Expert: Creditwrench - 7/26/2008

Question
QUESTION: In Dec. 2007 I win a debt collection case in Maricopa County Justice Court, Phoenix, Arizona.  Dismiss with Prejudice  I just check my credit report today (July 26, 2008) and the debt is still showing up on my credit report and the debt collection company is still adding on to the original amount.  Can I take the debt collection company and the lawyer firm to Federal Court and file a suit and is this violation of the FDCPA?  

Thank You

ANSWER: While the case in Maricopa county may have been dismissed with prejudice that has no bearing on whether or not they can continue with collection efforts. All it means is that they can't file it again in Maricopa County Courts.

That has nothing to do with whether they can keep on adding to the original amount if it is allowable under the original contract.

Can you take them to federal court and file a suit against them? Yes, you can. But just for the sake of curiosity what would you use as your cause(S) of action? Would you file a case based on FDCPA violations or would your causes of action all fall under FCRA?

I see that you don't know whether or not it would be for FDCPA or not. You must know what sections of FDCPA or FCRA they have violated before you can contemplate filing a lawsuit under either.

From what you have told me I can't see any really solid violations of FDCPA but maybe you have some that you haven't told me about.

So what do you think your cause of action might be under FCRA?

Can you also sue the credit bureaus that have reported it if you can sue the debt collector?

Interesting questions and the answers to which I'm sure you will be most interested in learning if you don't already know them.

Bill Bauer
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---------- FOLLOW-UP ----------

QUESTION: Can I file a dispute with Credit Report Agency? Following is what showing on my credit report.  I remove the bank name and debt collection agency name.

Balance:  
$6,758   
Date Updated:  
06/2008   
Original Balance:  
$5,825  
Original Creditor:  
xxx bank  
Past Due:  
>$6,758<  
Pay Status:  
>Collection Account<   
Account Type:  
Open Account   
Responsibility:  
Individual Account   
Loan Type: Factoring Company Account
Remark:
>Placed for collection<
Date placed for collection: [ 10/2006]  
Estimated date that this item will be removed:   07/2012

1.I have no significant knowledge of this account, therefore I’m disputing it.  Please validation with documents and evidence.

2.Account Type:  I didn’t open an account with this creditor 10/06)  and I was never extended credit by Debt Collection Agency  (Please verify)

3.Under Loan Type:  Factoring Company Account - - I do not have business I am an individual; therefore it is impossible for me to have a factory account.  (Please verify)

4.Account Type:  Open Account - - A charged off cannot be 120 past due and be “Open Account” by Debt Collection Agency.  It cannot be, nor can it be a Factory Account or Revolving Account.  (Please verify)

5.Please have Debt Collection Agency provide a original contract from original lender with my signature on it. Since I have no knowledge of this matter and I’m asking for validation of this matter.

6.Balance Amount is Incorrect:  Demand proof of purchase of this account and what they paid for it.

If the debt collection agency verify some of those would this be against FDCPA and if the debt collection don't verify would the credit report agency remove this matter?

Thank You

Thanks  

Answer
1.I have no significant knowledge of this account, therefore I’m disputing it.  Please validation with documents and evidence.
_______________________
It makes absolutely no difference what knowledge you have of an account. It is what the debt collector or the creditor says that courts with the credit bureaus.

2.Account Type:  I didn’t open an account with this creditor 10/06)  and I was never extended credit by Debt Collection Agency  (Please verify)
--------------------
Stating that you never had an account with the creditor is a valid dispute. The last sentence is irrelevant. Won't do you any good to complain about that.

3.Under Loan Type:  Factoring Company Account - - I do not have business I am an individual; therefore it is impossible for me to have a factory account.  (Please verify)
-------------------------------------------------
Factoring company account. A factoring company buys accounts receivable from a business at a discount and then collects the debt.
Factoring companies don't by old debt. All accounts must be current accounts. Some debt collectors are using that ploy as a way to get out of being liable under FDCPA but it don't cut no ice with the federal courts. What you say below is true.

A factoring
4.Account Type:  Open Account - - A charged off cannot be 120 past due and be “Open Account” by Debt Collection Agency.  It cannot be, nor can it be a Factory Account or Revolving Account.  (Please verify)

5.Please have Debt Collection Agency provide a original contract from original lender with my signature on it. Since I have no knowledge of this matter and I’m asking for validation of this matter.
--------------------
There is no requirement for them to do that under FCRA.

6.Balance Amount is Incorrect:  Demand proof of purchase of this account and what they paid for it.
---------------------------------
You can't even get them to tell you that in a court of law.

If the debt collection agency verify some of those would this be against FDCPA and if the debt collection don't verify would the credit report agency remove this matter?

Most likely not.