I asked for Debt validation from an attorneys office/collection agency. This is what I received... A letter that says: We are in receipt of your correspondence wherin you requested verification of the above referenced debt. Please be advised that PORTFOLIO RECOVERY ASSOC., LLC is the holder of a debt originally owed to HSBC for purchases on your ORCHARD BANK account. I am attaching to this correspondence a Debt Validation Form for your review. I am hopeful that this information will refresh your memory as to this debt. If you have further questions, please contact our office. The "form" they attached is a piece of paper, obviously typed up that says: Debt Validation Form Acct Number 203894093xxxxxxx Identity of Original Creditor: HSBC Name of Debtor: My name Address of Debtor: My current address (although I have moved like twice since I've had that original credit card...) Balance of Account $1285 (which on my credit report is shows $1500?) So I'm confused by this? Debt was Purchased So my question is....is this VALIDATION? I am aware that yes this was my credit card and is my debt but legally is this validation of the debt? A typed up letter??? If so then ANY COMPANY can simply type up a letter and claim it as debt validation. Is there anything I can do to respond to this attorney's office and claim it as not enough of a validation? I do have my taxes coming back and I planned to pay off all my collections with that money so I really have no problem paying it or paying a percentage of it if they will delete it off my credit report. Only problem is it is on my credit report from not only PORTFOLIO but also HSBC. Can I ask them to have BOTH companies remove it from my report if I pay it? Or can I demand more of a "debt validation"?
This is highly debatable, but yes- what they sent you may be good enough. I don't believe there is a definitive legal description of what constitutes debt validation, so it's always looked at on a case by case basis.
The FTC states that when a consumer asks for validation it should come from the original creditor. Not something they typed up & you didn't ask for the information they sent. It 's not sufficient.
The FDCPA still doesn't define what constitutes sufficient debt validation. I'm not a lawyer, but I know there have been cases in the past that set the bar extremely low (Chaudhry v. Gallerizzo). Of course, there have been other courts that were more consumer-friendly as well. Regardless, it's still looked at on a case-by-case basis. Is HSBC reporting as a charge off on your credit reports? Portfolio won't be able to do anything about that for you. You can negotiate with them regarding the collection, but they have no power over what HSBC reports. They simply purchased the debt from HSBC.
I'm pretty sure that it's just an FTC opinion -- not an actual law -- that says validation documentation must come from the OC. As such, I'm going to say that this passes validation. It's up to you how you prefer to handle it, but your choices are basically: 1) Demand better validation. Send back a brief letter saying something like "your letter of xx/xx/xx does not fulfill my validation request. As such, my validation request stands. As a courtesy, I am reiterating my request for validation of this alleged debt." It might work, but probably won't. 2) Accept validation. If the debt is valid, and you're satisfied that the CA is authorized to collect, then it's time to work out a payment arrangement. You may also want to check the SOL.
Thanks for your input everyone, I appreciate it. I've decided to just accept it as validation. I did send a delete upon payment letter and put in it that they are to contact the original creditor and the other collection agency that has this on my credit report and ask that they remove the negative from my report as well (upon payment). I know that's a long shot but this stupid bill is on my credit report 3 times. I just want it GONE. So I'm hoping if I pay the bill this attorneys office will be able to get it deleted. If not then after paying it I will contact the original creditor and send a goodwill letter. Thanks again!
