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wingwalker

Newly Reported Payday Collection & National Consumer Assistance Plan

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Hello!

 

The day after Christmas, I checked my EQ report and found that a particularly scummy CA that's known for this practice dropped a collection on my previously clean report. It's an alleged payday loan from 7/2012. The CA has never contacted me in any way. I see from my research that reporting a collection on a report is considered to be first contact. Since then, it's been added to TU too.

 

As I craft my dispute, I wanted to confirm a few things and how to word and prioritize the items on my dispute letter.

 

1. The date it was assigned was 12/19/18. 

2. The date it was reported was 12/24/18 (obviously, this doesn't allow for the 30-day dispute process, but if reporting on a report is first contact, that may be moot...?)

3. Since that first contact, including allowances for the holidays, I have not received the required dunning letter within 5 days of first contact.

4. In reading the April 22, 2017, post from ICanHasMuny? on this thread (link at the end of the post), this type of account shouldn't even be reported:

 
"EX TU an EQ won't accept the following information from furnishers effective june 2016 - so if you have this type of information still on your reports, DISPUTE IT OFF ... 
     check cashing companies
     payday loan companies"

I'm pretty hacked off about this... the DOFD is 7/2012. I don't have an exact date yet.

 

I appreciate any guidance on disputing this, especially regarding the wording and citations. I haven't had to deal with any negatives in a few years, and this was a shock. Thanks very much!
 

 

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This isn't my area of expertise, however you are misinformed if you believe that you have to receive advance written notice before a collection can be placed on your credit report.

 

More input should be forthcoming.  Sorry you're dealing with this.

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So far courts have ruled that it is NOT a first  communication to report a debt to a CRA.

 

 

Katina Perry v. Trident Asset Management, LLC, 4:14-cv-01004,  Judge Mensah of the United States District Court for the Eastern District of Missouri, Eastern Division.

 

Plaintiff alleged that Defendant violated 1692g(a) by failing to send a validation notice after credit reporting. The Court reaffirmed the holding in Edeh v. Aragon Collection Agency, LLC, rejecting the argument that reporting a debt to a credit reporting agency is an “initial communication with a consumer” for purposes of Section 1692g(a). Judge Mensah stated that if Plaintiff’s argument would be accepted, it would essentially read “with a consumer” out of the statutory language and would require a debt collector to send a validation notice within five days of making any communication regarding a debt, if there is some chance that the consumer might eventually learn about the communication. The Court emphasized that Plaintiff is mistaken in relying on the phrase in Edeh v. Midland Credit Mgmt., Inc., which holds “reporting a debt to a credit reporting agency constitutes debt collection activity within the meaning of the FDCPA”, because the issue is “not whether reporting debt is a “communication” or “debt collection activity,” but rather whether it is a “communication with a consumer” which would trigger § 1692g(a)’s validation notice requirements. Plaintiff cites no cases finding that reporting to a credit agency is a communication with a consumer, and the Court has found none.”

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5 hours ago, cv91915 said:

This isn't my area of expertise, however you are misinformed if you believe that you have to receive advance written notice before a collection can be placed on your credit report.

 

More input should be forthcoming.  Sorry you're dealing with this.

Thanks, CV. During my research, I found that there was a court case stating that placing a collection on my report was first contact. However, I haven't received the post-first-contact (phone call/placement on CR/etc.) dunning letter sent within five days of that first contact. I appreciate it!

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5 hours ago, legaleagle2012 said:

So far courts have ruled that it is NOT a first  communication to report a debt to a CRA.

 

 

Katina Perry v. Trident Asset Management, LLC, 4:14-cv-01004,  Judge Mensah of the United States District Court for the Eastern District of Missouri, Eastern Division.

 

Plaintiff alleged that Defendant violated 1692g(a) by failing to send a validation notice after credit reporting. The Court reaffirmed the holding in Edeh v. Aragon Collection Agency, LLC, rejecting the argument that reporting a debt to a credit reporting agency is an “initial communication with a consumer” for purposes of Section 1692g(a). Judge Mensah stated that if Plaintiff’s argument would be accepted, it would essentially read “with a consumer” out of the statutory language and would require a debt collector to send a validation notice within five days of making any communication regarding a debt, if there is some chance that the consumer might eventually learn about the communication. The Court emphasized that Plaintiff is mistaken in relying on the phrase in Edeh v. Midland Credit Mgmt., Inc., which holds “reporting a debt to a credit reporting agency constitutes debt collection activity within the meaning of the FDCPA”, because the issue is “not whether reporting debt is a “communication” or “debt collection activity,” but rather whether it is a “communication with a consumer” which would trigger § 1692g(a)’s validation notice requirements. Plaintiff cites no cases finding that reporting to a credit agency is a communication with a consumer, and the Court has found none.”

 

Thanks, Legaleagle2012. So, from reading this (before coffee), it looks like Scumbag CA violated by reporting to my CR before contacting me directly...? If so, is this a "delete this sucker right now" violation, a "Make the check payable to..." violation, or both? It's been forever since I've had to deal with this stuff.

Then there's the issue of whether any payday collections can even be reported now. I appreciate your help - thanks!

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Placing a collection at a CRA is not first contact and doesn't trigger the 30 day notice requirement. Most people don't check their credit reports so it's not first contact with the debtor. In one way you have more time because the 30 day validation doesn't start until you are notified. OTOH, I believe if you notify them that you saw it on your credit report that may well be constructive notification.

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1 hour ago, cashnocredit said:

Placing a collection at a CRA is not first contact and doesn't trigger the 30 day notice requirement. Most people don't check their credit reports so it's not first contact with the debtor. In one way you have more time because the 30 day validation doesn't start until you are notified. OTOH, I believe if you notify them that you saw it on your credit report that may well be constructive notification.

