Improper validation? Now what

I sent off a validation letter on the 6th to a local collection agency. They sent a response on the 7th. Basically it includes:

1. Demand for full payment ($686) in 10 days or they will advise "their clients to pursue" their federal/state legal options.

2. Original Creditor contract agreeing to $500 debt, includes a statement stating I must use binding arbitration (I dont think that applys to them if they violate my rights under the FDCPA) and a statement that they can charge/recoup "up to 30% for lawyer fees"

3. No statement/invoice that explains the other $186.

4. A handwritten invoice (photocopy) of a paid receipt for $132 that predates the contract date by 5 months.


Now I'm sure this is improper validation. They don't explain the disparity.

I also found it interesting the ignored my questions about whether this debt was assigned or purchased (based on above - I assume it was assigned) and they definately ignored the question about whether they were licensed to collect the debt in the state of TX (required by our Financial Code- they have to set up a $10k surety bond before they can be a 3rd party debt collector).

I'm in serious need of some wisdom here. Please help.

 

Re: Re: Improper validation? Now wh

jlynn- sorry, I mailed the original CRRR on 10/6. I got a dated response with "validation" on yesterday dated the 8th.

Lbrown- Question, I disputed 2 of 3 bureaus as I already got the card back. I was having problems with EX so I have to call them. You suggest sending the estoppel letter in 30 days, do I not have to send them a letter of some sort stating that they have not sent proper validation? Kind of a second "goodwill attempt" before the estoppel?

Thanks to both of you-- ALSO thanks HOLIS That was going to be my next step today- trying to find out if they have posted the required bond $10k is alot so I'm hoping they've screwed up I want to pay this debt but NOT to these people. They once threatened to have me arrested ( I know a violation). Well I'm just cranky enough (this kept me up last night) to make sure they learn a lesson about the FCRA and hte FDCPA.

 

Re: Re: Improper validation? Now wh

If & when you have time (thanks for ANY response you had time for!!! it was very helpful - it is SOOO appreciated).

I've read TX Fin Code 392.202. Ok the 3rd party DC provided "validation" albeit not complete documentation as outlined in Spears vs. Brennan.

I'm thinking your contention here is that since it is NOT complete validation then the rules apply as such:

1. They could not or did not addequately validate (& as such I should NOT send another letter telling me they didn't until the 30 days expires and they have made the mistakes of verifying with the credit bureaus. After 30 days- send a letter stating their failure ot validate and their violations???????????)
2. They did not request additional time for investigation within the 30 days period
3. As such they must have ceased all debt collection within the 30 day period
4. Change the item in the file "as requested by the individual"

But in order to get to the true violations you have to refer back to the FDCPA . The Texas law apparently only locks them into the 30 day time frame (with option for more).

Am I getting you right?