response can I send the CRA notice that they never validated and ask the CRA to remove?
They don't have to ever respond. If you have disputed and they have not responded correctly and the entry from the CA is still on your credit report, they are in violation of the FDCPA and you can sue them. But, they probably won't do anything until you sue them AND to get any action or relief, You have to sue them. There is no "watchdog" that will make them comply (however my state's AG's office has been very helpful in getting their attention). I've had CAs respond in 2 weeks, 2 months, and I've been waiting over a year for another one (who isn't reporting on my credit report so no problems there). You can dispute with the CRA saying that they have never validated but that doesn't mean much because the CRA will just forward your complaint to the CA for verification. If the CA comes back to the CRA and says, "Yup, it's valid as it is." Then that's about all the action you'll get from them until you sue the CRA and they'll just say they're complying with the process and that you should take it up with the CA. So that won't get you very far.
