licensing of collectors

[ckpalmer06]

What is the name of your state? MA
I know 100% that debt collectors must be licensed in MA in order to collect debts. I found this out after doing much research. a collection company from FL named PDM had been reporting a 3000 negative tradeline to my credit report for almost 3 years that was paid with the original creditor a month after I had incurred the debt. But somehow the debt got puit in collections. I have submiited proof to the collection company and to the credit bureau that it was paid. I have started taking paralegal classes recently 6 months ago and I was taking a course where we learned of FDPCA and all that stuff, so I researched and found out that they were not licensed in MA to collect. So I called the CC and I asked them for their LIcense number which of course they refused and said they didnt hae too which I know that they didnt but I just wanted to see what they would do. Then I sent a certified letter informing them that I intended to use the law to my fullest capabilites if this listing was not off my credit reports by such and such a date. I also reported this to the BBB, they have a very negative report with them also. So that was on a friday. Monday morning I woke up and checked my credit report as I do everyday online and It wasnt there. So I am assuming that either they decided to take it off or the BBB contacted them. But then a few weeks after that I got a letter from the BBB, giving me the response that the CC gave to them about my complaint that they were not licensed. It stated that the tradeline was removed from my account but as soon as their licensing issues were resolved that they would try to collect this debt again. They havent yet gotten licensed and I am assuming that they are not going to waste their time when they are collecting from people who do not know if the must be licensed or not. So my question to you is, can they just start reporting this again or do they have to send me a letter saying that I owe this debt to them and that I have 30 days to respond or else they will assume that this debt is valid.and start collecting. Also if I send them a debt validation letter with the proof that I have already paid,within those 30 days, must they respond to my letter before trying to collect and or report it to my Credit report? so basically can they just start where they left off or do they have to do the whole process of notifying me again? can they even collect a debt? I have proof that they tried to collect this un owed debt from me for 3 years and of course they tried illegally, is that protected under the FDCPA or is that a state thing. I believe the fine payable to me is 1000 for every violation of the FDCPA and I have almost 40 letters from them through out the course of 3 years that they have sent to me trying to collect this debt. Also I have contacted the OC and they said that they have no records of my account or me!!!
what to do???

[Debt Guy]

You are in paralegal school, huh? The first thing you need to do is go to the library and check out a junior high school English textbook and learn about sentences and paragraphs and all those other language use thingys.

See that key on the right side of the keyboard -- the one that says "enter"? Give it a whack every once in a while just to make sure it still works. One great big glob of text is really hard to read.

You ramble on so much about things that are not important that I'm not even sure I understand your question. I think the gist is:

Q. So my question to you is, can they just start reporting this again or do they have to send me a letter saying that I owe this debt to them and that I have 30 days to respond or else they will assume that this debt is valid.and start collecting.

A. Huh? Personally, I don't think they need to resend the validation letter if they have sent it once. The licensing issue you raised does not have anything to do with the FDCPA. FDCPA is federal and licensing is a state issue and the two just don't cross or connect with each other. My opinion, anyway....

Q. Also if I send them a debt validation letter with the proof that I have already paid,within those 30 days, must they respond to my letter before trying to collect and or report it to my Credit report?

A. For a paralegal who has studied the FDCPA, you sure don't know much. If you read the FDCPA (which is not hard) you will see that the collector must cease collection activity if the validation request is made within 30 days of the initial contact. Credit reporting is a different kettle of fish. In most cases the report to the CRA is made before or concurrent with the initial contact.

Q. so basically can they just start where they left off or do they have to do the whole process of notifying me again?

A. Not sure. I've never seen a situation like this before. I guess they can do whatever they can get away with.

Q. can they even collect a debt?

A. Don't see any reason why not if it is a valid debt.

Q. I have proof that they tried to collect this un owed debt from me for 3 years and of course they tried illegally, is that protected under the FDCPA or is that a state thing.

A. Well, if you can prove they did something illegal, you can bring an action under the FDCPA. MA, as I recall, also has some state laws that might apply.

Q. I believe the fine payable to me is 1000 for every violation of the FDCPA and I have almost 40 letters from them through out the course of 3 years that they have sent to me trying to collect this debt.

A. Wrong. Again, go read FDCPA. The penalty is $1000 per action not $1000 per violation. Big difference. Also, you have a one year statute of limitation on filing suit for FDCPA violation -- so most are OOS anyway.

Q. Also I have contacted the OC and they said that they have no records of my account or me!!!

A. Good for you. Got it in writing? If it ain't in writing, it never happened.

From the CA point of view, the simple and easy solution is just to sell the account to a different CA who gets a fresh start on collection activity. That is my guess on what will happen.

For someone who has aspiration to be a professional, you sure don't present yourself very professionally. You need to think about the impressions you make on others. You will be taken more seriously if you conduct yourself in a serious and studied manner. Concise and clear counts for a lot in your business. Better you learn that now.