Question about a collection agency's? and a validation letter?

Question

Hello,
about 45 days ago i recived a call from a collection agency demanding 5k on a debt. He told me i need to pay this in 24 hours or else he will take it to court and go after everything i own. I recived a letter from a law firm demanding 5200 diffrent from the collection agency. I sent both outfits a letter validating, with orginal contracts signed, how everything it caculated ect and stop communicating me until these items are sent. these were certified. Just yesterday this same guy called from the collection agency telling me to pay in 24 hours or else he will contact the police and be in jail up to 3 months. I told him i sent him a letter, he said yes and you are not that smart so i am taking it to another level. I pulled up my credit i have a capital one card for 2500 charged off little over 5 years ago. my state has a 6 year SOL i just found out. Any suggestions

Answer 1

Did you send the debt validation letter within 30 days after the first contact? If so, they "must" cease collection until they validate. That includes filing a law suit.
Also, by law they were supposed to send you a letter within 5 days after that first call. If they did not, it is a violation on their part.

I hope you sent it certified mail return receipt so you have proof of mailing.

Even though what he did and said was a major violation, calling a lawyer over that phone call would be a waste of time if you have no way of proving that he called while in the validation period and what he said.

They have 30+5 days after receiving your debt validation to send you validation (the 5 is for mailing) If you do not receive any validation from them after that time, send them a second debt validation letter. Make sure you put on it that you had previously requested validation and they had failed to provide it and that it is a second request. Send it certified mail return receipt.

Create as much of a paper trail that you can. If they should happen to file a suit against you, by creating that paper trail, you may have them on many violations which will work in your favor.

As far as the SOL, it does not start at charge off !!!

You may be closer to being out of SOL than you think.

It depends on your state, but the SOL starts in one of two ways.

It would either start the first time you became 30 days late and never brought the account current leading to the charge off (that is generally 6 months before the date of last activity-DOLA) Look on your reports (at the Cap One listing, not the collectors) to find the DOLA then count back 6 months.

Or it would be from the last time you made a charge or a payment on the account.

You might go to the first site I've listed. Scroll down to the bottom of the main page and click on your state. You may find out what your state considers when the SOL starts.

Then I would suggest going to the second site I've listed. Start reading in the newbie forum and then in the credit forum. If you have any questions, feel free to ask them in the credit forum.

Answer 2

Echo's response covers most of it.

If you have proof that you sent them the validation letter (did it include the "cease and desist" phrase also???) then you have a case.

If you send them a second "demand to validate", be sure to include the "cease and desist" language. Also include the following:

"Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees."

But you need proof that they are still contacting you. Got a phone record showing an incoming call from them? If they call, ask why they haven't sent you a demand letter yet. The idiots might just mail you some proof.

Remember that their lack of validation will not prevent them from sueing you for the debt. It only prevents them from contacting and harrassing you.

So my suggestion is to sit tight and wait out the SOL. If they sue you, file a counter suit against them for violations to the Fair Debt Collections Act. At least that will cut down on the amount you owe.

Note that their threatening to call the police and put you in jail is another violation of the FDCA, and if you can find a way to prove they said it. Have a witness listen in on the phone, or consider some sort of recording device.

Note that in some states it's illegal for you to record conversations (and use that recording in court) unless both parties are aware of the recording. If you live in one of these states, you could see how dumb the collection agent is by telling him right up front you are recording it, and see how far he goes.

But for now, just follow Echo's advice. Check your SOL date, and sit tight. Once it's past go after them in court for their violations. It's a simple small claims suit, and you do not need a lawyer.

Answer 3

The guy from the collection agency has violated the Fair Debt Collection Practices Act. The police have nothing to do with the collection of debts, it's a civil matter, not criminal. I'd hit him with that, and try to speak with someone in management. Not much they can do at this point but file suit and get a judgment, but for $2,500 it's not worth the effort.

Answer 4

First of all, in the US, you aren't going to jail unless there is fraud involved, so ignore that threat.

This is really pretty simple: You either have the capacity to pay your debts, or you don't. If you do, then pay everyone you owe at least something every month. Contact them, in writing, and tell them what your payment plan is. You can generally negotiate away most new interest charges as well.

If you are simply dead and have no way or repaying, then let them rant and rave. If this is unsecured credit, they are out of luck.

Answer 5

Everything the collector did was wrong and against the law. Call an attorney for a free counsultation. I believe you have a case against the collections company. No collector can threaten you with something they cannot or will not do. We do not have debtors prison any longer. I used to be a collector.

Answer 6

First of all I'd check them out thru the BBB.
I frequent a website that has alot of financial info on it. This guy is a wizard! Here it is.....

PS Here's another good site