No validation -- Can CA continue reporting?

[SFernandez13461]

After a few hard won successes and some demoralizing losses trying to clean up my credit report and DH's last year, I took a break for several months, and now I'm trying to get started again. At this point we have several COs listed (5 on mine, 1 on his) and two collections each. Everything's out of SOL. Some were settled. Some were deleted. And they all have a little over two and a half years left on the CRTP.

I'm trying to get one of the CAs off of DH's credit report now (Zenith). It's currently reporting as closed/unpaid. I sent them a DV (certified mail, return receipt) dated 10-18-11 and received a notice they would place the account on hold while they obtained supporting documentation. I sent a second request dated 11-28-11 (also certified mail, return receipt) and didn't receive anything else from them. In December 2011 I disputed the collection with Equifax, but it came back verified. And I just submitted a second dispute and filed a complaint with the BBB against Zenith.

I've since found out they sold the account when I asked for validation, and every time a new CA pops up I send them a DV and then we start the dance all over. No one else is reporting at this point. I've also called the OC and they can't provide any information on the account either.

I guess I'm asking for clarification after acting -- I'm a little rusty -- but I seem to recall there's something in the FDCPA that says if they can't validate, they can't report. Honestly, I can't remember some of the details of what I learned here. But if anyone has any input or suggestions on how to handle this CA, I would appreciate it.

I'll post whatever the results are.

Thanks. 

[RobertEG]

The DV process under FDCPA 809(a) and (b) never requires the debt collector to provide verification. It basically is a process that imposes, under certain conditions, a cease collection bar on the debt collector until such time as they choose to provide verification.

In order to impose a cease collection bar, the DV request must be timely.  A DV request is timely if the debt collector has not yet provided dunning notice, or if they have provided dunning notice, the DV is sent within the 30-day window provided by the statute.  Section 809(b) does not specifically itemize further reporting to a CRA as a barred collection activity, but the courts and the FTC have uniformly made that interpretation.  However, the bar only applies to further reporting until verification has been provided.  It does not retroactively appy to any prior reporting, and is thus not a basis for deletion of prior reporting.

Were your DVs timely?

If they did continue collection activities while under a cease collection bar, recourse is to pursue their violation of the FDCPA, such as by way of complaint to the FTC, a BBB, your state AG, or initiating of your own legal action. 

The FCRA does not provide for deletion of reporting based specifically on violation of their debt collection responsibliites under the FDCPA.

[SFernandez13461]

***Update***

Just checked DH's report and Zenith is gone. I don't know whether it was the second dispute, the BBB complaint, or the combination, but they finally deleted. When I started he had nine derogs, and he's down to two.

[ficojoe]

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@RobertEG wrote:

The DV process under FDCPA 809(a) and (b) never requires the debt collector to provide verification. It basically is a process that imposes, under certain conditions, a cease collection bar on the debt collector until such time as they choose to provide verification.

In order to impose a cease collection bar, the DV request must be timely.  A DV request is timely if the debt collector has not yet provided dunning notice, or if they have provided dunning notice, the DV is sent within the 30-day window provided by the statute.  Section 809(b) does not specifically itemize further reporting to a CRA as a barred collection activity, but the courts and the FTC have uniformly made that interpretation.  However, the bar only applies to further reporting until verification has been provided.  It does not retroactively appy to any prior reporting, and is thus not a basis for deletion of prior reporting.

Were your DVs timely?

If they did continue collection activities while under a cease collection bar, recourse is to pursue their violation of the FDCPA, such as by way of complaint to the FTC, a BBB, your state AG, or initiating of your own legal action. 

The FCRA does not provide for deletion of reporting based specifically on violation of their debt collection responsibliites under the FDCPA.

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While under the collection bar for not responding to a DV, if the item is disputed with the CRA, is verification of the debt to the CRA by the CA a violation of the FDCPA?