Parking/Placing debt on a consumers CR?

[onalert247]

This is from the $2.5 million law suit the FTC filed against Asset Acceptance.

Can someone please clarify what would be considered "parking" debt on a consumers CR?

-jdb purchased debt 2/2011

-jdb reports debt to CRA'S 2/2011

-jdb admits to allegedly sending DV notice 3/2011

The order also prohibits the company from:

Making any material misrepresentation to consumers and making any representation that a consumer owes a particular debt, or as to the amount of the debt, unless it has a reasonable basis for the representation. To ensure it has such a basis, the order requires Asset Acceptance to investigate consumer disputes before continuing collection efforts;

"Parking" – or placing – debt on a consumer's credit report when it has failed to notify the consumer in writing about the negative report, and;

Violating the Fair Credit Reporting Act and the Fair Debt Collection Practices Act, in the ways alleged in the complaint.

[BV80]

This would not apply to you. Asset placed the account on your CR in 2/2011. The consent decree with the FTC didn't occur until 1/2012.

In addition, violation of an FTC consent decree would not necessarily be an FDCPA violation. The FTC's order that Asset could not place an entry on a CR before notifying the consumer was a penalty placed upon Asset by the FTC or the court. It's not an FDCPA violation.

Even if Asset did violate the order, it might not be something for which a consumer would have a private right of action.

[onalert247]

Thanks BV80!