License to Collect v. Right to Report

[Anonymous]

call and be sure that they are licensed. You might get lucky & find that their licensed has been lifted or has expired.

[MsKmm00]

Question: If a third party agency is not licensed to do business in your state, however begin collection activity up to and including getting an attorney in that state to file a lawsuit, what do you do? Are there any criteria for the attorney in order for them to have the authority on behalf of the collection agency?

[Anonymous]

In most states - an lawyer does not need any addtional licensing to be a debt collector.

Not sure if this answers your question or not.

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MsKmm00 wrote:

Question: If a third party agency is not licensed to do business in your state, however begin collection activity up to and including getting an attorney in that state to file a lawsuit, what do you do? Are there any criteria for the attorney in order for them to have the authority on behalf of the collection agency?

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[MsKmm00]

I may not be wording my question correctly. A third party collection agency starts collection activiity for a charge -off account that is close to the SOL (which is my nect question). Sent them a letter asking to validate ... no response.  They then refer it to a law firm in your state to assist with collection on their behalf. The third party CA is not licensed to do business in your state, so they shouldn't be collecting anyway. The lawfirm they entrust then files suit. I am trying to find out if there is something else I should be checking for the lawfirm (e.g. are they agents for xyz company in my state) to see if they are legally permitted to file a lawsuit for the collection agency.

I am also confused about SOL. Let's say you check with a company and your last payment was October 2001, however your credit report shows date of last activity as Dec 2001 or Feb 2002. What actually determines the SOL?

[Anonymous]

Ok. I got you now.

They way I see it - sending you anything would be illegal (as they are not licensed) so I am not suprised they have not replied to your DV. HOWEVER getting the lawyer to collect IS continuing "Collection Activities" before answering your DV.

The CA is in a catch 22 and IMO is in FDCPA Violation for not answering your DV and continuing Collection activitys.

What can/should you do?

Send 2nd DV, copy AG, the lawyer, FTC,

Consider contacting naca.net for a consumer lawyer as your rights have been violated.  

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MsKmm00 wrote:

I may not be wording my question correctly. A third party collection agency starts collection activiity for a charge -off account that is close to the SOL (which is my nect question). Sent them a letter asking to validate ... no response.  They then refer it to a law firm in your state to assist with collection on their behalf. The third party CA is not licensed to do business in your state, so they shouldn't be collecting anyway. The lawfirm they entrust then files suit. I am trying to find out if there is something else I should be checking for the lawfirm (e.g. are they agents for xyz company in my state) to see if they are legally permitted to file a lawsuit for the collection agency.

I am also confused about SOL. Let's say you check with a company and your last payment was October 2001, however your credit report shows date of last activity as Dec 2001 or Feb 2002. What actually determines the SOL?

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[MsKmm00]

Thanks for the quick response. I will take those actions on Monday. Can you (or anyone) help with my other question regarding SOL's. The CC company states your last payment was October 2001, however your credit report shows date of last activity as Dec 2001 or Feb 2002. What actually determines the SOL?

[Anonymous]

You SOL started Nov 2001 as that is the First payment missed.

For Reporting is will report until Nov 2008

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MsKmm00 wrote:

Thanks for the quick response. I will take those actions on Monday. Can you (or anyone) help with my other question regarding SOL's. The CC company states your last payment was October 2001, however your credit report shows date of last activity as Dec 2001 or Feb 2002. What actually determines the SOL?

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Message Edited by Timothy on 01-19-2008 05:03 PM

[MsKmm00]

Thanks Timothy.  I appreciate your help.

[Anonymous]

MsKmm, Can you please update us on this situation? We are in a similar boat, I think.
Thanks!