Collection Agency never contacted me

Anonymous · ‎12-15-2012

Hello and thanks for any replies.

I'm currently rebuilding my credit and running monthly credit checks to keep in eye on things. This month I noticed a collection agency posted a 4 year old debt on my credit. The original creditor never contacted me to notify me I owned any money nor did this collection agency. My question is this, is there any law that says they have to contact you before slapping this on my credit report? Is there a law that says they have to contact you if the debt is sold?

I sent a letter to a collection agency asking for a pay for delete and they decided to just validate the debt, so looks like I'm SOL.

webhopper · ‎12-15-2012

I would definately do a DV.... Send it CMRRR. If they then validate; offer PFD.

FICO 8:
Goal: Gardening!

webhopper · ‎12-15-2012

Also; you should try to contact the original creditor and try to pay them in full. If you can get the original creditor paid; then you can dispute the collection account as being invalid... include a copy of the cancelled check or transaction receipt from the OC with your dispute which you send CMRRR to the credit bureaus.

FICO 8:
Goal: Gardening!

RobertEG · ‎12-15-2012

The requirement for debt collector notification of their collection activity is FDCPA 809(a), and is within 5 days of any "initial communication with the consumer."

So, no they dont have to provide any notice before commencing collection on the debt, but must do so within 5 days of any initial communication.

While the FDCPA does not specifically reference reporting to a CRA as an "initial communication," both the FTC in numerous advisory opinions and the courts in established case law have interpreted reporting to a CRA as triggering the requirement for dunning notice within 5 days after that reporting.

So you most likely have a violation of FDCPA 809(a) on their part.

The process for addressing FDCPA violations is toruous for the consumer. In and of itself, it is a debt collection practices violation, and not basis for any deletion of their reporting. You can file a formal complaint with the FTC, an informal complaint with a third party, such as your local BBB, or bring your own legal action.

All of which take a lot of time and effort, and will only compel CR deletion if ultimately ordered as a sanction by the FTC or by a judge.

Consumers rarely pursue FDCPA violations to that level, and thus they most likely dont send fear up the spine of most debt collectors.

Anonymous · ‎12-15-2012

@webhopper wrote:
I would definately do a DV.... Send it CMRRR. If they then validate; offer PFD.

I sent a pay for delete and they responded with the validation. Looks like I do owe it, I will pay but I think its crap nobody told me I owed the debt.

Anonymous · ‎12-15-2012

@RobertEG wrote:
The requirement for debt collector notification of their collection activity is FDCPA 809(a), and is within 5 days of any "initial communication with the consumer."
So, no they dont have to provide any notice before commencing collection on the debt, but must do so within 5 days of any initial communication.

While the FDCPA does not specifically reference reporting to a CRA as an "initial communication," both the FTC in numerous advisory opinions and the courts in established case law have interpreted reporting to a CRA as triggering the requirement for dunning notice within 5 days after that reporting.

So you most likely have a violation of FDCPA 809(a) on their part.
The process for addressing FDCPA violations is toruous for the consumer. In and of itself, it is a debt collection practices violation, and not basis for any deletion of their reporting. You can file a formal complaint with the FTC, an informal complaint with a third party, such as your local BBB, or bring your own legal action.
All of which take a lot of time and effort, and will only compel CR deletion if ultimately ordered as a sanction by the FTC or by a judge.
Consumers rarely pursue FDCPA violations to that level, and thus they most likely dont send fear up the spine of most debt collectors.

So what you saying is since they never contacted me they violated FDCPA 809(a). I found out about this debt by running my credit report, I was told nothing from either the collection agency or the origional company.

RobertEG · ‎12-15-2012

Yes, one of the primary intents of FCRA 809(a) is to ensure that consumers are timely aware of collection activity so that it can be addressed promptly.

Presence in your credit report is harmiing you. Submarine reporting without notice within 5 days can result in the info harming their credit rating without their knowledge.

Consumers are not expected to pull their credit reports daily to become aware of collection activity.

GregB · ‎12-15-2012

No, he is telling you that they were required to notify you within 5 days of posting it to your CR since that was the first "communication". Another example of grey areas that come from having way too many laws on the books. It will be difficult to accomplish anything by knowing what they did MAY be illegal.

Anonymous · ‎12-15-2012

@RobertEG wrote:
Yes, one of the primary intents of FCRA 809(a) is to ensure that consumers are timely aware of collection activity so that it can be addressed promptly.
Presence in your credit report is harmiing you. Submarine reporting without notice within 5 days can result in the info harming their credit rating without their knowledge.
Consumers are not expected to pull their credit reports daily to become aware of collection activity.

Well they for sure didn't notify me within 5 days, I will do the things you recommend above. I've come to term with the fact it won't be removed but I do plane on reporting the company.

Anonymous · ‎12-17-2012

@webhopper wrote:
Also; you should try to contact the original creditor and try to pay them in full. If you can get the original creditor paid; then you can dispute the collection account as being invalid... include a copy of the cancelled check or transaction receipt from the OC with your dispute which you send CMRRR to the credit bureaus.

will this actually work, I called the original creditor and they will take payment but she said they would not instruct the collection agency to remove it.