collection agency

[lnsavery]

What is the name of your state? Tennessee

Can someone please answer some questions on collection agencies

1. Is a collection agency required to make every reasonable effort to contact the debtor before reporting the debt on a credit report (skip tracing) ?

2. Is there a time frame where the collection agency must wait or number of letters to be sent after initially contacting a debtor before turning the account to an attorny?

3. If a collection agency turns an account over to an attorny before sending the debtor a written statement regarding the account, is there any action the debtor can take?

 

[Ladynred]

"1. Is a collection agency required to make every reasonable effort to contact the debtor before reporting the debt on a credit report (skip tracing) ?"

*** No, there are no requirements. They can report the day they buy or are assigned the account.

"2. Is there a time frame where the collection agency must wait or number of letters to be sent after initially contacting a debtor before turning the account to an attorny? "

*** Nope - none whatsoever. They could send it to an attorney at any time. Most of them don't, but they don't have to wait either. You must also know that collection agencies and attorneys are often one and the same !!


"3. If a collection agency turns an account over to an attorny before sending the debtor a written statement regarding the account, is there any action the debtor can take?"

** Not really. Until you are notified that they are collecting the debt, either by phone or in writing, there's not much you can do. Once they contact you, they must send you, in writing, a statement of the account, who the creditor is, and how much you allegedly owe. They must also include the mini-miranda notice ("this is an attempt to collect a debt....") AND your rights to validation under the FDCPA. If you dispute the debt within 30 days after receiving their letter (validation), they must cease all collection attempts until they provide validation. If they have not reported before you dispute, then they cannot report it to the CRA's once they get your validation request. Reporting to a CRA is considered 'collection activity'.

You can read up on validation at www.creditinfocenter.com