Collections Reported, Request for Debt Validation Ignored

[Anonymous]

About two months ago I received a letter in the mail from RSI Enterprises trying to collect a "debt" on an administrative citation from the MRCA here in California. I sent back a letter disputing the "debt", requesting validation and also requesting that all phone calls cease and also that future communication be sent in writing to my address. Below is the timeline:

-10/7/19: Date of letter from RSI, Notice of Attempt to Collect
-10/11/19: Received Notice of Attempt to Collect
-11/1/19: Date of my letter to request Debt Validation & for written communication
-11/4/19: USPS notes "arrived at unit" (PO Box)
-11/7/19: USPS notes "available for pickup"
-11/15/19: USPS notes "item picked up by individual"

I received no written response from RSI Enterprises since then. However, they did continue to call me every day despite my request. This morning, I received an alert that a collection was reported to my credit under a new name, Transworld Systems, Inc. (never received anything from this company or even heard of them). I'm not sure if this is another branch of the same collection group or if they sold the "debt" to a new collector (who failed to provide me any notice before reporting to credit agencies)

At this point, I'm not sure how to best proceed or what my options are. The amount of the "debt" is very small, but it's really the principal of these scumbag companies taking advantage of people and not following the letter of the law. Additionally, I don't want this mark to remain on my credit report.

Do I have a leg to stand on here? What should be the next action that I take? Thanks in advance.

[FireMedic1]

Welcome @Anonymous . Truthfully. Why play with fire? If its that small. Whoever owns the debt. Pay it and be done with it. Out of your life. Who is the OC? You could pay them and ask them to recall the debt also. And whos the first collection agency?

[Anonymous]

Thanks for your reply. The OC is the Mountains Recreation Conservation Authority (MRCA). The first CA is RSI Enterprises. 

I agree with you on the amount of the "debt". And yes, I'm using quotation marks because this is all over an alleged stop sign violation caught on security cameras from the rear which cannot prove who was operating the vehicle. There's quite a bit of heated debate over the legitimacy of these administrative citations. It was originally for $100 and has turned into $198 with CA fees.

Given what I've read about MRCA, I'd say it's not likely that they would take payment in exchange for a recall. However, it's all worth a shot. How would I go about doing this? Send them a letter? 

[FireMedic1]

I guess this is some kind of govt thing in your state? If so. I always go by person to person. Go to the office face to face. Pay it and ask them then to recall the debt because its paid and the collection agency has no debt to collect any further. Sneaky. But it may work. Good Luck!

[RobertEG]

As a result of a settlement agreement a couple of years ago in the settlement of a civil action brought by the offices of the AG of several states, the big-3 CRAs have agreed to discontinue the inclusion in their credit reports of debts that are not based on any contract or agreement with the consumer.  That specifically includes traffic violations and other government fines.

If you contact the CRA and provide a showing that it is a traffic violation, they will remove it based on the settlement agreement without any need for any dispute of its accuracy.

[Anonymous]

This is great news... and directly applicable to my situation. Do you know of any examples of anyone successfully challenging based on this ruling and actually getting the removal? I can see the CA trying to get slimy and saying that it's an "administrative fee" or some other BS.

[RobertEG]

For a full copy of the entire settlement agreement, see:

“IN THE MATTER OF:

Equifax Information Services LLC, Experian Information Solutions, Inc., and TransUnion LLC

ASSURANCE OF VOLUNTARY COMPLIANCE/ ASSURANCE OF VOLUNTARY DISCONTINUANCE”

file:///E:/Credit/NatConsumerAssistPlan/CRAcreditsettle.pdf

More specifically, contact the CRA and cite Section IV, subsection E.1.e, of the Settlement Agreement (page 11), which reads:

“The CRAs shall prohibit Collection Furnishers from reporting debt that did

not arise from any contract or agreement to pay (including, but not limited to,

certain fines, tickets, and other assessments)”