I have a small claims suit against a CA 7-18-02 for multiple debts violation... I agreed to pay one of there accounts and they took the money and paid an account that has not been validated... I looked at my credit report EXp this date and the ca reported a paid collection on the account that i am disputing.... This CA was never on any reports prior until the lawsuit ... Can a CA who never reported to a CRA now report this paid collection????
Read the FCRA and the FDCPA and I am sure you can find something relating to that. I will give you a hint. Misleading and Deceptive practices.
ALL collection activity must stop during validation, unless and until they provide proper proof of the debt. If you sent a validation letter and they received it, they can not report the listing to any CRA until they provide the proper validation. -Peace, Dave
nave, i sent validation on account A in 4/02 and no response.... Then in 6/02 i received a letter for account B for an unpaid medical in which i called and said ill pay for that one cause it is mine.... They said you will be paying for account A also right.. I said no and you are violating FDCPA trying to collect on a disputed debt.. I said this payment is for Account B only... Please send receipt.. They took my payment and applied it to account A (which is in dispute) and applied the remaining to account B... Today they put account A as a paid collection on my Experian report... Which this account was never on my report to begin with.. This all happens after they received my small claims lawsuit...
Wow if that aint an example of thievery, I dunno what is. Did you do this over the phone? or in writing? If you did it over the phone and you don't have recordings, it could be a costly lesson to ALWAYS GET IT IN WRITING! Even if you did not, you would still have a violation for not validating account A, and for continued collection activity on A without responding. When is the suit? and what is your evidence? -Peace, Dave
The suit is 7/18/02... The amount of account B was 120.56 and i let them debit my CC in which i have a evidence from the bank.... Account A was for 38.00... My wife paid them over the phone with myself right there.... She stated to them twice that this is for account B only for 120.56... and please send us a receipt... The receipt arrived and to my surprise they put 38.00 to account A and then put paid in full account A and the rest on account B with remaining balance due.... My wife called them and stated i paid on account B only for 120.56 and the rep said i can pay how i see fit and hung up on my wife.... I have the receipts from the CA and the original collection letter from them for the 120.56 they never sent letter for the 38.00
I tell you what, the judge is going to ream them a new one. Your argument is this: "Why would my wife and I authorize EXACTLY 120.56 (the amount of debt B) when they apply 38 bux to A and then the remaining amount to B." It is OBVIOUS you meant the payment to be completely for debt B! That, together with your validation trail for account A (whichj they FAILED to respond to) would get them into HOT water. Lying, deception and you have proof (purponderance of the evidence is on your side). I would say you have more than enough violations to MAX out small claims court. Good Luck Neo, -Peace, Dave
now what can i do about the stupid paid collection they reported to Experian.... They never had it on there before????
You can certainly tell the judge they have an additional violation there for continued collection activity while in dispute prior to their validating. Reporting to the cra is considered continued collection activity. Here is an ftc letter on that. Pay attention to #2. http://www.ftc.gov/os/statutes/fdcpa/letters/cass.htm
From the FDCPA: Ã? 810. Multiple debts If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumerâ??s directions.
