Stop Collection Agency Harassment

When a consumer writes to the collection agency with a VOD (validation of debt) letter and the CA replies and sends older credit card statements to the consumer what would be the next step. #1 How long does it take the CA to reply and send the documentation to the consumer? #2 How old (dated) are the statements? #3 Are the statements authentic business records? #4 What is the relationship with the original creditor?

Ordinarily, if a consumer receives the statements from the collection agency, the consumer might assume that they need to start paying the debt collector. However, we believe otherwise. We keep challenging the CA and the relationship with the original creditor. Even when the CA sends documentation it should be questioned by the consumer. Push back. There are 2 things that may happen. When the consumer questions the documents, the debt collector will back off or they will sue.

What constitutes debt validation?

The FDCPA does not define what constitutes proper debt validation, and the issue has not been fully resolved by the courts. In the leading case of Chaudhry v. Gallerizzo, the Fourth Circuit Court of Appeals adopted a relatively low standard: “Verification of a debt involves nothing more than the debt collector confirming in writing that the amount being demanded is what the creditor is claiming is owed; the debt collector is not required to keep detailed files of the alleged debt.” The Court further stated that a request for validation of the debt is primarily intended to eliminate such problems as collectors contacting the wrong person or attempting to collect debts which have already been paid. In 2006, the Ninth Circuit Court of Appeals followed and adopted what they described as the “reasonable standard” articulated in Chaudhry.

Consumer advocates have criticized the Chaudhry and Clark cases as setting too low a legal standard for validation and allowing debt collectors to justify providing little information in response to a dispute. In addition, some courts (such as the Court of Appeals of Indiana) have taken a stricter stance on debt validation than the Chuadhry Court, though the precedential value of such cases is uncertain.

Thus, what exactly constitutes proper validation of a debt is not a settled issue and is likely to depend on the specific nature of the dispute. At a minimum, the debt collector is required to confirm with the creditor the amount being claimed is correct and that the person from whom they are attempting to collect the debt is the person who owes it.

NEXT LEVEL CREDIT

“Taking Your Credit to the Next Level”

Tweet This Post