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Dealing with collection agency violations, should I send ITS letter or file lawsuit?

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Dealing with collection agency violations, should I send ITS letter or file lawsuit?

Hey guys, I've been dealing with a collection agency who keeps reporting unverified collection on my report, this has obviously hurt my credit, I've disputed with them and with the bureaus, its still there.

I'm looking for either a full deletion or maybe a money settlement plus deletion, the violations have piled up and I'm out for war now.

 

Should I send ITS letter, or just file suit and let them offer a settlement?  I'd prefer replies from those with knowledge or experience on this, thank you Smiley Happy

Message 1 of 11
10 REPLIES 10
Super Contributor

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?

Contact a consumer protection attorney.








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Message 2 of 11
Regular Contributor

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?


@Gunslinger7555 wrote:

Hey guys, I've been dealing with a collection agency who keeps reporting unverified collection on my report, this has obviously hurt my credit, I've disputed with them and with the bureaus, its still there.

I'm looking for either a full deletion or maybe a money settlement plus deletion, the violations have piled up and I'm out for war now.

 

Should I send ITS letter, or just file suit and let them offer a settlement?  I'd prefer replies from those with knowledge or experience on this, thank you Smiley Happy


Give us some more information.  What do you mean by “unverified”?

Message 3 of 11
Super Contributor

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?


@vntrsc wrote:

@Gunslinger7555 wrote:

Hey guys, I've been dealing with a collection agency who keeps reporting unverified collection on my report, this has obviously hurt my credit, I've disputed with them and with the bureaus, its still there.

I'm looking for either a full deletion or maybe a money settlement plus deletion, the violations have piled up and I'm out for war now.

 

Should I send ITS letter, or just file suit and let them offer a settlement?  I'd prefer replies from those with knowledge or experience on this, thank you Smiley Happy


Give us some more information.  What do you mean by “unverified”?


He means, he sent debt validation letters and never got the verification.








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Message 4 of 11
Regular Contributor

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?


@Brian_Earl_Spilner wrote:

@vntrsc wrote:

@Gunslinger7555 wrote:

Hey guys, I've been dealing with a collection agency who keeps reporting unverified collection on my report, this has obviously hurt my credit, I've disputed with them and with the bureaus, its still there.

I'm looking for either a full deletion or maybe a money settlement plus deletion, the violations have piled up and I'm out for war now.

 

Should I send ITS letter, or just file suit and let them offer a settlement?  I'd prefer replies from those with knowledge or experience on this, thank you Smiley Happy


Give us some more information.  What do you mean by “unverified”?


He means, he sent debt validation letters and never got the verification.


If the OP sent a validation request after finding the collection agency’s entry on his credit report, the collection agency was not required to provide validation.  It could also continue to report to the CRAs.

 

A consumer’s right to validation is triggered only after an initial communication and receiving the 30-day validation notice.  Finding an entry on one’s credit report is not an initial communication and does not trigger the right to validation.  

Message 5 of 11

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?

What they sent is just an online printout with name of OC, saying I owe X amount, it's not real verification.  But I'm not here asking about the minutiae of my case and whether it qualifies, it definitely does and they are caught red-handed. 

That's not all though, I've got them on about 5 other violations.  So what I'm asking is as far as getting money out of them, do I sue and give them an option to settle, or do I send an ITS and let them settle?  

Message 6 of 11
Super Contributor

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?

Contact a consumer protection attorney to see if you have a legitimate case. The consultation should be free. Obviously, you don't have to use them, but they'll be able to tell you how many violations you could realistically get them for. That should tell you if it's worth it. At $1000 per violation, it could definitely wipe out a debt if you have 5 or 6 provable offences.








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Message 7 of 11
Regular Contributor

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?


@Brian_Earl_Spilner wrote:

Contact a consumer protection attorney to see if you have a legitimate case. The consultation should be free. Obviously, you don't have to use them, but they'll be able to tell you how many violations you could realistically get them for. That should tell you if it's worth it. At $1000 per violation, it could definitely wipe out a debt if you have 5 or 6 provable offences.


Unfortunately, the award is not per violation.  It is up to $1000 per action (lawsuit).  There might be 5 violations, but they would be brought in one lawsuit for a maximum of $1000.

Message 8 of 11

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?

I see.  I was thinking of adding mental distress and lost opportunities, financial hardship into the lawsuit (or ITS letter) round up to $5,000 or so.  I'm not worried about them suing me at all, the amount they're claiming is small and they're playing a hand they don't have.  So what do you think, ITS or lawsuit, I want to cash out on these idiots, AND get the deletion.

Message 9 of 11
Community Leader
Legendary Contributor

Re: Dealing with collection agency violations, should I send ITS letter or file lawsuit?

You must first determine whether your asserted violation is one relating to accuracy of their reporting, which is covered under the Fair Credit Reporting Act (FCRA) or whether thte asserted violation pertains to a debt collection practices matter covered under the Fair Debt Collection Practices Act (FDCPA).

 

FCRA violations relate to credit reporting, while FDCPA violations relate to debt collection practices.

They have very different criteria for what is a violation, and when you obtain rights to file a civil action.

 

In a nutshell, FCRA 623(c) removes from consumers the right to file a civil action that pertains to reporting of inaccurate information per se.

The consumer must first file a dispute under FCRA 611, requiring investigation of the disputed accuracy, and either verification, correction, or deletion of the disputed information.  After having received verification of accuracy, a consumer then acquires the right to file a civil action contesting the reasonableness of the investigation of the prior dispute, which is in distinction to filing a civil action directly contesting the accuracy of the reporting.

 

If you filed a prior dispute and they verified the accuracy, you thus obtain right to file a civil action limited to the specific information that was verified, contesting the reasonableness of their investigation and verification of the disputed accuracy.

However, if you assert inaccurate reporting and have not specifically filed a dispute verifying the accuracy of that item of information, you have no right to a private civil action seeking damages for their inaccurate reporting.

 

The FDCPA is more permissive, and affords right to civil liability is any violation of any of the debt collection practices provisions of the FDCPA is established.  Statutory damages of $1,000 are provided for any proven violation.

 

Your question thus depends upon the specific statute and type of violation asserted.

Message 10 of 11