Help with DV response

[john111]

I removed a bad tradeline related to an old utility bill earlier this year from NCO Financial, a CA. In early September, I noticed the old utility bill back on my credit report, but now reporting from Transworld Services Inc. (TSI). I sent a simple DV letter that went without response in late September, then another one in late October.

Received a response from TSI just last week asking for more personally indentifying information and request for debt related information, but no debt validation. Take note that I never received a dunning letter from TSI, I only noticed when it showed up in my credit report.

I don't think it's wise to reply to their request and supply them with accurate personal and debt related information. Is this series of correspondence enough to dispute with the CRAs and drop the utility collection? What should be the next steps I take?

[Anonymous]

Is the debt not yours?

[john111]

The original NCO Financial collection didn't have the right debt information when they responded to my DV letter. I assume when they resold the collection account to TSI, they probably also transferred the wrong information but without the DV response I think it's pretty hard to prove.

[john111]

So maybe. I have not admitted to them that it is my debt, and technically it might not be because TSI changed the debt amount from NCO, and I think the initial date of the delinquency as listed on the CRA is incorrect.

[RobertEG]

The debt validation process is a debt collection practices matter under FDCPA 809, and is not relevant to credit reporting.

The CRAs are not involved in the DV process.

As for their communication, it is not necessarily improper for them ot request identification information if your DV fails to identifiy the account with sufficient information to permit them to identify you and the asserted debt.  However, beyond that, you have no obligation to provide any other information.

If they have not yet validated, then you remain with a lack of validation.  Their communication is simply not validation.

That is not a violation, as there is no period in which or requirment to provide validation.  The debt simply remains unvalidated, and thus they remain under a cease collection bar (assuming, or course, that your DV request was timely).  There is no violation unless or until they commence collection activites without first providing the requested validation.  I thus see no violation on their part.

You can choose to send a return notification to them that you have properly identified the accaount/debt, and that is all that is required of a DV.  Thus, you are providing no additional information, and they remain under a cease collection bar.

You can also file a formal complaint with the CFPB regarding their lack of timely dunning notice.

That is not basis for credti report deletion,, but may result in a minor scolding by the CFPB.

Beyond that, that, you must await their option to provide validation.

If you wish to resume collection activities, such as making a settlement offer, you must first rescind your DV request.

[john111]

Thanks for the detailed explanation, and flushing out several different potential outcomes.

Just to clarify a point, isn't reporting to the credit bureaus a collection activity? So during the DV process, the tradelines should be removed from the CRA's, right? Meaning I could temporarily remove them by sending the CRA's copies of my DV request letter for the collection.

I never received a "Notice of Debt", as outlined in FDCPA Section 809(b) (15 USC 1692g), even though my current address of many years is listed accurately in all three CRA's. Is this violation of FDCPA enough to report to the CFPB and get it off my reports for good?

[Anonymous]

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@john111 wrote:

Thanks for the detailed explanation, and flushing out several different potential outcomes.

Just to clarify a point, isn't reporting to the credit bureaus a collection activity? So during the DV process, the tradelines should be removed from the CRA's, right? Meaning I could temporarily remove them by sending the CRA's copies of my DV request letter for the collection.

I never received a "Notice of Debt", as outlined in FDCPA Section 809(b) (15 USC 1692g), even though my current address of many years is listed accurately in all three CRA's. Is this violation of FDCPA enough to report to the CFPB and get it off my reports for good?

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No, lack of validation does not require removal of their prior reporting. The collection bar only prevents subsequent reporting.

[RobertEG]

The only exception is for residents of Texas.

Texas has enacted a more restrictive debt collection practices statute that does require a debt collector to delete their reported collection if they do not provide validation wihin 30 days of receipt of a DV-type request sent under their Texas Finance Code.

The federal DV process does not include any such deletion provision.

If you are a TX resident, sending a DV request under the federal FDCPA does not invoke the provisions of the TX Finance Code.

The consumer must send a separate communication that clearly identifies the request as being under the TX code.

[john111]

Wow! I checked my credit report this morning, and the collection was removed from my credit report, having done nothing from my end except sending the two DV letters. Guess I don’t have to do anything else unless they start sending me letters or this shows up on my credit report again.