CA won't Validate, Not Licensed in My State, Verified/Updated with CRA

[Anonymous]

First of all, thanks to everyone on this board for the great information.

I've got a CA reporting on EX and TU, reported since 03/2005 and last reported 11/2005.  I sent a DV to the CA and disputed with CRA.  EX verified the TL, still pending with TU. 

I received this letter today from the CA, Certified Recovery Systems, Inc (Houston, TX) in response to my DV:

We have received your writeen request regarding your account with FAST CASH, however, we are no longer handling your account as it has been returned to our client.

Since the account is no longer assigned to our company, we will not be fulfilling your request.

Sincerely,

Collection Manager

So I checked my EX report yesterday.  The account came back Verified some days ago, but the CA has updated the TL!  EX now reporting:

$480 Past due as of Jan 2008 (was $480 as of Nov 2005)

Last Reported:     01/2008 (was 11/2005)

Recent Balance:   $480 as of 01/2008 (was $480 as of 11/2005)

Account History: Collection as of Jan 2008, Nov 2005, Mar 2005 (was Nov 2005 and Mar 2005)

In TN collection agencies are required to be licensed to collect in the state.  This CA is not licensed.  I am thinking I will file a complaint with the TN AG and TX AG as well as the FTC.

So I guess my question is, should I file the complaints now and hope the CA deletes, or send another letter to CA telling them they're not licensed, etc., etc.

Thanks again to everyone here.

Michael

[Anonymous]

Also, in a similar situation with ARROW Financial.  They are reporting on all 3 reports.  Their TN license expired 12/31/08 and has not been renewed.

I sent a DV and disputed with CRA, EX came back verified, but the other two are still pending.

In the mail today I got a SETTLEMENT OFFER from Arrow.  They said nothing about my DV, but that they're willing to settle the account for 55%.  I checked EX, it is verified, but they have not updated it yet. 

Also, there are reporting as an open account 120+ days past due, Factoring company account.

I guess the same questions here...since they're not licensed in TN any longer, should I proceed with complaints to TN AG and IL AG (didn't they recently bring action against Arrow?) or should I wait and use this as leverage for deletion?

[Anonymous]

Wait untill day 31 after they signed for the DV.......then fax or mail   CMRRR......dispute all CRAs that are reporting BOTH   send copies of your DV letter,copies of CERT# and GG.

In the dispute state that they did not validate the debt which is required by federal law (statue #). If they can not validate then they can not verify!

(name of CA) must be licensed in my state of...........  They are not and can not do busness in this state!

This is * NOT MINE *    please delete!

You need to know if Arrow now owns the debt. If they do they might not fall under the licensing law!

[Anonymous]

I have found that TU (most guilty) and EX really don't investigate with your first dispute.  It's when you demand MOV that they actually get around to investigating and make the deletion.

Here's a sample MOV letter:

Dear CRA,

My name is XXXXX XXXXX and my Social Security Number is xxx-xx-xxxx.  To prove my identity, I have enclosed copies of my Drivers’ License and Social Security Card.

This is a request as authorized by the FCRA § 611(a)(7).

In my letter of Month Day, Year, I disputed the validity of the following account and requested verification:

·         Name of CA     # Account Number as listed on CR 

In your Investigative Results letter of Date, the included Report # XXXXXXXXX reflects the “Date Verified” as MM/YYYY. 

I request that CRA provide me with a description of the procedure used to determine the accuracy and completeness of the information disputed.  Please include the manner in which the information was provided including the name, address, and telephone number of the person or business contacted.

Please forward me the results of your re-investigation along with an updated credit report.

[Anonymous]

Arrow does own the debt, according to a letter they sent me.

Tennessee Code states that a "Collection service" means any person who, directly or indirectly, for a fee, commission, or other compensation, offers to a client or prospective client the service of collecting, or purchasing for collection, accounts, bills notes or other indebtedness due such client for various debtors.  (TCA 62-20-102)

Exemptions--The provisions of this chapter do not apply to:

(1) Any person handling claims, accounts or collections under order of any court;

(2) Attorneys at law; or

(3) Any person engaged in the collection of indebtedness incurred in the normal course of business, or the business of a parent, subsidiary, or affiliated firm or corporation; however, no person who is or represents such person to be a collection service is exempt from this chapter.

(b) Nothing contained within this chapter shall be construed to require an individual or business entity, which collects only the individual's or its own unpaid accounts, to submit to licensure or regulation by the collection service board.

(TCA 62-20-103)

I'm not sure how to interpret this.  To me, it sounds like the definition of a "collection service" includes debt purchasers, and would fall under the chapter.