xlxaxa 5 Posted January 7, 2015 Report Share Posted January 7, 2015 Ok so I send a validation letter to Midland Funding but they never replied so I sent a second validation letter and I just got their reply. In their letter they say: "The purpose of this letter is to advise you that you did not provide sufficient information to investigate your dispute of the credit reporting on the above account. After reviewing the information you provided, as well as our account notes, and informaton provided by the previous creditor, we are unable to determinate the nature of your dispute, and consequently deny that our records are inaccurate. In order to further investigate your dispute, we need additional information to identify the basis of your dispute, including a complete explanation of your dispute, that would be helful. Further, copies of any documentation that you may have to support your dispute. In the interim, we have reuested that the three major credit bureaus change the status to DISPUTED. Example of documetation that we need: Paid in Full or Account Balance ProofFraud or Identity TheafBalance Discrepancy (please include orginal contract, statements that show owned rates). Please find the account information that you requested on the reverse of this letter" ON THIS SIDE THE "VALIDATE" including: - Charge off Balance $1075- Interest 0%- Last PAyment Date: 03/03/2011- Date of Default: 05/19/2011- Total Post Charge-Off Interest $38.50- Current Balance: $1113,95- My name (PArtial)- My address- Original account number- Name and address of charge-off creditr at time of charge-off But they don't include any statements or any of the information that I requested. So this letter was so unexpected that I don't even know how to reply.Any suggestions please? Also, they haven't updated Experian as DISPUTED. Violation?Also, on equifax the name theirselve as the collection agency and aslo as the original creditod. Violation? Thanks!!!!! Quote Link to post Share on other sites
fisthardcheese 1,504 Posted January 7, 2015 Report Share Posted January 7, 2015 They are not legally required to respond to you at all and they have no legal obligation to send any of the documents that you demanded, such as statements. However, I see a nice violation of the FDCPA in their own letter by listing a very deceptive 0% interest rate, but then also claiming that they added $38.50 in interest to your amount. Not only does that seem deceptive, but also would be admiting that they are reporting an incorrect amount. If the charge off balance was $1075, with a 0% interest, then they claim $38.50 in interest was added and that now the balance is $1113.95 .... there is a violation there, or many. $1075 x 0% = $38.50? ...... $1075 + $38.50 = $1113.95? Neither of those are accurate. To me, this is either an FDCPA violation for trying to collect the wrong amount, OR, for being deceptive. Or both. If they are reporting the $1113 on your credit reports, I would dispute with all 3 CRAs as wrong amount. If they verify the $1113 as being correct, then I would find an attorney to run this by. They can't have it both ways. Either their letter they sent with the interest calculations is wrong, or their $1113 reporting to CRAs is wrong. They can not both be accurate, therefore, one of those things would be a violation. Quote Link to post Share on other sites
xlxaxa 5 Posted January 7, 2015 Author Report Share Posted January 7, 2015 Thanks fisthardcheese! So I guess it would just be best if I don't reply to them at all. Quote Link to post Share on other sites
fisthardcheese 1,504 Posted January 7, 2015 Report Share Posted January 7, 2015 I would run this by a consumer attorney, personally. See if they believe the descrepancies in the numbers are enough of a violation for them to want to pursue this for you. For the amount they are claiming you owe, I believe you should be able to at least get them to drop the collections and wipe out the alleged debt in a settlement, if not get a little money in your pocket for the troubles. Quote Link to post Share on other sites
BV80 2,845 Posted January 7, 2015 Report Share Posted January 7, 2015 @fisthardcheese However, I see a nice violation of the FDCPA in their own letter by listing a very deceptive 0% interest rate, but then also claiming that they added $38.50 in interest to your amount. Not only does that seem deceptive, but also would be admiting that they are reporting an incorrect amount. Whether or not it's a violation would depend upon the reason for the $38.50 in interest. If that's an amount that was charged by the OC, Midland is not being deceptive. $1075 x 0% = $38.50? ...... $1075 + $38.50 = $1113.95? Neither of those are accurate. To me, this is either an FDCPA violation for trying to collect the wrong amount, OR, for being deceptive. Or both. It's a difference of 45 cents. While technically incorrect, I wouldn't hang my hat on it. But, like you said, it wouldn't hurt to speak to an attorney. Who knows what violations an attorney might find. 1 Quote Link to post Share on other sites
