BadDebtor

Just received a letter in the mail from ARS

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I just received a letter in the mail from ARS regarding my Lending Club account.  I've missed the last two payments now, so I'm surprised by the letter.  I'm unsure if it's a collection letter or not since it hasn't been charged off and is still with Lending Club.  

 

The letter states that Lending Club has placed the account with ARS to bring my account current.  It states I have 30 days to dispute this debt.  It says if I notify the office within 30 days, they will send me a verification of debt or a copy of a judgement. 

 

What do I do with the letter?  Do I send a DV letter ? seems pointless since its still with Lending Club.  The part of sending me a copy of judgement had me worried.  I was planning to elect for Arbitration when Lending Club charged it off and sold it to a JDB, but this doesn't seem to be the case at the moment.   Is just an attempt to collect the debt from Lending Club by using ARS?  

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A VD letter will be a waste of time.  It would only buy you a little time before the inevitable.  It might even cause the collections effort to ramp up.  Keeping radio silence might buy you a year or so before real collections begin.  You didn't say how much this is, or if you can set up a settlement in the near future.  

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@BadDebtor

You should be able to tell if the letter came from a CA.  If it has Lending Club's letterhead and address, it's from the OC.   Therefore, the FDCPA and debt validation does not apply.

If it has another company's letterhead and the 30-day notice, it's from a CA.

 

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26 minutes ago, Sogeln said:

A VD letter will be a waste of time.  It would only buy you a little time before the inevitable.  It might even cause the collections effort to ramp up.  Keeping radio silence might buy you a year or so before real collections begin.  You didn't say how much this is, or if you can set up a settlement in the near future.  

I'm thinking a "VD" letter is a different issue.  (Sorry, I couldn't resist) :-)

Read my post to the OP.  If the letter came from the OC, a DV is not applicable.

However, in the event one is contacted by a CA, I disagree that sending a DV request will necessarily result in ramped-up collection efforts.   In fact, if a CA (or JDB) chooses not to validate, it could cease collection efforts.

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4 minutes ago, BV80 said:

I'm thinking a "VD" letter is a different issue.  (Sorry, I couldn't resist) :-)

Read my post to the OP.  If the letter came from the OC, a DV is not applicable.

However, in the event one is contacted by a CA, I disagree that sending a DV request will necessarily result in ramped-up collection efforts.   In fact, if a CA (or JDB) chooses not to validate, it could cease collection efforts.

I agree.

There have been many times when a DV letter got the CA off my tail for a while.  Granted, those were all in the old days when records were kept in stone tablets, blah blah blah, but there have been many times when it worked.  

There was one time I sent a DV to a CA.  Then I got a letter back from the OC saying that since they were the OC, they didn't have to validate.  Strange, I had never sent it to the OC.  What that meant was the CA could no longer collect.  

If they don't validate, or if they give up collection, you are in the whack-a-mole game.  You send the DV letter, they do nothing for a while, then a few months later you get a similar letter from a different CA.

 

Other times they send the information.  Then you decide what to do next.  

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8 minutes ago, BV80 said:

I'm thinking a "VD" letter is a different issue.  (Sorry, I couldn't resist) :-)

Read my post to the OP.  If the letter came from the OC, a DV is not applicable.

However, in the event one is contacted by a CA, I disagree that sending a DV request will necessarily result in ramped-up collection efforts.   In fact, if a CA (or JDB) chooses not to validate, it could cease collection efforts.

 

It came from ARS.  They're only attempting to collect the two missed payments (488) out of the 6k.  They're just looking to bring my account current.  So is this just trying to get payment to bring the account current like Lending Club would attempt?  This isn't going to lead to a lawsuit or anything soon? 

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Looks like ARS is a collection agency that collects anything past 30 days to 60 days past due, so technically they will be able to sue you if they deem fit.

Send the DV letter as mentioned and go from there. If they respond, you can plan for action. If they don't respond, you've bought some time, until the next or same CA sends you another letter.

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