Debt Validation Letter doesn't contain requested info, what to do?

[cliffordo]

Hi all, I've searched the forum for info on this but I couldn't find any, so I'd be grateful for advice as I'm new to this. Last month I received a debt collection notice for a credit card default (US Bank) from Financial Recovery Services. I send a response letter asking for proof of the debt as well as proof that FRS was licensed in my state (California) to collect the debt.

Last week I received a response from LVNV/Resurgent (not FRS), which contained the last statement from the credit card in question. There was no response to the request for proof of license to collect.  

So I'm trying to figure out how to respond in a way that dissuades them from collecting this debt (approx $6k) or lay the groundwork for a dismissal. Given that they did not respond to my debt validation letter in entirety should I write back pointing this out and asking that they cease all collection activity? Or is this the kind of FDCPA that just means a potential $200 fine rather than giving me any form of leverage? 

 Many thanks for any insights/suggestions.

Regards, Cliffordo

[BackFromTheDebt]

The bar for debt validation is very low. It appears they cleared the bar. 
 

I know of no federal requirement that a debt collector be licensed. So this is not an FDCPA requirement and has nothing to do with the FDCPA debt validation letter  

 

I am not familiar with the CA laws   
if you can find a CA law they violated, the law probably has the remedy in the written statute 

 

[BV80]

9 hours ago, cliffordo said:

Hi all, I've searched the forum for info on this but I couldn't find any, so I'd be grateful for advice as I'm new to this. Last month I received a debt collection notice for a credit card default (US Bank) from Financial Recovery Services. I send a response letter asking for proof of the debt as well as proof that FRS was licensed in my state (California) to collect the debt.

Last week I received a response from LVNV/Resurgent (not FRS), which contained the last statement from the credit card in question. There was no response to the request for proof of license to collect.  

So I'm trying to figure out how to respond in a way that dissuades them from collecting this debt (approx $6k) or lay the groundwork for a dismissal. Given that they did not respond to my debt validation letter in entirety should I write back pointing this out and asking that they cease all collection activity? Or is this the kind of FDCPA that just means a potential $200 fine rather than giving me any form of leverage? 

 Many thanks for any insights/suggestions.

As pointed out by @BackFromTheDebt, validation under the FDCPA has nothing to do with licensing.  The purpose of validation is to “validate” or “verify” that a debt is owed and that the amount demanded is correct.  Whether or not a company is licensed according to state law has nothing to do with whether or not you owe a debt.

If your state requires licensing of collection agencies, check to see if the business is licensed.  If it is not, it could be violating a different section of the FDCPA, but not the validation section.  It would also be violating state law.

If you choose to send a cease and desist for a debt that is still within the SOL for collection, the debt collector’s only option left would be to sue you.  They could sue you anyway, but a cease and desist would leave them no other choice if they really want the money.

For more information on debt validation, read the following threads.

https://www.creditinfocenter.com/community/topic/328187-fdcpa-debt-validation-myths/

https://www.creditinfocenter.com/community/topic/329454-useless-and-baseless-validation-request/

 

[Clydesmom]

12 hours ago, cliffordo said:

So I'm trying to figure out how to respond in a way that dissuades them from collecting this debt (approx $6k) or lay the groundwork for a dismissal.

I won't repeat what the other two responses already said because it isn't necessary.  What I will point out is if this is well within the SOL of 4 years for filing a suit in California there is not likely anything you are going to do to persuade them to stop collecting and certainly nothing that will get you a dismissal.  Hypothetically even if there were an FDCPA violation it is only worth a maximum of $1000 and the debt you owe is 6x that amount making continuing to collect worthwhile.  Since the FDCPA does not apply to an OC the bank can simply get a different CA to take over leaving you to pursue and alleged violation against FRS separately from any suit they file.  Their other option is to simply allow the counter claim and deduct anything you are awarded from what you owe them in a verdict on a suit they filed.  

I will also echo that sending a cease and desist is a really bad idea if the SOL is still alive for suit.

[cliffordo]

thanks everyone- this is so helpful.