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Regular Contributor
Oyiwaa
Posts: 212
Registered: ‎09-25-2012
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Midland: Validation and Reporting Errors

Hello,

 

Midland is reporting a Verizon account on my CR.  I never received their dunning notice, but later received settlement offers. In each of those offers, they indicate Verizon as the "Original Owner" but Midland as the "Current Owner" (meaning they bought the debt from Verizon) as well as a current balance of $400.00

 

I sent them a DV, and they responded with a request for more information to help their investigmation.  I have not sent them anything.  In the meantime they have marked the account as disputed with the CRAs.

 

Questions about how to proceed:

(1) Should I send them another letter requesting a validation - Is their information about the OC and current balance in their settlement offers evidence of validation?

(2) Since the account is in dispute (and they marked it as such on CRs), aren't they supposed to cease all reporting activity until it is validated?  I ask because they continue to update the account every month, by reporting "Past Due" amounts.
(3) Is Midland wrongly characterizing the debt by reporting the "Terms" as 1 month?

 

Thanks _ Oyiwaa

 


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guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: Midland: Validation and Reporting Errors

Once they received your request for DV, collection activity is to stop until they validate.  Updating would be collection activity.

 

THEY are to provide YOU with validation, not the other way around.  Do not send them anything.

 

 

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007
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Re: Midland: Validation and Reporting Errors

It's their trick d'jour, of which many recent posts on the site have complained about.

Holding a DV as a dispute, and asking for more information.

 

They have "incorrectly" chosen to consider your DV as a dispute. 

Send them a letter stating that your prior communication was a request for debt validation under FDCPA 809(b), and not a dispute of accuracy of their credit reporting under the FCRA.  Include the reminder that your DV imposed a cease collection bar upon them, precluding any collection activites such as those requested in their letter.

Regular Contributor
Oyiwaa
Posts: 212
Registered: ‎09-25-2012
0

Re: Midland: Validation and Reporting Errors

Thanks Robert et al for your input.  Here is a letter I want to send to Midland.  Please let me have you rinput - rgds, Oyiwaa

 

========= > Letter to Midland <===============

 

 


Dear Sir / Madam,

Thanks very much for your response to my request for debt validation, which I received on (date).  Instead of validating and sending me a proof of the debt, you requested that I send you more information to help with your investigation. This request seemed to be treating my request for debt validation as a direct dispute, and extending your resolution of the "dispute" beyond 30 days - a fact that is not in compliance with the direct dispute rules (See 16 CFR 660.4(f)).

Although my initial request was for validation, based on your inability to provide validation, please consider this my first direct dispute of the debt per FCRA §623(a)(8)(D) and 16 CFR 660.4 as well as a reminder that you are under notice to provide validation of the debt per FDCPA §809(b). Given that I do not recognize the account or the amounts owed, I request that you supply some records / account statements (from the original creditor) indicating that I owe this debt, and since these accounts were allegedly purchased, a copy of the purchase agreement authorizing you to collect on the account.

I must remind you that your current collection efforts, including regular/monthly reporting/updates to the credit reporting agencies, while you have not validated the account, is a violation of the FDCPA. Therefore, while the account still remains in dispute, you must cease your all of your current collection activity, until the debt is properly validated, in the absence of which you must delete the trade line / entry on my credit reports.

 

Looking forward to your response.

 

Sincerely ... Boooobbooooo

 


Starting Score: USAA-FACO(10/2012) - EX=498 / EQ = 498 / TU = 508
Recent Scores:
myFICO - Jun-2013: EX=595 / EQ = 582 / TU = 649
myFICO - Nov-2013: EX=634 / EQ = 649 / TU = 666
LenderPull - Nov-2013: EX=682 / EQ=649 /TU=687

Goal Score: 700


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Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007
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Re: Midland: Validation and Reporting Errors

[ Edited ]

It seems a bit disjointed.

It seems to acquiesce that it is a direct dispute, which in my opinion, you should not do.

 

Under the direct dispute rules, if they consider your dispute as providing insufficent basis for conducting an investigation, it does authorize them to request additional information, albient accompanied by a dismissal of the dispute.  They did not do that, but I would not get into an argument about compliance with the direct dispute rules when it was not a direct dispute.  In my opinion, I would not jumble it up.

 

State clearly  that it was Not a direct dispute, and stand by your guns that they are under a cease collection bar under FDCPA 809(b).

 

You may, as a side note, inform them that even if it were a direct dispute, which it clearly was not, their request for additional information was not the proper procedure.

They should have dismissed the dispute within the 30-day investigation period as being "frivolous or irrelevant," and notifying you what they considered as lacking, not requriing its submission.   They cannot prolong a direct dispute by asking for additional information.

 

See the implementing direct dispute rules at 16 CFR 660.4(f).

