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Trouble with debt collector that should not be able to validate but has anyway.

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I am at impasse with a debt collector reporting on my credit report as the current owners of an alleged old second mortgage debt. A few years ago the last supposed owner of this alleged debt was unable to validate it so it came off of the credit report. This was prior to my becoming a citizen of Texas. Green Tree now pops up claiming to own the debt on my credit report and it looks like they have been reporting it since March of this year. Before educating myself with TFC 392, I requested validation through the credit bureau website thinking there was no way they could validate it because the last guy wasn't able to but they did. How is this possible? if they did in fact purchase the right to collect on this alleged debt, they should not have been able to verify because the documentation required for that doesn't exist. On top of that, they never sent anything to me showing that they were the new owners of the alleged debt. So how do I get rid of these guys? Good news is the alleged debt is SOL. My initial thinking was to try to use portions of TFC 392 and demand that they remove all trade lines within 5 days because they were lying by verifying the debt to begin with but I wasn't sure I could because I did not invoke TFC 392 in my request for verification with the credit bureau. I was also going to threaten to file a claim against their bond, send a complaint to the FTC, BBB, AG and CFPB. They've already gone through so much litigation with the FTC, you would think they would clean up their act. Any advice on how I should handle this? Thank you for your help, guys!

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I requested validation through the credit bureau website thinking there was no way they could validate it because the last guy wasn't able to but they did. How is this possible? if they did in fact purchase the right to collect on this alleged debt, they should not have been able to verify because the documentation required for that doesn't exist. On top of that, they never sent anything to me showing that they were the new owners of the alleged debt.

 

It is possible because the collector is not required to provide any documentation to validate the debt to the bureaus or you.  ALL they are required to do is provide the name of the original creditor (address if the consumer requests it) and the amount owed.  PERIOD.

 

Few states require that a debt purchaser send any notice to a consumer that they purchased their debt.  Florida is one.  

 

My initial thinking was to try to use portions of TFC 392 and demand that they remove all trade lines within 5 days because they were lying by verifying the debt to begin with but I wasn't sure I could because I did not invoke TFC 392 in my request for verification with the credit bureau. I was also going to threaten to file a claim against their bond, send a complaint to the FTC, BBB, AG and CFPB. They've already gone through so much litigation with the FTC, you would think they would clean up their act. Any advice on how I should handle this? Thank you for your help, guys!

 

TFC 392 simply mirrors the FDCPA with the exception of allowing TX residents to DV at any time and giving more time to respond.  They are not required to send you documentation under that either.  You also have no proof they are lying.  Unless you plan to sue them and spend a LOT of money to haul them to court all you can do is file lots of disputes and hope one sticks.

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It's not suprising you're having problems with Green Tree.  They recently settled with the CFPB and the FTC for $63 million for their bad business practices.

 

https://www.ftc.gov/news-events/blogs/business-blog/2015/04/will-63-million-ftc-cfpb-settlement-encourage-green-tree

 

I would file a complaint with the CFPB.  They don't act on every complaint, but it is free to go to their website and file one, so I would do it.  

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Thank you for the advice! When I originally disputed it with the credit bureau it was online so there a dropbox with a few choices and I believe I chose this debt does not belong to me. So right now, I'm studying up on RESPA. My plan is to request validation in addition to noticing them of their violations as they relate to RESPA.  I also plan on submitting complaints to the FTC, CFBP and BBB. Hopefully this will work!

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