General Credit Topics

[oneilldn]

Hello All,

I recieved a collection notice from a CA, (was not showing on any of my reports) the next day I sent them a DV via CMRR. Six days after they recieved my DV they put the CO on my EX report and my score dropped. So the same day I disputed online with EX. Four days after EX sent me an email with the investigation results as "verified"????????

So my question is: Can a CA verify a collection to the CRA even though the CA recieved my DV first but has not answer me yet? What should I do?

Thank you in advance.

[llecs]

IMO, they can verify the account after they received the DV, even while they are reviewing info for the DV. However, I personally would argue that reporting a CA for the first time is collection activity if they hadn't verified the debt per the DV after receiving it, so as long as you DV'd them within the 30 day period. I believe that reporting before they verified the DV is a violation of the FDCPA. IMO, you'd have a case there.



ETA...the DV verification could be in the mail coming to you if recent. Keep an eye out for it. If the date of their letter or postmark even is later than the day they verified it per the dispute, then I believe they violated the FDCPA. Did you send the DV CMRRR?

Message Edited by llecs on 03-17-2009 01:48 PM

[oneilldn]

Yes I did sent CMRR. I read somewhere that a CA needed to validate to you first before the CRA if they recieved your DV before the the CRA. So I guess this is not true?

[llecs]

I don't believe that is true. They have to comply both with the FCRA and the FDCPA. This calls for any investigation to be completed within 30-45 days per the FCRA. The FDCPA allows a CA to take their time to verify a debt, but they cannot engage in collection activity during that period. Both laws cannot conflict with one another. If you send a DV per the FDCPA, they still have to follow up on the CRA dispute.

Message Edited by llecs on 03-17-2009 02:07 PM

[oneilldn]

I see, so do you think I should send a letter to the CA now asking why they put it on my credit after they receive my DV? But here is the problem, looking at the link below I think they can still do it.

http://www.ftc.gov/os/statutes/fdcpa/letters/cass.htm

[llecs]

I tend to ignore FTC opinion letters. It is one opinion of one person within the FTC. I could easily find another attorney within the FTC offering a differing opinion. However, with that said, the referenced letter falls in line with what I was saying. The "30-day" mention within the letter is the 30 days between a CA's dunning letter and the 30th day by which you have to send a DV letter. Falls under the guise of the FDCPA (sect. 809 - aka, 1692(g)). The opinion of the letter (in #2) was that a CA cannot report if they received the DV within 30 days of their dunning letter. #1 had to do with reporting within the 30-days (no mention of a DV was made). #3 has to do with ceasing collection without verification (from the DV). And #4 was a hypothetical backing up #2 with a CA reporting a debt as disputed under the FCRA but within the 30 days but after a DV was received within the 30 days.

[oneilldn]

Got you... So you think I should send that letter asking them why they report after a DV? Or should I wait for the 30 days from the DV?

Really appreciate your help.

[llecs]

If you have the time, then I'd wait for their response to the DV. If they don't respond within a month or two, then I would send a second one (the FDCPA doesn't put a time limit on a CA to verify a DV; they just cannot engage in collection activities like calls, letters, even reporting, so as long as the DV went out within the 30 days, IMO). Or for your second letter, send a forceful letter saying that they violated this and that and to delete or face the consequences. Depends on how far you are willing to pursue this.