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what constitutes validation?


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Hi—

I have begun the debt validation process. I sent the letter and attached form. I have received a response. My question is: what does the collection agency have to provide that indicates they are legally able to collect on the debt? The only items/questions they provided/answered were a copy of my original signature form when I applied for the credit card; and they provided the name and address of the original creditor (the original creditor was bought out). They did not provide “Agreement with your client that grants you the authority to collect on this alleged debt.” Thanks.

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It seems they have validated your debt per the strict interpretation of the FDCPA. However, not to lose hope, there are other angles.

1. Are they licensed in your state/county to collect from you? (Call the corporation commission in your state to find out about licensing, if they don't know, they can point you in the right direction.)

2. Yes, they need to have been "assigned" or have purchased the debt for it to be legal to collect from you, and they need to prove it to you.

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Thanks for the response. 1) They show a NYC Consumer Affairs # on their correspondence, and I am checking on its current status and to see if there have been any complaints filed. 2) The collection agency has NOT answered my question about the debt being “assigned” or if they have purchased the debt, either verbally or in writing. When I asked for this information the account representative refuses to answer, and seems to become defensive and irate; in the debt verification letter, I specifically asked for this in writing, and received no response.

What typically should I expect to see as proof? [??A letter from the creditor to the collection agency citing the account info, amount owed, and the fact that the creditor has assigned this account to them for collection??] How firm is/does this proof have to be? The account representative intimated that they were “going to garnish my wages” if I did not respond in 24 hours. Additionally, the representative has threatened “to sue.” Sorry for re-hashing this info, but there is something not quite right about this collection agency’s tactics.

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They need to show you that they are legally entitled to collect. Period.

<blockquote>What typically should I expect to see as proof? [??A letter from the creditor to the collection agency citing the account info, amount owed, and the fact that the creditor has assigned this account to them for collection??] How firm is/does this proof have to be?

Pretty firm. An agreement from the original creditor with the collection agency or proof of sale.

<blockquote>

The account representative intimated that they were “going to garnish my wages” if I did not respond in 24 hours.

</blockquote>

Violation of the FDCPA. You can sue based on this. Did you take good notes?

Additionally, the representative has threatened “to sue.” </blockquote>

Legal, but without proof that they are the owners of the debt, probably not enough to win.

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A follow-up—1) the collection agency has appropriate license to operate in NYC, and that license is current.

<blockquote>Violation of the FDCPA. You can sue based on this. Did you take good notes?</blockquote>

Yes I have taken good notes from the beginning. What would you advise are my next steps? Do I send the collection agency another letter? Do I have grounds for a complaint at the local or federal government level? All your communication is greatly appreciated.

;)

[Edit by id3ego2 on Wednesday, June 12, 2002 @ 09:06 AM]

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Actually, there is no listing on my credit report for the collection agency. The creditor charged off the debt in 08/1996. I noticed there was activity in 02/02, and later found out that interest had been applied to the principal balance owed. It also appears as if the interest/amount of balance is growing.

I wrote to the credit bureaus and asked them to investigate the listing, and they all returned statements saying that the information was accurate and they had contacted the creditor directly to verify the accuracy of the information.

So what is going on here? Can the creditor continue to apply interest to this account even if it was charged off? Is this an attempt by the collection agency to keep the account current? :confused:

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