BV80 2,845 Posted January 7, 2015 Report Share Posted January 7, 2015 @xlxaxa Ok so I send a validation letter to Midland Funding but they never replied so I sent a second validation letter and I just got their reply. In their letter they say: They're response to you was: "The purpose of this letter is to advise you that you did not provide sufficient information to investigate your dispute of the credit reporting on the above account." If you sent your letter because you found their entry on your CR, you did not send a "validation letter". A debt validation letter (DV) is sent in response to a first collection letter. A DV must be sent within 30 days of receiving that first collection letter. It appears you disputed their entry on your credit report. What was the basis of your dispute? Quote Link to post Share on other sites
xlxaxa 5 Posted January 7, 2015 Author Report Share Posted January 7, 2015 @BV80 I never received a letter from them informing me of anything. I first saw on credit report, then I dispute with credit agencies and after that they started sending me notification and offers to settle the debt. Quote Link to post Share on other sites
Goody_Ouchless 510 Posted January 7, 2015 Report Share Posted January 7, 2015 That is typically how it works. They bought your debt, updated credit report and came knocking for collection. As @BV80 asked, what is your dispute? If it is simply that you stopped paying your bills and are angry that Midland bought one of them, that's fine - it covers most of us. Quote Link to post Share on other sites
xlxaxa 5 Posted January 7, 2015 Author Report Share Posted January 7, 2015 It's an old debt, SOL. Funny thing is that the original creditors are not reporting at all and they deleted all entries on my report but Midland Funding is still at it so I'm just trying to work some magic LOL but I'm such a newbie on this that I get confused... A LOT @Goody_Ouchless Quote Link to post Share on other sites
xlxaxa 5 Posted January 7, 2015 Author Report Share Posted January 7, 2015 And I'm just trying to figure how to respond to them. Quote Link to post Share on other sites
BV80 2,845 Posted January 7, 2015 Report Share Posted January 7, 2015 @xlxaxa When you disputed the entry with Midland, exactly what did you say was the reason for your dispute? Or did you simply request validation? Quote Link to post Share on other sites
momof5 992 Posted January 8, 2015 Report Share Posted January 8, 2015 Is it just SOL or has the reporting period expired? Quote Link to post Share on other sites
xlxaxa 5 Posted January 8, 2015 Author Report Share Posted January 8, 2015 @BV80 I disputed the entry and asked them for an statement on this account or a contract. I will post the letter I sent soon.@momof5 it will be SOL in March 1 Quote Link to post Share on other sites
xlxaxa 5 Posted January 12, 2015 Author Report Share Posted January 12, 2015 Ok so I have three accounts with Midland. Only one of them is SOL. The other two will be SOL in a couple months.Midland has responded to all my validation letters but only provided VALIDATION (One Statement) for the SOL account. For the other two accounts they just state that they need more info and that they will mark it as disputed and that they won't be contacting me again as I requested on my letters. I keep looking at the accounts to see if there is anything that they do wrong so I can use that against them. Account 1 (Not validated properly)Original amount: $1114Midland asking for same amountReporting on Equifax as Original CreditorReporting while validation process is onDate assigned is different on EquifaxIn validation letter they say that the charged off was $1075 and the interest rate is 0% but then they state that the principal balance is $1075 and they add $38.50 of Charge-Off InterestThey didn't mark the account as DISPUTED on Experian Account 2 (Not validated properly)Original amount: $837Midland asking for same amountReporting on Equifax as Original CreditorReporting while validation process is onDate assigned is different on Equifax In validation letter they say that the charged off was $797 and the interest rate is 0% but then they state that the principal balance is $1075 and they add $39.48 of Charge-Off InterestThey didn't mark the account as DISPUTED on Experian Account 3 (Validated by sending one statement) SOL AccountOriginal amount: $1016Midland asking for $1520 on dunning 11/21/14 and $1532 on validation letter. Looking at statement they sent is shows $1016 as principal balance and tthere is a section that say:INTEREST CHARGE CALCULATIONAnnual Percentage Rate %23.90Balance Subject to interest $859Interst Charged: $17YOUR ACCOUNT HAS BEEN SCHEDULED TO BE CHARGED OFFReporting on Equifax as Original CreditorReporting while validation process is onDate assigned is different on Equifax Should I dispute this with the bureaus as wrong amount for #3? Anybody sees any errors? Tips? THANKS! Quote Link to post Share on other sites
