Expert: Regan Shinski - 3/15/2010

Question
QUESTION: I sent a request for debt validation letter to a collections company regarding one of my debts.  I just realized when reviewing my saved copy, however, that I forgot to change a date on it (it was a pre-done letter found online).  I forgot to change the date in the statement "This is in response to your letter dated ....."  Will this mistake invalidate the letter?  It is now outside the 30 day time frame for me to respond from when they sent me their notice.  I still have the original notice from them dated 2/4/10, as well as the e-mail from the post office stating when they received my request for validation on 2/20/10.

ANSWER: If it came down to that in a court setting, I don't think that issue will be of major concern as it is up to the collection agency to keep their accounts straight.  Obviously, it would have been better if it was sent correctly, but if you referenced the name and account number, you should be ok.  More importantly, you have proof that you initiated contact with them within the 30 days.  Now you want to look and make sure they do not report it to the credit bureaus prior to responding to your request for validation.  This is the most common violation of the FDCPA collection agencies make.

Good luck,
Regan

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

QUESTION: Thanks for that.  Also wanted to check, the letter I used was one I found online as stated before, asking for the following:
What the money you say I owe is for;
Explain and show me how you calculated what you say I owe;
Provide me with copies of any papers that show I agreed to pay what you say I owe;
Provide a verification or copy of any judgment if applicable;
Identify the original creditor;
Prove the Statute of Limitations has not expired on this account
Show me that you are licensed to collect in my state
Provide me with your license numbers and Registered Agent

After more research I'm seeing they don't have to provide all of this.  What is it they DO have to provide me?  If they don't provide anything,, what happens then?  Thank you!

Answer
Hi:

You should read the FDCPA regarding this aspect of credit repair.  The relevant part of section 809 is copied below:


If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. Collection activities and communications that do not otherwise violate this title may continue during the 30-day period referred to in subsection (a) unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor. Any collection activities and communication during the 30-day period may not overshadow or be inconsistent with the disclosure of the consumer’s right to dispute the debt or request the name and address of the original creditor.


The key part is "cease collection."  Basically, courts have determined they cannot report to a credit bureau while a legitimate request for validation is outstanding.  

You can see they are not officially required to respond with much, but the letter you used and others are derived from state laws and simply other things people have put in there throughout the years.  I would NOT use them in the future.  Good credit repair (like ours) is more than form letters that collection agencies and credit bureaus see many times every day.  They are not taken seriously in many cases.

You need to wait to see how they reply before you can decide (or I can answer) what happens next.  There are just too many variables in their response.  A big key is to watch your credit and see when/if a collection account is reported.

Good luck,
Regan