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New Debt Collector Collecting on Recently Dismissed Case


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Credit Solutions Corporation of San Diego California is collecting on a debt that was recently in a lawsuit and was subsequently dismissed without prejudice by plaintiff  Porfolio Recovery Associates, LLC.

 

I just sent a Cease and Desist Letter, via CMRR (not really sure what I am doing) - anyone out there experienced on squashing these debt collectors who bought credit card debts that were dismissed in a lawsuit?

 

Since I have three lawsuit cases - two dismissed, one in settlement, I was wondering if there is anyway we could ward off these Debt Collectors from collecting again?

 

Thank you,

Homeschool Mom

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If you send a C&D like you said you did, you leave them no option but to sue you if they decided to go that route. You would only be safe if you are past the Calif. 4 year SOL. If not, they now have no way to communicate with you and that forces them to sue.........So, are you still within SOL, or past it?

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They can still contact you and nicely ask you to pay on a debt even if they lost their case by trial. What happened was that you put up a defense posture and they dismissed and sold the debt to the next JDB in line. I would send the DV first simply to see if they can even come up with the minimal proof. If they do, then send a C&D and see if they sue you.

Note that not every JDB sues and if they already know that you will vigorously defend any lawsuit rather than roll over, they might just give up either at the DV or C&D level. The DV though give you an added protection of forcing them to answer you before they can sue, even if the answer is minimal.

If they do sue you, then put up the defense posture again, only be ready to fight for a dismissal with prejudice on the grounds that the case either needs to be tried or they need to give up forever now that it is in the courts for the 2nd time (courts do not give JDBs unlimited dismissals w/o prejudice because the defendant has the right to prove their case too).

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@shellieh98

 

c and d letter until they send you a dV is what I meant.  Is that not right? thanks

 

If you send a C&D, they possibly won't respond to the DV.  A CA's purpose in responding to a DV is to be able to continue collecting.  a C&D prevents them from collecting.  So responding to a DV when the consumer has also included a C&D is a waste of time for the CA.

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@neweuquol

 

You can send a cease and desist that only authorizes them to contact you in writing.   I normally would just go with a cease and desist though.

 

There is no such thing as a partial C&D.  If you request contact only in writing, some CAs will comply.  Others, however, will cease collection all together.

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OK, lets clear some things up here:

DV - Debt Validation Letter. This requests that a JDB or CA validates that you are the person who owes the debt and what the debt is to the debtor. This must be sent within 30 days of first contact with the JDB/CA and if done so, once they receive it, they cannot contact the debtor until the send the validation. The standard for validation is very easy to comply with (basically a letter stating that you are the debtor, the amount of the debt, and who the original creditor is enough to qualify for validation). This is good to use if the debt is within legal SOL because it keeps communications open which keeps them from filing a lawsuit.

C&D - This is a letter telling the JDB/CA to cease all communications with the debtor. Once received, the JDB/CA can contact the debtor only once more and only to tell them what their plan of action is (either to sue or close the case and sell the debt). This is an all or nothing type action (you cannot demand that they only contact you by written communication for example). Because all contact is cut off at that point, this should not be the first act with a debt that is within Legal SOL. A DV would be better. Even if they validate, it might be better to ignore their efforts rather than send a C&D depending on the situation. In the case of the OP however, a C&D might be better because it is almost a dare to the JDB/CA to try to bring this to court. If the legal SOL has expired or the JDB/CA is legally barred from collecting on the debt (res juditica, bankruptcy, etc), then you can use this as your first letter to the JDB/CA.

I hope this clears things up.

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CSC is a CA and not a JDB. I have seen several times where they do collection for PRA. OP did not post who the C&D was sent to. If it was to PRA, I would take the position that assigning the debt to a CA to avoid liability under the FDCPA is a violation in and of itself. However if the CA sent me a dunning letter and I C&D'ed the JDB, I would fish around just a little bit more before I hauled them both into court.

 

CA is acting as agent for JDB and therefore shares liability when JDB has been the recipient of your C&D. I have tested this theory twice, won twice due to them wanting it settled very fast.

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@neweuquol

 

 

There is no such thing as a partial C&D.  If you request contact only in writing, some CAs will comply.  Others, however, will cease collection all together.

I was not aware of that.  Normally when I send a letter to a CA it's a letter of representation that says they can only contact me i writing.  I do not negotiate verbally because 1) I do not trust them and 2) settlements have to be i writing anyway.

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Hope they start harassing you at work. Then own them on a fdcpa claim. In the meantime, write them a letter. I would write mine as follows:

 

Dear losers,

 

Kiss my rear.

 

Sincerely,

 

you

 

I doubt they will sue on the debt again. I've been in the same situation once and was furious that they 'lost by quitting' then wanted to start over by passing it over to a CA, which was strange because the JDB sent it immediately to a law firm. They only went to a regular collector after the law firm tucked tail and ran.

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Thank you all for taking the time to respond and illuminate my situation.  I just read your postings after a C&D has been mailed CMRR last Friday, May 11, 2013.

SOL is August/September 2013.  This was a PRA lawsuit dismissed without prejudice sometime January 2013.  I gather from these postings I also have to mail a C&D to PRA to cover my bases?  (after doing more research I guess that this CSC account is PRA's).

 

( Just as a side note - I had a lawsuit with Asset Acceptance that got settled 35% to the principal (c/o Fulton, Friedman and Gullace).  Despite FFG's advice that they will send me statements, I have not received any so far since I started paying in January 2013.  However, the same account was "passed on to a Debt Collector" based in Canada and this forum has helped address the issue as well.  I sent a C&D letter and have not heard back from them since.  Also called the number -- which apparently is based in NY -- and reiterated what was in my C&D letter.)

 

Appreciate you all for your inputs..

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I was not aware of that.  Normally when I send a letter to a CA it's a letter of representation that says they can only contact me i writing.  I do not negotiate verbally because 1) I do not trust them and 2) settlements have to be i writing anyway.

What you sent was a partial cease and desist.  You told them to cease and desist any phone (verbal) contact, you only do business in writing in regards to this alleged debt.

Hence a partial cease and desist.

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FDCPA violation?  Please advise if any on the following situation:

 

1.  New Servicer of 2nd Mortgage (Ocwen Loan Servicing, LLC) -- collection letter received with inflated principal balance from the original.  Former servicer filed BK Ch11 (RESPA).

 

2.  Sent DV - validating Debt.

 

3.  DV Results - Was advised to disregard their letter.  Account was charged off (Paid, Closed, Written Off) by former servicer.  They also updated Experian to match former servicer's status as Paid, Closed, Written Off.

 

4.  Disputed status with other Credit Bureaus:  Dispute Results - same as item 3.  Status was also updated Paid, Closed, Written Off -- both on Ocwen Loan Servicing, LLC, and former servicer.

 

5.  Today, we received a letter from a Collection Agency - Nationwide Credit Inc. collecting on the same debt, under a different Creditor Name, but payments to be made to Ocwen Loan Servicing, LLC.

 

Your inputs are much appreciated.  (Property is under water/)

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