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Debt Validation: An instument to protect yourself from CAs.

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goodnatured



Joined: 03 Nov 2007
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Posts: 3133



5260 Magic Points
Subject: Debt Validation: An instument to protect yourself from CAs.
 
 Posted on Sat Aug 09, 2008 10:12 am  
What constitutes proper debt validation? We talk a lot about it here, but nobody has ever said what it is?
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Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
Lorri



Joined: 15 Jul 2008
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6 Magic Points
 
 Posted on Sun Aug 10, 2008 2:29 am  
I am not sure. Do you ever go on the debtcc forums? They have a lot of information about it on that site. I always thought that a company had to provide proof that the debt belonged to you and that the you, the debtor owed them. There is probably a much clearer explanation.
 
goodnatured



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5260 Magic Points
 
 Posted on Sun Aug 10, 2008 2:42 am  
I have heard, now this is just hearsay, that they must prove that you have a contract with them as you do with the original creditor, if not, then it is no good. However, if there is something in the original agreement with the original creditor that they can sell it off and those collectors can collect it lawfully, then the collection agency must produce that contract between the collection agency and the original creditor that the contract was actually transferred to them for a collection account.

When these collection agency purchases these dead accounts they often buy them in bulk, with little or no paper work in hopes that the everyday consumer will just pay what they are requesting and they make their profit.

Now, this is only what I have learned through my ordeal of dealing with the collection agencies is that they usually don't have anything to back their claim, I do not owe the debt to them, I had no contract with them, they purchase these accounts for pennies on the dollar in hopes of making a few hundred dollars on each one.

My question is though, what constitutes legal, real, sueable, concrete validation????
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Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
fireyone



Joined: 26 Feb 2008
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 Posted on Sun Aug 10, 2008 2:47 am  
That really sounds about right. I posted on another that I believed they had to have the original contract. I believe that I actually read it somewhere on this site. The debt forum probaly would be an excellent place to post that question. I also think it is worth your time to visit that law guru site. Who better to ask than an atty?
 
goodnatured



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5260 Magic Points
 
 Posted on Sun Aug 10, 2008 3:03 am  
Well, I thought I would kick it around here a little bit and see what everyones thoughts were here on it, I did post it on the debt forum and did not get a good concrete answer either. I thought it would be a good discussion here and would like to see what other responses I get before I pursue something else.
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Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
fireyone



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1645 Magic Points
 
 Posted on Sun Aug 10, 2008 3:05 am  
I would still pursue getting the answer somewhere else. sometimes we here are split on things when it comes to a concrete answer ( kind od like the 30 or 180 days thing I inquired about) I would want to know for my own protection.
 
goodnatured



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 Posted on Sun Aug 10, 2008 4:56 am  
If I find out anything else on it, I will post it here for you.
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Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
fireyone



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 Posted on Mon Aug 11, 2008 1:37 am  
I really hope that you will do that. A lot of people do not come back and update. I think that is a sad thing because it adds more knowledge to the forum.
 
Justin

Justin

Joined: 17 Jul 2006
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10749 Magic Points
 
 Posted on Mon Aug 11, 2008 9:36 am  
debt validation is an instrument which is basically used by the borrowers to check whether he actually owes the debt to the creditor or the collection agency which these agencies are claiming. As per the fair debt collection practices Act, the customer can ask the debt collector in writing to validate the debt and the debt collector must stop collection of the debt until and unless he validates the debt. However, the debt collector must validate the debt within 30 days of receipt of the the debt validation letter.
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Mary

Mary

Joined: 06 Jul 2006
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 Posted on Mon Aug 11, 2008 9:47 am  
I agree with Justin. However if the debt is sold by the original creditor to any collection agency, Debt validation in this case means that the collection agency must prove that the you presently owe the debt to CA. Mostly, what happens is that, these collection agencies purchase these debts at very low price and may not be able to validate your debt. In such case you are no way responsible to pay off the debt.
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Where there's a will, there's a way !!
 
fireyone



Joined: 26 Feb 2008
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 Posted on Mon Aug 11, 2008 12:45 pm  
I am sure alot of people who are new to this site wish they had known that in the beginning. They probaly could have reached a better deal. I know someone who was working 24/7 to improve her credit and paid of past collections that were a lot higher after passing through several creditors. Had she of known of debt validation and the pay for deletes her credit report could have been a lot better than it is now. I think that would have been very deserving for as hard as she worked. When it comes to the pay for deletes I think these agencies need to let the consumer know that it is an option. Especially for the ones who are facing the debt trap for the very first time. It really doesn't take much for the collector to get these b ad marks removed.
 
goodnatured



Joined: 03 Nov 2007
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Posts: 3133



5260 Magic Points
 
 Posted on Tue Aug 12, 2008 1:19 am  
I know I would have used this leverage to get things deleted, they reported it paid, they could just as easily remove it, but they do not have the power to remove the original creditors black mark and if the add on collectors do not count on your score then what is the benefit of having them remove it any way. Now if them reporting it also lowers your score, which I have always heard that it don't, even if ten report it, it only counts as one debt. How does one removing it help?
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Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
fireyone



Joined: 26 Feb 2008
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Posts: 2845



1645 Magic Points
 
 Posted on Tue Aug 12, 2008 12:24 pm  
Oh I see so it really wouldn't do much good besides saving a little paper when printing your credit report. So I wonder why people do go for the pfd? If the OC is still on there what would it matter? That doesn't make too much sense to me. I am sure there is a good reason for it. Maybe someone will let us know. If not it just backs up my idea that only one can list.
 
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