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Help With Debt Validation Process

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odjohnson3
Regular Contributor

Re: Help With Debt Validation Process

The CRA has updated the reporting to "in dispute" but I believe thats in reference to me disputing with the credit bureau, not behing the debt validation request.

Message 11 of 16
odjohnson3
Regular Contributor

Re: Help With Debt Validation Process

Thats the thing, if ive never receieved a dunning notice, their reporting should be froven until the debt validation is provided.

They are responding to a dispute on an account that shouldnt be listed to begin with provided theyve never sent a dunning notice, it jus showed up on a credit report

Message 12 of 16
odjohnson3
Regular Contributor

Re: Help With Debt Validation Process


@RobertEG wrote:

The FDCPA mandates that a debt collector must "cease collection of the debt, or any disputed portion thereof" if they receive a timely DV until they have first provided the requested debt verification.

 

Any action they take could theoretically be considered as involving "collection of the debt."

However, some actions are mandated by statute, such as

(1) investigation of a dispute under the FCRA adn response back to the CRA;

(2) notifying a CRA when a consumer has filed a dispute, including any direct dispute (FDCPA 807(8))

(3) prompt update of any previously reported information if it has changed and is no longer accurate (FCRA 623(a)(2)). 

(4) if the consumer contests only a portion of the debt, then the cease collection bar does not extend to the uncontested portion (FDCPA 809(b))

 

Thus, there are actions that become their own violations if not conducted, and thus are not considered a violation.  If interpretation is involved, then it is ultimately up to a judge to make a determination as to whehter or not a given action is a violation of the cease collection bar.S


Thanks a lot for the info Robert....Its very helpful.
Sounds like I have a few things in my favor, but how do I proceed IF these accounts are "verified" and continue to be reported without me receiving any debt validation/verification from the debt collector?

 


Message 13 of 16
RobertEG
Legendary Contributor

Re: Help With Debt Validation Process

If you have filed a dispute with the CRA and the asserted inaccuracy was the legitimacy of the debt, if the debt collector sent verification of accuracy back to the CRA, which is presumed to be the case if the CRA verified the accuracy of the disputed information, then the debt collector HAS effectively verified the debt.

However, under the separate DV process, that statement of verification must be sent to the consumer, so technically they have not yet verified the request for debt validation.

But substantively, they have apparently done so.

 

You could pursue any activity they take as a violation of the cease collection bar until such time as they formally send debt verification to you, and possible collect stautory damages under the FDCPA for an asserted violation of their cease collection bar, but that is a secondary issue to that of credit reporting.  REsolution of that issue will not require deletion of their collection, which is apparently your goal.

It appears that they can and will be able to verify, so you are stuck with the reported collection, which must be addressed on its merits.

 

Personally, I would now send a PFD offer.  Pursuing issues relating to their verification procedure when you apparently do not contest the legitimacy of the debt would not be my recommended next step, as you need their good-will.

Message 14 of 16
odjohnson3
Regular Contributor

Re: Help With Debt Validation Process

OK, thanks a lot for the infor Robert. i greatly appreciate it

Message 15 of 16
Anonymous
Not applicable

Re: Help With Debt Validation Process

Also if any of those accounts were not updating every month by disputing if they stay they will update and hit your score as if they were new.
Message 16 of 16
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