Afni, Inc. Collection Letter

[MikeS]

Hi everyone. Today I received a letter from Afni, Inc. saying "....STATE FARM BANK, F.S.B. account has been acquired...." 

For past debts, I have sent very simple DV letters straight to the point such as:

To Whom It May Concern:

I dispute the above-referenced debt and request validation.

I've read that this JDB is not good about responding to these and continues to report to credit agencies. I'm wondering in this case if I should be a little more forceful with the letter in asserting my rights if they violate them such as:

To Whom It May Concern:

I dispute the above-referenced debt and request validation. Be advised this is a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (8), stating your claim is disputed and validation is requested.

This is a request for VALIDATION made pursuant to the above-named Title and Section. I respectfully request your offices provide me with competent evidence that I have any legal obligation to pay you.

If your offices have reported invalidated information to any of the 3 major credit bureaus (Equifax, Experian or TransUnion) this action might constitute a violation under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or any company that you represent, I will not hesitate in bringing legal action against you and your client for the following:

·         Violation of the FCRA

·         Violation of the FDCPA

 

Thanks as always for the great help this forum provides

[BackFromTheDebt]

Many years ago, I used to send very complicated DV letters, running several pages. 

These days I am of the opinion that simple is better.  

Nothing is wrong with the letter you used to send.  They are supposed to be trained in FDCPA and FCRA, and if not, well, that is their problem.  

[MikeS]

1 minute ago, BackFromTheDebt said:

Many years ago, I used to send very complicated DV letters, running several pages. 

These days I am of the opinion that simple is better.  

Nothing is wrong with the letter you used to send.  They are supposed to be trained in FDCPA and FCRA, and if not, well, that is their problem.  

 

2 minutes ago, BackFromTheDebt said:

They are supposed to be trained in FDCPA and FCRA,

This is the opinion I have as well. Just didn't know if it strengthened my hand informing them of my rights if I actually did need to sue them. Obviously the facts would be on my side.

Sent DV letter > JDB didnt respond > reported account to credit agencies

Shouldn't matter what the content of the letter says as long as I am disputing it. The law would be on my side. With that in mind I'll probably go with the simple letter. Agreed?

[MikeS]

One interesting thing I just found. I assume this would be helpful if they were to botch their reply. Sorry in advance for lots of text.

 

Government Action:

United States of America Bureau of Consumer Financial Protection VS Afni, Inc.

On November 9, 2020 the business entered into a consent order with the United States of America Bureau of Consumer Financial Protection. The consent order settles allegations that the business Afni furnished information to consumer reporting agencies (CRAs) that it knew or had reasonable cause to believe was inaccurate and failed to report to CRAs an appropriate date of first delinquency on certain accounts. The Bureau also found that Afni failed to conduct reasonable investigations of disputes made by consumers both to Afni and to CRAs about furnished information and failed to conduct investigations of disputes made to Afni in a timely manner. In addition, the Bureau found that Anfi failed to send required notices to consumers about the results of such investigations and failed to establish, implement, and update its policies and procedures regarding its furnishing of consumer information to CRAs. Afni’s conduct violated the Fair Credit Reporting Act (FCRA) and its implementing rule, Regulation V and, by engaging in these violations of the FCRA and Regulation V, Afni violated the Consumer Financial Protection Act.
.Under the terms of the consent order, the business agreed to take certain steps to prevent future violations and $500,000 in civil money penalties were imposed. The consent order was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law. For more details go to https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-announces-settlement-debt-collector-credit-reporting-violation/

On November 24, 2020 BBB reached out to Afni for their response regarding this consent order.

On December 09, 2020 BBB received the documentation requested and their position. Afni's response is as follows, "Over the last several years, Afni has participated in an examination and investigation with the Consumer Financial Protection Bureau (CFPB). As one of the largest consumer debt collection agencies in the nation, we actively work with the CFPB to ensure compliance and stay up to date on information and resources regarding consumer protection.
  
The examination and investigation alleged that Afni was noncompliant with technical aspects of the Fair
Credit Reporting Act (FCRA), which included furnishing the proper date of first delinquency on
consumer’s accounts. During Afni’s examination this item was flagged and Afni immediately began to
remediate all concerns related to the date of first delinquency. Afni only furnishes consumer accounts
where the date of first delinquency is specifically provided and identified by the creditor.  
  
Additionally, there were other technical aspects of the FCRA and Regulation V that the CFPB requested
Afni cure. Afni has complied with all requests from the CFPB and has continued to improve its
compliance management system during the pendency of the investigation. For business reasons, Afni
has agreed to a Consent Order which requires us to pay a monetary penalty and implement measures to
prevent future noncompliance.  As always, efforts to strengthen our controls around furnishing and our
compliance management system will continue."

[BV80]

30 minutes ago, MikeS said:

Hi everyone. Today I received a letter from Afni, Inc. saying "....STATE FARM BANK, F.S.B. account has been acquired...." 

For past debts, I have sent very simple DV letters straight to the point such as:

To Whom It May Concern:

I dispute the above-referenced debt and request validation.