 

Thanks for this! So, I take it that "constructive notification" means that the fact that I detected it serves as notification in a practical sense?

Where does the five-day requirement of the CA sending a dunning letter fit in? I still don't have one (or anything, for that matter).

In addition, if payday collections are prohibited from being reported, would you say that's the primary point of attack? Thanks!

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Posted (edited)
13 hours ago, wingwalker said:

 

Thanks for this! So, I take it that "constructive notification" means that the fact that I detected it serves as notification in a practical sense?

Where does the five-day requirement of the CA sending a dunning letter fit in? I still don't have one (or anything, for that matter).

In addition, if payday collections are prohibited from being reported, would you say that's the primary point of attack? Thanks!

IIRC, the constructive notification issue came up after a CA was notified directly by a consumer (or indirectly from a dispute with the CRA) that they were aware of the account on their credit report. That would trigger the same requirements as, say, notification by phone call starting when the consumer told the CA they saw it. But it was some time ago and I'm not sure if the court ruling supported even that. I just recall it as an interesting, if obscure, argument.

 

ETOA: I'm not aware that payday collections are prohibited from reporting to CRAs. Where did you hear that?

 

 

Edited by cashnocredit

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It might help if someone could state what the obligations of the collector are, rather than what they are not.

 

I'm kind of lost... not that this is about me.  :)  

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1 hour ago, cashnocredit said:

IIRC, the constructive notification issue came up after a CA was notified directly by a consumer (or indirectly from a dispute with the CRA) that they were aware of the account on their credit report. That would trigger the same requirements as, say, notification by phone call starting when the consumer told the CA they saw it. But it was some time ago and I'm not sure if the court ruling supported even that. I just recall it as an interesting, if obscure, argument.

 

ETOA: I'm not aware that payday collections are prohibited from reporting to CRAs. Where did you hear that?

 

 

 

Thanks! It's embedded in my long OP :):
 

In reading the April 22, 2017, post from ICanHasMuny? on this thread (link at the end of the post), this type of account shouldn't even be reported:

"EX TU an EQ won't accept the following information from furnishers effective june 2016 - so if you have this type of information still on your reports, DISPUTE IT OFF ... 
     check cashing companies
     payday loan companies"

This is excerpted from ICanHasMuny?'s post in this thread - thanks!
 

 

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1 hour ago, cv91915 said:

It might help if someone could state what the obligations of the collector are, rather than what they are not.

 

I'm kind of lost... not that this is about me.  :)  

 

Yes, thank you. :)

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56 minutes ago, cashnocredit said:

Interesting. Experian has a post specifically on payday loans as reported by CAs as of 3/17.

 

https://www.experian.com/blogs/ask-experian/cant-pay-back-payday-loan/

 

Not sure what to make of the discrepancy. Couldn't find payday loans mentioned in the consent agreement.

 

Thanks so much for this! I'll reach out to ICanHasMuny? for clarification.

If it turns out that payday loan collections are ok to report, how should I approach the dispute, given that I still haven't received a 5-day dunning letter (or any other kind) from the CA? Thanks!

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51 minutes ago, wingwalker said:

Thanks so much for this! I'll reach out to ICanHasMuny? for clarification.

If it turns out that payday loan collections are ok to report, how should I approach the dispute, given that I still haven't received a 5-day dunning letter (or any other kind) from the CA? Thanks!

I don't think the 5-day letter is required since, from their POV, they have not had first contact with you as they have no way of knowing you monitor your credit reports.

 

I'd probably look at (google) the history of the CA and their approach to debt collection to find out what vulnerabilities they have. Not sure whether the debt being from a payday loan is very relevant unless they sued. Perhaps someone with a payday loan experience will chime in.

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35 minutes ago, cashnocredit said:

I don't think the 5-day letter is required since, from their POV, they have not had first contact with you as they have no way of knowing you monitor your credit reports.

 

I'd probably look at (google) the history of the CA and their approach to debt collection to find out what vulnerabilities they have. Not sure whether the debt being from a payday loan is very relevant unless they sued. Perhaps someone with a payday loan experience will chime in.

Thanks very much... so, when I dispute it, that would count as first contact?

They have an abysmal reputation. They do this a lot, and I've read a few dozen complaints on the BBB site wherein they've folded and deleted the item after not having contacted the consumer. I can DM the name... I don't want to attract any attention. Thanks again!

 

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2 hours ago, wingwalker said:

Thanks very much... so, when I dispute it, that would count as first contact?

They have an abysmal reputation. They do this a lot, and I've read a few dozen complaints on the BBB site wherein they've folded and deleted the item after not having contacted the consumer. I can DM the name... I don't want to attract any attention. Thanks again!

 

I can't really help, but if I were in your situation I would take about a week and think things through, develop a plan based on what I could dig up about them. Then execute. In a sense, you have the jump on them and can think through how you will react to a letter or call.

 

Good luck.

 

Reminds me of lovelytheband

 

"These aren't my people, these aren't my friends......"

 

(I keep hearing them on the car radio)

Edited by cashnocredit

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43 minutes ago, cashnocredit said:

I can't really help, but if I were in your situation I would take about a week and think things through, develop a plan based on what I could dig up about them. Then execute. In a sense, you have the jump on them and can think through how you will react to a letter or call.

 

Good luck.

 

Reminds me of lovelytheband

 

"These aren't my people, these aren't my friends......"

 

(I keep hearing them on the car radio)

 

Thank you - that's solid advice... will do :)

I'll check that song out too.

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