If I live in Texas and a law firm out of New York is threatening to sue for a debt, can they sue me if they have a collection bond in the state of Texas? I am confused by this.
If they are a law firm that mainly practices in debt collections, they have to post a $10k surety bond with the secretary of state in order to collect in Texas. You can call and verify that they have posted their bond. In order to sue, i believe they have to have an attorney that is licensed to practice in Texas. How old is the debt? Perhaps the SOL has expired. What CA is contacting you?
The debt is just over 3 years old. The SOL should run out in September of 2007. I figure that is why they are starting this now. It is Daniels and Norelli that is contacting me. They have called me at work twice since I asked that they not call me here. They have never sent me a letter of any kind and when I told them I would need proof of the debt I was told that they don't have to prove anything or mail anything. I sent 2 letters of validation and never received a response from them. I don't mind paying my debts, but I want to make sure my payment is going to the right place! Thanks for the reply!
Under FDCPA, they had 5 days from their first contact to send you a letter notifying you of your rights to dispute and request validation. Under Texas law, they had 30 days after receiving your validation request to send it to you. If they haven't sent it within 30 days of receiving your first validation request, they have already violated it.
I just googled their name, and found a lot of less than flattering comments about them. It sounds like they have already violated the FDCPA, and you may have a case to sue them. I definitely would NOT send them any money. Did you send your validation requests CMRRR? Do a google on them and read some of the comment from Bud Hibbs, a consumer advocate in Fort Worth.
Oh I have read the budd hibbs site and a few others which made me really leary of trying to work something out with them. Yes, I applied for credit and the debt was incurred in Texas. I was stupid and did not send the validation letters by certified mail. Should I send another one now?
I would resend the validation letters. Make sure that you send the CMRRR. They have to provide you with validation per the FDCPA. Texas law will apply in this case. Have you called the Sec of State to verify their bond? If not the number is 512-463-6906
I am sending the validation letter again today CMRRR. So now what happens if they still don't respond? Do they still only have 30 days under Texas law?
In your validation request, refer to the original date they called you, that it was your first contact from them, your earlier letters, the dates you sent them, and the fact that you have received no reply.
The SOL in Texas starts when the account first went into default. You can call the original creditor and ask what date the account went into default. If they can't provide it, then aske what date that the account was charged-off. By law, the have to charge-off an account 6 months after it goes into default. So, if you have the charge-off date, you can go back 6 months and that is when the SOL starts. This could work to your advantage. I would ask them for a copy of the original contract with my signature on it as well.
The account first went into default in September of 2003 (was 30 days late then). The original creditor did not charge off the account until July 2006!!
"he original creditor did not charge off the account until July 2006!!" Regardless of whether the OC charged the account off later, the original date of delinquency determines the 7.5 year reporting period. That is why FCRA was written that way, so the credit reporting system could not be "gamed" by not charging off debts. The date of last payment generally determines the SOL, assuming the debt has not been "reafirmed", or the SOL "tolled", depending on state SOL law. Again, their charge-off date is not relevant.
I talked to an attorney in Texas about the SOL. He stated that the date that the account went into default determines the start of the SOL. It doesn't matter when the last payment was made. If the account first went into default in Sep '03, then that is when the SOL starts. He also told me that they have to charge-off the account 6 months after it goes into default. Hence, if you know the charge-off date, you can also figure out the start of the SOL. I don't think that he was misleading me on this. He seemed to know this stuff in and out. Did you ever bring the account current after Sep '03 or did you continue to make payments on the account that just didn't bring it current?
Payments that do not bring the account current could reset SOL for purposes of collecting in court, but they would not reset the 7.5 year credit reporting period.
According to the attorney, if you continue making payments from the time the account first went into default, but the payments are not enough to bring the account current, the SOL starts when the account first went into default. Now, if you stopped making payments altogther and then started again after a period of time, I imagine that would restart the SOL.
Find a new attorney If the attorney is informing you that the SOL is based on first delinquency, you need to find a new attorney. The SOL is reset with any payment, or acknowledgement of the debt, (including payment arrangements I believe) The only thing that isn't reset by repayment is the 7 year reporting deadline. I also don't believe that there is any requirement that they charge the debt off after six months, but I could be wrong on this one.
Something else I have realized...nothing is on my credit report (any of the 3) from the law firm or the CA that they are supposedly collecting for. Is this normal?
