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lindsaylohan
Joined: 08 Jan 2009
lindsaylohan's page
Posts: 1
72 Magic Points
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Subject: Unvalidated debt jumping from CA to CA
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Thu Jan 08, 2009 1:14 am
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I've read through many of these threads and haven't really found anything similar.
I had a cell phone with *****. Long story short, they are claiming I owe them a balance. I am claiming that it was paid in full.
I'll get a letter from a CA, dispute it, and never hear from them again. Then I'll get a letter from a different CA, dispute it, and never hear from them again. I'll find one on my credit report, dispute it, it will get deleted.
How do I make it stop? The debt just gets transferred to someone else and re-aged. |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1308
28489 Magic Points
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Thu Jan 08, 2009 6:27 am
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Hi Lindsay
A debt is sold by the original creditor to a collection agency if he considers it as a bad debt. Normally the collection agency purchases outstanding debts in bulks at 50% of the outstanding debt amount and sometimes even less. Most of them even do not collect the original signed contract which was made between you and the original creditor and so they cannot validate the debt properly. If they cannot validate the debt properly they lose their right to collect the debt.
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Keep in touch
Carol |
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anthony
Joined: 31 Jul 2006
anthony's page
Posts: 550
13573 Magic Points
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Thu Jan 08, 2009 6:38 am
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Yes, if the collection agency cannot validate the debt due to absence of documents, it loses the right to collect the debt as per the Fair Debt Collection Practices Act and so they sell of the debt to another collection agency. The new collection agency purchases the debt in the hope that you will not ask for debt validation and come to repayment agreement to pay off the debt. They think in such a way because most of the debtors are in fact ignorant of debt validation. Now if you again ask for debt validation, and they cannot validate it, the new CA again sells it to another CA and this process continues till you repay one of them or till the seven year period expires.
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Anthony Marx
A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible. |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1093
25288 Magic Points
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Thu Jan 08, 2009 6:49 am
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It is very difficult to stop them from reporting the debt to the credit bureaus. Whenever, you find any such listing in your credit report, and you ask for debt validation, you should send the DV letter by certified mail with return receipt. If they cannot validate the debt within 30 days, send dispute letters along with the copy of the return receipt to the bureaus asking them to remove the listing. To get a sample dispute letter, visit the link letters of credit
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All the Best 
Justin |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4121
1011 Magic Points
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Thu Jan 08, 2009 12:23 pm
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| I just asked this question on another thread. Is there a legal way to keep collectors from reselling a debt time and time again? How about if a person can prove they paid this debt in full? It seems like it would be a headache and very time consuming to keep proving you paid this debt time and time again. Not only that you would continually have to monitor your credit report and dispute it if a listing was put there. With all the credit card protection laws put into place you would think there would have to be something addressing an issue like this. |
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Guest
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Subject: credit
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Fri Jan 09, 2009 3:48 am
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| REALLY good point, FIREYONE. I suppose if the CA's aren't going to Validate debts, it's worth it to NOT get paid for them. LOL Also...as we are on the subject of Validation, would it matter if you actually SIGNED a 'contract',..or..if it was an an E-Signature? I would think if it was an E-Signature, you could Dispute on just THAT fact. |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1093
25288 Magic Points
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Fri Jan 09, 2009 9:33 am
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Even if you have applied for the debt online, they have the proof in their system that you have applied for the same. They can take a print out of the e-statement which will also act as a proof that you have accepted the debt. For example, if you have taken a loan through e-signature, they must have transferred the loan to your bank account, and they have with them the transaction details. So you cannot escape even if you have got the loan online.
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All the Best
Justin |
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Mary
Joined: 06 Jul 2006
Mary's page
Posts: 730
17413 Magic Points
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Fri Jan 09, 2009 9:50 am
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Yes, Justin is right. Even if you go for a credit card and apply it online, it automatically gets into their system. Mostly the credit card companies send the credit cards by certified mail and when you sign and receive your credit card, it automatically means that you have signed the credit card agreement. The credit card can use this receipt as a document during the time of debt validation.
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Where there's a will, there's a way !! |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4121
1011 Magic Points
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Sat Jan 10, 2009 3:37 am
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| I never heard of them sending certified mail but it is a good protection on both the custimers side and the credit card company's. It would keep you prtected from ID theft and cc theft if the card was stolen out of your box and protect them by being able to prove you signed for the card. We applied for our discover card on line years ago and it was sent regular mail. I do not remember ever signing a contrat agreement. Maybe activating the card and a statement sent along saying "By activating thos card'..Could that be it. Not planning on defaulting just was thinking when the e-signature question was asked. |
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Doc
Joined: 02 Dec 2008
Doc's page
Posts: 165
Location: McKinney, TX
219 Magic Points
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Sat Jan 10, 2009 8:43 pm
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A quick correction Anthony...
Failure to validate by the collection agency DOES NOT mean they can no longer collect the debt. They are just as able as they ever were. They simply cannot (legally) report the information on your credit reports.
Unless a judgment or court order requires the cessation in collection activity, there exists no obligation on the part of the CA to stop.
Most CA's simply give up if you fight... Then they sell it for a loss...
The good news is, as these debts change hands repeatedly, there marketablity goes further and further down, and the cycle eventually ends.
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-Doc Compton, Omega Credit Repair
I provide info for free, & all I ask is that you visit my site... I don't wanna sell you anything, I just wanna increase my traffic, and push my site up in the search engine rankings...
http://www.omegacreditrepair.com |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4121
1011 Magic Points
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Sun Jan 11, 2009 3:57 am
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| Glad you dropped in here Doc. Let me say you have really been a big help to this forum. I thought if a debt was not validated the judge could throw it out since they violated the Fair debt collection act. How can they still legally collect on a debt and where then is the consumers rights and protection? Alos one more quick question..how long is that tiem period before the cycle generally ends. I have seen posts where a debt could be consudered extainct and some one is trying to collect on it. |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1343
162 Magic Points
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Subject: credit
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Sun Jan 11, 2009 4:19 am
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| Yea, Doc.....your advice is great!! However.........if the CA's keep selling the debts to OTHER CA's, how do we know, when we ask for 'Validation', that a 'valid' one will be sent to us? Hope the question is clear. |
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