Expert: Jason Barnette, Esq. - 12/18/2009

Question
QUESTION: My credit report shows several collection accounts from creditors that have charge off the accounts. I have had no contact with the collection agencies about these charge off's. No letters, judgements or telephone calls. Can the collection agencies continue to report this information without validating the debt? Do I have any recourse? Have my rights been violated? SHould I initiate contact with the collection agencies over these accounts? Whatdo I ask? Will I open up the opportunity for them to obtain new judgements or lawsuits? From what I can gather, the original creditors charged off these accounts 4 years ago. I simply want to clean up my credit and need some direction on how to go about it with these collection agencies.

ANSWER: Steven:

First, dispute the tradelines in writing with the credit reporting agencies.  Some will undoubtely be deleted.  For any which remain, ask the debt purchaser for validation directly as well as dispute what they verified with the credit reporting agencies.

Target dates of last activity, account type, account status, balance, etc.

Jason Barnette
Barnette Law Offices, LLC
1800 Hayes Street; Suite 122
Nashville, TN 37203
615-585-2245
http://www.barnettelawoffices.com

---------- FOLLOW-UP ----------

QUESTION: Do the purchasers have to validate the debt after all this time? What if they do not respond to my written requests? Are they in any violation of the FDCPA, FCRA, FRBA and/or Rosenthall Bill? If the purchasers do not provide any information can I force the credit bureaus to remove the information using the FDCPA as a basis? Are the CRA in violation if they claim to verify the account information? Can I obtain written proof from the CRA that they did investigate the dispute and do they have to provide that information?

Best regards,

Steve

Answer
Steve:

1) No, they wouldn't have to validate if you've received notice from them and said notice has been 30 days ago.  However, if they don't . . . you know they have nothing.

2) See above.  Usually, they do respond but, what they respond with isn't in compliance with the FDCPA.

3) Not yet, you have to invoke it through disputing.  Well, technically, the debt purchasers are probably in violation of the FDCPA insofar as they are likely reporting a past due amount and an open account status.  As for the Rosenthal Act, that is California state law and I'm not that familiar with it.

4) No, but, if they validate inaccurate or incomplete information it is a violation of the FCRA.

5) You can ask for the procedures they used to verify but, it is a boilerplate letter.

Jason Barnette
Barnette Law Offices, LLC
1800 Hayes Street; Suite 122
Nashville, TN 37203
615-585-2245
http://www.barnettelawoffices.com