momof5 992 Posted January 12, 2015 Report Share Posted January 12, 2015 What are the DOFD's for these accounts? If the OC had deleted, it might be beyond Midland's ability to report this. Quote Link to post Share on other sites
xlxaxa 5 Posted January 12, 2015 Author Report Share Posted January 12, 2015 @momof5#1 and #2 DOFD are 04/2011#3 is 02/2011 Quote Link to post Share on other sites
BV80 2,845 Posted January 12, 2015 Report Share Posted January 12, 2015 @xlxaxa The reporting period for debts is 7 years from the DOFD. The accounts are still within the reporting period. Note that they did not have to send you any validation because you did not send a validation letter. A validation letter only applies to a collection letter that contains the 30-day FDCPA notice. Because you sent your letters due to the fact that you found their entries on your CR, they weren't required to send anything. You sent letters disputing their entries. The reason they've responded by telling you that they didn't receive sufficient information is because your dispute was not specific. Under the FCRA, you have to dispute specific information. Was any information reported incorrectly? Reporting on Equifax as Original Creditor How are they reporting as the OC? Reporting while validation process is on There is no "validation process" taking place. 1 Quote Link to post Share on other sites
xlxaxa 5 Posted January 16, 2015 Author Report Share Posted January 16, 2015 @BV80 Was any information reported incorrectly?. They are reporting information differently to each credit agency. Like some dates are different. Also, they just updated my account as "At least 120 days or More than four payments Past Due". Can they report this? The amount is also going up because of interest but in the letters that they sent to me say that the interest on the account is 0% How are they reporting as the OC?, When pulling credit report the are two tabs. COLLECTION AGENCY and ORIGINAL LENDER.In Equifax, the tab COLLECTION AGENCY is blank and their name appear in ORIGINAL LENDERIn Experian and TransUnion they appear in COLLECTION AGENCY tab and original creditor appears in ORIGINAL LENDER tab. I also disputed this with TransUnion over 45 days ago and I haven't heard from them so I'm gonna try for them to delete this right away. There is no "validation process" taking place. Quote Link to post Share on other sites
BV80 2,845 Posted January 16, 2015 Report Share Posted January 16, 2015 @xlxaxa They are reporting information differently to each credit agency. Like some dates are different. Specifically, what dates are different? Also, they just updated my account as "At least 120 days or More than four payments Past Due". Can they report this? Yes. The account really is at least 120 days and more than 4 payments past due. Just because it's been charged off and sold doesn't mean it's no longer past due. The amount is also going up because of interest but in the letters that they sent to me say that the interest on the account is 0% That has possibilities but how you deal with it is not so easy. It could involve whether or not they have the right to claim any interest (credit card terms and conditions). If they do have the right, do the amounts listed on the credit report reflect the correct rate of interest. However, if their collection letter shows that they're not charging interest, it's a possibility that they have waived any right to collect interest. As a result, perhaps they shouldn't be adding interest to the amount reported on your CR. If that's the case, you'd have an FDCPA claim under 1692e(8). In order to have the possibility of a claim under the Fair Credit Reporting Act, you must dispute the CR entry with the credit reporting agencies. Your dispute must be specific. Dispute the reported amount. In any case, you'd need an experienced attorney to handle it for you. In Equifax, the tab COLLECTION AGENCY is blank and their name appear in ORIGINAL LENDER Dispute it with Equifax. 1 Quote Link to post Share on other sites
