Going to court over a collection agency?

Question

I filed a small claims lawsuit against Midland Credit Management for 5,000.00. 1) when I received their letter, I immediately requested Validation. They never responded. Approx. 40 days later (during the time I was in the process of buying a home) this derogitory account appeared on my credit report. Dropped my score 49 points from 699 to 650. Because of this, It changed the structure of my loan causing me to pay an Higher APR. I have written 9 letter, 4 certified mail, Still they have never contacted me. I disputed the account it came back verified. They are illegally reporting on my credit report, failed to validate and now this is going to cost my $34,000.00 over the life of the loan because of this bogus account. I have a letter from the Mortgage company explaining that because of this derogitory account, I am now paying more for my home loan. I go to court August 4, anything I should be aware of?

Answer 1

Did you dispute the item to the credit bureaus with a copy of your validation request, indicating that they failed to validate?  The credit bureaus should have removed the item.

What did their initial letter say?  Be very sure that letter didn't include the legally required validation information.  A lot credit sites tack extrac stuff on their validation form letters, quoting sections of the FCRA.  However, the FCRA doesn't really require that extra stuff.

Answer 2

You sure do have a good case against them on this one.  They are well known junk debt collectors who violate the FDCPA.

The first thing to do is if the original debt was beyond your states statute of limitations to collect, you can use that as your case.  Also cite the fact that they did not adhere to the FDCPA act to whit:  15 U.S.C. § 1692g. Validation of debts

This is the rule as stated: Pay attention to line (b) disputed debts.

(a) Notice of debt; contents

Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing--

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) Disputed debts

If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section 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 a 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.

(c) Admission of liability

The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

As I mentioned before Midland is well known for illegal practices.  Here is a link to find out more about them and how they operate

http://www.budhibbs.com/debtcollectorpag...

Good luck and hope you win.

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 3

If you can back up your case with documentation, you should have no problem winning your case.  You should ask for way more than 5k.  Some states allow no limit on how much you can sue them for!

These collectors are scum!

You might want to post this question on this message board too.  You'll get help from people who have been there.