Newbie question about validation and C&D. Please reply fast!

[Prototype]

What is the name of your state? Ohio

What should be sent to the collection attorneys first a dispute & validation letter within 30 days or should I just send them a cease communications letter? Or send both, which one first? They say it will go into arbitration if I dont reply. Can they do this? My 30 days to dispute is almost over. Please reply and Thank You.

 

[cmorris]

Send a DV letter that also states to only contact you by mail (limited cease and desist). They either have to provide you with proper validation (not a computer printout), or stop collection activity. Yes, they can usually proceed with arbitration, but they will still need to provide proper validation. If this is your first contact with this CA, they are probably blowing smoke about arbitration, and need to provide the validation. Be sure to send this certified mail, return receipt.

 

[olgethorpe]

Okay...

Actually, you should send the a demand for debt validation and a "only contact me in writing" immediately. Send it CMRRR. There mention of 30 days to reply may be worded to make you think that's all you have, but the law actually reads that if you don't respond within 30 days, the can ASSUME the debt is yours and continue collections. You can DV at any time...not just within 30 days.

As far as the "it will go to arbitration" is concerned...it probably will anyway. If this is MBNA we're talking about, they have a "captive" arbitrator that will find in their favor no matter what you do.

All you can do at this point is DV and keep accurate records of everything that happens. They might respond to the DV, but more likely will just continue with the arbitration...they'll win...and they'll try to use that to scare you into paying. In order for the arbitration to mean anything, they'll still have to take it to court to have it turned into a judgement. That's where you'll have to fight them...

 

[Prototype]

The creditor is Chase Manhattan/Bank One. I think it use to be Citibank. They are in GA and this is their first letter to me. Should I send in the limited C&D letter or should I state on there that I have no desire to work with a collection agency and I will contact the creditor directly to resolve this matter???

 

[olgethorpe]

No...

No, just send then a DV limited C&D letter. If they can't validate the debt, they'll probably send it back to the original creditor (who may call you again) or sell it to another CA. Chances are the OC would tell you that you'll have to deal with the CA.

Usually, what happens is the OC tries to collect on their own for a couple of months and then "contracts" with a CA to hassle you for another couple of months...at some point (like after about 180 days) the OC will "charge off" the debt and sell it to a CA. So, it really depends on where you're at in the cycle as to whether or not the OC would ever be involved again.