Too early to sue?

[dnz806]

This concerns two collections agencies collecting two different debts for the same creditor.

I noticed the first collection for $75 on my Experian report on 3/15/2005 and disputed it, which Experian (of course) verified as accurate and belonging to me. The debt is not mine, so I then sent a validation/dispute letter to the collection agency on 4/13/2005 and re-disputed it with Experian on 4/15/2005. The next week they reported it to Equifax (no notice of dispute) and also pulled my credit reported on 4/21/2005.

This second collection agency reported a medical collection for $75 to Equifax on 3/18/2005. I sent a DV/Dispute letter to the CA and disputed this with Equifax/CSC on or about April 8, 2005. On 4/20/2005 the collection agency reported the debt to Experian with a "reported since" date of 3/2005. I have copies of my reports showing that it was not reported prior to 4/20/2005. I still have not received anything from the CA or in response to my DV letter nor did they report the debt as disputed. I then contacted the original creditor myself, and verified that these debts DO NOT belong to me (In fact, I have never even used that hospital). I then sent a fax to the collection agencies explaining that I had verified with the creditor that these were not my debts, etc. and urged them to delete the items from my credit reports. The original creditor also sent letters (or so they claim) to the collection agencies and all three credit reporting agencies notifying them that the debts were not mine and to delete them from my credit reports.

The debts were deleted from my Experian report on 4/26/2005. However, the second collection was re-reported to Equifax on 5/2/2005. It was also reported to Trans Union this week as well. (With a "reported since" date of 3/2005, which is false, since it only appeared this week). The first collection is still on Equifax, but has not been updated.

Is it too early to file suit? I would not be in a hurry except for the fact that I am in the process of buying a new house and this is causing major problems. In fact, I was denied this week for the equity loan I need for the down payment over these collections.

I need them removed asap, of course, so that I can get the loans I need, but it also just ticks me off that the second collection agency is reporting and rereporting out of spite (or whatever) despite being told that the debt does not belong to me. For that reason, I just want to punish them

Since all this has only taken place within the past 30 days, do I have much to stand on in regards to violations and suing?

[chincheck]

My Two Cents:

You have been denied a loan as a direct result of these collections, so you have actual damages, though the money it actually cost you may not be that much. Because of your loan denial, are you in danger of being homeless?

What state are you in? In California, for example, state law allows one to request punitive damages against a bill collector.

Send your ITS letter right away. Indicate that you have been personally injured (loan denial), and demand a cashier's check for $$ AND immediate removal for failure to validate. Give them 7 days to comply. If they ignore you, run to the courthouse.

[dnz806]

I'm in Texas... and no, I'm not in danger of being homeless, although I was extremely embarrassed

I know I've got them on the failure to validate, and the failure to mark the debts in dispute when they reported to the cra. But, surely they violated something when they reported to Equifax and Trans Union and "back dated" the "reported since" date to 3/2005 (which I assume is to make it "appear" to have been reported prior to my dv/dispute letter). Also, the fact that they reported to Trans union AFTER they were notified by the original creditor that the debt WAS NOT mine and were told to remove it.

[Xanathos]

Maybe, but they'll argue that the fault for that lies with the CRA's for not reporting promptly something they sent in. Or they can argue that maybe you have a split file.