OK, what is the difference between a "collection agency" and a "finance company"? Both purchase debts, both collect debts, hence aren't they both collection agencies? DH had a old Zales account, due to fall of beginning of 2005. We have been looking into getting a house and DH wanted to clear up the debt. I know paid is no better than chargeoff, but I guess the mortgage comp. he's been speaking to said this would have to be cleared up before closing. OK, I contact Zales, they didn't have any info right, so I wanted to dispute it, also since they were the OC still, no settlement. In the mean time they must have sold the account. We received a letter dated 9-5-03, you know "Welcome as a new customer of Asset, we have purchased your account" Fine now I can make a settlement, I settled for 50% of "original debt" on Wednesday. Figured, at least we can show a paid letter. Whatever, pulled PG today, Asset is showing already opened 8-03. That's it for any mortgage, new collection, forget it, and Zales was the last baddie. Now , for my question: (sorry so long) If an account is purchased by whoever and you are in contact with them within the FIRST 30 days, whether to dispute or pay, can they report it so soon? I do medical billing and unfortunately do have to deal with a CA, they do not report until after 30 days has pasted and no response. Asset stated (yes I called them I was so upset when I saw that) they are NOT a collection agency (WHAT?) , but a finance company, so the same rules do not apply to them.. I asked: do you collect on funds on defaulted accounts? "Oh, yes" do you buy defaulted accounts? " Oh,yes" Then you're a collection agency.......... "No we're not" Whatever, I tried to find something in the boards regarding this, but maybe I'm wrong or maybe I'm so upset I'm blind. DH is going to hit the roof....... Again, sorry so long. Had to vent. Thx
Check out this link to FTC opinion letters, I remember reading one of them that puts the "debate" you're having with the "Finance Company" to rest in your favor. I'm sure that someone will come along with better info. In the mean time this will help you get started. http://www.ftc.gov/os/statutes/fdcpa/letters.htm
Thx, that answered my question. Is it permissible under the FDCPA for a debt collector to report charged-off debts to a consumer reporting agency during the term of the 30-day validation period detailed in Section 1692g?" Yes. As stated in the Commission's Staff Commentary on the FDCPA (copy enclosed), a debt collector may accurately report a debt to a consumer reporting agency within the thirty day validation period (p. 50103). We do not regard the action of reporting a debt to a consumer reporting agency as inconsistent with the consumer's dispute or verification rights under § 1692g. So, there goes that mortgage...........
You are going to let an inaccurate reporting of a collection acct cancel your mortgage? Just give up? First, the acct can not have been opened in 8/03. It may show 8/3 as the last reported date, but that doesn't make it new. It can only stay on your reports as long as the oc can stay. If the oc comes off in 2005, so does the ca. You need to send a letter c/r/r/r to Assett advising them they are reporting the dates incorrectly and if they don't immediately correct it, your atty will file a lawsuit.
Did the letter they sent you say it was from a debt collector? Did they advise you of your validation rights? They already lied to you on the phone - overshadowing all of your rights... I would threaten to sue them if they don't delete it immediately! Do it and go get your mortgage. Don't let them win! Here is the letter connor mentioned: http://www3.ftc.gov/os/statutes/fdcpa/letters/arbuckle.htm In the leading case on point, involving a company whose business included the purchase of large volumes of checks that had been dishonored and subsequent collection of the checks from their makers (in the same manner as MCM buys defaulted accounts and thereafter attempts to collect from the account debtors), the court wrote persuasively that the purchaser is covered by the FDCPA. It gave short shrift to the fact that the party had actually purchased the checks in question: By use of the language "owed or due another" Congress was attempting to exclude those entities that extend credit from the effects of the Act. Congress intended to protect borrowers from "third persons who regularly collect debts for others." (Italics by court; citation omitted). (The purchaser) is a third party collecting a debt originally owed to another. . . . It cannot escape the spirit of the Act by the technicality of purchasing the debt upon default so that title technically rests in itself. Holmes v. Telecredit Service Corp., 736 F. Supp. 1289, 1293 (D. Del. 1990)
Asset is pretty nasty to deal with. I hope you got something in writing on that settlement. Asset does have one weakness that could be exploited. On EQ, they like to list accounts as "installment" instead of "collection" and like to stick on there 120+ days past due or an R5 which is worse than an R9. Properly disputed and verified with the credit bureaus, you would have a cause of action since Asset misrepresented the character of the debt. Once you sue, they will fold quickly and you can leverage removal of the TL.
1*OK, what is the difference between a "collection agency" and a "finance company"? Both purchase debts, both collect debts, hence aren't they both collection agencies? 2*We received a letter dated 9-5-03, you know "Welcome as a new customer of Asset, we have purchased your account" 3*Now , for my question: (sorry so long) If an account is purchased by whoever and you are in contact with them within the FIRST 30 days, whether to dispute or pay, can they report it so soon? 4*are NOT a collection agency (WHAT?) , but a finance company, so the same rules do not apply to them.. I asked: do you collect on funds on defaulted accounts? "Oh, yes" do you buy defaulted accounts? " Oh,yes" Then you're a collection agency.......... vazq ============= 1*CAs are a 3rd party finance compaines aren't 2*You are not their customer. 3*If you haven't validated the CA (Ass Set) can. 4*CA through and thorough. THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''
4*are NOT a collection agency (WHAT?) , but a finance company, so the same rules do not apply to them.. I asked: do you collect on funds on defaulted accounts? "Oh, yes" do you buy defaulted accounts? " Oh,yes" Then you're a collection agency.......... Does it look like a DUCK??? Does it smell like a DUCK??? Does it quack like a DUCK??? Does it have feathers like a DUCK??? THEN IT IS A COLLECTION AGENCY
