How Many Times Can an Unverified Debt be Sold?

Question

In 2005 I was notified by collection agency # 1 that they were trying to collect a debt. I had no idea what they were talking about, so I sent (in certified mail) a request for validation. I received no response. In 2006, they apparently sold the debt to collection agency # 2. Since I still had no idea what this debt was for/about, I sent another certified letter, requesting debt validation. Still no response. In September 2007, they tried again, and again I sent a debt validation letter. I heard nothing...until yesterday when I came home and found a letter from collection agency # 3, trying to collect the same debt. (Same company, same amount due, that's how I know its the same debt.) I just sent off ANOTHER certified letter requesting validation.

How many times can this happen? The debt isn't mine, I've not had any dealings with this company, all my debts are paid, my credit is excellent. There's nothing on my credit bureau (yet) about this or any of the 3 collection agencies.

Answer 1

If you sent your validation requests within the first 30 days from their first contact with you and they have failed to provide validation, then they have violated your rights by selling the debt to another collector without informing the new collector that the debt is in dispute.

Since you have already sent them a validation request, you should wait until they send what they consider validation OR wait until 35 days has passed from the date they signed the green card before sending another letter. (whichever comes first)

Chances are very good that if they are the third collector, they will have nothing to send to you that would properly validate it.

If they "attempt" to validate by sending a computer print out or information on their own letterhead (not the original creditors), then that does not constitute proper validation.

The information must come from the files of the original creditor, per the FDCPA Staff Opinion Letter - Wollman, and you might include that fact in the following letter IF they attempt to validate but fail to validate properly.

You might send the third collector something like:

<Date>

<Your name & address>

<Third collectors name & address>

Re:<3rd collectors account # xxxxxx>

Greetings,

Be advised that this is not a refusal to pay, but a notice that the validity of this alleged debt is disputed.

This is my second request to you for validation on the account noted above.

As you should know this alleged debt was disputed in a timely manner with <name of previous collection agency>.

I have enclosed a copy of the above mentioned dispute letter and certified mail receipt.

If <name of 2nd collector>  has failed to inform you that this debt is disputed they have violated the FDCPA, *see below.

If they have informed you that this debt is disputed then you are in violation of FDCPA.

*FDCPA 807(8):

807. False or misleading representations [15 USC 1692e]

8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.

You have fifteen (15) days from receipt of this notice to respond. Should you fail to respond, I will assume that <name of 2nd collector> did notify you of the dispute as required by law, and I reserve the right to take action based upon that assumption.

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment as it is inconvenient to me. All future communications with me must be done in writing and sent to the address noted in this letter by USPS.

Sincerely,

<your printed initials or type your name>

If they send it back to the 2nd collector, send the same letter to the 2nd and refer to your validation attempt with the 1st collector.