Removing Credit Control Corp for no license in my state

[Anonymous]

Hello everyone! 

I have recently been very actively researching and working on repairing my credit and have a situation that I would appreciate some feedback on....  On my credit reports, I discovered an unknown collections entry from Credit Control Corporation (the OC is Cox Communications) where they only reported a single negative collections entry back in early 2012 -- and nothing since.  Now, I'm being very cautious about waking something so inactive and outdated so my question is this...  Where I have already discovered that Credit Control Corporation is not licensed to collect (and is required to be) in both my current state and my previous state that I lived at that time, can I simply have this entry removed and if so, how do I do that in the best/safest way? 

I'm guessing that CCC is well aware that they were not allowed to collect when I was living in my previous state which is why there may only be the single collection entry (which I assume is still a violation of law as negative entries are widely considered an attempt to collect a debt).  I'm assuming that a Debt Validation letter which stresses that I know that they are not licensed to collect either state would be the correct route but again, I don't want to simply draw attention to myself and have my credit report negatively updated and my score drop.  If this DV letter is the way to go, is it safer to send it to the credit bureaus or does it have to go straight to CCC?  

Thank you very much in advance on this question.  I see there have been other troubles and successes with this collection agency so I'm hoping this can be resolved.  Thank you!

[RobertEG]

The FDCPA does not explicitly include licensing as a requisite part of debt validation under section 809(b).

Licensing is reserved to the states.

Some have pursued lack of licensing as broadly taking an action prohibited by law, and thus actionable under the FDCPA, but that is indirect.

I would contact your state agency that regulates licensing of debt collectors for advice on how to proceed, including any specific restrictions on credit reporting.

Texas, for example, has such a provision under their state Finance Code.

Almost assuredly pursuable under law, but state rather than federal.

[Anonymous]

Thank you RobertEG for that excellent response.  I'm in Utah so I guess I'll start to look there.  So, I'm assuming that I would still be trying to delete this in the same way (via DV and licensing) but more from a state-level approach rather than federal?  I've already found a couple state laws which should be effective:

Utah Fair Debt Collection Practices Act 12-1-1. Registration and bond required.

No person shall conduct a collection agency, collection bureau, or collection office in this state, or engage in this state in the business of soliciting the right to collect or receive payment for another of any account, bill, or other indebtedness, or advertise for or solicit in print the right to collect or receive payment for another of any account, bill, or other indebtedness, unless at the time of conducting the collection agency, collection bureau, collection office, or collection business, or of advertising or soliciting, that person or the person for whom he may be acting as agent, is registered with the Division of Corporations and Commercial Code and has on file a good and sufficient bond as hereinafter specified.

Utah Fair Debt Collection Practices Act 12-1-6. Violation of title — Penalty.

Any person, member of a partnership, or officer of any association or corporation who fails to comply with any provision of this title is guilty of a class A misdemeanor.

Would I basically be sending a letter with the above Utah law to Credit Control to "encourage" them to remove their credit entries?  Thanks again!

[Anonymous]

Yup.

Send them a letter referencing those exact Utah statutes, inform them that they are in fact, in violation of Utah state law by attempting collection activity without being registered and bonded. Tell them in no uncertain terms that they must immediately cease all collection activity, including any reporting to CRA's or you will pursue legal action against them. I would also report them to the Utah AG.

That will probably get it off of your reports - BUT - they will likely sell the debt to another CA and it will resurface in a few months/years.

[Anonymous]

Thank you NormanFH.  Yea, I figured they would likely try a different avenue to collect down the road but at least my report would be corrected in the meantime and I can be working on taking care of the root of the issue.   If anyone has any other pointers on this situation that hasn't been brought up, I'm certainly all ears.  Thank you again!! 

[0REDSOX7]

Is your intention to just get it off of your report and let it age beyond SOL? Getting it off the report by means mentioned above will probably result in it being sold again - maybe to one authorized to collect in your state.

[Anonymous]

What you might try is immediately after they remove the entries, offer them 10 cents on the dollar so they can't sell it to another JDB...

[Anonymous]

---

@0REDSOX7 wrote:
Is your intention to just get it off of your report and let it age beyond SOL? Getting it off the report by means mentioned above will probably result in it being sold again - maybe to one authorized to collect in your state.

---

Well, not necessarily to just remove and age... I do want it off my report but I am afraid of it showing up again by being sold to another JDB as I'm quite sure you're correct about...  Especially where it's such an old entry, I certainly don't to pop back up on the radar and have a fresh new entry come up that will plummet my score.  So I'm guessing that the removal should be easy enough -- the challenge will be from it coming back to get me later...

[Anonymous]

---

@Anonymous wrote:

What you might try is immediately after they remove the entries, offer them 10 cents on the dollar so they can't sell it to another JDB...

---

Hmm...  that sounds like an excellent idea!  I guess that once the entry is removed that I contact them with an agreement to pay as you suggest with the stipulation that they not sell in part or in whole to any other entity...   I think that's ultimately what might work for the situation.  Thank you for your input!