Two creditors calling for same debt

[Anonymous]

Hello.  I have a 5-year-old debt (the sol in my state is 6). Yesterday I received a call from Portfolio Recovery about it and today Midland Funding called for it.  Is this legal and how is it possible for the same debt to simultaneously be with two different JDB's? Can it be sold and transfer hands that quickly?  I thought I had to be notified in writing when a new debtor takes control of a debt.

[LShawn08]

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@Anonymous wrote:

Hello.  I have a 5-year-old debt (the sol in my state is 6). Yesterday I received a call from Portfolio Recovery about it and today Midland Funding called for it.  Is this legal and how is it possible for the same debt to simultaneously be with two different JDB's? Can it be sold and transfer hands that quickly?  I thought I had to be notified in writing when a new debtor takes control of a debt.

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I'd send both Midland and Portfolio Debt Verification letters, see who actually actually has the paperwork to back up the claim that they now have collection authority over the debt. Maybe one of them just sold your account to the other and it hasn't been updated in their systems.

[RobertEG]

A debt collector is not required to provide notification to the consumer when they obtain collection authority, or before they communicate with the consumer or report to a CRA.

They are required, once they have made an initial communication with the consumer, to send a formal collection ("dunning") notice within 5 days therafter.  FDCPA 809(a).

Yes, only one debt collector can have active collection authority.

However, a debt collector 1 can purchase the debt, and yet for some reason, such as lack of licensing in your state, assign collection authority to a second debt collector.

Legally, each is now required to send dunning notice within 5 days, advising you of the current owner who they are collecting on behalf of.  It could be themselves or another.

I agree with the advice to send a DV to both, and let them inform you who owns the debt and whether they have active collection authority.

The DV will invoke a cease collection bar on both, which will remain in effect until they provide debt validation.

[bestchoiceglobal]

That's strange. The same thing happened to me with one of the two being Midland. I ended up disputing both with the CRAs. Nobody ever validated and they got removed.

[Anonymous]

Why is a collection notice called "dunning"? What does that mean?

[Anonymous]

I've been getting missed calls from Midland and each time they leave a message with no communication,  just 30 seconds of dead air.  I thought after the first call when they take control of the debt, that they have to notify me in writing within 5 days?

[RobertEG]

There was a guy named Dunning who was the plaintiff in one of the first cases involving the interpretation of what is required under the FDCPA once an iniitial communication is made with the consumer.

Thereafter, formal collection notices have been referred to as dunning notices.

[Relique]

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@Anonymous wrote:
Why is a collection notice called "dunning"? What does that mean?

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Basically letters notifying the debtor demanding payment. They start off being polite and become progressively more stern and demanding. 

It is a pretty interesting process, here are a couple of links if you want to read up on it:

https://en.wikipedia.org/wiki/Dunning_(process)

http://www.accountingtools.com/questions-and-answers/what-is-a-dunning-letter.html