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CA returns account to OC - Now what?

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A little history:

June 2004 - received debt/settlement letter from OC. The letter sender's name was vague "Card Service Center" with an acct #. So I sent a DV letter not knowing if it was a OC or CA - right? I did not receive a response but....

Within 30 days I received a debt/settlement letter for the same account # from a CA (Plaza). So I sent a DV to them.

Within this 30 days I received a letter from CA (Plaza) saying they were "obtaining the information and would forward it to me....."

I put this on the back burner - to wait, while I dealt with other issues - well time flys doesn't it....

Fast forward to March 2005 - received a letter from CA (Plaza) saying they no longer are assigned this account, they have closed their file and any further questions ...should be addressed to the creditor, referenced above.....(Cardmanagement Services - formally Providian Bank).


According to my CRA this is still within the SOL - DOLA 4-2002. So, I need to be careful, should I continue any validation with the OC at this time? I read some discussion regarding consumer's rights of validation not being denied when a CA turns the account back to the OC. Any consensus on this?

I will probably have to settle this account or wait out the SOL....but is it wise to continue to VD in hopes the OC might not respond...then maybe I could get the CRA's to remove. Or should I disput with the CRA now? I can't figure out why the CA (Plaza) was not able to validate and maybe the OC might not be able to do so either....? Am I just dreaming!!???

Any Advice...Thanks.

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I'd suggest you just wait. Chances are you'll be hearing from another CA about this soon.

As I understand it, what happens is:

1. The OC trys to collect. You can DV them, but they don't have to respond. When they get tired they

2. Contract ("assign") the debt to a CA who tries to collect. Them you can DV, but if they don't produce, the OC will take it back and maybe tryi another CA, or...

3. The OC "charges off" the debt, and maybe trys another CA or...

4. Sells it to a JDB type CA (for pennies on the dollar) who tries to collect. Again, them you can DV...

Just because the first CA didn't respond to the DV request doesn't mean anything. Maybe they are the kind that only goes after the easy pickings...the debtors that don't know their rights.

Chances are, you'll hear about this again...

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The question for me is this:

An OC is considered to be a CA if they use a name in collecting that would make them seem like a third party. So, is using the name "Card Service Center" are they using a different name to collect? If they are, they have to DV as well.

OC's can be DV'ed under the FCRA, whether they are coveredby the FDCPA or not. That is how I beat Verizon.

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  • 4 weeks later...

Did you ever get a response regarding this question? I agree I did not know who they were as I did not have all my CRA at the time to compare and cross check and as their name was never mentioned only an account # this doesn't seem quite right. If there is any violations - the account is only showing $2K as due - it would be very good to have violations that could off set this.

1st letter only indicates Card Service Center.

2nd letter from Plaza Associates indicates Creditor is Cardmanagement Services formerly Providian Bank.

3rd letter indicates the same

4th letter indicates the same

An inquiry request showing on one report shows it as 1st National Bank with the same address as on the 1st letter- from Card Service Center.

Who is who........and how are we supposed to figure it out? I assume that the first letter is from the OC. Now an additional question I have is do they not have to mark a TL as disputed - is this something as an OC they do not have to do and also, do they not have to give me the disclosure regarding "you have 30 days to......this debt is yours.....)?

I was hoping I could send a disput to the CRA along with the green cards telling them nothing as been marked as disputed and nothing has been verified, do you think they might remove?

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If you can zero in on a single trade line on your CRs that relates to this debt, then yes, a letter to the CRA (including copies of your correspondence) saying, in effect, "...I don't know who these people are, they keep changing names, I don't think this is mine, and none of them offer any proof..." then you might get it removed.

Note, however, just because it disappears from your reports doesn't mean it isn't going to pop up again...

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