Validation Help!!!

absolutley not. You can ask for validation based on the summons being the first time they contacted you. That does not mean they have to drop the case, because the case has already been started. The FDCPA is there to help protect you and allow you rights to get validation and attorneys are good for trying to get default judgments without even having proof other than a word document. So even with your DV letter, demand proof in your response because its pretty much the same in all states. You need proof.

 

What exactly do the CA's have to provide concerning validation of debts? My brother-in-law received a validation from Hosto & Buchan, a law firm that practices debt collection. It consisted of a bill of sale from Capital One and something else from the buyer of the debt, Global Acceptance Credit Corporation. The bill of sale did not specifically mention his account, just portfolio. Is that enough, or do they have to provide more?

 

That shows they may have bought something, possibly even from Capital One. It does not show how they arrived at the amount they claim is due, nor would it likely prove the account is actually yours. The buyer of the debt has no direct knowledge of the validity of the debt, as they were not responsible for maintaining the original creditor's records.

As for the bill of sale from Capital One, does it refer specifically to your name, account number, and the amount of the debt? Or is it a generic bill of sale for a whole bad debt portfolio? Is there anything signed by an employee of Capital One, identified as such, and by title, who would have direct knowledge, indicating that you owed Capital One a specific amount for a specific account? If not, how can it validate that you now owe the buyer $xxx?

Is there anything at all, such as a statement, directly from Capital One, with your name, account number, and amount owed on a given date?

Why don't you call FTC, or your state AG, and discuss whether this is actually "validation" under state and federal law, or use of deception to collect a debt? If you do, please let us know what they say. A law firm, managed by licensed attorneys in compliance with their state bar codes of ethics, should certainly know how to comply with applicable state and federal law.

 

It appears to be just a generic bill of sale pertaining to a whole portfolio.

It is signed by someone from Cap One and has their title.

No.

I will give these folks a call. Perhaps they are just trying to scare, and hope that they can file suit and obtain a default judgement.

 

It sounds like nothing they sent indicated it was documentation on your specific account obtained directly from the original creditor in response to your request for validation. It all sounds like just copies of their own records of the purchase of some debt portfolio presented as if it was validation of your specific debt. There would appear to be nothing indicating that Capital One even claims you ever owed them anything, or ever had an account with them.


The tactic is too common. It's purpose is to give the appearance of validation without actually providing it. If it works, and the consumer pays based on it, they get paid whether they billed the correct consumer, or whether the amount they billed for is correct, or not.

If it were widely used without challenge, it would render the FDCPA validation requirements, and prohibitions against deceptive collection, worthless in preventing erroneous collection from unsophisticated consumers. Those companies who engage in this tactic tend to use it widely and systematically, making it an appropriate issue for regulatory agencies to look into.

You may want to forward to FTC or state AG copies of specifically what was sent in response to the validation request.

 

Thanks for the helpful info!! This was my brother-in-laws and he just ponied up the dough. I have been helping him, and will suggest forwarding to the FTC and the Texas AG. Again, thanks!!

 

Looks like it worked.

If he knew based on his own records that the debt was valid and the amount accurate, there is nothing wrong with paying a debt he owed. But if he had doubts, and depended on this "validation" to prove that the debt was his debt, and accurate, and paid it on that basis, he may have been scammed.

Unlike other states, which allow the debt collector to merely stop collection on receiving a validation request if they choose not to validate, Texas has consumer protection statutes that specifically require validation within 30 days. If what they sent was clearly not validation under Texas law, they may have violated those Texas consumer protection statutes.

Texas may also have bonding and licensing requirements for collection from consumers in Texas.

Contact the Texas AG's office, and discuss this with them.
http://www.oag.state.tx.us/AG_Publications/txts/debt.shtml