How Best to Dispute this Account?

[achromatic]

 Hi,

This my first post here, but I've been an avid reader of the forums for awhile now and have learned a lot (I was actually referred to myfico by Chase when I called for a reconsideration).

Anyway, my problem is that I discovered there was a collection account reporting to both my TU and EQ a few weeks ago. On EQ, the account reports as being from 2011 but that the first reporting of the account was March of this year. It only started reporting on TU a couple months ago and claimed the same 2011 as the original date of the debt. I don't recognize the name of the collection agency nor the amount. I have had some financial problems back in 2005-2006, but nothing as recent as 2011.

What's weird is that I never received any correspondence nor any phone calls from this collection agency, and they've apparently been reporting this account since March (on EQ at least). I send off a DV letter to them and received the return receipt, but no response from them. One of my questions is, am I still entitled to validation of the debt since it's been more than 30 days from when they first reported it to Equifax? If not, what is my recourse since I didn't even know about this account until I saw it on my credit report a few weeks ago (and sent off the DV as soon as I saw it).

Also, interesting is that the address of the CA (as lited by EQ and TU) is a "suite" in a UPS store, and the CA is an LLC in NY, but it is not registered/legally able to do business in the state of California (I'm a California resident). This all seems fishy to me.

My main question is where do I go from here to get this removed from my reports? Should I just send a dispute to EQ and TU saying it's not mine. Should I mention the lack of response to DV letter? I want to make sure I do this right, so any advice would be appreciated.

Thanks!

[tomfromrictmame]

You may find these are deleted over the next several weeks.  If not after 2 weeks, I would then dispute them as not yours.  

[Anonymous]

Do not dispute yet . I was in the same situation a while ago and a dispute cost me about 35 points on my score . Those dates you see mean nothing ( only the last report date is meaningful) .You should find out the exact date your account became delinquent . If you get your credit report from free annual credit you can see the drop off dates . If you already used your free reports just call the collection agency and find out through them .

[Anonymous]

I have an account that's from 2008 but reports 2011 as the open/original date. The drop off date of 2015 only shows on the official CRA credit report and the free annual report .

[achromatic]

Thanks for the quick responses!

So, it sounds like I should hold off on disputing with EQ and TU for a few weeks and hopefully it will resolve itself.

If it helps, I checked EQ and the account as listed as a "Factoring Company Account." It lists several dates: date first opened as 4/2013, date major deliquency first reported: 2/2014, date of first deliquency: 9/2011, and date reported: 9/2014. It says months reviewed: 7, Under comments it has: Collection account, Customer has now located consumer.

[Anonymous]

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@Anonymous wrote:
I have an account that's from 2008 but reports 2011 as the open/original date. The drop off date of 2015 only shows on the official CRA credit report and the free annual report .

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The 'open' date is generally just the date that the CA recieved the account, either being assigned by an OC or buying it. It's quite meaningless really.

[Anonymous]

"Factoring company account" usually equals "Junk Debt Buyer". This is probably someone with a similar name and they (the JDB) are fishing for anyone that will bite that has a same/similar name.

[RobertEG]

I would agree that a dispute is premature, as you dont have sufficient information to document that the debt is not yours.

The current problem is that the debt collector has not complied with FDCPA 809(a), which is the requirement for timely dunning notice.

Once a debt collector has inititated collection on a debt, they are required to send the consumer a dunning notice within 5 days, providing the name of the currrent creditor, the amount of the asserted debt, and disclosure of the consumer's right to request debt validation within 30 days.

Reporting to a CRA is recognized as triggering the FDCPA requirment to send dunning notice within 5 days.  They apparently have not done so.

By failing to have sent dunning notice, they have deprived you of basic information needed to assess the validity of the debt.

Wthout prior dunning notice, any DV you send is timely, and invokes an automatice cease collection bar on them.  Thus, your DV was timely.

However, a DV has no set period for their response.  It invokes an automatic cease collection bar on them.  They can choose not to respond, and would not be in violation of the FDCPA provided they did not conduct any collection activites prior to providing the requeted debt validation.

So are are kinda in limbo.

Failure to have provided dunning notice is not basis for a dispute of accuracy of their reported collection.

However, it is basis for filing a complaint with the CFPB, who has enforcement authority over violations of the FDCPA.

I would recommend sending  a formal complaint to the CFPB.  It might lead to the debt collector deleting their reported collection.

[achromatic]

Yes, that is exactly my dilemma, and I was racking my brain trying to figure out what my options were. I hadn't thought about filing a complaint with the CFPB. Thanks, that's a good idea!

[achromatic]

Today I received a response to the DV I sent out. The CA is claming that this debt is in relation to a payday loan! I've never taken out a payday loan in my life. This is completely crazy. I know for sure now that this debt is not mine. Given that, should I now go the CRA's or respond to the CA's "validation" explaining this is not my debt?