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Debt Validated from collector incorrectly?

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Anonymous
Not applicable

Debt Validated from collector incorrectly?

Hi! I have a charged off credit card that got referred to a debt collector, and eventually to a law firm, Berndt & Associates. A lawsuit has not yet been filed. The card was mine, but I was not sure the balance being asked for ($754) was correct. I submitted a letter of validation and the law firm responded with a bunch of statements from the charged off card, none of which showed a $754 balance. The highest balance showed on the statements was $400ish. I'm confused. 

 

I contacted the firm and they said they already validated the information and would only talk to me about paying the balance. I told them the validation they provided didn't match the balance they were asking for, and they said they had no further information. I don't have the money for a lawyer and am willing to make payments on the balance, but only the balance they can prove I actually owe. 

 

Does anyone have any advice for this situation? I am totally unsure of what to do. 

Message 1 of 20
19 REPLIES 19
RobertEG
Legendary Contributor

Re: Debt Validated from collector incorrectly?

You have an issue of contesting the adequacy of their validation.

You assert that their validation is inadequate, while they apparently assert that they have provided adequate validation.

 

As background, several issues apply.

First, your DV request must have been timely in order to impose any restrictions on the debt collector.

Timely means it must be sent either prior to their dunning notice, or within 30 days after their dunning notice.

If not timely, they have no obligation to provide anything, and are free to continue their collection activities without providing any validation.

Was your DV request timely/

 

Second, even if timely, a DV request under the FDCPA does not impose any period for or requirement to send any validation.

The effect of a timely DV is that it imposes a cease collection bar, which then remains in effect until they send validation.

Thus, assertion by the consumer that any response does not comprise adequte validation simply means that the consumer considers the cease collection bar to still remain in effect.  Violation does not occur based on an assertion of inadequate validation.  Violation occurs if/when the debt collector resumes collection activites without having first provided adequate validation.  Handling of a viiolation of a cease collection bar can be pursued by way of civil action, and thus obtaining the ruling of a judge as to the adequacy of the validation, or if you can get the CFPB to intervene, by way of complaint to the CFPB.

 

You are, if your DV was timely and you contest the adequacy of validation, in limbo until such time as they resume active collection on the debt, and you obtain concurrence by a reviewer that theri validation is inadequate.

Message 2 of 20
Anonymous
Not applicable

Re: Debt Validated from collector incorrectly?

Thank you so much for your quick reply! My debt validation request was timely and within the 30 day period after I received a letter from them. I just feel like I am stuck because I want to get this issue taken care of, but I don't want to be scared into paying more than I owe because of the threat of a lawsuit. 

 

I don't know how to make them accurately validate the information. I don't want it to get to the point where a lawsuit is filed, but I also don't want to pay nearly twice of what they can prove that I owe. 

Message 3 of 20
RobertEG
Legendary Contributor

Re: Debt Validated from collector incorrectly?

Unfortunately, the DV process under the FDCPA does not force validation within any set period.

It was enacted to provide consumers with a period of reprieve from continued collection activities until they are first provided validation.

 

Some states, however, have passed enhanced debt validation statutes or regs that do require some degree of response.

What is your current state of residence?

Message 4 of 20
Anonymous
Not applicable

Re: Debt Validated from collector incorrectly?

I live in Ohio. 

 

The law firm did respond to my request, by sending a bunch of the old credit card statements in the mail with a letter saying that they were responding to my validation request. The amount listed on any of the statements does not match the $754 they are asking for. They provided no documentation that corresponds with the $754 they are trying to collect. They basically just provided a stack of papers I had to sort through that didn't prove what they are trying to collect. They said they have provided sufficient validation and I say they have not. To me, if the highest balance amount on the statements they provided is $400ish, they should have to account for why they are asking for $754. They didn't do that. 

Message 5 of 20
Kree
Established Contributor

Re: Debt Validated from collector incorrectly?

This is exactly why states have Statutes of Limitation on lawsuits for debt.  Paperwork is lost, and inaccurate. Memories fade.  You are relying on paperwork of others to prove a debt. But statements can lie.   Lets say you owed 1500 monies in December,  paid it down to 50, and never made another payment.   If someone waved a 1500 statement infront of your face, is it proof of what you owe?  No.

 

Arguably the only statement that should be acceptable is one within 30 days prior to a chargeoff date, or one generated afterwards in the case of additional fees or interest (as allowed by specific states.)  Although I'm sure companies and some judges disagree.

Message 6 of 20
Anonymous
Not applicable

Re: Debt Validated from collector incorrectly?

That's what I think as well! One of the statements they sent was the last statement before the card charged off. The balance was a little over $400. I'm sure they would say the extra $350ish is interest charges and fees or whatnot, but they didn't send me anything validating that information. They tell me they already validated the amount and that they want me to pay the $754, when in fact, they did not validate the $754 at all. 

 

I have no idea what to do. It's super frustrating. 

Message 7 of 20
Kree
Established Contributor

Re: Debt Validated from collector incorrectly?


wrote:

That's what I think as well! One of the statements they sent was the last statement before the card charged off. The balance was a little over $400. I'm sure they would say the extra $350ish is interest charges and fees or whatnot, but they didn't send me anything validating that information. They tell me they already validated the amount and that they want me to pay the $754, when in fact, they did not validate the $754 at all. 

 

I have no idea what to do. It's super frustrating. 


I looked into this slightly. It appears that Ohio does allow continued interest charges, however the original creditor would have had to continue sending statements even after charging off the debt. So again you are back to, where did the money come from.

 

Lets look at other parts of this. How old is the debt? You cannot be sued more than 6 years after the date of first delinquency in Ohio

Message 8 of 20
RobertEG
Legendary Contributor

Re: Debt Validated from collector incorrectly?

I agree with Kree.

I would advise you shift focus from attempting to require debt validation to taking your own steps to work out the amount of the debt.

 

The post does not state that the debt collector has reported to the CRAs, so it does not appear that a dispute of accuracy of the reported amount of the current debt is possible.

 

However, you can contact them and offer to pay what you consider to be the proper amount of the debt, contingent upon their either agreeing not to report a collection to any CRA, or if they do report, not to report any reference to settled for less.

If they agree, you have met your stated goal of paying, but only for what you consider to be the valid amount.

Message 9 of 20
Anonymous
Not applicable

Re: Debt Validated from collector incorrectly?

It is being reported on my credit report, sorry I didn’t mention that.

I don’t have the money to pay even the amount they validated in full - I need to set up payments. They will only take payments for the amount of $754 that they’re trying to collect that I disagree with. I’m afraid to make any payments until the balance is agreed upon.

I don’t know if I should dispute the balance with the CRAs because the debt has been referred to a law firm. There are so many variables here I’m not sure what advice to follow.
Message 10 of 20
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