Credit Tips: Recourse for Unverified Debt

Posted On: May 1, 2005

Posted: Fri Apr 29, 2005 1:34 am
Guest: ginger
Post subject: Recourse for Unverified Debt

There is a collection on my credit file with TransUnion. This is the same as a revolving account which is also listed as chargedoff bad debt.
I have requested twice via phone and three times CRRRM for a copy of the original invoice authorizing the debt. Asset ignored all requests for validation. They bought the debt and added approx. $1400.00 to a debt that was originally $400.00. I have sent several letters via CRRRM to TransUnion requesting validation or deletion of this information. I have yet to have anyone, either Asset or TransUnion Validate this debt. Asset claims the account was opened 1-25-05 with a balance off $1888. This is false. The account was opened 12-11-01.

What recourse do I have?

Can TransUnion list this debt twice?

Thanks for any help.

Post subject: Recourse for Unverified Debt
Posted: Fri Apr 29, 2005 8:20 am

Unfortunately both the original creditor and the collection agency can list the debt, but if it was sold like you said, the original creditor listing must show zero balance on the amount owing.

You can check licensing on the collection agency in your state, also contact the FTC and file a complaint against this company, you can also get your states attorney general invovled in the matter file a complaint with them… also finally you can file a complaint through the better business bureau web site.

www.ftc.gov
www.bbb.com
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Guest: ginger
Post subject: Recourse for Unverified Debt
Posted: Fri Apr 29, 2005 10:56 am

Thanks for your reply,

I still have questions:

If I notified TU that I dispute this debt aren’t they obligated to obtain validation of the debt or delete the entry?

How do I check the Liscensing?

Who Must report the zero balance the CA or TU?

Is is legal to apply prodigious fees to the original debt? Aren’t there limits?

How can Asset report that the account was opened 1-25-05 with that inflated balance?

Post subject: Recourse for Unverified Debt
Posted: Fri Apr 29, 2005 11:35 am

ginger wrote:
If I notified TU that I dispute this debt aren’t they obligated to obtain validation of the debt or delete the entry?

TransUnion does not validate the debt, what they do is ask the creditor or collection agency to verify the debt, there is a difference here.

Verify: Check records they have and make sure everything is accurate. Report back verification or update to make changes to said account listing.

Validate: Means to contact the original creditor and obtain proof that the debt belongs to you and to forward what they have to you proofing ownership of the account.

Quote:
How do I check the Liscensing?

http://www.searchsystems.net/

Look up your state for licensed collection agencies, they should have that listed if the collection agency is required to be licensed.

Quote:
Who Must report the zero balance the CA or TU?

The original creditor is obligated to report to TransUnion that the account is sold / zero balance. You can dispute the listing direct with TransUnion. I would suggest trying to dispute for deletion though. Like please remove I don’t have an account with this company owing… see what they find, either it gets removed, or updated.

Quote:
Is is legal to apply prodigious fees to the original debt? Aren’t there limits?

That is why when you request debt validation you request that they send you a copy of the original contract showing where they have permission to add such fees. The collection agency is obligated to only add what fees are allowed in the contract between you and the original creditor, they can’t just add their own fees.

Quote:
How can Asset report that the account was opened 1-25-05 with that inflated balance?

They must be reporting the debt that the account was assigned to them, they are also obligated to report the date the account defaulted for the credit reporting agency to determine length of time it should remain on the credit report. The collection listing is not allowed to exceed the time period the original creditors listing is to remain on the credit report.

You can check this by calling TransUnion direct and asking for the expiration date on the collection listing, and then working the formula backwards to see if it matches when the original creditors listing is to expire. They should both have the same expiration date.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

ginger
Post subject: Recourse for Unverified Debt
Posted: Fri Apr 29, 2005 12:28 pm

Thank you very much, you info is very helpful.

Should I send copies of; my letters to Asset asking for validation of debt to, the FTC and state Atty Gen when I file a complaint?

I used the search site you provided and discovered that Asset is not licensed in my state. What does that mean to me?

Post subject: Recourse for Unverified Debt
Posted: Fri Apr 29, 2005 12:42 pm

What state are you from? Did it show licensing as a requirement for your state?

If it is suppose to be licensed, and they try to sue, then you need to apear in court and point out to the judge that they are not licensed to be collecting in your state. The case should be thrown out of court if they try suing.

You can file complaint with the FTC and the attorney general’s office pointing out that they are not licensed if they are suppse to be, these two entities can chase them off for you.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

ginger
Post subject: Recourse for Unverified Debt
Posted: Fri Apr 29, 2005 10:50 pm

WI.

I don’t know if licensing is a requirement.

Should I send copies of my letters sent to Asset to the FTC and Atty Gen?

Post subject: Recourse for Unverified Debt
Posted: Fri Apr 29, 2005 11:12 pm

STATE: WISCONSIN

INTEREST RATE

Legal: 5%
Judgment: 12%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Written Contract: 6
Domestic Judgment: 20
Foreign Judgment: 20

BAD CHECK LAWS (CIVIL PENALTY)
Amount of check plus actual damages + exemplary damages up to three times value of check. Limited to $300.

GENERAL GARNISHMENT EXEMPTIONS
80% of net pay.

COLLECTION AGENCY BOND & LICENSE

Bond: $15,000 min.
License: Yes
Fee:
$1000 - Investigation
$200 - Annual

Exemption for out-of-state collectors: Out-of-state agencies do not need to be licensed if [1] collecting by interstate means (phone, fax, mail); and [2] collecting for an out-of-state client.
*
See a problem that last one there, did you say debt was out of state??
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

ginger
Post subject: Recourse for Unverified Debt
Posted: Sat Apr 30, 2005 12:05 am

yes,

Should I send copies of my letters asking for validation to Asset; to the FTC and ATTY GEN when I file complaints?

Post subject:
Posted: Sat Apr 30, 2005 12:32 am

No, you don’t have to send copies of the validation request to them unless they ask for that information.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH