HSBC/Capital One & Portfolio Recovery

[Anonymous]

Hello everyone!

Been a long time lurker here in the forums and want to thank everyone for all the wealth of information.  It has helped me tremendously over the past 6-7 months of rebuilding my credit.  I have a question that someone can hopefully help address.  I had a charge off from Cap1/HSBC for $521.43.  It's still under SOL but I was able to have the negative tradeline removed completely from Cap1 due to being a long time customer and having other accounts with them.  Before I was able to remove that tradeline, it was sold to PRA.  It's been in collections for 2 months now and I recently disputed through the bureaus but was unsuccesful.  Does having the OC charge off removed help my chances of removing the collection?  Or are they able to validate it and keep it on my report?  Thanks again in advance for all your help!

[Anonymous]

It will not help you whatsoever.

[Anonymous]

If you already filed a dispute with the CRAs and got shut down then u got to go about it a different way.  I would suggest writing the collection agency that has the debt and per your rights under the Fair Credit Reporting act...asking them to send you proof that this debt belongs to you....this is called validating with the collection agency.  In this instance they usually need to contact the original creditor and get a copy of your statements....if this matter has been resolved with the Original Creditor they will not validate the debt and the collection agency must remove it from all your credit reports.

You must be certain to go about this correctly.  Send a certified letter specifically requesting proof to identify you as the person responsible for this debt and requesting proof of the balance owed....if you query debt validation on here or the web you will see some examples of what to say.

However, they can validate the debt as simply "paid" if the original creditor relays that info in which case it will still remain on your reports which still sucks.  The good news is under the new Fico scoring system paid collections dont effect your score.  The bad news is few lenders use Fico 9.  Removing a paid collecting though is easier then getting rid of an unpaid collection.

good luck and feel free to pm me if you need anymore assistance.  

[RobertEG]

The reporitng by the creditor is of the history on their account.

The reporting by the debt collector is of the fact that they have collection authority, which in your case is based on their ownership of the debt.

The reporting of each party is separate.  Deltion by the creditor of derogs reported under that account are not basis for deletion of anything by the debt colector.

If you are now considering sending a debt validation requrest to the debt collector, there are a few considerations.

First, when did the debt collector send you dunning notice?  DV requests impose no requirments unless send within 30 days of dunning noticve.

Second, there is no period for or requirment to respond to a DV, and no requirment to deleter their reporting based on lack of validation.

A timely DV imposes a cease collection bar, which remains in effect until such time as they choose to validate.  They can choose not to send validation, and simply cease further active collections activities.  That places you in limbo.

Third, even if the request is timely, a DV requst under the FDCPA does not mandate their sending of proofs.

Some states to have enhanced DV requirments that mandate some form of documenation, but that must be separately invoked under your state debt collection statute or regulation if applicable in your state.

[Imperfectfuture]

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@RobertEG wrote:

The reporitng by the creditor is of the history on their account.

The reporting by the debt collector is of the fact that they have collection authority, which in your case is based on their ownership of the debt.

The reporting of each party is separate.  Deltion by the creditor of derogs reported under that account are not basis for deletion of anything by the debt colector.

If you are now considering sending a debt validation requrest to the debt collector, there are a few considerations.

First, when did the debt collector send you dunning notice?  DV requests impose no requirments unless send within 30 days of dunning noticve.

Second, there is no period for or requirment to respond to a DV, and no requirment to deleter their reporting based on lack of validation.

A timely DV imposes a cease collection bar, which remains in effect until such time as they choose to validate.  They can choose not to send validation, and simply cease further active collections activities.  That places you in limbo.

Third, even if the request is timely, a DV requst under the FDCPA does not mandate their sending of proofs.

Some states to have enhanced DV requirments that mandate some form of documenation, but that must be separately invoked under your state debt collection statute or regulation if applicable in your state.

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Nationally, under the terms of the CFPB settlement and PRA, they must maintain and provide records on all their debts.

http://files.consumerfinance.gov/f/201509_cfpb_consent-order-portfolio-recovery-associates-llc.pdf