Capital Asset Management

[ReadSS]

I just received a letter from this collection agency who states they have been "engaged" by Discover Bank" to resolve the delinquency of a debt I allegedly owe. The letter states that if I notify their office within 30 days to dispute the validity of this debt, they will obtaining verification of the debt or obtain a copy of a judgment and mail me a copy of such judgment of verification. It also stated that if requested in writing within 30 days, they will provide me with the name and address of original creditor if different from current creditor.

The letter lists Discover Bank as current creditor.

I will obviously dispute the alleged debt in writing. I have already disputed this with the CRAs. Equifax sent back their investigative results that the debt had been paid in full. All 3 CRAs show the balance as 0 in the payment history on June 2011. Then in July 2011 the amount allegedly owed is over $7000. This is for a Discover Personal Loan.

I will send copies of these docs to the collection agency. Should I contact Discover Personal Loans? I think this letter is in violation of FDCPA. It appears they are attempting to be coe ting on behalf of Discover when they actually have purchased this alleged debt.

Apparently this collection agency has been sued numerous times!

I also feel their communication is misleading when they state if I dispute the debt, they will verify OR obtain a judgment. Obviously this collection agency is attempting to intimidate me to prevent me chad gong the validity of this alleged debt in writing.

Thoughts?

[ReadSS]

Eek! Sorry for typos. Typing on my phone. The collection agency is Capital Asset

Management based in NY.

[HotWheels96]

Does the letter say they will obtain validation or obtain a copy of the judgment? Some collectors are hired to collect on judgments too. It might be that is what it says.

[BV80]

@ReadSS

 

As HotWheels96 pointed out, if the part you're referring to is this:

 

a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector

 

That's straight from the FDCPA.

[ReadSS]

Thanks for responding. I looked it up and saw the wording under FDCPA is indeed verification or copy of judgment. I still think they purchased the debt but are implying it is still owned by Discover and a lawsuit would be from the OC. I'm not very concerned, regardless. This is third CA who has contacted me about this account. Each time I disputed, i never heard anything back. I disputed this with Equifax. They sent their investigative result as having verified with Discover the account was paid in full and had updated it as closed. Sending those results pretty much has stopped any additional inquiries or litigation to date.

[HotWheels96]

It's totally possible that they still own the alleged debt, as I believe discover generally keeps their accounts. Now, I have an alleged citi account that has been through multiple collection agencies. Once one receives a dispute, they usually return it to the original creditor. The process begins again each time or until they decide to sue you. So, basing it on your credit report,they still own it and have hired CAM to collect.

Incidentally, this is the same company citi went though with me just this last week. Once they received my letter that said, I refuse to pay this alleged debt, they returned it to citi. Of course I'm past the SOL on it so I wasn't incredibly concerned.

[ReadSS]

If it was SOL, I'd encourage them to sue so you file a counterclaim for litigation/collection of a time barred debt. : )

[HotWheels96]

It's citi, so I honestly wouldn't be surprised if they did sue me. With every new dunning I disputed and it got kicked back. The last one was a refusal to pay. We'll see how it plays out.

The way you can usually tell who owns it is to see who you're supposed to make the check out to. I'm fairly sure the CAM notice I got said to make my check out to the OC. What's yours say?

[ReadSS]

Mine was to the CA - not OC

[HotWheels96]

I'm thinking that its owned by the collector and not the OC then.

[racecar]

If you want to find out real fast elect arbitration with jams

http://www.consumerfinance.gov/credit-cards/agreements/search/?q=discover+bank

Agreement to arbitrate. If a dispute arises between

you and us, either may choose to resolve the dispute

by binding arbitration, as described below, instead of

in court. Any claim (except for a claim challenging the

validity or enforceability of this arbitration agreement,

including the Class Action Waiver) may be resolved

by binding arbitration if either side requests it. This

includes claims and disputes relating to any other

Account or agreement you have or had with us. THIS

MEANS IF EITHER YOU OR WE CHOOSE ARBITRATION,

NEITHER PARTY SHALL HAVE THE RIGHT TO

LITIGATE SUCH CLAIM IN COURT OR TO HAVE A

JURY TRIAL. ALSO DISCOVERY AND APPEAL RIGHTS

ARE LIMITED IN ARBITRATION.

 

If you wish to begin an arbitration against

us but you cannot afford to pay the organization’s or

arbitrator’s costs, we will pay those costs if you ask us in

writing. Any request like this should be sent to Discover,

PO Box 30421, Salt Lake City, UT 84130-0421.