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OC not obligated to respond to 623 dispute?


BigJT
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I spoke with someone today who works for a credit attorney (he himself is not an attorney), and he told me that OCs are not obligated to respond to 623 disputes if they are reporting the account as transferred to another lender on the credit reports.

I can find no such distinction in the FCRA. Has anyone else heard this?

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I've never heard of that either. The FCRA makes references to furnishers. Even though the OC sold the account and is no longer updating, they furnished the information for their entry while they did own the account. Ask your friend for the specific section of the FCRA that supports his claim.

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I'm a newbie or sorts, but have been considering using a 623 myself. This thread got me curious so I went and started to search to see what I could find out to either prove or disprove the OP's friends comment.

What I have found out on this site (see 623 Letter at the top of any page here on CIC) is that you must dispute the listing with the CB's *first* before you send the OC's a 623. That is key and is reasoned here:

FCRA § 623. © means is that if you dispute with the original creditors first, without having disputing through the credit bureaus, and they refuse to answer you, or provide you with proof, yes, they are in violation of the FCRA, but you as a private citizen cannot take them to court and sue them; only your state authorities (like your state attorney general) or federal authorities (like the FTC) can sue them.

However, if you have disputed the information with the credit bureaus FIRST, they are supposed to have talked to the original creditor, even though we know that doesn't happen, and the original creditor is supposed to have at that time conducted an investigation, under FCRA § 623 (B), under which you, as a private citizen CAN sue them. When you go to the original creditor under FCRA § 623 (a)(8), you are just merely asking for the OC's proof that they must have provided to the credit bureaus during the OC's investigation. If they have no proof of negative information, but the credit bureau says that the results of the investigation show the negative information is accurate, then you have the OC on an actionable, sue-able (by you) offense.

There is nothing specific about after the OC has sold or transferred the debt, but it would stand to reason that if they verify with the CB's that they have info. Or lied. Am betting it's the latter.

An OC however can not bother answering if it feels that your request is frivilous, so obviously you need a legitimate reason to send the 623.

There is a case that makes for interesting reading, it's covered here,

Richardson vs. Fleet, Equifax, Experian, TransUnion and Portfolio Recovery Associates

Just scroll towards the middle of the page if you don't want to read all of the legalese and read from where it starts with: OPINION: MEMORANDUM AND ORDER.

-RD

Richardson vs. Fleet, Equifax, Experian, TransUnion and Portfolio Recovery Associates

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I think RockDaddy nailed it..

If you disputed with the reporting agencies, TU EQ & Ex, they are obligated by law to contact the company reporting the listing... So if the results of the dispute comeback "verified" this means the company reporting said the information is accurate.

This means they used SOMETHING to tell the credit bureaus you had/have a negative account with them... The 623 letter is your right to know what that something is.. So it doesnt matter if it was transferred.. They verified it, now show me how or get sued.

Reality is they used E-Oscar and never looked up the real documents... So the 623 letter forces them to actually pull the records or stop reporting... Many times they don't have the records or would rather just stop reporting then find them.

Edited by brainded
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