Debt Validation letter

[johngaletka]

What is the name of your state? Wisconsin
I was wondering if the debt validation letter is legal. I have court coming up on the 26th for a outstanding debt. I gave a copy to the credit agency to validate the debt because I was unsure of the amount and they filed it with the court. Can I be charged with perjury? I used the the debt validation letter at the CREDIT Info Center.

 

[kevinss]

Yes of course the debt validation letter is legal. Why would you have any reason to think otherwise?
Since you have court coming up, be sure to file your answer (if you didn't already.) If you did, you'll want to take a list of exemptions with you to court. If not, include it with your answer.
Check out what your exemptions from siezure and garnishment are:
http://www.thebankruptcysite.com/exemptions/wisconsin.htm

They are the same for a judgment as they are for bankruptcy.
If you sent your validation letter to the credit reporting agency, you messed up. It should have been sent to the collection agency. You file a dispute with the credit reporting agency once you've proved that you don't owe the debt with the collection agency/creditor. You'll want to make sure (if you haven't filed your answer already) that you contest everything on the summons, and request that validation be completed before judgment is rendered against you.

 

[JETX]

Kevinss said, "They are the same for a judgment as they are for bankruptcy."
*** Though often true, this is not necessarily true in all cases.

Wisconsin non-exempt assets from judgment are:

Homestead: Property that the debtor occupies or intends to occupy up to $40,000. Sale proceeds exempt for 2 years from sale if debtor plans to obtain another home. Husband and wife may not double.

Pensions and Retirement Benefits: Private or public retirement benefits generally exempt for certain municipal employees; firefighters and police officers who worked in city with population over 100,000; military pensions and public employees. IRA exemptions for conventional, Roth, SEP and SIMPLE plans. IRAs may be limited to amounts that are reasonably necessary for support of debtors and dependents, and are subject to many different types of liens and claims.

Insurance: Life insurance proceeds held in trust by insurer, if clause prohibits proceeds from being used to pay beneficiary's creditors. Life insurance policy or proceeds up to $5,000, if beneficiary is a married woman. Life insurance proceeds if beneficiary was a dependent of the insured, needed for support. Unmatured life insurance contract, except credit insurance contract, owned by debtor and insuring debtor, dependent of debtor or someone debtor is dependent on. Unmatured life insurance contract's accrued dividends, interest or loan value, up to $4,000 total in all contracts, if debtor owns contract and insured is debtor, dependent of debtor or someone debtor is dependent on. Fraternal society benefits. Federal disability benefits. Fire proceeds for destroyed exempt property for 2 years from receiving.

Personal Property: Deposit accounts up to $1,000. Burial provisions. Health aids. Household goods and furnishings, clothing, keepsakes, jewelry, appliances, books, musical instruments, firearms, sporting goods, animals and other tangible property held for personal, family or household use up to $5,000 total. Lost future earnings recoveries, needed for support. Motor vehicles up to $1,200.

Tools of Trade: Tools, equipment, inventory, farm products and professional books up to $7,500.

Miscellaneous: Business partnership property. Alimony. Child support needed for support.

Wages: Greater of 75% of wages earned but unpaid, or excess over 30 times the greater of state or federal minimum wage.

Public Benefits: Unemployment benefits. Workers' compensation. Veteran's benefits. AFDC and other social services payments.

Wild Card: None.

 

[johngaletka]

I sent the letter (debt validation) certified to the collection company (Rausch, Sturm, Israel, and Hornick, S.C.), it was dated on the 22nd of April and they still havent replied. How long do they have for response? Do they need to reply? Lastly, I already went to a peliminary hearing and it was scheduled for the 26th of May to be heard again. The court asked me if the amount was correct and I told them I didnt know because I havent seen a statement in 3 years.

 

[kevinss]

That's why you're being called back to court again. Since you contested the amount, the court likely told the law firm to go back and pull the records of the account. If they are unable to produce the accounting record, they won't get the judgment. If they can produce it, then they will get the judgment.
Smart move on your part.
CAVEAT: If they do in fact get the accounting record, you'll need to check one more thing. Make sure it's a FULL accounting record from the inception to the chargeoff. If it doesn't have every single charge, every single page, cite these:

Wollman letter:
http://www.ftc.gov/os/statutes/fdcpa/letters/wollman.htm

Spears v. Brennan:
http://www.state.in.us/judiciary/opinions/archive/03260101.ewn.html

These outline what is and what is not full validation of a debt. Since they didn't respond to your letter, take a copy of those with you to court as a reference. Read them yourself and understand them too. The judge will make them produce what's needed.

 

[JETX]

One other issue.....
Your post says, "I sent the letter (debt validation) certified to the collection company (Rausch, Sturm, Israel, and Hornick, S.C.), it was dated on the 22nd of April and they still havent replied."
But there is no mention in that statement of when they RECEIVED the letter. Did you get the green card back from the USPS??? If so, what date??

Remember, the FDCPA section on validation of debts requires the 3rd party collector to CEASE COLLECTION until they validate. That means that the lawsuit cannot move forward UNTIL they comply with the FDCPA.

FDCPA Section 809. Validation of debts [15 USC 1692g]
"(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) 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 any 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."

Now, one thing that we overlooked in our responses... and needs to be clarified...... this claim is being made by a 3rd party debt collector and NOT the creditor..... correct??? If the creditor, all responses re: the FDCPA do not apply.

 

[kevinss]

Good observation, JETX. I missed that. Partly because I didn't know filing suit was considered part of the big ball of collection activities that must stop. My impression was that a lawsuit could go at any time, regardless of the status of dispute. I thought that could all be ironed out in front of the magistrate/judge/referee.
Thanks for the correction.

 

[johngaletka]

I have signature dated 4/23 from certified mail(upon delivery). The collection agency is Rausch, Sturm, Israel and Hornick S.C. They are filing in behalf of Platinum Financial Services.

 

[kevinss]

Well THAT'S interesting.
JETX? What should he do now?

 

[JETX]

I would wait until a few days before the scheduled court date and then file a Motion for Dismissal citing the fact that the plaintiff has not provided validation of the debt as required by the FDCPA.
All the while, getting ready for defending against their claim if the court doesn't dismiss (they would likely reset the date again, giving them time to respond).

 

[bigun]

Here's a court case that supports Jetx's advice.

http://www.licatalaw.com/articles/article_collection.htm