Am I reading this wrong?

[Anonymous]

http://www.ftc.gov/os/closings/staff/P064803fairdebt.pdf

From what I've read on these forums, if a CA can NOT validate the debt, then they can not continue to collect on it, report it to the CRA, or sell the debt.

However reading the above link.....it says.......

Even if, as the amended Ethics Code now requires, a debt collector that is unable to provide verification of a debt ceases collection efforts, closes the account, and notifies the credit grantor, client, or owner of legal title to the debt that collection activities have been terminated because the collector could not provide verification of the debt, the credit grantor, client, or debt owner might choose to refer the account to a different debt collector. Thus, although the consumer will no longer be contacted by the first debt collector, he or she might receive collection calls and letters from a different debt collector.

That says to me that if they can't validate, they stop collection efforts and then someone else can try.

[Anonymous]

YES- You read this incorrect

ACA (http://www.acainternational.org/)

Association of Credit and collection professionals

Had not updated their code of ethics because they wanted calification that sending a notice to a consumer that they were ceasing collection activities was NOT a violation- after a DV.

This is good news to me-

This means they will not transfer it to another CA if the CA is a member (when they update thier COE)

[Anonymous]

http://www.acainternational.org/images/88/code_of_ethics.pdf

Seems they have adopted this-

Lots of good stuff in here-

Let all CA's be ACA members-

[Anonymous]

Ok, so if a CA can not validate they can not attempt to collect or sell it to another CA. However, the can close the account and return the account back to the OC who can sell it to another CA or send to another CA to collect on it. Right? Or wrong again?

Kind of off topic, but thinking about this has brung up another question.

A collection is a major derog on your CR. If the account is being reported past due/charged off/unpaid/etc by the OC on your CR, is that the same as a collection and a major derog or does it affect you less? Basically, are the only accounts that count as collections the one listed by a CA or the ones listed under "Collections" on your CR?

Ugh, just when I think I've started understanding everything a whole new set of questions pop up. Maybe someday..............

[Anonymous]

I had 1 OC reporting     and 1 CA  

The CA was deleted     which gave me maybe 10 points   BUT

When the OC  dropped off (CRTP)   my score jumped 50 - 60 points

SO  I would say that the OC showing CO or any derog  does much more damage then just the CA.