II. "Is it permissible under the FDCPA for a debt collector to report, or continue to report, a consumer's charged-off debt to a consumer reporting agency after the debt collector has received, but not responded to, a consumer's written dispute during the 30-day validation period detailed in § 1692g?" As you know, Section 1692g(b) requires the debt collector to cease collection of the debt at issue if a written dispute is received within the 30-day validation period until verification is obtained. Because we believe that reporting a charged-off debt to a consumer reporting agency, particularly at this stage of the collection process, constitutes "collection activity" on the part of the collector, our answer to your question is No. Although the FDCPA is unclear on this point, we believe the reality is that debt collectors use the reporting mechanism as a tool to persuade consumers to pay, just like dunning letters and telephone calls. Of course, if a dispute is received after a debt has been reported to a consumer reporting agency, the debt collector is obligated by Section 1692e(8) to inform the consumer reporting agency of the dispute.
The question was a 2 part question, but they answered the whole question "No".
My problem is Midland received my DV on Feb 14th......they reported it was disputed as they are to do under law. However, they have not validated, but on my TU report it says "Date Reported 3/18/2008. While I know that it was already there, I am assuming that is when they updated the account last. How can updating an account before validating not be considered " continued collection activity"?
How can leaving the account on your CR not be considered "collection activity".
I've read that if they are already reporting, they do not have to remove when receiving DV. Is there caselaw on this or is it in FDCPA/FCRA?
A company does not have to validate when they receive request, they can just cease collection activities. Just as they must cease collection activites until they do validate.
If leaving the account on the CR is considered collection activities, then they should have to delete until they validate.
If leaving the account on the CR is NOT considered collection activities, then CA's who could not validate could simply choose not to send you no more letters or call you and they'd be "ceasing collection activities" and it could remain on your report until it fell off.
