Validation Question

adamseve · ‎06-15-2008

Ok...I've been reading a lot of info on different boards and I need clarification on something:

If I haven't received a dunning letter from a CA there aren't any stipulations on how long they take to validate the debt, or if they validate it or not. True or False? If true, what rights do I have?

Next question, as I'm reviewing my CRs don't I have the right to know if a debt is valid, particularly if the account doesn't ring a bell? If that's the case, how do I get the debt validated if the CAs don't have to provide me with proof?

Also, do they have to cease collection activites if I initiate contact by requesting debt validation?

Here's what I have regarding the FDCPA Section 809:

§ 809. Validation of debts

(a) Within five days after the initial communication with a

consumer in connection with the collection of any debt,

a debt collector shall, unless the following information is

contained in the initial communication or the consumer has

paid the debt, send the consumer a written notice containing—

(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.

(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 credi-

tor, 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. Collection activities and communications that

do not otherwise violate this title may continue during

the 30-day period referred to in subsection (a) unless the

consumer has notified the debt collector in writing that the

debt, or any portion of the debt, is disputed or that the consumer

requests the name and address of the original creditor.

Any collection activities and communication during the

30-day period may not overshadow or be inconsistent with

the disclosure of the consumer’s right to dispute the debt or

request the name and address of the original creditor.

(c) The failure of a consumer to dispute the validity of a debt

under this section may not be construed by any court as an

admission of liability by the consumer.

(d) A communication in the form of a formal pleading in a

civil action shall not be treated as an initial communication

for purposes of subsection (a).

(e) The sending or delivery of any form or notice which

does not relate to the collection of a debt and is expressly

required by the Internal Revenue Code of 1986, title V of

Gramm-Leach-Bliley Act, or any provision of Federal or

State law relating to notice of data security breach or privacy,

or any regulation prescribed under any such provision

of law, shall not be treated as an initial communication in

connection with debt collection for purposes of this section."

Any feedback is greatly appreciated.

Anonymous · ‎06-15-2008

adamseve wrote:

Ok...I've been reading a lot of info on different boards and I need clarification on something:

If I haven't received a dunning letter from a CA there aren't any stipulations on how long they take to validate the debt, or if they validate it or not. True or False? If true, what rights do I have?

Even if you have received a letter, there is really no time limit on them to reply to your DV. The only thing the FDCPA says is that they must cease collection activities until they DO validate.

Next question, as I'm reviewing my CRs don't I have the right to know if a debt is valid, particularly if the account doesn't ring a bell? If that's the case, how do I get the debt validated if the CAs don't have to provide me with proof?

You request debt validation. However, if you read, either in the FCRA or FDCPA, it states that if you dispute a debt directly with the CA, they must conduct an investigation within 30 days and report the outcome to you. I can't remember if it is FCRA or FDCPA. I do not have those saved on this computer, but I believe it is FCRA.

Also, do they have to cease collection activites if I initiate contact by requesting debt validation?

They must cease collection activities until they validate.

llecs · ‎06-15-2008

sidewinder wrote:

sidewinder wrote:
You request debt validation. However, if you read, either in the FCRA or FDCPA, it states that if you dispute a debt directly with the CA, they must conduct an investigation within 30 days and report the outcome to you. I can't remember if it is FCRA or FDCPA. I do not have those saved on this computer, but I believe it is FCRA.

This is the issue I have with the letters in here. Yes, if you DV, they must stop collection activity up to the point they validate. However, neither the FDCPA nor the FCRA places a time requirement on validation by the CA.

The FDCPA, as cited above, doesn't place a time requirement on CAs. The 30-day period referenced above points back to the requirement we, as consumers, have to respond to an initial collection letter or dunning letter.

The FCRA doesn't govern CAs per validation or disputes. Any referenced "30-day" period refers to the dispute period (plus 15 days), but I haven't seen anything in the FCRA that requires a CA to respond to a DV within 30 days.

HOWEVER, states may require validation within 30 days. Texas is one example (that I know of).

THE only question to be answered is this: Is reporting to one's CR constitute collection activity?

Anonymous · ‎06-15-2008

sidewinder wrote:

You request debt validation. However, if you read, either in the FCRA or FDCPA, it states that if you dispute a debt directly with the CA, they must conduct an investigation within 30 days and report the outcome to you. I can't remember if it is FCRA or FDCPA. I do not have those saved on this computer, but I believe it is FCRA.

Either the FCRA or FDCPA, I believe FCRA says if you dispute with the CA, they must respond to the dispute within 30 days, the same as the CRA.

I don't have adobe on this computer and on dial up am not gonna dl it, so I can't pull up FCRA/FDCPA right now.

You are correct that the FDCPA or FCRA doesn't state a time limit on DV, but they do on disputing.