collection agency failed to validate a debt?

Question

It's has been 30 days since I sent a collection agency a VOD request certified mail. What is the next step I should do? Send another one? Or send a copy to the credit bureaus, even though the collection agency hasnt reported it to them yet?

Answer 1

boca_mat is correct. Just stay on track, you are doing exactly what you are supposed to do.



Do not confuse the rules in the Fair Credit Reporting Act with the Fair Debt Collections Practices Act. You have a seperate issue here.



Since it has not been posted to your credit report, the FCRA doesn't even apply yet.



So we look at the FDCPA and we find this:



"If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector."



What this means is the creditor has been notified that until he verifies the debt, he must cease and desist all collection activities. When were you first contacted by the collection agent, and when did you send them the dispute letter?



Keep a copy of the letter (plus certification it was mailed). If this appears on your credit report, send the credit reporting agency a letter (with a copy of the VOD) and demand that it be removed due to lack of validation. If they fail to remove it, you can sue not only the creditor, but the credit reporting agency also.

Answer 2

You may have to put a letter in your file about this account because typically a collection agency purchases your debt from the original holder after they charge it off. The collectors make a profit when you pay because they purchase the note at a discount while the original lender still has a loss on their books where you are concerned. Your status with the original lender is not going to change.

Answer 3

If you dispute the item with the credit bureau, the contact the creditor to VERIFY the item. Verification is just a matter of the creditor say, yes that right -- no proof or documentation required. Did you send your validation request to the creditor via certified mail, return receipt? This gives you proof that they received the request and the date. They have 30 days to validate. If they fail to validate, dispute the item with the credit bureau again. Include a copy of your validation request and indicate that the creditor failed to validate the debt. The credit bureau has to remove the item. You won't get anything from small claims. Even tho this item may have lowered your credit score, you would have to prove monitary damages in order to prevail in court.

Answer 4

Have you tried contacting the agency to whom the debt is owed? If you're getting no response from the collection agency, try contacting the ones that hired them.

Answer 5

Just keep evedence of it, if it shows on your credit report or they file for a judgement you provide that proof and your debt will disapear.