phlix

Debit Validation Laws

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I received a notice from a collection company saying I owed them money
and had 30 days to dispute. I have disputed the debit and recently
received their validation. Within 5 days of getting their validation it
has now showed up on my credit report. Do I not have any time to
investigate the data that they have sent me or any time to respond to
this?? Can they just ship me whatever they feel is validation and then
report me to collection agency? I can find all sorts of information on
the internet about how to dispute a debit. But can't find anything
anywhere about what my rights are and what the next step is after they
send you what they feel is sufficient validation. Could someone please
help point me in the right direction?

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7 minutes ago, phlix said:

Can they just ship me whatever they feel is validation and then
report me to collection agency? I

Yes.  In fact, they don't even have to send a collection letter at all before reporting to the credit reporting agencies.

What did they send as validation?

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This was an old bank account they I had closed and some random charge came through that i had no idea about. This is 4 years old and just hearing about it now. They sent a photocopy of my signature card a copy of the last statement and the front and back of an old check. I thought they are required to send a letter about a new debit.

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4 minutes ago, phlix said:

This was an old bank account they I had closed and some random charge came through that i had no idea about. This is 4 years old and just hearing about it now. They sent a photocopy of my signature card a copy of the last statement and the front and back of an old check.

Did the statement show the same amount they're claiming you owe?

 

 

4 minutes ago, phlix said:

I thought they are required to send a letter about a new debit.

Who?  The credit reporting agencies?  No.

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1 hour ago, phlix said:

There is not really anything that can be done at this point is there?

You can dispute the credit report entry.  Carefully check the information on your credit reports to make sure everything is correct.  

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So I have been digging a bit deeper. It appears that they sent me to collections BEFORE they even sent me the notice. I received their first notice that states I have 30 days to respond. However, they sent me to collections before I had even received this notice.. Is this a violation?? Also, it appears on my credit report it is showing the last active date as the date they first reported it. This debit is 4 years old and I have never admitted to any debit and never once made a payment to them. Last activity on this should be the day the bank account was closed in 2012.

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27 minutes ago, phlix said:

So I have been digging a bit deeper. It appears that they sent me to collections BEFORE they even sent me the notice. I received their first notice that states I have 30 days to respond. However, they sent me to collections before I had even received this notice.. Is this a violation?? Also, it appears on my credit report it is showing the last active date as the date they first reported it. This debit is 4 years old and I have never admitted to any debit and never once made a payment to them. Last activity on this should be the day the bank account was closed in 2012.

By "notice", if you're referring to the 30-day validation notice, you can't receive that notice until your account has been sent to collection.  That notice is only required to be included in letters sent by debt collectors when attempting to collect a debt.   It is not required to be sent by non-debt collectors.

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22 minutes ago, phlix said:

Yes, the original debtor never sent me to collections. The collections company has sent me to collections. And they sent me to collections before sending me the 30 day notice.

If the collections company didn't send you a letter, they didn't have to send the notice.   

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10 minutes ago, phlix said:

I am sorry, you have me a bit confused.

You said the "collections company" sent you to collection.  Did the collections company ever contact you?  Did it ever send you a letter?

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Yes, they are the company that sent me the 30 day notice. I responded to the notice within the 30 days asking for validation. However from looking at my credit report it looks like they added this to my credit a few weeks before I even received the notice.

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3 minutes ago, phlix said:

Yes, they are the company that sent me the 30 day notice. I responded to the notice within the 30 days asking for validation. However from looking at my credit report it looks like they added this to my credit a few weeks before I even received the notice.

The collections company (collection agency) was not required to send you the notice before placing the entry on your credit report.   They can report to the credit reporting agencies without ever contacting you. 

In your validation request, did you state that you dispute the debt?

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I thought that by law they had to give you notice that they have your debit and give you 30 days to respond before they are able to report you to collections. How can they report you to collections if you have never had a chance to tell them if its your debit or not. What is the point of responding within 30 days?? If they just submit you to credit agency before sending you notice why does the 30 day response matter?

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1 minute ago, phlix said:

I thought that by law they had to give you notice that they have your debit and give you 30 days to respond before they are able to report you to collections. How can they report you to collections if you have never had a chance to tell them if its your debit or not. What is the point of responding within 30 days?? If they just submit you to credit agency before sending you notice why does the 30 day response matter?

This is where you're confusing me.

What do you mean by "report you to collections"?  Are you referring to credit reporting agencies?

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Just now, phlix said:

Yes, they submit me to experian and trans union a few weeks before sending me the 30 day notice letter.

Transunion and Experian are not "collections".  They are credit reporting agencies (CRAs).

"Collections" refers to a collection agency.   The company who is trying to collect from you is a collection agency.

There is no law that requires a collection agency to send you the 30-day notice before reporting the account to the CRAs.   That 30-day notice is to give you the opportunity to dispute the debt with the collection agency and request validation.  The purpose of validation is to make sure the correct consumer is being contacted and that amount of the debt is correct.

In regard to credit reporting agencies, you can dispute the entry with each CRA.  Carefully pay attention to each detail in the entry.   If anything is incorrect, dispute it.

In your validation request to the collection agency, did you say that you dispute the debt?

 

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Does this say that they are required to?? 809(a) ?

 

§ 809.  Validation of debts

(a) Notice of debt; contents
Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) 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; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) Disputed debts
If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. Collection activities and communications that do not otherwise violate this subchapter may continue during the 30-day period referred to in subsection (a) unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor. Any collection activities and communication during the 30-day period may not overshadow or be inconsistent with the disclosure of the consumer’s right to dispute the debt or request the name and address of the original creditor.

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So they can purchase any debit from anyone and not having any firsthand knowledge other than whoever the  people they bought the debit from say it is and go straight to your credit report without giving you any chance to dispute it? They can just buy a debit from someone and file it on their credit the second they get it with giving no chance to either pay the debit or challenge the debit?? That sounds awfully corrupt.

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44 minutes ago, phlix said:

So they can purchase any debit from anyone and not having any firsthand knowledge other than whoever the  people they bought the debit from say it is and go straight to your credit report without giving you any chance to dispute it?

First-hand knowledge is not required to report.   The only requirement is that the information reported is accurate.  

It's our responsibility as consumers to check our credit reports and dispute any entries that are not ours or contain mistakes.

 

44 minutes ago, phlix said:

They can just buy a debit from someone and file it on their credit the second they get it with giving no chance to either pay the debit or challenge the debit?? That sounds awfully corrupt.

Usually, the original creditor gives us a chance to pay the debt and is going to report that it's not paid.  Our credit reports are a history of our credit.  As long as the collection agency is reporting accurately, the fact that it is collecting the account is part of that history.

Is the original creditor (OC) reporting the account on your credit report?

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Nope, and I never even heard from them before. I closed my bank account 4 years ago. I guess they say some random charges came through that I was not aware of over the last years somehow.. I had no idea what was going on when I got a letter from a collection company.

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