I mailed a validation letter to a collection agency in regard to a Target card that was paid in full at the store over a year ago - it recently appeared on my Experian as unpaid. I have the signed receipt for the validation letter (received 3 weeks ago - no response) and today on my Experian report there are FOUR inquiries from this agency - all listed as RNB Target with variations of the account number, the exact balance and same dates. I believe they are trying to wreck my credit score for sending the validation letter. What step should I take now? I thought that if I requested validation they could not proceed with collection actions until it was provided - Isn't a collection inquiry considered collection action?
I'm pretty sure you can sue them. They aren't supposed to do anything to your credit while it is in dispute.
Hal- Are these entries listed as NEG tradelines? Or under the "inquiries" section? If we are talking "inquiries", they can do that. However, 4 is extremely excessive. It's called "poisoning" the credit file. I there are 4 NEG tradelines, I smell some violations. The account # variations are a trick to place multiple NEGS. Do you have proof of paying off the debt? SK P.S. I suspect the word is getting around with regard to the validation letters. Sounds like retaliation. With over 700 members here, I'm sure there are at least a handful of collectors lurking.
They are inquiries but are listed as "Collection Inquiry". I thought this lowered your score, and at the very least I know it certainly would give a potential creditor the impression that you have accounts in collections. I do have proof of payment. I am one of a dying breed of people, I still get my cancelled checks each month from the bank.
Yes, it does lower your score. And, it looks bad. So, under the "Comments" section they actually have the account numbers?
Oh yeah! Just what you want - no validation and then retaliatory inquiries. That's defamation. Go get 'em. Got damages??? breeze
Hal: Well, I suppose I should consider myself one of the â??handfulâ? of collectors (or at least among the former ones anyway). Hope this fact doesnâ??t discourage you from considering my suggestions, in that youâ??ll find I try to be balanced and objective. Nonethelessâ?¦ I recommend against filing suit, it simply isnâ??t worth your time. The threat of litigation alone, however, should be sufficient to back the agent up enough to fix the problem; that after all should be your primary concern â?? at least one would hope. Foremost, since youâ??re fortunate to have actual canceled checks? Send a copy of the (full) payment(s) to the collection agent as a follow-up validation, which is completely permissible. Advise the agent (preferably a collections manager, not a line-collector) that to continue recovery efforts, in the face of your evidence can be construed as a violation of FDCPA (unfair and deceptive practices). Within the same letter advise of the CBR hits (which I donâ??t particularly believe are a case of â??poisoningâ? per se), and demand an immediate removal/correction. Allow the agent 30 days in which to correct the CBR entry and inquiries, and be sure to specify a completion date. (A date by which you expect the corrections to be made.) I believe (if the collection manager is worth his/her title) youâ??ll find the issue resolved in short order. Although if the collection agent does not perform, or flatly denies the validity of your evidence, youâ??ve still recourse with the CRA(s) in the form of a traditional dispute. Bottom-line is that litigation against a collection agent far more often turns out to be a bigger hassle for you than for the agent, and should hence be avoided (if possible). Yes I know some purport success using small claims, but going that route is an inferior tactic at first try. That is considering youâ??ve a pretty strong hammer (canceled checks), which should be enough of a credible threat to avoid going to court. BTW, a collection agent CAN seek as many inquires as it so chooses; even during the validation period.
