So here's my situation and hopefully you guys can provide me with some advice. In August 2009 I was informed that Hilco Receivables had purchased a debt I owed Washington Mutual and that they were planning on suing me. I sent the collection agency, Global credit & collections, a letter asking for debt validation and I never heard back from them. They received my letter on August 24th; I know this because I hold the return receipt right in my hand. So now fast forward to today and I receive a letter in the mail from Redline Recovery stating that Equable Ascent Financial, Hilco's new company name, is still trying to collect the debt. My question is what is going on? I have not heard back from them in 10 months and I have yet to receive any proof that they own the original debt.
I'm not a lawyer, but my understanding is that the FDCPA requires debt collectors to stop collecting the debt and reporting it on your credit reports until they provide proper validation of the debt. Maybe the company was bought, changed its name, and your info. was lost in the mix. Either way, there's no excuse. If they're still reporting this on your credit reports, send them a copy of your return receipt, the first DV letter you sent them, and a statement that they have not complied with the FDCPA and are violating your rights. Request that they remove the collection listing from your reports immediately. Have you already disputed this with the CRAs too?
It was my understanding that they had 30 days to get back to me after they received my request. If they are not able to produce any documentation, which they did not, then they have no further right to pursue any type of collection. I did receive a phone call from them a few days after I sent them the letter in August. I thought they were not allowed to contact me by phone until they sent me what I requested although I might be wrong on that. I haven't yet called them up. I was hoping to get some opinions as to what should be my next move. Thank you, JoshuaHeckathorn, for replying.
The 30-day time limit is what you have to work within to request validation and preserve your rights under the FDCPA; however, I don't believe they "have" to respond within a 30 day time limit. TX might have a different rule on that, but I'm not sure which state you're in. You can contact them as I suggested previously, demanding that they remove the collection from your credit reports as they are in violation of your rights under the FDCPA, or you could even sue them in Federal or state court. Which route you take is of course up to you, and it would always be a smart idea to consult with a good attorney before making that decision. You should also dispute this through the CRAs, using the proof you've obtained as evidence that the debt shouldn't be reported.
