Question about DV/PFD approach

[Anonymous]

In scanning a recent report from Experian, i noticed a derrog CA listing by Southwest Recovery. Orginial creditor is "VRMI"---no idea who that is. (Does anybody know???) Amt is $1283 and this is scheduled to stay on record til Dec 2016. I want to get more info, but not sure how to proceed since the debt just popped up and i dont recognize the OC. I made some really bad mistakes with credit cards and payday loans that i'm working to fix, so it's definitly possible the debt is mine--i just want to proceed in a way that will get it cleaned up quickly with minimal damage to my scores....dont have the full amt listed so also trying to figure out if i need to save the amt in full before even bothering to attempt negotiations. Any advice on this appreciated!

[JM-AM]

You need to know the SOL in your state. That will determine if you need the full amount before proceeding. By what you have posted it is fairly new collection and is probably with-in SOL. 

You need to have the entire balance owed before you make any attempts to clear it up. Once you have the entire balance owed saved up you can negotiate a PFD (payment for deletion) from CRA's. IMO once have the money saved I would make an attempt to PFD and offer 50% of what is owed. They more then likely will not accept 50% as payment. Listen to what the counter offer is, and go from there. The important thing is to get a letter in writing that they will accept payment and delete from CRA's.

I don't know who the OC is so hopefully some one will chime in with who they may be and also offer some advice.

Good Luck

[Anonymous]

Thx! I'm in TX---SOL is 4 yrs. Technically where the debt stands regarding the SOL clock would be determined by the OC's records, right? Without figuring out who the OC is I don't know how i can tell if the debt is past the SOL or not. All i know is the acct was placed with the CA in 3/2010.

[MarineVietVet]

Hi and welcome to the forums.

May I ask where you got the Experian report? I ask that because reports from third party sites often don't have the most complete information. If you haven't pulled your free reports from annualcreditreport.com or directly from a CRA you might not be able to see everything available. It's just a thought.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[JM-AM]

Time is started from when you 1st went delinquent with the OC, so yes it goes by OC records. Generally speaking since you have the approximate come off date you can subtract 7.5 years from that date to give you an idea of when that date should be. Remember it gives you an idea of when it should be, not saying this is the correct date. But it may help in you determining who the OC is. 

In your case approximate come off date is December 2016 - 7.5 years = June 2009

If SOL is 4 years in TX you have approximately 2.5 more years before out of SOL. To be on the safe side assume 3 more years until you can find out more information. 

The time the account was placed with CA has no bearing on the SOL. It is based on the OC when you went into default. 

Good Luck

[Anonymous]

Ok. My husband and i have a house hunting goal that says we want to be able to approach a lender in the spring of 2013, so any baddies have to be gone well before then. So assuming i will have the tot amt saved by Feb/March 2012, should the approach involve a DV letter before the PFD, or is the DV a waste of time since the debt is so fresh (I know DVs can result in getting something taken off when the debt is old and thus the paperwork trail gets muddled). Also, I did get what little info i have from a real report directly from experian. Appreciate all the advice!

[MarineVietVet]

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@Anonymous wrote:

Ok. My husband and i have a house hunting goal that says we want to be able to approach a lender in the spring of 2013, so any baddies have to be gone well before then. So assuming i will have the tot amt saved by Feb/March 2012, should the approach involve a DV letter before the PFD, or is the DV a waste of time since the debt is so fresh (I know DVs can result in getting something taken off when the debt is old and thus the paperwork trail gets muddled). Also, I did get what little info i have from a real report directly from experian. Appreciate all the advice!

---

Have you been contacted by this CA? By law a CA has 5 days after initial contact (which could mean a phone call or an entry on your report) to send you what it called a dunning letter. After receiving that letter I would send them a DV request. It doesn't have to be anything fancy. Something like:

"I pulled my credit bureau report, and I discovered that you claim I owe you a debt. Under FDCPA, send me validation of this debt."

"You claim I owe you a debt. In accordance with FDCPA, send me validation of this debt."

"I received your letter claiming I owe you a debt. Per the FDCPA, send me validation of this debt."

Send the DV letter CMRRR. One advantage of living in the great state of Texas (like me) is there is no 30 day time limit for you to answer a dunning letter like other states. You can send it anytime but I would do it as soon as possible.

Another good thing about Texas consumer laws is that the CA must answer your DV letter within 30 days. In all other states the CA is under no obligation to ever respond to a DV but until they do all collection activity must stop.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[JM-AM]

I believe you should always do a DV before anything else. 

Why? Because they may not even be legally entitled to collect the debt from you.

Think of it in these terms: Even if you suspected you might owe Joe (original creditor) some money, and Bob (collection agency) came up to you and asked for Joe's money - would you just hand over the cash? No. No one would.

A collector, lawyer, law firm must adhere to the FDCPA.

1. Proof that the collection company owns the debt/or has been assigned the debt. This is basic contract law. It is very difficult to get a judgment without a direct contract between collection agency and the original creditor.

2. At a minimum, some account statements from the original creditor. How did Bob calculate this debt? What fees/interest Bob has tacked on to this debt and how he determined these fees?

3. Copy of the original signed loan agreement or credit card application. However, account statements from the original can fulfill these requirements.

Under the FDCPA you are allowed to validate this debt, and the creditor (in this case, the collection agency) must show you proof that you owe the debt to the collection agency (not to the original creditor.)

FDCPA Section 809. Validation of debts [15 USC 1692g]

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

So, if a creditor can't validate a debt:

• They are not allowed to collect the debt,
• They are not allowed to contact you about the debt, and
• They are also not allowed to report it under the Fair Credit Reporting Act (FCRA). Doing so is a violation of the FCRA, and the FCRA states that you can sue for $1,000 in damages for any violation of the Act.

Good Luck

[MarineVietVet]

Several things you posted I have to respectfully disagree with.

The only things a CA has to tell you when and if they respond to a DV are:

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer’s written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

That's it. They do not have to send any original contracts, signed agreements, or statements.

And even though collection efforts must stop a CA does not have to remove any prior reporting. They just can't add anything new.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[RobertEG]

I agree with marinevet in substance, with one clarification.  The "things a CA has to tell you when and if they respond to a DV" are not all of the items listed in his post.

What was listed are the contents of a collection/dunning notice under FDCPA 809(a), and not the contents of a DV response under FDCPA 809(b).

But, content wise, items 1 and 2 are required, without the need for supporting legal documentation. 

Just a minor clarification..........

As for you not knowing who the CO, or even what debt is the subject of their post to your CR, that is the primary reason why FDCPA 809(a) was enacted.

To advise you promplly of the credtior, the amount of the asserted debt, and how to dispute it.

That provision of law is there to prevent "submarine" CAs from popping up in your CR without providing wriiten notice to you within 5-days of such action.

It appears that the debt collector is in clear violation of FDCPA 809(a).