Open vs Closed Collection

[Anonymous]

After reading non-stop for the last few weeks, I started the repair process. I've had some luck with PFD and GW so far but now I'm lost. I have one from Midland from 2012 that's showing a $766 balance, $580 balance that was the original CO amount, and updating monthly to all 3 CR. I sent a DV to Midland about a month ago after receiving a letter from them. I know it's long past the original 30 day timeframe but this was the first letter I remember getting from them. They seem to have been sending all the stuff to an old address from back then. Within 2 weeks of them getting the DV, all of my CR have changed the status from open to closed. I've scoured the site trying to figure out if that means anything but I'm not coming up with much. Can anyone tell me if this means anything, short of calling them to ask if they're selling the debt? I'm outside of SOL as of a few months ago and they did include that in the letter they sent in April. I'm just wondering if they're planning to sell it or what's going on. Is there anything else I should do? I know they won't do PFD but will it hold down my score the same if I pay it and have it update as paid or just let it ride until it drops? 

[Anonymous]

I had a similar situation happen to me years ago and that was because my account was sold to another agency. You should definitely look into it because sometimes collection agencies will try to double report you.

[Anonymous]

Midland Tried doing that to my wife and she called and told them that it was wrong if they sold it that they needed to show the blaance as zero, not even 24 hours letter she got the call that Midland owned it again and now she owed Midland the money. 

[RobertEG]

If they no longer have collection authority, then they must close the collection. 

However, reporting closed could signfiy a temporary cessation of collection on the debt, such as is imposed by a timely DV request.

The CRA credit reporting manual instructs debt collectors to delete their reported collection if their collection authority is terminated and the debt remains unpaid.

However, that does not explicity extend to the simple reporting of the collection as closed.

I would not go so far as to make the legal case that a closed collection requires deletion of their credit reporting, but it is an inference of possible temination.

If/when you become aware of actual termination of collection authority, either by way of termination of assigned collection authority or, it they own the debt, its sale, then you can contact the CRA and obtain deletion based on CRA reporting policy.

[Anonymous]

Thanks, Robert. I know they own the debt and have since late 2012. Can I do something like send them a letter asking if they're selling it or would it be smarter to call without taking ownership?  I realize that the wasn't considered timely because of being out of that window. Does the consent order put on them require them to do anything to validate other than matching me against the their records and not answering anything I ask them? From what I read, PA requires them to show me how they calculate their fees if asked. Is that correct? 

[Anonymous]

Yes it does, from what I heard upon request they need to show the break down of their costs and fees

[RonM21]

I believe this would be correct as i'm in PA also and have heard this before.

[RobertEG]

The federal FDCPA does not include itemization of the debt as a specific requirment for validation.

What is requirmed is an investigation and statement that the debt is verified, and if additionally requested, the name of the original creditor.

There is some non-precedential case law affirming requests for itemization, but the only formal requimrent is in New York State, where the recent regulations require debt buyers to provide such an itemization. See 23 NYCRR 1.2(a)(2).

I would request it, but whether it is a binding requriment is not certain except for residents of NYS to make requests under the new NYS regs.

[RobertEG]

PA does not have an enhanced requriement for providing itemiization.

[Anonymous]

In my previous request to them, I've asked for them to send anything at all in order to show that they have any records other than my name on a spreadsheet. I also asked for the breakdown as far as fees and interest but I can't seem to get them to respond at all. Has anyone else been able to get them to respond to any requests?