Jump to content

validation?


mickddp
 Share

Recommended Posts

I sent a debt validation letter to a creditor and recieved a response. In the response I got a few copies of terms of service, a few of the notices they sent me and a copy of a bill of sale that doesn't have any personal information on it. It seems to be a bill of sale for a large number of accounts sold off at once.

Is that considered validation? How should I respond?

Thanks

Link to comment
Share on other sites

For the purposes of the FDCPA, this seems to be enough to validation. It is not a huge hoop to jump through. The question is, is this enough to prove the debt in court and the answer is probably no. This mean if this is all they have, you will have to get through the court process but you should be fine.

Your next course of action depends on what you want to do. Do you want to settle, do you want this to go away on its own (hint, it won't), or do you want to force their had to either sell the debt on or go to court? The paths are different depending on what you want out of this.

Link to comment
Share on other sites

I am thinking I want to settle. What would be a good first offer for settlement? The debt is around 2500. And has been through a coupleb different agencies

 

If the first JDB paid .10 on the dollar then they paid $250 for the account.  If they sold it to JDB #2 who likely paid .05 on the dollar they paid around $15.00 for the account.  I would offer $100 to settle it in full stating the remaining balance is in dispute.

 

Keep in mind settling is about leverage and if they still have quite a bit of time to sue you on this debt they are going to hold out for a lot more knowing they can take you to court and likely get a whole lot more plus post judgment interest.  All you can do is keep negotiating until you reach a settlement you both agree to.

Link to comment
Share on other sites

I think Clydesmom settlement is too low but then again, it depends on other factors. If the debt is more than 6 years old, then don't worry about it unless you think you have a moral responsibility as they cannot sue you for it and it will fall off of your report in 1 year. To pay anything on the debt at this point would be to reset the clock so don't bother.

If the debt is only 2 - 3 years old, they have plenty of time to sue you. In any case, consider how much they paid for the account (which is probably in the area of $100 or less). I personally in this situation would start at $500 with a limit of between $1000 and $1500. You do not want to go higher than that (and if $1500 is their starting point, be willing to work lower). This assumes that you have the funds to settle with.

As for taxes after settlement, if you settle for $1000, that would work out to about $150 - $600 for federal depending on your tax bracket (most people in this situation would be about $150 - $375 (10% - 25%). State taxes would be another 4% - 10% (again, for most in this situation, that will be on the low side). In fact, if you try to string this along for a couple of months, you can settle in January and hold off the tax bill until April 2016.

Finally, MAKE SURE TO GET ANY SETTLEMENT IN WRITING. A debt collector is lying if their mouth is moving. Also, no access to your bank account. Send them a cashiers check or money order, stapling the receipt to the letter and keep those for the rest of your natural life (and then some). They will come back asking for me.

Link to comment
Share on other sites

@mickddp

They sent you copies of notices that they had sent to you in the past? Do you mean copies of collection letters?

If so, did they include anything else that showed the amount of the debt that they claim you owe?

They were old collection letters that they had sent me. Those were the only things they sent that had any dollar amount on it.

Link to comment
Share on other sites

@mickddp

 

While the standard for validating a debt is very low, most courts that have ruled on the issue involved FDCPA lawsuits in which the debt collector had provided more than copies of their own collection letters.  Some type of record was provided.

 

In Haddad v. Alexander, the 6th Circuit Court of Appeals recently ruled that "[t]hese cases suggest that the 'baseline' for verification is to enable the consumer to 'sufficiently dispute the payment obligation.'"    Other courts have ruled that the purpose of validation is to ensure that the correct person is being contacted.   From the 2nd Circuit Court of Appeals (which includes New York):

 

FDCPA § 1692g, "Validation of debts," was enacted to "eliminate the recurring problem of debt collectors dunning the wrong person or attempting to collect debts which the consumer has already paid."  Ellis v. Solomon and Solomon, P.C., 591 F.3d 130, 134 (2d Cir. 2010).

 

I'm not sure that their own collection letters meet those requirement.  For instance, if they contact the wrong person, how does a copy of their own collection letter (addressed to the wrong person) verify that they're contacting the correct person?

 

I'd contact a consumer attorney just to make sure.

Link to comment
Share on other sites

When I saw the OP's post last night, I also wondered about the validation, even though the bar is set pretty low.  Here is quotation from a fed dist .court in the OP's state,  "Carlin v. Davidson Fink, LLP," (E.D. N.Y 2014)

 

 

 

B. Section 1692g(a)

 

"The FDCPA imposes liability on `debt collectors' for certain prohibited debt collection practices." Abrahmov v. Fid. Info. Corp., No. 12-CV-3453, 2013 WL 5352473, at *2 (E.D.N.Y. Sept. 23, 2013) (citation omitted). Congress enacted the FDCPA "with the aim of eliminating abusive practices in the debt collection industry, and also sought to ensure that `those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged.'" Jacobson v. Healthcare Fin. Servs., Inc., 516 F.3d 85, 89 (2d Cir. 2008) (quoting 15 U.S.C. § 1692e). To establish a claim under the FDCPA, a plaintiff must satisfy the following threshold requirements: "(1) [t]he plaintiff must be a `consumer;' (2) the defendant must be a `debt collector;' and (3) the defendant must have committed some act or omission in violation of the FDCPA." Abrahmov, 2013 WL 5352473, at *2 (citation omitted); accord Suquilanda v. Cohen & Slamowitz, LLP, No. 10-CV-5868, 2011 WL 4344044, at *6 (S.D.N.Y. Sept. 8, 2011).

Here, the sole count of the Complaint alleges that Davidson violated Section 1692g(a) of the FDCPA. Under Section 1692g(a), a "debt collector,"[3] when attempting to collect a debt from a "consumer,"[4] must provide the consumer with a detailed debtvalidation notice within five days after the initial communication with the consumer. 15 U.S.C. § 1692g(a). The validation notice must provide the amount of the debt, the name of the current creditor, and a statement of the procedure by which the consumer can dispute the debt and obtain verification of the amount of the debt and the name and address of the original creditor, if different from the current creditor. 15 U.S.C. § 1692g(a).[5]

Plaintiff contends that Davidson failed to comply with Section 1692g(a) because both the Debt Collection Notice, which was attached as an exhibit to the Foreclosure Complaint, and the Payoff Statement, which was enclosed with Davidson's August 9th Letter, did not provide the amount of the alleged debt. Davidson moves to dismiss this claim on three grounds: (1) Davidson was not acting as a debt collector under the FDPCA because the FDCPA does not apply to foreclosure actions; (2) an "initial communication" under the FDCPA never took place between Davidson and Plaintiff, and thus, the notice requirements of Section 1692g(a) were never triggered; and (3) even if an initial communication had taken place, Davidson did not violate Section 1692g(a) because the Payoff Statement properly stated the amount of the balance remaining on Plaintiff's mortgage. The Court disagrees with Davidson for the following reasons

  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.