Regular Contributor
Oyiwaa
Posts: 212
Registered: ‎09-25-2012
0

Re: Midland: Validation and Reporting Errors

Thanks, RobertEG.   I agree - it is a bit jumbled up, so here is a second try:

 

++++++++++++++++     +++++++++++++++++++++++++++++++++++++

 

Dear Sir / Madam,

Thanks very much for your response to my request for debt validation, which I received on (date).  Instead of validating and sending me a proof of the debt, you requested that I send you more information to help with your investigation.

This is not a direct dispute about your reporting, but rather a (second) notice that your validation is requested pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809(b). Given that I do not recognize the account or the amounts owed, I request that you supply some records / account statements (from the original creditor) indicating that I owe this debt, and since these accounts were allegedly purchased, a copy of the purchase agreement authorizing you to collect on the account.

I must remind you that your current collection efforts, including regular/monthly reporting/updates to the credit reporting agencies, while you have not validated the account, is a violation of the FDCPA. Therefore, while the account still remains in dispute, you must cease your all of your current collection activity, until the debt is properly validated, in the absence of which you must delete the trade line / entry on my credit reports.

Looking forward to your response.

Honey Booboo


Starting Score: USAA-FACO(10/2012) - EX=498 / EQ = 498 / TU = 508
Recent Scores:
myFICO - Jun-2013: EX=595 / EQ = 582 / TU = 649
myFICO - Nov-2013: EX=634 / EQ = 649 / TU = 666
LenderPull - Nov-2013: EX=682 / EQ=649 /TU=687

Goal Score: 700


Take the myFICO Fitness Challenge

WALLET (Secured):  Capital One: $700  --- WellsFargo: $300 --- CapitalBank: $300

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007
0

Re: Midland: Validation and Reporting Errors

Nice job!

The only part that is a bit iffy is your requirement that they send documentation as part of any validation.

It's OK to put that in if you desire, but documentation is not required under FDCPA 809(b) as part of debt validation. 

Regular Contributor
Oyiwaa
Posts: 212
Registered: ‎09-25-2012
0

Re: Midland: Validation and Reporting Errors

[ Edited ]

thanks - 3 more quick questions:

 

1.  so instead of requiring documentation, what should I ask for - just validation?

2.  do they still have 30-days to respond - should I ask for that?

3.  I do plan to re-dispute the entry with the CRAs on these basis (they are reporting a past due; reporting a 1-month term for the account; and reporting the account type as "Open"  - these are possible FCRA violations since I do not have any agreement with them warranting this pattern of egregrious reporting).  -- Do you think it is a good idea to do this ?

 

Thanks in advance, Oy


Starting Score: USAA-FACO(10/2012) - EX=498 / EQ = 498 / TU = 508
Recent Scores:
myFICO - Jun-2013: EX=595 / EQ = 582 / TU = 649
myFICO - Nov-2013: EX=634 / EQ = 649 / TU = 666
LenderPull - Nov-2013: EX=682 / EQ=649 /TU=687

Goal Score: 700


Take the myFICO Fitness Challenge

WALLET (Secured):  Capital One: $700  --- WellsFargo: $300 --- CapitalBank: $300

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007
0

Re: Midland: Validation and Reporting Errors

[ Edited ]

I would stick with the simple request for debt validation, and let the statute speak for itself.  Making demands that are not a requirement kinda puts a cloud on your request.

 

As for their response, there is no statutory period required for response to a DV.  The "30-day period" is imposed upon the consumer for sending a timely DV, not upon a debt collector to provide a response.

Sending a timely DV imposes a cease collection bar on the debt collector.  They can choose to accept that bar and never respond.

 

As for reporting of "Open," it depends upon what Open is referencing.  All collections are open until either paid or collection authority is terminated.

If Open is referencing their reported collection, that is accurate.

However, if Open is referencing some "account" they have also reported, you have no account with them.

Regular Contributor
Oyiwaa
Posts: 212
Registered: ‎09-25-2012
0

Re: Midland: Validation and Reporting Errors

Thanks again:  This issue of "open" is confusing.  Here is what they are reporting on Equifax and Experian:

 

Equifax:

 

Type of Account:  Open

Type of Loan:  Debt Buyer

Status:  Collection Account

 

Experian:

 

Type:  Debt Buyer

Terms: 1 Month

Payment History:  C  (Collection)  - for about 10 months

 

 

Which is the correct reporting ? 

 

Thanks - Oy


Starting Score: USAA-FACO(10/2012) - EX=498 / EQ = 498 / TU = 508
Recent Scores:
myFICO - Jun-2013: EX=595 / EQ = 582 / TU = 649
myFICO - Nov-2013: EX=634 / EQ = 649 / TU = 666
LenderPull - Nov-2013: EX=682 / EQ=649 /TU=687

Goal Score: 700


Take the myFICO Fitness Challenge

WALLET (Secured):  Capital One: $700  --- WellsFargo: $300 --- CapitalBank: $300


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