Portfolio Recovery validation question

[Anonymous]

Hello, I have been a lurker for awhile and this is my first post. I've been trying to clean up my credit and have an old JC Penney account I would like to settle. The CA claims I owe about $600, but I know I never had a balance close to being that high. I asked for validation and I was sent three statements from July-September 2009 stating it was a valid debt. My highest balance was $111 in September 2009 and I don't believe I defaulted until some time in 2011. My question is how is this validation? Shouldn't they send me statements where I had past due balances? I'm not sure where to go from here. Thanks for any advice!

[Anonymous]

If they cannot provide you adequate proof then your answer lies in your tolerance for having the collections on your credit report showing as unpaid.

You may be able to get them to take it off your report as part of a deal (get it in writing first).

If they take you to court they have to prove the debt and you MUST show up to win.

I would suspect under the current laws they need to be able to fully document the debt before they can take any AA. If they go the court route the are betting that you will not show up thus default judgement.

If you feel you owe anything close to it, pay it. Try to pay it with the original lender first. If you do that then the collection agency has no right to try and collect any longer and thus has to take it off of your credit report.

I may be incorrect in some of this so waut for other responses confirming the above before taking my word blindly

[Anonymous]

Also remember that you could be looking at late fees, over limit fees, and interest that accrued.

[RobertEG]

What is or is not adequate debt validation is a difficult question to answer, as the statute (FDCPA 809(b)) does not define what constitues validation beyond verification by the debt collector that they investigated and determined there is basis for the debt.   The case law generally does not require documentary proofs.

The determining factor in assessing what a debt collector may attempt to collect is Fdcpa 808(1), which makes it a violation to attempt to collect any amount in addition to the principal amount of the debt unless it is specifically authorized in the agreement that created the debt or otherwise permitted by law,.

Original contracts usually permit for continued accrual of interest, and on a debt of over six years can become substantial.