I sent a DV letter to Enhanced Recovery Services, for a Dec. 2008 collection that reported to all 3 CRAs. They intepreted this is a dispute, and sent back the letter below.
I'm not sure what to make of this - it seems too easy - Will they actually delete it? Will they re-report it since they seem to be able to "confirm" the debt? Or will they sell if off? (A $92 debt that's 5 years old can't be worth much...)
I'd really appreciate advice from anyone who's gotten a similar letter - Did this tradeline get deleted?
Our offices are in receipt of your letter of dispute and request for verification pursuant to 15 U.S.C 1692g of the Fair Debt Collection Practices Act. This letter is a response to your dispute. Please be advised we have contacted our client, who has confirmed the name and address listed on the account as well as the amount owed. Enclosed is a summary of the charges on the account and any billing statements provided by our client that confirm the charges.
Please be advised we have reported this debt to consumer reporting agencies, but in acknowledgement of your dispute, we have requested the account be removed from all credit reporting agencies. Consumer reporting agencies may take up to 30 days or longer to update reports and this is beyond our control.
Should you have any questions regarding this account or any information provided at this time, please feel free to contact us.
Yeah it's also strange because they use the term "confirm" rather than "validate" - Does anyone know if there's a legal distinction there? Do you think that this "confirmation" and attaching a bill with my old address on it is just supposed to get me to pay?
A couple of other people posted similar letters to this forum but never followed up with whether or not it got deleted.
Technically, a DV is a "dispute" in that FDCA 809(b) refers to a DV as a notification that "the debt, or any portion thereof, is disputed..."
However, it is not the same as a "dispute" of accuracy of credit reporting under the FCRA dispute process, as a DV requires no identification or documentation of any error.
Unfortunately, both statutes use the same term to define different processes. It might have been clearer if the FDCPA had used a term such as "contest," to distinguish between the two......
They have not treated it as a direct dispute, so I see no substative issue as to interpretation as an FCRA dispute.
They have verified, so they can, if they choose, continue collection activiies, regardless of whether they voluntarily delete their credit reporting.
However, deletion implies that they may be out of the picture.
Thanks for this clarification.
So what in their response told you that they didn't see this as a "direct dispute"? They called it a dispute in the first line...
I'm just concerned that they'll delete, but then it will be resold and pop up again...
They made no reference to any asserted innacuracy in credit reporting in your letter, and did not address any verification of their reporting.
They addressed confirmation that they obtained verifixation of the debt from the OC. That is debt verification, not verification of credit reporting.
Yes, it could be reported by a new debt collector, or even reinserted by them.
Uh-oh. Do you have any sense of how likely that would be, for a $92 debt from 5 years ago that is beyond SOL? Is it worth their effort?
Hard to say.
Many debt collectors use credit reporting as a primary tool to pressure consumers to simply pay, as most consumers believe that payment will automatically require deletion of the reported collection.
If they sell the debt, it will be at a substanila discount from its face collection value. Thus, potential recovery usually incrases for the new owner, even though a small amount.
The cost of reporting is less than the amount of the possible benefit, so it becomes a business decision.