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I received a letter from a collection agency regarding an alleged debt in my name. I sent a debt validation letter and in their response, they listed the alleged debt and the original debter but there was no information proving their authority to collect the debt on behalf of the original debter (which I asked for in my debt validation letter). Doesn't this have to be provided to me by the CA in order for the debt to be successful validated?
Hi,
Unfortunately, the standard they must meet for debt validation is so low you could not even trip over it. They simply have to state the original creditor and amount due. You can ask them for anything you want--does not mean they are required to give that info to you.
Business records proving that a debt collector has either purchased or been assigned collection authority are not information that is required under FDCPA 809 in order to validate a debt.
If you have some evidence that shows they do not have legitimate collection authority, you could use that as a basis for disputing their collection, but a mere fishing expedition that requests documentation of ownership or assignment records is not a formal part of the debt validation process.
Regardless, a debt collector is not required to provide any validation, so if you assert for any reason that what they have provided is not adequate validation, you essentially asserting that the debt remains unvalidated. The result would be that if your DV request was timely, they remain under a cease collection bar. There would be no violation unless or until they resumed active collection on the debt without first having provided adequate validation.
You could then file a civil action asserting violation of the cease collection bar imposed by your DV, and get the issue of adequacy resolved by the court. I am not aware of any precedential case law that holds adequate validation under the FDCPA must include proof of ownership or assignment of collection authority.