Need a little advice, please. I am currently at odds with a collection agency that claims they are not really a collection agency because they bought out the debt from another company. I found out that their license to collect a debt in my state (FL) expired on 12/31/01 and challenged them on it. They told me that as an "original creditor" now, that they are not bound by the rules of the FDCPA but they would try to validate this account to me by contacting the people they bought the debt from. "If you are the "original creditor" now, I asked, why do you have to request paperwork from the other company-you should have all that". It all sounded fishy to me so I decided to wait a little longer even though they claimed it could take as long as 90 days to receive which I feel is totally unacceptable. In the meantime, they have made the notation on the account on my TU report that the account is in dispute but not on the EQ report. It is going into the second month that no validation has been received. I just had to purchase a car and feel that, with this showing on my reports, I have been subjected to a higher interest rate. I attempted to call the company on two occasions and left messages but no return call was received. I faxed a copy of my intent to sue to them on yesterday (7-26-02) and immediately got a phone call before I could even get back to my car from Kinkos. My question is, should I just settle for the deletion or should I make them pay because I feel they have been erroneously reporting an account that is not mine? I want to be ready when I talk to them on Monday. Thanks.

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I think you are the only one who can decide the answer to that. How important is it to you? Its risky asking for money, IMHO, because at that point they have incentive to dig up the paperwork...lol. Asking for deletion doesn't really hit them where it hurts. If this really was your account, I'd be careful! I had one OC jerk me around until I finally sued and at that point they produced the documentation. Fortunately I hadn't based my case on the fact that the account wasn't mine.


L

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Thanks, Whyspers, just trying to get another opinion. I haven't spent any money yet and a deletion would work for me but I didn't want to cheat myself, you know? Thanks again.

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Well, if you have to file suit, at that point I would at least get filing fees on top of deletion...and possibly a couple of hundred for my trouble. Is this a conflicting answer...lol? Sorry, I don't mean it to be. :)


L

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Whether to sue really depends on the individual situation.

But I just want to add that they ARE a debt collector bound by the FCDPA if they purchased the debt after it became delinquent unless they merged with or bought up the original creditor.

Also, they have UNLIMITED time to provide validation as long as they report your dispute and no adverse data.

However, they are not a collection AGENCY - they are simply a collector.

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I you feel that this reported information caused you to obtain a higher interest rate on a car loan, if you can validate it, you can also sue them for "actual damages", which would be the extra interest accrued on this loan over its duration.

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