I've read that this JDB is not good about responding to these and continues to report to credit agencies. I'm wondering in this case if I should be a little more forceful with the letter in asserting my rights if they violate them such as:

To Whom It May Concern:

I dispute the above-referenced debt and request validation. Be advised this is a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (8), stating your claim is disputed and validation is requested.

This is a request for VALIDATION made pursuant to the above-named Title and Section. I respectfully request your offices provide me with competent evidence that I have any legal obligation to pay you.

If your offices have reported invalidated information to any of the 3 major credit bureaus (Equifax, Experian or TransUnion) this action might constitute a violation under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or any company that you represent, I will not hesitate in bringing legal action against you and your client for the following:

·         Violation of the FCRA

·         Violation of the FDCPA

 

Thanks as always for the great help this forum provides

It is not necessary to quote the FDCPA. It is the job of the debt collector to know it.

If they have already reported information to the credit bureaus, as long as the information is correct, there is no violation.If they have already reported information to the credit bureaus, as long as the information is correct, there is no violation of any law.

Regarding the CFPB v. Afni, consumers cannot enforce a consent order.  

[MikeS]

1 minute ago, BV80 said:

It is not necessary to quote the FDCPA. It is the job of the debt collector to know it.

If they have already reported information to the credit bureaus, as long as the information is correct, there is no violation.If they have already reported information to the credit bureaus, as long as the information is correct, there is no violation of any law.

Regarding the CFPB v. Afni, consumers cannot enforce a consent order.  

They have not reported it yet, or at least I am not aware of it if they have reported it.

In regard to the consent order, I didn't intend to imply that I could enforce the consent order but was more of a question if it could be cited as evidence if I were to sue. I realize my post wasn't very specific regarding it.

Sounds like I need to get this DV letter out via CMRR right away. I'll send the simple one.

[BV80]

7 minutes ago, MikeS said:

They have not reported it yet, or at least I am not aware of it if they have reported it.

In regard to the consent order, I didn't intend to imply that I could enforce the consent order but was more of a question if it could be cited as evidence if I were to sue. I realize my post wasn't very specific regarding it.

Sounds like I need to get this DV letter out via CMRR right away. I'll send the simple one.

I edited my previous post to include a little more information.

The consent order would only be evidence if the court ruled Afni violated the law.  If there was no ruling, it’s nothing more than a settlement.  Absent a court ruling, the allegations are not evidence.  

[MikeS]

1 minute ago, BV80 said:

I edited my previous post to include a little more information.

The consent order would only be evidence if the court ruled Afni violated the law.  If there was no ruling, it’s nothing more than a settlement.  Absent a court ruling, the allegations are not evidence.  

Understood, and thank you for clarifying.

Just to get ahead of things. If/when they verify, I assume they will sue me. This debt has always worried me with the contract language. It's a State Farm Bank credit card. There isnt an arbitration clause but there also isnt anything stating who would handle litigation to collect on the debt. The only applicable part of the contract is in a section called; 

Collection Costs:

If you are in default, unless prohibited by applicable law, you agree to pay
us or reimburse us for all costs and disbursements, including reasonable
attorney’s fees, we pay or incur in legal proceedings (including
bankruptcy proceedings) to collect or enforce the debt you owe under
this Agreement.

Has anyone had luck forcing a JDB to arbitration on this card or a card like it? I attached the entire card agreement in case anyone wants it.

State Farm Card Agreement.pdf

[BV80]

3 minutes ago, MikeS said:

There isnt an arbitration clause but there also isnt anything stating who would handle litigation to collect on the debt.

There is a section in the agreement entitled “assignment.”  That states they can sign the account.

4 minutes ago, MikeS said:

Has anyone had luck forcing a JDB to arbitration on this card or a card like it? I attached the entire card agreement in case anyone wants it.

Without an arbitration provision in the agreement, you cannot force the JDB to arbitrate.

[MikeS]

5 minutes ago, BV80 said:

Without an arbitration provision in the agreement, you cannot force the JDB to arbitrate.

That was my worry. Would you say my best bet is to just negotiate with the JDB prior to them suing me?

[BV80]

2 minutes ago, MikeS said:

That was my worry. Would you say my best bet is to just negotiate with the JDB prior to them suing me?

What is the amount of the debt? Do you have any possible FDCPA violations against him?? Do you have any possible FDCPA or state law violations against them?

[MikeS]

9 minutes ago, BV80 said:

What is the amount of the debt? Do you have any possible FDCPA violations against him?? Do you have any possible FDCPA or state law violations against them?

$3,472

At this time I have no FDCPA violations against the JDB. The letter I received that they acquired the debt is the first communication I have had. Not sure if it counts for anything but the OC has had this reported as a $0 balance for quite some time (not outside SOL).

[BV80]

1 hour ago, MikeS said:

$3,472

At this time I have no FDCPA violations against the JDB. The letter I received that they acquired the debt is the first communication I have had. Not sure if it counts for anything but the OC has had this reported as a $0 balance for quite some time (not outside SOL).

If you can afford to settle, it might be a good idea.

The reason the OC is reporting a $0 balance is because it sold the account.  When an account is sold, the OC must report a $0 balance because it is no longer owed to the OC.  It is now owed to the purchaser.