Paragon Way, Inc

[nickdeni]

I received my request for validation from Paragon today for a Payday Loan they say I owe.. It was printed on a statement like form with the information below.

 

Dear,

 

We have received your request for validation of the account listed below. Please review the information below:

 

Original Creditor: Advance America

Original Account: xxxxxxxxxx

Origination Date: 11/21/01

Last Payment Date: Blank

Charge Off Date 12/24/01

Placed on Our Floor: 09/01/2006

Current Balance: $622.02

Current Creditor: Collins Financial Services, Inc

Description: PAYDAY LOAN

 

 

This doesn't seem like a validation to me, so what is the best letter to shoot off to these guys. I was also wondering what payday loans in Missouri fall under to find out the SOL. If you could give me some feedback I would appreciate it. Thanks

[barilej]

I sent a DV letter to Paragon - The day they signed for it the item was delected from two of the CR - then about a week later I got the same type letter you did. Not sure if I should ignore it since they already deleted the tradline. I'm interested to see what people suggest to you regarding this "validation"

[nickdeni]

I forgot to mention that this as not made it on to my credit report yet. Lets hope that it stays that way.

[gweedoh]

If you signed a contract when you got your payday loan, it's a written contract. A written contract with no teeth, but nonetheless, a written contract.

 

"Validation" is not defined by the FDCPA. It just says the CA's have to provide it and the OC name and address if you ask for these things specifically. If they sent you crap this time, they're going to keep sending you crap so I wouldn't bother sending them another letter at this point.

 

Are you doing a 1-2 punch on this or did you only send the letter to the CA? If you haven't sent your disputes to the CRAs I'd do that now. Keep in mind the CA *must* report to the CRA that the debt is disputed when the CRA contacts them. If they don't, it's violations of FDCPA and FCRA worth $1,000 payable to YOU. If they verify the debt but don't report the dispute, then you send the CA an invoice for $1,000 and a letter explaining why they owe you $1,000 and to avoid further action (don't say "legal action") on your part, you are expecting payment within 10 days. If they verify the debt with the CRA and place a dispute notice on the debt, you're pretty much done with this one without a lawyer, unless you can prove other FDCPA/FCRA violations.

 

They will probably ignore you but delete the entry from your credit report. This is what you're shooting for. If they ignore you and continue reporting the debt, then you move on to phase two.

[gweedoh]

I forgot to mention that this as not made it on to my credit report yet. Lets hope that it stays that way.

 

Ok, then forget my response. Don't do anything with it until it shows up on your credit report.

[gweedoh]

I sent a DV letter to Paragon - The day they signed for it the item was delected from two of the CR - then about a week later I got the same type letter you did. Not sure if I should ignore it since they already deleted the tradline. I'm interested to see what people suggest to you regarding this "validation"

 

Payday loans are a complete scam and the CAs know it. I had two on my report and both of them dropped like dead flies as soon as I disputed them and that was the last I ever saw of them.

[nickdeni]

Thanks for the info Gweedoh. Sorry you wrote all that before you saw that it hasn't made it to my credit report. I guess I will just forget about this unless it ends up on my report. Thanks

[gweedoh]

Thanks for the info Gweedoh. Sorry you wrote all that before you saw that it hasn't made it to my credit report. I guess I will just forget about this unless it ends up on my report. Thanks

 

That's ok. Hopefully it will be of use to someone else.

[nickdeni]

Update...

 

I sent Paragon Way a follow up letter to the letter they sent me in my first post. This is what i sent them:

 

10/24/06

 

Thank you for your recent communication. As you are no doubt aware, what was sent does NOT constitute validation. This does not sufficiently prove that there is any legal, contractual obligation between myself, your agency or the creditor. I, again, request that your company PROVE to me, beyond a shadow of a doubt, that I incurred this alleged debt. Please provide me with Full validation within 15 days.

 

 

They just now responded. Here's their letter:

 

12/05/06

 

We have recieved notice of your claim of dispute on the above-referenced account. After careful review of the account history and all avaiable documentation it has been determined that your claim is unsubstantiated and this remains an active collection account. Paragon Way will report your account as disputed to all three credit bureaus, if applicable.

