Debt buyer disregarding FDCPA?

[Sleepwalker]

What is the name of your state (only U.S. law)?

Received a letter from a large debt buyer, claiming to be the owner of an account I defaulted on with a bank. I sent them a request for validation (certified). No response.

The debt buyer then had another collection company send me a letter demanding payment. Sent them a request for validation. Certified. No response.

The debt buyer repeated this procedure six times -utilizing different collection agencies to send letters and make phone calls. Each time I sent a request for validation, certified. Never a response.

Now I have received another letter from the original debt buyer. Sent them another request for validation. Haven't heard anything yet.

Are they in violation of FDCPA? I don't want any money from them - I just want them to CLOSE this case and go away.

[debtcollector`]

Originally Posted by Sleepwalker

Are they in violation of FDCPA? I don't want any money from them - I just want them to CLOSE this case and go away.

No. There are more than 5,000 collection agencies in the US. You might want to get you letter printed --- or better yet, pay your bill.

DC

[Sleepwalker]

So, you believe all debt buyers are honest? And when you receive a letter from one of them you just send them whatever amount they are demanding? If that is your belief, then I suspect you are either incredibly naive or you own or work for a debt buyer.

FYI, I do pay my bills. I do not owe this money to anyone - the alleged "original" creditor or the debt buyer.

[justalayman]

you can sue the debt buyer under the FDCPA.

You can also report them to the Federal Trade Commission

[dfromnyli]

Everyone always says you can sue the debt buyer under the FDCPA, but I mean really c'mon this is a rarity. You have to pay filing fees for a summons (which in NY is $115, or $210 if the case is brought in a Supreme court) then you have to pay for a process server which could easily be another $90. Then if you hire an attorney to do it for you, you must pay him. If you try to do it yourself, you will probably make a procedural mistake and have your case dismissed losing all the cost and disbursement money that was already laid out. Then if you get into litigation, they are entitled to due process just the same as everyone else so there could be trials, motions for discovery, appeals and which can be drawn out over a number of years. And all of that for $1,000? Doubt it's worth anyones time.

[Credithis]

They ARE guilty of continued collection activity after reciept of a DV from you, multiple times. Send them a cease communications letter cmrrr and include copies of all of your previous DVs and remind them of their FDCPA violations. Tell em all of your docs will be sent to your State AG and theirs. A cease com letter allows them only one more tme to contact you. Now, they could sue but, you now have counterclaims.

[justalayman]

Originally Posted by dfromnyli

Everyone always says you can sue the debt buyer under the FDCPA, but I mean really c'mon this is a rarity. You have to pay filing fees for a summons (which in NY is $115, or $210 if the case is brought in a Supreme court) then you have to pay for a process server which could easily be another $90. Then if you hire an attorney to do it for you, you must pay him. If you try to do it yourself, you will probably make a procedural mistake and have your case dismissed losing all the cost and disbursement money that was already laid out. Then if you get into litigation, they are entitled to due process just the same as everyone else so there could be trials, motions for discovery, appeals and which can be drawn out over a number of years. And all of that for $1,000? Doubt it's worth anyones time.

well, to start with, we have at least 6 violations. On top of this, there are probable violations for harassment.

It also does not appear that the creditor sent the requisite informational letter within 5 days of initial contact.

and who knows how many other violations?

My understanding is the penalty is $1000 per violation. The act also allows for court costs and reasonable attorneys fees.

I have seen a suit for violating the FDCPA in a small claims court (and the debtor won).

[ecmst12]

There is only ONE possible violation. The debt was sold to a new company for all of the other incidents. That's legal. In fact, that's what MOST collection agencies do when they get a DV or a cease & desist. Isn't it?

[justalayman]

it seems the debt was not transferred to the subsequent CA's but they were merely hired to collect on the debt. That means the owner of the debt (which is considered a 3rd party) has taken actions to collect debt and disregarded the requests for validation. The agencies were acting on behalf of the creditor so there is shared culpability.


In fact, the subsequent hired CA's can actually not be sued if they were not aware of the actions of the debt owner.

The debt buyer then had another collection company send me a letter demanding payment. Sent them a request for validation. Certified. No response.

The debt buyer repeated this procedure six times -utilizing different collection agencies to send letters and make phone calls. Each time I sent a request for validation, certified. Never a response.

Now I have received another letter from the original debt buyer. Sent them another request for validation. Haven't heard anything yet.

How many debt buyers have you seen buy their debts back in a situation like this? It appears the debt was not sold to any of the CA's but they were merely hired to collect the buyers paper.

[Sleepwalker]

Originally Posted by ecmst12

There is only ONE possible violation. The debt was sold to a new company for all of the other incidents. That's legal. In fact, that's what MOST collection agencies do when they get a DV or a cease & desist. Isn't it?

Actually, it's the same debt buying company. They never sold the alleged debt to another debt buyer - they've "owned" it for several years now and just continue to hire different collection agencies to represent them. I've sent validation requests to the parent company of the debt buyer, the debt buyer itself and each collection agency hired by the debt buyer. All ignored. Now it's come full circle - and the original debt buyer sent it's own letter again.

One of the agencies hired by them called a relative and told them all about it - that they were collecting a debt and who the alleged original creditor was.

I believe I'll file complaints with the AG in my state as well as the AG in their state. That should scare them away and put an end to this nonsense.

[justalayman]

you need to file a complaint with the FTC for a FDCPA violation. They have jurisdiction over the FDCPA although there may be state laws as well of concern. You can file at both agencies.

[dfromnyli]

Debt buying is basically a myth imo. Over 80% of the time the collection agencies or attorneys are simply hired to represent the original creditor.

People on this forum seem to believe debt is bought and sold like day trading on the stock market. Assigning one's receivables to another entity is not easy, it's a pretty exhaustive process that generally requires attorneys and can be a pain in the rear end.

[justalayman]

Originally Posted by dfromnyli

Debt buying is basically a myth imo. Over 80% of the time the collection agencies or attorneys are simply hired to represent the original creditor.

People on this forum seem to believe debt is bought and sold like day trading on the stock market. Assigning one's receivables to another entity is not easy, it's a pretty exhaustive process that generally requires attorneys and can be a pain in the rear end.

you have no idea what you are talking about. Debt buying is a very simple process and is very common. In fact, the mortgage company as a whole does it as a matter of typical practice.

this isn't to say that there are none that hold their own accounts and merely hire a CA to collect for them but selling junk debts is quite common.

[dfromnyli]

Originally Posted by justalayman

Debt buying is a very simple process and is very common.

No sir. It is not at all.

[justalayman]

Uh, yes it is. I can literally walk into a bank and buy a mortgage from them. Very little paperwork and absolutely no big deal.

I can also sell any debt I hold to anybody I desire with a simple transfer of a dollar and a handshake, or to make it easier for the purchaser to prove ownership, a simple contract.


why do you want to claim it is so hard to do what is done every day of the week?

any debt can be bought and sold all day long unless the contract that created the debt restricts such actions.