Okay, forgive me if I am wrong on this point, but the CAs are reporting to the CRA, so the CRA isn't going to verify the information on the account through the original creditor - they verify the paid/collections account through the person that originally reported it, which would be the CA. For instance - Acme Medical (creditor) bills me 30.00. I don't pay it. They assign it to Acme Collections (collections agency) who reports it to Acme Credit Reporting Agency. It's on the report now. I pay the 30.00. It shows as paid/collections. Two years go by. I dispute the paid/collections account. Acme CRA doesn't verify the amount through Acme Medical - they verify the account through Acme Collections. Which has the record (through impeccable recordkeeping) that shows I paid a 30.00 collections file. So even if Acme Medical no longer has a "file" because they assigned it and then it was lost - it doesn't matter anyway. The verification was not through them, correct? And once the debt is paid, the CA no longer has to "prove" anything. Right? K
Oh no, they have to verify so long as it's on your report. And in your case the collector has nothing to gain (Since they have their cash already). Send the validation letter CRRR, chances are they won't verify, if that's the case then send the Estoppel letter (Validation 30 days later), if after 15 days you still don't hear anything from them then dispute with the CRA's (When you dispute, include copies of the letters sent to the CA as well as the green cards).
Okay - color me stupid but please elaborate on these questions... 1) Do CAs have to validate already paid collections accounts when the consumer sends a letter to the CA? 2) When CRAs verify information, do they verify it through the CA <B> OR</B> through the original creditor? If we request they verify information through the original creditor, do they have to?
Yes- they will verify through the CA. By law, if requested they have to give you the number they called, but 100 times out of 100 it's a generic 800# that doesn't help. If the CA doesn't verify, yet the CRA does (Even after you send them copies of your work) then they're in violation. Don't feel stupid - Always good to ask questions...
1. Yes. If they are reporting it to the CRAs then they are claiming that this debt did or does exist. 2.The CRAs verify through the CA, who should contact the original creditor. Read the FDCPA, which requires the CA to validate and with the original creditor. Check out Section 809(b) and the staff opinion letters at: http://www.ftc.gov/os/statutes/fdcpa/letters.htm Check out the Wollman letter.
