01-13-2013 07:06 PM
I sent this company Jefferson Collection a cease and desist letter one month ago. i've requested debt validation from them and they've never validated. (I don't recall receiving an initial dunning notice) Today, I have a letter in the mail from another collection company, collecting on Jefferson Collection's behalf. This is concerning the same debt I sent a letter requesting validation( never received from collection agency) and a cease and desist letter. This company says I they are collecting on Jefferson Collections behalf and I have 30 days to request for debt validation. I want to sue, but not sure if I will win! Please advise... Should I request for debt validation.
01-13-2013 07:32 PM
They have received a C&S letter and assigned it to another CA? I know they can still sell and show up with another one, but not sure about assigned. Maybe someone will chime in on that one, seems like they're skirting the rules.
01-14-2013 12:23 AM
You would need to get an expert opinion, but I believe that would be a violation of a cease and desist. Just have someone else call for you I don't think will cut it.
01-14-2013 10:18 AM - edited 01-14-2013 10:20 AM
The term "cease and desist" is probably the source of your confusion.
A consumer cannot unilaterally send a requirement that a debt collector cease their collection efforts, or desist in any actions that are not a violation of any statute or regulation. Collection is their business and right, provided they comply with all requirements of statute and regulation.
What the consumer can do is to send a "cease communication" letter under the provisions of FDCPA 805(c). That letter bars the debt collector from continuing any communications with the consumer, but is not a bar of other legitimate collection activities. Referring the debt to another debt collector is a legitimate collection activity, and the cease communication letter sent to debt collector 1 does not carry over to debt collector 2.
If the consumer has sent the debt collector a timely request for debt validation, that invokes a total cease collection bar on them, making the need for any cease communication letter redundant until they have chosen to validate. A cease collection bar is more comprehensive than a simple cease connunication bar.
However, referral to another debt collector has not been deemed to be a barred collection on the debt, so is not a violation of their cease collection bar.
Once the new debt collector enters the picture, both the DV and any cease communication process begins anew with them.
I see no current violation of the FCRA or FDCPA.
If you send the new debt collector a DV request, that will invoke a cease collection bar on them until such time as they provide the reqested validation.
That bar includes their reporting to the CRA.
01-14-2013 01:22 PM
This is correct, under the FDCPA the collector may either cease collection or validate the debt once a validation request is received. The collector in your instance owns the debt now but has decided not to valid, so they have likely farme the debt collection out to a third-party. Since you have received a new dunning notice send a dv letter to new collector. This should stop communication from them until they can validate.