[diamond]

Hello,

Does and OC have a duty to inform their assignee CA that an account is disputed so that the CA does not attempt to collection on it? Or better yet did they (OC) have a duty to recall the account from the assignee?

I had company reporting an account that was not mine and I disputed it as such with the CRA and it was removed from all three. At the time I disputed with the OC I didn't know that they had sold the account to a CA.

About 10 months later I get a CA sending me letters and I sent validation but the CA reported it anyway w/o validating. This was the only collection account on my report and it lead to a drop in score. and a credit card Denial referring to this collection.

I need to know if the OC is liable to me too for the credit report damage and denial because they didn't inform the CA that the account was dispute,d and didn't recall the account because it is not mine.

Any thoughts?

Thanks,

Diamond

[Lucy]

Originally Posted by diamond

Hello,

Does and OC have a duty to inform their assignee CA that an account is disputed so that the CA does not attempt to collection on it? Or better yet did they (OC) have a duty to recall the account from the assignee?

I need to know if the OC is liable to me too for the credit report damage and denial because they didn't inform the CA that the account was dispute,d and didn't recall the account because it is not mine.


In my humble opinion, I say that the CA's have no scruples so therefore they think they do not have to answer to anyone. I am dealing with one right now that has done exactly what you are questioning. Since you sent your validation request, have you received any further notices from any CA? If so, they are in violation for continued collection activity which is covered under the fair debt collection practices act (fdcpa). Did you keep copies of the letters you sent? Did you happen to send them certified-return receipt? It is aggravating dealing with the cra's and ca's and they do not care.

[Pale Rider]

This seems like an interesting question to me. But, I'm not finding a duty to report the dispute so far.

In most cases, the OC is not subject to FDCPA. So, the section requiring them to report the dispute does not apply. The FCRA would apply to an OC, but the duty to report the dispute comes when reporting the account to the CRA, not a third party. You may be able to make a case under FCBA where it does not allow the OC to take an action to collect the dsiputed amount. But there are strict rules on an FCBA dispute, and there is at least one court case that states selling an account to a collector is not collection activity.

I hope I am not confusing you with this, but I don't see a cause of action yet. I'd hate to see you go after them and end up paying their court costs. I'll try to look up some more angles on this, but I can't recall where they might be required to report the dispute under the facts presented.

Was this a case of ID theft or just the wrong account reported originally by the OC?

[diamond]

Hi Lucy,

Thanks for responding! Yes, I sent everything CMRR. I agree the CAs are such a pain.

Diamond

[diamond]

Originally Posted by Pale Rider

This seems like an interesting question to me. But, I'm not finding a duty to report the dispute so far.

In most cases, the OC is not subject to FDCPA. So, the section requiring them to report the dispute does not apply. The FCRA would apply to an OC, but the duty to report the dispute comes when reporting the account to the CRA, not a third party. You may be able to make a case under FCBA where it does not allow the OC to take an action to collect the dsiputed amount. But there are strict rules on an FCBA dispute, and there is at least one court case that states selling an account to a collector is not collection activity.

I hope I am not confusing you with this, but I don't see a cause of action yet. I'd hate to see you go after them and end up paying their court costs. I'll try to look up some more angles on this, but I can't recall where they might be required to report the dispute under the facts presented.

Was this a case of ID theft or just the wrong account reported originally by the OC?

Hi Pale Rider,

Thank you for responding! ah, I see. You made some great points. You may be correct in that I may not have a cause of action under FCRA and the FCBA. I am in Cali so the FDCPA applies to the OC. But I need to check it out because it may be pertaining to CRA reporting only and not the assignee CA. What do you think?

Diamond

[Pale Rider]

I looked some more and still haven't found anything other than a duty to report to the CRA. Still researching. If your state laws say they have a duty to report, that would be your best bet.

[Enigma]

Unless the account is a CC, then the FCBA will not apply.

If this account is not yours, the notify your local law enforcement agency and send a copy of that report to the CA.

Another way to attack this is to use your state fraud laws. The account is not yours. You informed the OC of this. Yet the OC sold the account to a CA. The CA has been injured.

CA reports account causing a drop in FICO and credit denial. You suffered an injury.

Look to your state tort laws.

You might consider informing the CA that the OC committed a fraud upon them and they in-turn have committed a fraud against you. Name the CA has a party in a lawsuit and name the OC as a thrd party.

[diamond]

Hi Pale Rider, Lucy, and Enigma,

Thank you so much for replying, and for all of your help and guidance!

Diamond

[centex]

If this is something that just went to a CA, then you may be able to push them into returning it, but you will need to present them with the full paper trail that included your disputes to the OC.

They would then be in a position of having a potential claim against the OC since many of the placement agreements address scrubbing. However, the issue of recourse is something that is their province to address, not yours.