TX Finance code DV - what they sent me

[jn1980]

I sent a TX DV finance code letter to a lender that bought a car I cosigned on and was repoed in 2011. Here is what they sent me:

1) letter of date they assumed the original debt with signatures
2) balance (something they printed up themselves)
3) date of last payment (which is incorrect-something they printed up)
4) original loan amount (something they printed up)
5) motor vehicle retail installment sales contract with both of our signatures (copy is COMPLETELY illegible because of the poor quality of the copy. I can't make out 90% of letters or numbers. Also where the vin is supposed to be is blacked out)
6) credit application with only my exhusband's info and no signatures from either of us
7) notice of plan to sell vehicle (no specific date, time location of auction)
8) letter with date that the car was sold at auction and calculation of deficiency (which doesn't match the amount owed)

If anyone is an expert with repos in Texas I would love to send you the pages. Any feedback? I feel like a lot is left out...

[RobertEG]

Section 392 of the TX Financial Code applies to debt collectors, not original creditors.

If it was sent to the lendor that sold the car, it does not apply.

It thus appears that they had no requirment to proivde anything, and thus whether or not what was provided is adequate appears moot.

As an aside, since the post apparently acknowledges responsibility for the debt, and the TX process requires that the consumer "dispute the accuracy," it is not clear as to whether the consumer has met thte burden of any requirment under the TX Financial Code, even if it had been sent to a debt collector.

Is it beiing asserted that the debt is not, in fact, valid?

[jn1980]

This was sent to a collection agency, not an original creditor. The original creditor never sent the required notices to me that the car was being sold, which is required by law. Because of that, I'm not responsible for any deficit they incurred when they sold it.

Aside from that, any feedback about what they sent me?

[RobertEG]

If you dont consider what they have sent to be adequate validation, then you can assert that they must report deletion of their collection until such time as they do validate.

They appear to have complied with the code by responding, leaving the issue of whether they validated.

If they did not validate, the code requries deletion of their colleciton.  I would send them a letter advising of your determination that theri respoonse is inadequate, and demainding deletion of their collection.

If they continue collection activities you can bring action or file a complaint for violation of the cease collection bar. 

[jn1980]

Here is the letter I was thinking of sending them in response. What do you think?


On June 16th you signed for a letter wherein I requested validation of this debt per Texas Finance Code Section 392.202. The paperwork I received from you on June 25th was insufficient to validate this debt for multiple reasons including the following:

1) I did not receive any paperwork proving that an account in my name was transferred to your company. An assumption contract that does not specifically list an account belonging to me is not sufficient.
2) There are THREE different final balances listed without any details about how those amounts were calculated and I did not receive an accounting of any fees added by your agency. Sec. 392.303 (a)(2)
3) I did not receive any Texas Surety bond information as required by Sec. 392.101
4) The installment sales contract you sent is a document fragment and also completely unreadable and the VIN number of the car has been blacked out.
5) there was no notice of the date, time, location of the auction where the vehicle in question was to be sold, which is required by law in order to collect a deficiency from the sale.

You have failed to respond to my debt validation request. Your collection activities must cease until you are able to properly validate this debt. Continuing any collection activities would

Please do not call me or contact me except via US MAIL.

[jn1980]

I deleted "continuing want collection activities would"

[Anonymous]

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@jn1980 wrote:
I deleted "continuing want collection activities would"

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I would end it with ..."your collection activities must cease and any current reports of this collection to all consumer credit reporting agencies are to be deleted (cite the applicable code here) until such time as proper validation under Texas state law is provided."

[Anonymous]

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@jn1980 wrote:
Here is the letter I was thinking of sending them in response. What do you think?


On June 16th you signed for a letter wherein I requested validation of this debt per Texas Finance Code Section 392.202. The paperwork I received from you on June 25th was insufficient to validate this debt for multiple reasons including the following:

1) I did not receive any paperwork proving that an account in my name was transferred to your company. An assumption contract that does not specifically list an account belonging to me is not sufficient.
2) There are THREE different final balances listed without any details about how those amounts were calculated and I did not receive an accounting of any fees added by your agency. Sec. 392.303 (a)(2)
3) I did not receive any Texas Surety bond information as required by Sec. 392.101
4) The installment sales contract you sent is a document fragment and also completely unreadable and the VIN number of the car has been blacked out.
5) there was no notice of the date, time, location of the auction where the vehicle in question was to be sold, which is required by law in order to collect a deficiency from the sale.

You have failed to respond to my debt validation request. Your collection activities must cease until you are able to properly validate this debt. Continuing any collection activities would

Please do not call me or contact me except via US MAIL.

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Change to "You have failed to adequately validate this debt as requested."  They have in fact responded, they just have not validated.

[jn1980]

Thanks, those are helpful critiques!

[RobertEG]

So the net result is that you are asserting that they remain under a cease collection bar based on what you consider to be lack of adequate validation.

Lack of validation does not equate to any violation of the TX Finance Code itself provided they dont contnue collection activities or report to a CRA until they have first validated.  I would not push lack of validation of the original loan, as you apparently dont contest its validity.

In my opinion, pursuit of your issue via the DV process is incomplete, as you dont deny cosigning for the loan, and thus a valid debt.

I would consult an attorney regarding additionally pursuing any violation of TX code related to notice and sale of the vehicle, and thus the net debt balance, not the valdity of the original debt.  That appears to be the real crux of the legal issue.