 

Thank you for the oppurtunity to be of service. You may call our office with any additonal questions or new documentation you believe may assist us.

 

 

This is still not reporting on my credit report and I want it to stay that way. They still haven't validated this and probably won't be able to. The best is the balance as gone up $6.75 for interest since their last letter they sent me. What should I do now?

[JunkBuyersWorstNightmare]

Update...

 

I sent Paragon Way a follow up letter to the letter they sent me in my first post. This is what i sent them:

 

10/24/06

 

Thank you for your recent communication. As you are no doubt aware, what was sent does NOT constitute validation. This does not sufficiently prove that there is any legal, contractual obligation between myself, your agency or the creditor. I, again, request that your company PROVE to me, beyond a shadow of a doubt, that I incurred this alleged debt. Please provide me with Full validation within 15 days.

 

 

They just now responded. Here's their letter:

 

12/05/06

 

We have recieved notice of your claim of dispute on the above-referenced account. After careful review of the account history and all avaiable documentation it has been determined that your claim is unsubstantiated and this remains an active collection account. Paragon Way will report your account as disputed to all three credit bureaus, if applicable.

 

Thank you for the oppurtunity to be of service. You may call our office with any additonal questions or new documentation you believe may assist us.

 

 

This is still not reporting on my credit report and I want it to stay that way. They still haven't validated this and probably won't be able to. The best is the balance as gone up $6.75 for interest since their last letter they sent me. What should I do now?

 

They still haven't even ATTEMPTED to validate.

[nickdeni]

Yep, They haven't validated. What's the best course of action? I don't want these fools on my CR!

[gweedoh]

FDCPA doesn't put a time limit on their response to your request for validation. It just says they can't continue collection activity until they validate. Did their latest letter say "This is an attempt to collect a debt"? If it did, they have violated FDCPA by continuing collection activity. If it didn't, they have violated the FDCPA by not notifying you they are trying to collect a debt.

 

Honestly, though, I wouldn't do anything more with this unless they report it. You have them on at least one violation. Just hang on to that letter for future reference if necessary.

[nickdeni]

At the bottom of the letter it says...

 

This is a communication froma debt collector. This is an attempt to collect a consumer debt. Any information obtained will be used for that purpose.

 

I understand what your saying Gweedoh, I just would hate to see this on my credit report.

[gweedoh]

I understand what your saying Gweedoh, I just would hate to see this on my credit report.

 

You can't stop them from reporting it. Right now, the most you can do is file a lawsuit for their one violation. Even if you had 57 violations and sued them and won, you still can't stop them from reporting it to the CRAs. All you can do is keep suing them. See what I mean?

 

The idea is for this to not show up on your report and right now, you're getting what you want. If it pops up, deal with it then. In the mean time, don't worry about it.

[nickdeni]

Ok, I finally understand. I appreciate all your feedback! Thanks

[centex]

**cough cough** Texas Finance Code **cough cough**

 

Think outside the box people...

[gweedoh]

**cough cough** Texas Finance Code **cough cough**

 

Think outside the box people...

 

Meaning?

[nickdeni]

I would like to know what your talking about as well.

[nickdeni]

Also I live in Missouri not Texas if this matters.

[centex]

Also I live in Missouri not Texas if this matters.

 

You forget...Collins DBA Paragon is based here in Austin. They are one and the same. Being based in Texas, there are provisions of Texas law that will apply in this instance...

[nickdeni]

What would you recommend my next step be? Thanks for your help.

[nickdeni]

bump

[nickdeni]

BUMP

[newhome2005]

If you have been on the board a while, texas has provisions (sp?) where the ca is "REQUIRED" to validate in the 30 days or else they have violated texas law also... If you are really interested read texas collection law.

 

So you actually have something to file with the texas AG....

 

a lot of folks wont do your homework for you just lead you in the direction....

 

Hope you read up on it..

 

Folks are trying to tell you that you are all wound up over what? These folks may never report... Some don't... Especially once they get the dv, so you don't really got nothing to file over yet.

 

You want to complain over a dunning letter and not getting validation, but it is NOT hurting your score, it is not damaging you in any way so just let it go until something pops up.... Then you got something.

 

 

[nickdeni]

*Update* This just pop up on my report today. What should I do now?