Important info on what constitutes a debt. here is the link... http://www.ftc.gov/os/statutes/fdcpa/letters/cheswort.htm Would this support my claim that overdue library fines do not constitute a debt and therefore should: A) Not be placed on my credit report and B) Should not be placed with a Collection Agency? Please Help. I really need it.
Robin, that FTC letter merely excludes fines as "debts" under the FDCPA. That's not good news for you. It simply means that consumers enjoy no FDCPA protections for those who are collecting library fines. The FDCPA does NOT stipulate who can report to consumer reporting agencies, nor does it define "debt" beyond the protections of the FDCPA. For that reason, the answers to your questions are: 1) The library fines are still debts, even those they aren't considered to be FDCPA-protected debts. 2) The library can choose to report your overdue fines to credit reporting agencies, a common practice. Moreover, they can collect it any way they like (via third parties, for example), and consumers enjoy no protections, which SUCKS by the way. 3) You specifically cannot request FDCPA validation for a fine (per the FTC opinion letter you referenced). Sorry for the bad news. Doc P.S. Hi, Robin! How's Sunday treating you?
Doc- Excellent point! Robin, your best bet at this point is to study your STATES consumer protection laws. In my state if the FDCPA doesn't cover it ie. fines, then my states consumer protection bureau DOES.
I was afraid of that possibility. So are you saying simply because it's not covered under the FDCPA there is no regulating body that determines who can post to your credit report and for what types of debt?
Believe it or not, Robin, that is correct. Any entity with whom you have engaged a monetary transaction can legally report to a credit bureau. Moreover, the credit bureau decides whether or not to accept that information for your report -- mostly depending upon whether that entity pays their monthly CRA "subscription" fee. Finally, nobody regulates who can set up shop as a CRA. If you or I had the venture capital, you or I could even start up a credit bureau if we wanted to do so. FDCPA -- regulates CA collecting practices related to commercial (cash for product or service) transactions. FCRA -- regulates who may see your personal credit report and how CRAs conduct their business with respect to how they collect consumer information. Nobody -- regulates who can report to a CRA. Nobody -- regulates who can be a CRA. Doc
But if this is the case, why AREN'T there businesses who buy up bad credit accounts and then report them as paid as satisfactory or delete them when we pay them the debt plus a healthy contingency fee? It seems like there would be a number of these places... I know I sure would pay someone something to get this account.
