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Identity theft keeps getting illegally sold to junk debt buyers


RobinMontrose
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It is supposedly illegal to sell a debt reported to the FTC as identity theft. Yet all this creditor did was declare it wasn't valid and sold it to a debt buyer. The debt buyer keeps verifying it when I report it to the CRA as ID theft. So it comes off and then is put back on. I sent certified letters to everyone with the FTC flyer that states the laws, but to no avail. It's been put back on twice. The debt buyer sent me one old statement from 2019 as validation and is not acknowledging it's ID theft. They're acting in every way as if it's just a bad debt.

I also sent them all the FTC Notice to Credit Funishers which states:

Duties when ID Theft Occurs
All furnishers must have in place reasonable procedures to respond to notifications from CRAs that information furnished is
the result of identity theft, and to prevent refurnishing the information in the future. A furnisher may not furnish information
that a consumer has identified as resulting from identity theft unless the furnisher subsequently knows or is informed by the
consumer that the information is correct. Section 623(a)(6). If a furnisher learns that it has furnished inaccurate information
due to identity theft, it must notify each consumer reporting agency of the correct information and must thereafter report
only complete and accurate information. Section 623(a)(2). When any furnisher of information is notified pursuant to the
procedures set forth in Section 6058 that a debt has resulted from identity theft, the furnisher may not sell, transfer, or place
for collection the debt except in certain limited circumstances. Section 615(f).

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6 hours ago, RobinMontrose said:

It is supposedly illegal to sell a debt reported to the FTC as identity theft. Yet all this creditor did was declare it wasn't valid and sold it to a debt buyer. The debt buyer keeps verifying it when I report it to the CRA as ID theft. So it comes off and then is put back on. I sent certified letters to everyone with the FTC flyer that states the laws, but to no avail. It's been put back on twice. The debt buyer sent me one old statement from 2019 as validation and is not acknowledging it's ID theft. They're acting in every way as if it's just a bad debt.

I also sent them all the FTC Notice to Credit Funishers which states:

Duties when ID Theft Occurs
All furnishers must have in place reasonable procedures to respond to notifications from CRAs that information furnished is
the result of identity theft, and to prevent refurnishing the information in the future. A furnisher may not furnish information
that a consumer has identified as resulting from identity theft unless the furnisher subsequently knows or is informed by the
consumer that the information is correct. Section 623(a)(6). If a furnisher learns that it has furnished inaccurate information
due to identity theft, it must notify each consumer reporting agency of the correct information and must thereafter report
only complete and accurate information. Section 623(a)(2). When any furnisher of information is notified pursuant to the
procedures set forth in Section 6058 that a debt has resulted from identity theft, the furnisher may not sell, transfer, or place
for collection the debt except in certain limited circumstances. Section 615(f).

Did you file a fraud report with the FTC and send a copy to the creditor, debt buyer, and credit reporting agencies?

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8 hours ago, RobinMontrose said:

All that was successfully done in 2019. The bank/OC just now sold it to a debt buyer.

Which is why you need a lawyer.  A lawsuit would be in order against the OC for fraud, deceptive business practices and breach of fiduciary duty for selling an account they know was the result of theft.  A co-defendant would be the JDB who continues to re-insert the trade line after being properly notified this account is the result of criminal activity and not your personal responsibility.  

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I found this:

Prevention of Re-Pollution of Consumer Reports (FCRA, Section 623(a)(6)) Section 623(a)(6) has specific requirements for furnishers of information, including financial institutions, to a consumer reporting agency that receives notice from a consumer reporting agency that the information furnished may be fraudulent as a result of identity theft. FCRA, section 605B, requires consumer reporting agencies to notify furnishers of information, including financial institutions, that the information may be fraudulent as a result of identity theft, that an identity theft report has been filed, and that a block has been requested. Section 623(a)(6) requires financial institutions, upon receiving such notice, to establish and follow reasonable procedures to ensure that this information is not re-reported to the consumer reporting agency, thus ‘‘re-polluting’’ the victim’s consumer report. FCRA, section 615(f), also prohibits a financial institution from selling or transferring debt resulting from an alleged identity theft.

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4 hours ago, RobinMontrose said:

I found this:

Prevention of Re-Pollution of Consumer Reports (FCRA, Section 623(a)(6)) Section 623(a)(6) has specific requirements for furnishers of information, including financial institutions, to a consumer reporting agency that receives notice from a consumer reporting agency that the information furnished may be fraudulent as a result of identity theft. FCRA, section 605B, requires consumer reporting agencies to notify furnishers of information, including financial institutions, that the information may be fraudulent as a result of identity theft, that an identity theft report has been filed, and that a block has been requested. Section 623(a)(6) requires financial institutions, upon receiving such notice, to establish and follow reasonable procedures to ensure that this information is not re-reported to the consumer reporting agency, thus ‘‘re-polluting’’ the victim’s consumer report. FCRA, section 615(f), also prohibits a financial institution from selling or transferring debt resulting from an alleged identity theft.

Again, you NEED A LAWYER.  We are aware of the law(s) regarding identity theft but you are seeking a magic instant solution and there isn't one for a JDB who is determined to break the law and get you to pay what the thief owes.  So unless you want to keep playing whac-a-mole and having to dispute the re-insertion get a lawyer and sue the original creditor and the JDB that keeps inserting it.  

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