When is it too late to send a validation letter in regards to collections on an old credit card debt?

Question

I have an old credit card debt (originally 500.00) from my college days and last month a woman from Eastern Asset Management LLC called me demanding that I pay 3000.00 to clear my balance. She was SO RUDE..told me to "borrow it from family, take out a loan, clear out my bank account, etc."! I was very upset and didn't pay anything. Well today...I received a message from a "law office" that I'm now a defendant in a suit filed against me because of this debt. BUT when I called..he told me he'd let me pay 1500.00 by the end of the week! I'm really stressed out with this! I'm not even sure if this agency is legitimate!! I researched them on the internet and found a site where hundreds of ppl are trying to sue them for using illegal collection tactics...stating the company is a fraud! I don't know what my options are at this point. He says I have to call him today with an answer..pay or go to court! Is it to late to send a validation letter? Any advise would help!! Please...

Answer 1

You have 30 days to dispute the debt from when you first recieved the collection notice (phone call does not count).

The FDCPA regulations state they must provide you with the following information in the initial contact with you.

15 U.S.C. § 1692g. Validation of 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.

check your states statute of limitations on how long a creditor has to take legal court action.  Here is a link to find your states SOL:

http://www.fair-debt-collection.com/SOL-...

If you find that this debt is "time barred" or past your states SOL, then they can not take legal action.  If they do try to get you in to court, your defense would be that the debt is time barred in your state.

This company is another of those bottom feeders who try and collect old debts.  Here is a sample of a letter to request "verification" of this debt.  You fill in the blanks.

DATE

From: (NAME)

(ADDRESS)

(CITY, STATE, ZIP)





To: (NAME OF AGENCY)

(ADDRESS)

(CITY, STATE, ZIP)

Subj:  Verification of Debt, request for

Ref: (INSERT ACCOUNT NUMBER SHOWN ON COLLECTION NOTICE)

To whom it may concern:

This letter is to inform you that  pursuant to Title VIII, Debt Collection Practices, §  809 of the Federal Trade Commission and 15 U.S.C. § 1692g, I am hereby registering a  formal request for Verification of Debt.

The account in question listed as an installment account with (NAME OF ORIGINAL CREDITOR) opened (insert date) and  indicates an initial balance of (enter amount)  It is now currently being shown as  collection account with past due amount of (enter amount) as of (insert date).  

Unless legal proof and verification can be shown, I request you remove the derogatory entry with any credit reporting agencies that may list this debt (and any other agencies you have filed with) immediately to avoid any possible legal recourse on my behalf pursuant to 15 U.S.C.§ 1692k.

Respectfully

(NAME)

Hope this answers your question

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

Answer 2

By law, they must send you a letter within 5 days of their initial contact with you or they are in violation of the FDCPA.

Also, do like slimick suggested and send a demand to validate letter (referencing the date and time of phone call) and check the statute of limitations in your state.

http://www.creditinfocenter.com/rebuild/...

http://www.creditinfocenter.com/rebuild/...

Answer 3

If it's less than 30 days since their first contact with you, per the Fair Debt Collection practices act you are entitled to request written validation.

Send them a letter via Certified Mail + Return Receipt stating:

Per the Fair Debt Collection Practices Act, I am requesting:

written validation of this alleged debt

==============================

It's important to determine if this debt is within the statute of limitations for your state. If it is, they are powerless and can't take you to court.

Debt collectors love to scare people with the implied threat of a lawsuit.  To actually do this, they would have to officially serve you papers (usually by a sheriff) and on the appointed court date they'd have to win....Debt collectors can't take you to court at the drop of a hat...It is illegal for a debt collector to pretend to be an attorney. If you have any doubt...ask for his/her license # in the state bar association.

Answer 4

Hi,

I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:

http://yatuc.com/bid

Answer 5

After reading your question and the following good answers, there are a few things that caught my eye that had not been addressed by the other answerers.

Starting off with the "message" you received. Since you didn't state how the message was given, on paper, on tape, verbally from another person.... If you received it on paper or tape - save that message in a very safe place.

If it was relayed verbally to you by another person, ask that person if they would be kind enough to state in writing what info they were given and that they were given the info from the collection agency? the lawyer? Then have it notorized.

While they can discuss it with your spouse, they cannot speak to another person about it and they cannot make false claims no matter who they speak to.

(having that kind of proof of their violations could come in extremely handy in either getting them to go away or in suing/countersuing them)

If you are past the collecting SOL, their threat of suit is a violation.

If they relayed the message through someone other than your spouse it is a violation.

If they claimed they "have" filed suit when they actually had not "at the time" you received that message, another violation.

Another thing that you should do is to check to see if a suit was actually filed. Check every county you lived in since the time you had that card. You can check the online court system or call the county court clerk and ask if anything is filed in your name.

IF you find that they had indeed filed suit, you "need" to file an answer within the time allowed.

Since you had moved, IF they had filed against you it may be possible that they either knew your current address but sewer served you or they did not know your current address and served you according to the service laws of either state.

Since you defaulted on the debt in Ok. and then moved to Ca., they have their choice of suing you in whichever state they choose. Though if they had served you in Ok you can request the court move it to a Ca court.

The collecting SOL defense is often based on the TILA for open accounts. Okla is the "only" state that has exempted itself from the TILA.

The collecting SOL in Ok for open accounts is 3 years and 5 years for written.

The collecting SOL in Ca for both open and written is 4 years.

Since you have lived in Ca. for more than 12 months, you can probably use that states SOL.

Ca. also has a borrowing statute where you can try to use the 3 year SOL from Ok

Ca also has it's own version of the FTC's FDCPA which not only the collector must follow, but the collection attorney must adhere to it as well.

One great example of the Ca. FDCPA:

81. In Kimber v.Federal Financial Corp.(M.D.Ala.1987)668 F.Supp.1480, the court held that it is "unfair " within the meaning of the federal statute to file a time-barred collection suit against a consumer,and that it is a deceptive act to even threaten to file such a suit.



Never overlook the laws of your states laws when dealing with collectors.

Now, on to the letter that was posted in here. The letter itself is a pretty standard DV, but it should be tweeked a tad.

For example:

Omit the word installment from the letter, in fact, omit that full paragraph. All you need to include in the letter is the account number that the collector has placed on the account. You do not need to "self validate" the account by including the original creditor information - that is their job to give "you" that info.

As far as the word "installment", there is a possiblility that it "may or may not" be reporting as an installment account. Even so, you do not want to confirm that the account is an installment account over a revolving account.

You should add the following at the start of the letter:

This letter is being sent to you in response to your (letter? phone call? dated xx/xx/x*x)

This is not a refusal to pay, but a notice that your claim is disputed.

Then at the end of your letter, you should include the following (to get them to quit calling you and to send everything in writing):

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.

If there is a lawyer who is claiming to have the file, add the law firms name as a cc at the bottom of the letter.

Do not sign the letter, only print your initials or type your name. (signatures have a nasty habit of jumping from one paper to another)  

Send one copy to the collector and send a copy to the (supposed) lawyer. Everything you send to them should be sent by certified mail return receipt.

You might click on my profile and click on the links I've provided to the FTC FDCPA, FCRA, etc.

You might also click on the last link I have listed to a free credit discussion board and do some reading in the Newbie Forum, then in the Credit Forum and State Laws Forum.