PFD & CA State Licensing Question

[Anonymous]

First, thanks so much to everyone on this site, it's been INCREDIBLY helpful!

I need to confirm which state the CA needs to be licensed in--I am guessing the state of the OC but want to be sure b/c I couldnt find the info on this site.

I have an incorrect charge showing up on my CR from GLA Collections Agency--which is licensed in the state of the OC (IN) & my state of residence at the time of the charges, but not my current state of residence (IL). I am guessing it doesnt matter what my current state of residence is though?

Also, I've read a couple posts stating GLA refuses PFD. Why do collections agencies do this? Will they eventually sue? I can't understand why they would do that when in seven years (or 5 in my case) it will be off the CR.  

Thanks!

Message Edited by Jennlax on 03-25-2008 11:06 AM

[azsassycat]

Jen-

The CA has to be licensed (if required by the states) in both the state they are located in and in the state where you are located.

Collection activities of collection agencies are generally governed under the Illinois Collection Agency Act (225 ILCS 425/1, et seq.)  The State of Illinois does not permit any collection agencies to conduct business without first obtaining a certificate of registration from the Director of Department of Registration and Education.  A registered collection agency must file a surety bond in the amount of $25,000.  (225 ILCS 425/8) 

It appears as if GLA Collection Company Inc is not licensed in Illinois and therefore not allowed to conduct business as a collection agency.

My advice would be to send a DV (debt validation) letter to the CA requesting their licensing information.  This may be enough to make them go away.  You can use my DV letter below if desired or you can search the boards for other templates.

HTH

Cathleen

March 25, 2008

Collection Agency

123 S Anystreet St

Anytown, AZ 12345

***SENT VIA CERTIFIED MAIL***

Certified Mail No. 12341234123412341234 

Re:            Collection Account #: XXX1234

To Whom It May Concern:

THE VALIDITY OF THIS DEBT HAS BEEN DISPUTED.

This letter is being sent to you in response to an entry made on my TransUnion credit report dated March 2, 2008.  Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 1: ) USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

Under the Fair Debt Collections Practices Act, I have the right to request validation of the debt you say I owe you.  I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation which is binding on me to pay this debt.  This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section of the Fair Debt Collection Practices Act.

You should also be aware that reporting inaccurate and unsubstantiated information to a credit reporting agency might constitute fraud under federal law.  Additionally, you should also be aware that sending unsubstantiated demands for payment through the United States Mail System might constitute mail fraud under federal and state law.  Your legal staff will agree that compliance with this request is required under the laws of state and federal statutes.

Please include the following:
1. Agreement with your client that grants you the authority to collect on this alleged debt, or proof of acquisition by purchase or assignment.

2. Agreement that bears the signature of the alleged debtor wherein he or she agreed to pay the creditor.

3. Proof that your company is licensed as required by the Illinois Collection Agency Act to conduct a collection agency in Illinois.

I require compliance with the terms and conditions of this letter within thirty (30) days or a complete withdrawal, in writing, of any claim.  In the event of noncompliance, I reserve the right to file charges and/or complaints with appropriate county, state and federal authorities as well as the Better Business Bureau for violations of the FDCPA, FCRA, and federal and state statutes on fraudulent extortion.

I also hereby reserve my right to take private civil action against you to recover damages.

Sincerely,

Azsassycat - just type, don't sign

123 S Anystreet St

Anytown, AZ 12345

Message Edited by azsassycat on 03-25-2008 11:46 AM

[Anonymous]

You could also file complaints with BBB , FTC, AG. If they aren't licensed this might get you a quicker response.

[Anonymous]

Thanks for the great advice!