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Intent to Sue For FDCPA Violations

Valued Member

Intent to Sue For FDCPA Violations

I have a collection account with California Business Bureau for $50 from 2015, paid but still reporting on my credit report. I called and was given some confusing information that they don't report/do report (definitely don't trust them) when they are clearly reporting. Then finally said they have no intention of removing the paid in full negative tradeline (and were also rude and confrontational on top of that)

 

I did some research and I remembered that I originally paid them thinking they were an official California Agency/Bureau. I think there is an ethics issue with their name and found 2 FTC Opinion letters - one stating that using "California" in an agency name and the other stating "Bureau" could be violations of FDCPA rules. I also read elsewhere that their name was confusing people about who they actually were. My dad actually tried this once with a company calling itself U.S. Credit Bureau and succeeded...

 

I put together an intent to sue and will certified mail it tomorrow. Anyway, if they remove the tradeline or not, people should still be aware of who they are dealing with and not be mislead.

Starting Score: 11/15/17 Score8 EQ 613 TU 617 EX 620
Current Score:12/7/17 Score 8 EQ 676 TU 650 EX 643
Goal Score:750

Mortgage Starting Score: 11/26/17 EQ 537 TU 574 EX 562
Current Score: 12/7/17 EQ 631 TU 650 EX 607
Goal Score:720
Message 1 of 5
4 REPLIES
Community Leader
Epic Contributor

Re: Intent to Sue For FDCPA Violations

There is no requirement for a debt collector to delete their reporting based on the consumer having paid the debt.

To the contrary, CRA reporting policy clearly instructs them not to delete based on payment of the debt.

That policy is clearly stated in the joint CRA credit reporting manual, titled the "Credit Reporting Resource Guide."

 

As for violation of the FDCPA based on their name, that is an issue that relates to their liability for damages only.

It is not a violation that would effect their having had collection authority, and would not per se, even if determined to be a violation, require deletion of their reported collection.  I would recommend a complaint to the CFPB rather than threat of intent to sue, and let them weigh in on the issue.

 

I would recommend pursuing deletion via a good willl program rather than by confrontation over an issue that does not lead to any requirment to delete their reporting.  Confontation is more likely to foster ill rather than good will, and would not be my recommended course unless you are more concerned with possible award of $1,000 in damages sanctioned under the FDCPA.

 

Message 2 of 5
Valued Member

Re: Intent to Sue For FDCPA Violations

My first action was goodwill to no avail but at this point, I agree I paid the debt and the deregatory tradeline is a moot point.  They will never remove the account so there's not much worse they can do to me. What is in dispute is their right to operate and collect on the debt at all as "California Business Bureau", continuing to operate in bad-faith and attempting to mislead customers. If the debt was originally collected and paid under false pretenses in violation of the FDCPA then at minimum they should be held accountable.

 

 

 

2. Section 807(1) prohibits “the false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State . . .”

 

17. Section 807(16) prohibits falsely representing or implying that a debt collector operates or is employed by a “consumer reporting agency” as defined in the Fair Credit Reporting Act.

1. Dual agencies. The FDCPA does not prohibit a debt collector from operating a consumer reporting agency.

2. Misleading names. Only a bona fide consumer reporting agency may use names such as “Credit Bureau,” “Credit Bureau Collection Agency,” “General Credit Control,” “Credit Bureau Rating, Inc.,” or “National Debtors Rating.” A debt collector’s disclaimer in the text of a letter that the debt collector is not affiliated with (or employed by) a consumer reporting agency will not necessarily avoid a violation if the collector uses a name that indicates otherwise.

 

 

 


RobertEG wrote:

There is no requirement for a debt collector to delete their reporting based on the consumer having paid the debt.

To the contrary, CRA reporting policy clearly instructs them not to delete based on payment of the debt.

That policy is clearly stated in the joint CRA credit reporting manual, titled the "Credit Reporting Resource Guide."

 

As for violation of the FDCPA based on their name, that is an issue that relates to their liability for damages only.

It is not a violation that would effect their having had collection authority, and would not per se, even if determined to be a violation, require deletion of their reported collection.  I would recommend a complaint to the CFPB rather than threat of intent to sue, and let them weigh in on the issue.

 

I would recommend pursuing deletion via a good willl program rather than by confrontation over an issue that does not lead to any requirment to delete their reporting.  Confontation is more likely to foster ill rather than good will, and would not be my recommended course unless you are more concerned with possible award of $1,000 in damages sanctioned under the FDCPA.

 


 

Starting Score: 11/15/17 Score8 EQ 613 TU 617 EX 620
Current Score:12/7/17 Score 8 EQ 676 TU 650 EX 643
Goal Score:750

Mortgage Starting Score: 11/26/17 EQ 537 TU 574 EX 562
Current Score: 12/7/17 EQ 631 TU 650 EX 607
Goal Score:720
Message 3 of 5
Valued Member

Re: Intent to Sue For FDCPA Violations (It Worked!)

Either my complaint was valid or they got sick of dealing with me but I got the notifcation this morning that "California Business Bureau" is gone from my life forever. 

 

I do still plan to pursue them for misrepresentation, out of principle. They are walking a fine line with that name...

Starting Score: 11/15/17 Score8 EQ 613 TU 617 EX 620
Current Score:12/7/17 Score 8 EQ 676 TU 650 EX 643
Goal Score:750

Mortgage Starting Score: 11/26/17 EQ 537 TU 574 EX 562
Current Score: 12/7/17 EQ 631 TU 650 EX 607
Goal Score:720
Message 4 of 5
Community Leader
Super Contributor

Re: Intent to Sue For FDCPA Violations (It Worked!)


Mrs_A wrote:

Either my complaint was valid or they got sick of dealing with me but I got the notifcation this morning that "California Business Bureau" is gone from my life forever. 

 

I do still plan to pursue them for misrepresentation, out of principle. They are walking a fine line with that name...


Based on your previous post, it seems clear to me they are quite well on the wrong side of the line.

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Message 5 of 5