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is adding interest to an account during DV OK?


ppodmama
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In January 2009 I received a letter from a CA on a Bank of America Account.

I submitted a Debt Validation Request Which I just got last month- yes 15 months after my request.

Looking at my credit report they apparently kept adding interest to the account for those 15 months. Is this a violation of some kind and if so could they lose their case because of it if it got that far?

Should I write them back and cite the violation in anyway?

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In January 2009 I received a letter from a CA on a Bank of America Account.

I submitted a Debt Validation Request Which I just got last month- yes 15 months after my request.

Looking at my credit report they apparently kept adding interest to the account for those 15 months. Is this a violation of some kind and if so could they lose their case because of it if it got that far?

Should I write them back and cite the violation in anyway?

interest is not a collection activity. So I don't think this is violation. However continuing to list it on your report is.

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Okay, just to clarify....the CA shows they added interest and penalties since February of last year, listed each month since then with an increase,even though I didn't receive any debt validation response of any kind until April 18 of this year.

So, is it a violation to post to CR interest and penalties for all that time? I haven't even had the pitance of a DV until April 18 (which I am challenging them on anyway).

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I'm sorry, but the devil is in the details. Here's the way its supposed to work NOT to violate the FDCPA.

1. You dispute...

2. They mark your CRAs "in dispute" within about 30 days, and cease reporting any other changes until the obtain verification from the OC and send it to you.

3. Once the verification is sent to you, they can resume reporting..including any changes (i.e., interest) during the validation period.

If you have copies of each month's CRs showing changes made each month from Feb to April, then they have violated the "no reporting" clause (or was that an FTC ruling?).

Now...is the OC still reporting? If so, does their TL say "sold to another lender" and their balance is $0? If so, then the other people are a JDB...not a CA.

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This is one of those situations that fall into the "Gray" area of what is activity. They are required to report the debt as "disputed" and cease activity until validated. Willing is right in that it is an opinion of the FTC on this, not any case I know of. Spears is a good read, but, does not involve the continued adding of interest, only on when the suit was filed after receipt of a dispute.

I began a thread on continued activity a few years ago which involved the verifying of a timebarred debt as continued. Though I presented good argument, we were never able to resolve this. Thus, we would have to have an actual decision, or, someone to take this to the bench, and, since no records are kept in small claims to clarify this, our chances are more than quite slim.

I'm not saying to not challenge them on this being considered continued, I"m only saying there is nothing around to support it. It is up to you. If you want to take this forward, challenge them in a letter to prove they may do this. If the "disputed" is not showing, and reasonable time has passed, you already have a violation. Therefore, if true, challenge their actions and see what comes of it.

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It is indeed a jdb. Not a CA. If they post every month since they sent us their first letter the amount of the debt with increases shown in fees and interest, I would venture to say that is activity, but we will cross that bridge when we get there. To date, in our state, they have only won default judgements. We will see how far they want to take it. I will take it to court if I have to.

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