Is LVNV violating the law on my credit report?

[matrixx]

Last month I had a collection show up on my credit report from LVNV, also for an old SBC account.  They never even sent a letter, just put it on my credit report.  I think I've read that they don't HAVE to send you a letter.  My original SBC account is going to fall off my credit report this coming September, so I don't think they can report it past that time either. This collection was originally with a collection agency called IDT Carmel, so maybe that's why you have the IDT on your credit report.

[matrixx]

And actually, my collection didn't show up on my credit reports under the "collections" area, it's down as under "installment loans" as a "factoring company account."

[invza1]

Matrixx,

If they don't have to send a letter, then what is the purpose of a dunning letter? I dunno, something is not legally correct about them just adding something to your credit w/o a dunning letter.....

[nothingman02]

The CAs dont have to inform you before reporting to the CRAs. But a lot of them do to cover their bases in case of a lawsuit. They could be sued by consumers for spoiling their credit and if they gave it some time after their first initial contact with the consumer before they start reporting, they would be fine.

But they, as is their wont, will get sleazy. They would send out a letter to the consumer/debtor to their previous address if that was what was provided by the OC. If they did an inquiry on your CBR, you can check if the CRAs had your correct address at the time of the inquiry. They would also perhaps simply never mail the letter out or backdate their 'date opened' information on the CBRs to claim they sent you a dunning letter after they started reporting but you never disputed etc etc..

A dunning letter however has to be sent within the first 5 days of initial contact. Reporting to the CRAs has been held as first contact(if none was made before) by the FTC. FTC opinion may or may not hold in court however but is certainly a strong authority and certainly much better than you arguing the law yourself. 

[nothingman02]

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@matrixx wrote:
And actually, my collection didn't show up on my credit reports under the "collections" area, it's down as under "installment loans" as a "factoring company account."

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The law says that the reporting has to be accurate and that there should be no misrepresentation. If that was that, it would have been jsut fine.

But the CDIA manual which is essentially a manual of procedures for reporting for the furnishers of information, does not make any distinction between Junk Debt Buyers and Factoring Companies and thus makes a mess of it. It does not explictly state that they are the same. It just does not point out the difference and in the end it looks like the manual states that they are the same.

The JDB scumbags would likely claim that they are only following the procedures in the manual. If thats the case, then they are not really, by reporting your collection account as an installment account. Thats inaccurate.

FYI, Factoring companies buy debts in good standing from the OCs and usually check with the debtors before obtaining the debts and sometimes return the debts to the OC after the funds have been realized back. JDBs try and project themselves as factoring companies so that they could claim that they do not fall under the purview of the FDCPA.

[invza1]

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@nothingman02 wrote:

They would also perhaps simply never mail the letter out or backdate their 'date opened' information on the CBRs to claim they sent you a dunning letter after they started reporting but you never disputed etc etc..

A dunning letter however has to be sent within the first 5 days of initial contact. Reporting to the CRAs has been held as first contact(if none was made before) by the FTC. FTC opinion may or may not hold in court however but is certainly a strong authority and certainly much better than you arguing the law yourself. 

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nothingman2,

You're right b/c they are backdating the 'date opened' to Jan 2009 when this was actually with another CA.

[Anonymous]

I would be weary about LVNV--they are serious collection agents...I had them take over an account of mine several years ago (HSBC) and eventually  they were getting ready to serve me and I had to cough up a lot of money (still a settlement amount) or they would have taken me to court.  Better to pay it at a setllement amount than have a nasty judgment on your CR.  Just a warning---while you can, best to negotiate with them if they can prove the collection is yours...that way you might be able to get a pay for delete before it gets ugly and they serve you.

Just wished someone would have given me this advice before I had it happen.  It was very stressful finding that money...thank goodness for my mother...it was horrible, though, having to ask someone for that.  I would rather have saved up and paid it on my own.

Good luck!

[Jonita81]

How long did it take them before they were getting ready to serve you a summons? I also have a HSBC account with them, was just notified that they had it last month.  Probably wont be able to settle with them until about August.  I DV'd them just to buy a little time.  I know I had a HSBC but not sure if they are reporting the right amount. 

[Anonymous]

You know, I'm not sure how long it took...I was definitely not paying much attention to it since I didn't have the money and just tried to ignore it.  That was a mistake...but you probably have a few months...just be prepared---if they can confirm you owe the debt then maybe you can send an Accord & Satisfaction letter which offers them a settlement (on your terms) in exchange for deletion from your credit reports (make sure to get it in writing---you can probably find a template for the letter on the web.  Good luck!

[Jonita81]

Thanks for the info..