I have filed dispute with CFPB for Midwest Recovery System for collection account based on debt validation since this account is not mine. And they responded. I have posted my compliant and the company's response below from CFPB. Can some one please help with what should be my next step. Or what is the time frame based on the compnay's response that I have to wait until they can verify the debt validation or not from there client. Is it like 30 day's or something. I am just little confused, can some one just point me what should be my next step.
Midwest Recovery Systems has reported an account in collection to all 3 credit bureau. I do not recognize this account. Under the Fair Debt Collection Practices Act (FDCPA), I am requesting you to provide me with a validation of the debt. Please note this is a statement that your claim is disputed and validation is demanded. (15 USC 1692g Sec. 809 (b)) I do hereby request that your office provide me with complete documentation to verify that I owe the said debt and have any legal obligation to pay you. Please provide me with the following: Agreement with the creditor that authorizes you to collect on this alleged debt The agreement bearing my signature stating that I have agreed to assume the debt Valid copies of the debt agreement stating the amount of the debt and interest charges Proof that the Statute of Limitations has not expired Complete payment history on this account along with an accounting of all additional charges being assessed Show me that you are licensed to collect in my state; and Your license numbers and Registered Agent. If your office fails to reply to this debt validation within 30 days from the date of your receipt, all instances related to this account must be immediately deleted and completely removed from my credit file. Moreover, all future attempts to collect on the said debt must be ceased.
We have followed our dispute policy and haven't had any further communication with the consumer. No future follow up is planned. Our dispute policy is once we have received a dispute we immediately stop all collection efforts and send a record of dispute to all three credit reporting agencies. Then we request validation of the debt from our client and once that is received we forward that on to the consumer for review. If validation is unobtainable then we immediately send a record for deletion to all three credit reporting agencies and then close and return the account to our client.
The DV process under the FDCPA is set forth in FDCPA 809(b).
In a nutshell, a debt colllector is not required to respond to a DV request within any time period.
A timely DV (i.e., sent within 30 days after receipt of dunning notice) imposes a cease collection bar upon the debt collector, which requires that they cease collection activities until they first validate. They can choose never to respond, and simply cease active collection on the debt.
Some states, such as Texas, California, New York, and Mass., have enhanced debt collection practices statutes which set a period for response or include specific provisions for some type of documentation. Requests under the federal FDCPA do not set any period for response or impose specific documentation requirements.
@RobertEG Thank you for your reply. So, if there is no time limit is set and If the Collection Company (Midwest Recovery) does not respond with debt validation documentation, even after 30 days, they just decided to simply cease active collection on the debt, Does that mean then this collection account will be deleted from my credit report or not. Also, on another scenario, if it has been more then 30 days and I have not recived any respond from the colllection company (Midwest Recovery) at all, but still see the collection account in my Credit Report, Is there a step I can take then for the account to be deleted from my credit report. Thanks for your help.
No, there is no requirment for deletion of a reported collection based on lack of response to a DV request under the FDCPA.