Does DV and Cease Collection Include Remove Entry from Credit Report?

[Gail752]

In Dec 2012 I received a collection letter from Enhanced Recovery for an AT&T balance that I didn't recall owing (I have always had AT&T so it's not clear when I would have had a final bill). I called AT&T first but they had no record of any outstanding balance. So I sent ER a DV within 30 days CMRRR. I've heard nothing. 

In May 2012 I pulled my credit report and the ER entry was on the report as a collection. I disputed it as I thought once a DV was sent collection had to cease. I assumed "cease" also meant removal or no entry on the credit report. I heard nothing back and forgot about it.

Today I pulled my credit report and ER is still reporting the outstanding amount as an active collection (no mention of a dispute).

I am in the process of repairing my credit. As the amount owed is less than $50, I thought of offering them a percentage for a PFD (although it bugs me to pay something I don't recall owing) and peerhaps CAs rely on people giving up on disputes - like I am consider doing! 

When you say that CAs have to cease collection if they receive a DV what does that entail? Should the entry be removed from the credit report during this time? Or does "cease collection" mean they can't call me or send me letters but they can keep the entry on the credit report? 

[Anonymous]

Send them a direct dispute under FCRA 623(a)(8).  They have to respond to you within 30 days and make corrections and/or deletion/update.

“This is a Notice of Direct Dispute with you, under the provisions of FCRA §623(a)(8)(D), of the accuracy of information you have reported to my credit file.

       ►       (If sent to a debt collector, (CA), it might  be beneficial to also include the blurb:

       ►  “This is a direct dispute of credit reporting. This is not a request for debt
              validation/verification  under FDCPA §809(b).”.
                  (don’t let them just simply sluff it off as a meaningless  DV letter)

“In compliance with FCRA §623(a)(8)(D), and enacting regulations published at  16 CFR § 660.4, this Notice of Direct dispute includes:

 “Identification of the specific information being disputed:
           (specify the account number, and the specific information that is disputed under

             that identifying account)

“Basis for the dispute:

            (how the reporting was inaccurate;    was any reporting in violation of any statutory or

             regulatory provisions?  account or express agreements?  CRA reporting gudelines? Account not

              yours? etc.)

“Supporting documentation:

            (all documents that support your dispute; it is recommened to also include,

             as part of your documentation, at least a copy of the portion only of your

             recent credit report showing their reporting of the disputed information was

              actually reported to your credit flle.  The implementing rule suggests a  showing

               that it appeared in your credit report)

[RobertEG]

I presume the CR was pulled in May, 2013, and thus their reporting was after receipt of timely DV.

FDCPA 809b) states that if the DV is sent within 30 days of dunning notice, then the debt collector must cease collection on the debt until they have provided debt verification.

While reporting of their collection is not specfically stated in the statute as collection on the debt, there is abundant case law on point.

So yes, they have violated their cease collection bar.

However, the FDCPA regulates debt collection practices, not credit reporting. Neither the FDCPA nor the FCRA require the reporting to be deleted based on violation of debt collection prohibitions.  Thus, there is no basis in my opinion for requiring deletion of their reporting based on any violation of their cease collection bar.

Their violation can be addressed by formal complaint to the FTC, or by bringing your own legal action, of which an order for CR deletion might be sought, but absent an order to that effect, the FCRA has no provision for requring deletion at this time.

[Gail752]

Thanks!! I will get right on that. 

One other quick question. Due to a creditor closing my account in Dec 2012, I was able to request a TransUnion credit report in January 2013. I didn't take the time to look at the report until today when I finally decided this 800 pound gorilla (potentially negative items) is not going away anytime soon unless I buckle down and fix it. 

IC Systems is listed on TU as the CA to my owing the same amount of money on behalf of AT&T. In other words there are two CAs showing I owe AT&T the exact same amount. IC Systems is not listed on the Experian report I received today. 

While I understand not all businesses report to all three credit bureaus, how does it happen that 2 CAs hold the same debt? 

Since I still don't believe this debt is mine, how do I proceed with IC Systems? 

[DaBears]

2 CA's can list the debt only one of them can actively collect on it.

[Jaxavier]

Your DVL was sent within 30 days of receipt of original notice, correct? If that's the case, then no, they cannot report according to the opinion of the FTC

http://www.ftc.gov/os/statutes/fdcpa/letters/cass.htm

[RobertEG]

If a debt collector has their collection authorty terminated, either by termination of their assigned authorty from the debt owner or by sale of the debt to another, they are required to update their reporting to $0 under collection.  They are not required to delete the reporting of the fact of their prior collection authority.

You can have two collections in your CR based upon the same debt, but only one can be active.

[Anonymous]

---

@Gail752 wrote:

Thanks!! I will get right on that. 

One other quick question. Due to a creditor closing my account in Dec 2012, I was able to request a TransUnion credit report in January 2013. I didn't take the time to look at the report until today when I finally decided this 800 pound gorilla (potentially negative items) is not going away anytime soon unless I buckle down and fix it. 

IC Systems is listed on TU as the CA to my owing the same amount of money on behalf of AT&T. In other words there are two CAs showing I owe AT&T the exact same amount. IC Systems is not listed on the Experian report I received today. 

While I understand not all businesses report to all three credit bureaus, how does it happen that 2 CAs hold the same debt? 

Since I still don't believe this debt is mine, how do I proceed with IC Systems? 

---

I misread your original post. I didn't realize you had sent a DV letter before they reported.  Between the time they receive your DV and the time they return validation they cannot report.

This is part of a FTC opinion letter, which is just that opinion and not law.  But they can report in the 30 days you have to dispute.

I. "Is it permissible under the FDCPA for a debt collector to report charged-off debts to a consumer reporting agency during the term of the 30-day validation period detailed in Section 1692g?" Yes. As stated in the Commission's Staff Commentary on the FDCPA (copy enclosed), a debt collector may accurately report a debt to a consumer reporting agency within the thirty day validation period (p. 50103). We do not regard the action of reporting a debt to a consumer reporting agency as inconsistent with the consumer's dispute or verification rights under § 1692g. 

[Jaxavier]

Wow....did hell freeze over?  Because Guiness actually agreed with me.  LOL.

Yes, that's only the opinion of the FTC, but there is caselaw on this....just can't recall it offhand. 

[Anonymous]

Actually, I am not agreeing with you.  Read the letter carefully.  It states they can report.