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original creditor verficiation


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In 2011 I disputed with EQ/EF/TU two BANK credit card charge off tradelines being reportedon all 3 bureaus.  The BANK subsequently validated the tradelines with EQ/EF/TU.  I then sent letters to the BANK disputing the tradelines and demanding that they provide substantive documentation to confirm these tradelines validity and accuracy.  The BANK ignored my letter.  I then send another demand letter along with a copy of an unfilled small claims complaint advising I would file if I didn't receive a reply within 30 days.  The BANK ignored that letter.  I then filed the small claims cases, two cases each for $1000 citing a violation of the FCRA.  The BANK defaulted and I obtained two default judgments.  Shortly thereafter I received a check for $1000 from the BANK relating to one of the judgments. The statue of limitations on the debt has expired last year.  I recently notified the executive management at the BANK of the unpaid second judgment and my intent to seek a writ of garnishment against the BANK and my intent to file another lawsuit for their continued violations of the FCRA.  Since 2011 I have disputed these tradelines on several occasions each time they're validated but the BANK has never provided me with any of the requested proof and/or account documentation.  The only account information ever provided by the BANK was in a cover letter included with the recently provided check which letter simply stated how much was owed, charged off, how long the debt would remain on my credit report.  They've never provided any documentation to support their maintaining these tradelines. They've basically told me via email to go ahead and file another small claims case as the case has already been adjudicated in their opinion and they believe they will seek and win dismissal.  I've explained that my new claims will be based on their continued reporting to EQ/EF/TU post prior litigation and that they've never replied to my demand for account documentation.  Any suggestions on how best to proceed?

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@florida954

 

What was the basis of your dispute?  Are they reporting an incorrect amount?  Wrong dates?

 

Just an FYI, disputing directly with the creditor falls under 1681s-2(a) of the FCRA.  The duties of the furnisher (creditor) outlined in that section are not subject to a private right of action.  Their failure to respond to you is not actionable by you.

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I first disputed the account as unknown with all 3 bureaus and on several occasions.  Each time the BANK verifies and the reports are unchanged.  I then wrote to the BANK asking them to provide documentation support these accounts.  The BANK never replied to my numerous requests.  My understanding is it is actionable privately under Section 623 as I first disputed these accounts via the bureaus.

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@florida954

 

The fact that you disputed with the CRAs is good.  But, you only have a complaint if they've verified incorrect information.  Are they verifying incorrect information?

 

A creditor's response to you is a requirement of 1681s-2(a).  There is no private right of action for violations of that section.   You only have a private right of action for a furnisher's failure to comply with the requirements of 1681s-2(b).

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My understanding (please correct me if I am wrong)  is that the creditor must provide me with documentation to support the validity of the account upon my demand.  If they fail to do so after I have disputed the tradelines and they've verified the tradelines it's then privately actionable.

 

http://www.creditinfocenter.com/repair/disputingwithoriginalcreditor.shtml

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@florida954

 

Here is what is stated in the FCRA.

 

1681s-2(a)(8):

 

(E) Duty of person after receiving notice of dispute

After receiving a notice of dispute from a consumer pursuant to subparagraph (D), the person that provided the information in dispute to a consumer reporting agency shall—

(i) conduct an investigation with respect to the disputed information;

(ii) review all relevant information provided by the consumer with the notice;

(iii) complete such person’s investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period under section 1681i (a)(1) of this title within which a consumer reporting agency would be required to complete its action if the consumer had elected to dispute the information under that section; and

(iv) if the investigation finds that the information reported was inaccurate, promptly notify each consumer reporting agency to which the person furnished the inaccurate information of that determination and provide to the agency any correction to that information that is necessary to make the information provided by the person accurate.

 

 

None of that says that they have to provide documentation.  You could not file a complaint based on their failure to respond directly to you even though you did dispute first with the CRAs.  The reason is because a response to you is under s-2(a). 

 

Subsection (a) creates no private right of action; only certain state and federal officials may enforce the subsection. See Peart v. Shippie, 345 Fed.Appx. 384, 386 (11th Cir.2009).

 

 

A claim regarding their tradelines is only valid if they're reporting inaccurate information, and you'd file a complaint under 1681s-2(b) for the violation of verifying wrong information.  If their information is accurate, there's no violation.

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I hear what you're stating but they is in apparent contradiction (sort of) to the information contained in the link I provided.  I now understand that they do not need to provide me with proof but they must respond to me as their failure to response is a violation and is privately actionable as I notified the CRAs in advance of my dispute which they later verified if I am reading this article correctly.  

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@florida954

 

You have to separate the 2 subsection of 1681s-2.    There's subsection (a) and subsection (b).

 

Subsection (a) does not allow for a private right of action.  Disputing with directly with a furnisher and their required response to you is under that subsection.

 

Subsection (b) is where you have the private right of action.  That subsection requires a dispute with the CRAs.   The CRA has to notify the furnisher of your dispute, and the furnisher must then verify with the CRA.   Subsection (b) makes no requirement that the furnisher respond to you. 

 

Here's the link to 1681s-2.   Read the differences between (a) and (b).

 

http://www.law.cornell.edu/uscode/text/15/1681s-2

 

If the CRAs are not reporting that the account was disputed by you, you may have a claim against the CRAs.  Can you prove you disputed with them?

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