fisthardcheese 1,504 Posted January 18, 2015 Report Share Posted January 18, 2015 That has possibilities but how you deal with it is not so easy. It could involve whether or not they have the right to claim any interest (credit card terms and conditions). If they do have the right, do the amounts listed on the credit report reflect the correct rate of interest. However, if their collection letter shows that they're not charging interest, it's a possibility that they have waived any right to collect interest. As a result, perhaps they shouldn't be adding interest to the amount reported on your CR. If that's the case, you'd have an FDCPA claim under 1692e(8). Dispute it with Equifax. Even if they are allowed to add interest, the fact that they sent a letter saying they are adding 0%, and then the fact that they are continuing to add interest and report it to the credit agencies, in the very least that is deceptive and confusing. That sounds like a good FDCPA violation to me. I agree with @BV80 that it would be best to take this conflicting information to a consumer attorney (find one on naca.net that does FDCPA work). You may have FCRA violations in addition to the FDCPA violation, but you should dispute it first with the credit agencies. Since you have a letter from midland saying 0% interest added, I would dispute with all 3 CRAs saying the amount reporting is incorrect along with any dates you believe to be incorrect. 1 Quote Link to post Share on other sites
BuckeyeJoe 0 Posted July 15, 2015 Report Share Posted July 15, 2015 They are not legally required to respond to you at all and they have no legal obligation to send any of the documents that you demanded, such as statements. However, I see a nice violation of the FDCPA in their own letter by listing a very deceptive 0% interest rate, but then also claiming that they added $38.50 in interest to your amount. Not only does that seem deceptive, but also would be admiting that they are reporting an incorrect amount. If the charge off balance was $1075, with a 0% interest, then they claim $38.50 in interest was added and that now the balance is $1113.95 .... there is a violation there, or many. $1075 x 0% = $38.50? ...... $1075 + $38.50 = $1113.95? Neither of those are accurate. To me, this is either an FDCPA violation for trying to collect the wrong amount, OR, for being deceptive. Or both. If they are reporting the $1113 on your credit reports, I would dispute with all 3 CRAs as wrong amount. If they verify the $1113 as being correct, then I would find an attorney to run this by. They can't have it both ways. Either their letter they sent with the interest calculations is wrong, or their $1113 reporting to CRAs is wrong. They can not both be accurate, therefore, one of those things would be a violation. Uh, Yes they are legally required to respond to a validation letter , It's your right under law to have them prove they are the legitimate debt owner.... Quote Link to post Share on other sites
BV80 2,845 Posted July 15, 2015 Report Share Posted July 15, 2015 @BuckeyeJoe Uh, Yes they are legally required to respond to a validation letter , It's your right under law to have them prove they are the legitimate debt owner.... A "validation letter" is sent within 30 days of a first collection letter. A debt collector is not required to respond to that request unless it wants to continue collection efforts. The OP did not sent a validation request within the first 30 days of a collection letter. He disputed an entry on his credit report. If his dispute was not detailed, they can request more information. In any case, they do not have to provide proof of ownership. Nothing in either the FDCPA or the FCRA makes such a requirement. Quote Link to post Share on other sites
fisthardcheese 1,504 Posted July 20, 2015 Report Share Posted July 20, 2015 Uh, Yes they are legally required to respond to a validation letter , It's your right under law to have them prove they are the legitimate debt owner.... Reading the FDCPA will clear up your misconceptions. 1 Quote Link to post Share on other sites
AgainstJDB 1 Posted August 27, 2015 Report Share Posted August 27, 2015 Both the OC and CA are required to investigate consumers' disputes regardless of the nuances in the regulations. Cavalry has just been slapped $175,000 fine for failing to respond to consumers' disputes. I mentioned that fact on my CFPB complaint and Cavalry CA was removed from my CR really quick. My philosophy on JDB is that I will never pay money to an entity that's never given me a dime in the first place. Quote Link to post Share on other sites
BV80 2,845 Posted August 27, 2015 Report Share Posted August 27, 2015 @AgainstJDB That fine was assessed in AZ based upon a violation of AZ regulations. It would not have an effect on anyone in any other state. Quote Link to post Share on other sites
