Sent DV in November, received several letters since and the "verification" letter today

[CreditScoreFail]

On Nov. 1st, I received a letter from Ability Recovery Services for Ashworth (an online "high school" diploma program). I sent a DV on the 20th which requested validation of the debt with a request for a copy of my signed contract, and proof of their license/bonding in TX. I get a little green card from the post office showing that it was signed for and delivered/received on 11-23-2011.  Well, they send a letter on the 7th of December informing that because of failure to respond to their previous letter I have 10 days exactly to pay the amount owed of $1,491.87.  On February 6th I receive a debt settlement offer and today, the 17th I get a letter of verification which is a cover letter to "Dear Account Holder,...." followed with a sheet of printed paper with my grades for the classes and another piece of paper with an invoice.

What do I do?

[RobertEG]

An abolute violation of FDCPA 809(b).

Upon receipt of your DV request, they were automatically barred from collection on the debt until such time as they provided the requested debt validation.

Their response on the 17th, if accepted as adequate verification, removes their cease collection bar.

You can pursue a violation of FDCPA 809(b) if so inclined, but the remaining issue is how you wish to treat their DV response.

If you consider it to be inadequate verification, you would hold them in further violation of section 809(b) if the conduct any further collection activities.

Pursuing FDCPA violations is a bit of a toothless process, as the FTC, who is charged with administrative enforcement of the FDCPA, does not take action on individual consumer complaints.  You could complain to your local BBB or state AG, or you can bring legal action on your own.

Most consumers do none of the above, which is reason why many debt collectors are cavalier about FDCPA compliance.

[CreditScoreFail]

So, I called a lawyer Edited to remove a full name, apparently she's a great bankruptcy lawyer) and she says that the collection agency isn't required to validate within that 30 day window because they're not the school directly so they're not held to the FDCPA laws.

The fuuuu...

[Anonymous]

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@CreditScoreFail wrote:

So, I called a lawyer Edited to remove a full name, apparently she's a great bankruptcy lawyer) and she says that the collection agency isn't required to validate within that 30 day window because they're not the school directly so they're not held to the FDCPA laws.

The fuuuu...

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You need to contact a new lawyer that specializes in FDCPA violations.  The original creditor (the school directly) is the one who would not be held to the FDCPA.  A collection agency is what the FDCPA is for.

Now, there is no 30 day window they have to respond.  They can respond in a year if they want.  The key is, until they respond, they must cease all collection activity.  This includes sending you letters, calling you, and reporting to the credit bureaus.

Edited to add that even if this "Abilitiy reecovery services" is part of the school, or the original creditor, they are still bound by the FDCPA.  If a company sends contact implying they are a different company collecting on a debt, the FDCPA still applies.

[RobertEG]

+1

Jimbo said it all.