Junk Debt Buyers LyiNG?….Noooooooh

Hi, I wrote on here last month about a collection agency contacting me about a reposession from 2000. I wasnt sure if I owed this amount, because the actual credit company who repoed my car never sent me any information of whether or not they sold my car or if they did how much they sold it for. Once they repoed it, that was it..end of communication. So I sent the collection agency who bought my account a dispute letter through certified mail. I got the little green card back in the mail showing that they had recieved my letter. A few days ago I receive another letter in the mail from them stating that this letter was a courtesy letter, and that they received no response from me after they sent out the first letter. Now that is a crock. I looked at the date they sent this out, just to see if maybe it was sent out before they recieved my certified letter…NO. They sent this letter out afterwards. Now they are starting to call my home again. I have not answered the phone, I just let the answering machine pick it up.

What actions should I take now? They received my certified dispute letter on the 23rd of Feb, and I received their second letter on the 9th of March. They still have not sent me anything that I requested in my letter. Should I answer the phone and speak with them, I’m sure it will probably get me nowhere though. If I do talk to them on the phone, what should I tell them? Thanks for your help.

Helena

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Hi Helena,

The FDCPA allows a debt collector to hide behind a “bona fide error” defense.  Specifically, 1692k (c) reads:

“A debt collector may not be held liable in any action brought under this title if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error”.

No doubt, the collection agency or junk debt buyer will hide behind the “bona fide error” defense.  Oooops, we made a mistake!  Sure they can do that once, but the JDB will have an awfully difficult time showing that they have “procedures reasonably adapted to avoid such error” if they are caught repeatedly violating.

In that regard, send another CMRR or Fedex letter to the collection agency with a photocopy of the first letter plus copy of the green card and demand validation of this debt.

A December 19, 1997 FTC Opinion Letter states:

“Is it permissible under the FDCPA to cease collection of a debt rather than respond to a written dispute from a consumer received during the 30-day validation period?” Yes. There is nothing in the FDCPA that requires a debt collector to continue collecting a debt after a written dispute is received. Further, there is nothing in the FDCPA that requires a response to a written dispute if the debt collector chooses to abandon its collection effort with respect to the debt at issue. See Smith v. Transworld Systems, Inc., 953 F.2d 1025, 1032 (6th Cir. 1992)”.

Save the phone calls on the answering machine as they are a violation of 1692g (b) of the FDCPA which states (in part) that “the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector”.

Violation!  Violation!

Thanks for the questions and hang in there. 

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.