NCO Group put a "hard" inquiry on my credit report for a medical collection that had already been paid. NCO's "hard" inquiry was with TransUnion. NCO did the inquiry on the same day that they sent their collection notice. NCO & TransUnion have refused to remove the hard inquiry. I would like to sue their butts in small claims court, I have the time and patience to do this.
More Background:
I was charged twice for my co-pay and was disputing with my HMO. The hospital was paid for everything except the co-pay. Payment was issued July 5th (check cleared bank July 13th). In the meantime, the hospital sent the balance due bill, for the co-pay, to NCO.
My position is that NCO had no "permissible purpose", therefore, had no legal right to:
1. Obtain my credit report unless it was in connection with a credit transaction and involving the collection of an account.
2. Make a hard inquiry before 30 days of when the debtor would be in receipt their collection notice: This kind of collection tactic, if allowed, would virtually eliminate the 30 day validation period we are entitled to under FDCPA.
3. Misrepresented their permissible purpose to obtain my credit report from TransUnion.
This is the first pass at my letter to NCO . . . need someone to put a critical eye to this and play devil's advocate:
Dear NCO Group:
On July 17, 2007 your company sent me a collection notice (copy attached) related to a medical provider and, on the same day, made an unauthorized hard inquiry into my credit report.
NCO Group has violated my rights under the FCRA and the FDCPA. NCO's illegal actions have had an adverse affect on my credit report and score and I am entitled to bring civil action against your company and TransUnion.
NCO Group violated the FCRA by obtaining, without any FCRA-sanctioned purpose, my credit report from TransUnion (Pintos v Pacific Creditors Association, Case No 04-17485 (9th Circuit Court)):
• Obtaining my credit report for a debt collection unrelated to a credit transaction violates FCRA § 604(A), which can result in statutory damages of $2,500 for each proven violation.
NCO Group violated the FDCPA in connection with collection efforts related to a disputed medical claim (copy attached):
• Misrepresenting its “permissible purpose” to obtain my credit report, violating FDCPA § 807(10), which can result in statutory damages of $1,000 for each proven violation.
NCO Group did not send a collection notice within 5 days of the initial communication and therefore violated FDCPA:
• Collection notice dated July 17, 2007 was not sent within 5 days of the initial communication dated July 9, 2007 (copy attached) violating FDCPA § 809(a), which can result in statutory damages of $1,000 for each proven violation.
NCO's inquiry was made during the 30 day validation period violating the FDCPA:
• A hard inquiry is considered “collection activity” which is prohibited during the 30 day validation period under FDCPA § 809(b), and violations can result in statutory damages of $1,000 for each proven violation.
Starting Score: 469