Midland has a soft inquiry on my TU CR

[Williamsjk2]

As the title says, I just looked through my CR from TU and found that on 8/11 Midland put a soft inquiring on my account under the permissible purpose collection.  I haven't seen anything on my credit report from them, but from what I've read they're another scumbag company that will strike when I need my credit the most.  The only outstanding debt that I can think of would be maybe a medical account from at least 3 years ago.  What do I do?  Do I DV them?

[RobertEG]

They are most likely investigating your current CR in hopes of determining the liklihood of collecting $$ from you should they initiate collection activity.

However, in my opinion, their act of reporting a permissible purpose and receiving your CR is an act that, similar to actually reporting a collection, triggers their requirement to send you dunning notice within 5 days.  It is akin to an initial communication with you.

They would, in my opinion, now be in violation of FDCPA 809(a) if they have not sent you dunning notice within 5 days of their initiation of collection activities.

I would suspect that they are trying to avoid the inquiry as being viewable by others, and thus constituting an initial communication, by reporting it as a soft pull.

However, I dont know of any reporting code that permits a CRA to receive your CR that reads "purpose of collection of the debt, but not to be viewable by others in your CR."

That appears to be their game.  I suspect they have reported a bogus inquiry code.

The main purpose of section 809(a) is to ensure that consumers in your position of knowing a debt collector is conducting collection activities receives timely and full notice of who both the credtior and debt collector are, the amount of the debt, and their ability to request verification of the debt.  It looks like they are trying to have their cake and eat it too.

[Fresh101]

This people are A**hole

[Williamsjk2]

Robert, I agree with your assessment. How do I go about this though? Do I send them a DV? I don't know where to start..

[RobertEG]

I would definately send them a DV.

That will impose an automatic cease collection bar upon them until such time as they provide debt verification, thus preventing them from reporting to the CRAs.

[Williamsjk2]

Okay, I've written up a nice little DV letter.  Tell me what you think:

To Whom It May Concern:

Upon checking my TransUnion credit report, I have found that your company placed a "soft" inquiry on my file with the permissible purpose of collection on August 23, 2011.  This act qualifies as initial communication under FDCPA 809(a) and requires you to provide written notice to the consumer within five days.  As of today's date, I have received no such communications.  This constitutes as a violation of the FDCPA 813(A)(2)(A).

Please note, this is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with the following:

1) Please evidence your authorization under 15 USC 1692(e) and 15 USC 1692(f) in this alleged matter
2) What is your authorization of law for your collection of information?
3) What is your authorization of law for your collection of any alleged debt?
4) Please evidence proof of the alleged debt, including specifically the alleged contract or other instrument bearing my signature

5) Please provide a complete account history, including any charges added for collection activity

You have thirty (30) days from receipt of this notice to respond. Your failure to respond, on point, in writing, hand signed, and in a timely manner, will work as a waiver to any and all of your claims in this matter, and will entitle me to presume that you place any information on my credit report(s) in error and that this matter is permanently closed. Provide the proof, or correct the record and remove this invalid debt from all sources to which you have reported it to. 

For the purposes of 15 USC 1692 et seq., this notice has the same effect as a dispute to the validity of the alleged debt and a dispute to the validity of your claims. This notice is an attempt to correct your records, and any information received from you will be collected as evidence should further action be necessary. This is a request for information only, and is not a statement, election, or waiver of status.

[RobertEG]

I would omit items 1-5 and omit settng any period for their response.

None of those are requirements of the FDCPA, and unless you live in Texas, there is no date for debt collector response to a DV request.

A simple statement that you request debt verification pursuant to FDCPA 809(b) is sufficient.

You can use case law and other arguments if they respond and you dont consider their response to meet the requirements of the statute.

However, there is no need, in my opinion, to make demands that are not statutory requirements in your DV request.

[MarineVietVet]

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@RobertEG wrote:

I would omit items 1-5 and omit settng any period for their response.

None of those are requirements of the FDCPA, and unless you live in Texas, there is no date for debt collector response to a DV request.

A simple statement that you request debt verification pursuant to FDCPA 809(b) is sufficient.

You can use case law and other arguments if they respond and you dont consider their response to meet the requirements of the statute.

However, there is no need, in my opinion, to make demands that are not statutory requirements in your DV request.

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This is all you need.

[notyou]

Has your address changed? I used to pull CR's when i skip traced working collections.

[Williamsjk2]

Since that soft pull that midland did?  No.  But in the past 6 years?  Yes - a few times.