Got response from DV letter, what now?

[john111]

The collections is for ~$3k serviced by NCO Financial Systems Inc.

I sent a CMRRR DV letter to a collections account, and they nearly instantly replied with a collections letter. In this letter contains the creditor, creditor's account #, balance due, the license number for the state I reside in.

I have some questions:

This collections is for a utility bill on a house I sold in 2007. The utility bill must have been first delinquent before the sale date. The DOFD indicated in the CRA credit reports is 2009. The balance on the CRA credit reports are not exactly the same as the DV response I received from the collections agency. There are also multiple mailing addresses listed in the credit reports for NCO.

Will this lead to a successful CRA dispute based on these grounds?
How do I get the DOFD? Should I send another letter to the collection agency or OC?
Are they required to give the DOFD and proof to me?

[Anonymous]

Start by disputing the DoFD, and contact to OC and ask for that information, (if they can provide it). Provide any documentation you can, including records of the sale of the house. They clearly have illegally re-aged the account, and they certainly know that they have done so. Inform them that re-aging an account without any action by you regarding payment or acknowlegment of said account is a violation of federal law, and the violation will be reported to the CFPB unless the account is immediately removed.

Here is what the law says they are required to provide after a DV request:

§ 809.  Validation of debts   [15 USC 1692g]

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

They are clearly playing fast and loose with the DoFD and they absolutely know it.

[john111]

Thanks NormanFH! I'm so glad to hear that there's something I can proactively do.

I'm still confused on some points. So this dispute is sent to the CRA's? The dispute letter needs to include the inaccurate DoFD, illegal re-aged account, and potential consequences if they keep the record on my credit report. I'll also send copies of any records I have of course by CMRRR. Anything else?

For the sake of clarity, I included the dates provided for the tradeline below:

Transunion: lists the estimated month / year for removal as 11/2016. Date updated 05/2012. Date placed for collection 12/2011.

Equifax: Date reported 5/2012. Date Assigned 12/2011. DOFD 12/2009.

Experian: Date opened 12/2011.

[Anonymous]

Contact the utility company and see if you can get any documentation from them. Dispute with CRA's as having been illegally re-aged and provide them with any documentation you can find. Also file complaints with BBB and CFPB for illegal re-ageing of a debt.

[RobertEG]

It is not necessarily required that the first delinquency occured prior to sale of the property.

If your name remained as the responsible party for the provided utility and the account was not closed upon sale of the property, they would have no way of knowing that you were no longer responsible for new debt.

I would begin by calling the OC and determining how they concluded you were responsible subsequent to termination of your ownership.

Their appears to be a disconnect somewhere......