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Debt validation letters to original creditors?


Nate128
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I'm trying to clean up my credit reports and calling on some old credit card debts that were in collections. I've been calling the companies and a couple of the debts are still held by the original creditors and not with third parties. I know the first step is to send a debt validation letter but should that only be done for collection agencies/third parties? In this case it's with the original creditor, so would I still mail one to them? And if so would I tweak the validation letter for that? Thanks in advance.

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OCs are not subject to the federal FDCPA. Your state may have a "mirror statute" that applies to OCs. If you already have the creditor's name and the amount, DV is generally a waste of time because that's all they have to give you. How old? What state, creditor's names, and amounts would help. Round off the amounts.

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As already pointed out, debt validation as provided for in the FDCPA only applies to debt collectors, not original creditors.  In addition, the validation section of the FDCPA specifies that a consumer’s right to request validation is triggered only after an initial communication from a debt collector.  The initial communication p is usually the first debt collection letter demanding payment and which should contain the 30-day validation notice.

 

The courts that have addressed the issue of finding a collection tradeline on one’s credit report as an initial communication have ruled that it is not an initial communication that triggers a consumer’s right to request validation.

 

As suggested, find out if your state debt collection laws apply to original creditors.

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Where legitimate grounds for a dispute exist, there are statutes outside of the debt collection realm which CAN be of assistance.  Certain banking regulations CAN be used to one's advantage.  Other provisions of law CAN be used to one's advantage.  The key is in writing a tailored letter that does not rely upon generic cut-and-paste tripe...

 

The second piece of the puzzle, especially with respect to an OC, is to not be afraid of the phone if/when they call.  You are asking them for a potential favor and need to be willing to speak with them if they call to follow up.

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8 hours ago, legaleagle2012 said:

OCs are not subject to the federal FDCPA. Your state may have a "mirror statute" that applies to OCs. If you already have the creditor's name and the amount, DV is generally a waste of time because that's all they have to give you. How old? What state, creditor's names, and amounts would help. Round off the amounts.

 

It's New York State.

 

Creditors are Kohls/Capital One - owe $1,048. Opened 2011, last active 2016.

and JPMCB (Chase) - owe $780. Opened 2011, last active 2016.

 

I'm definitely willing to speak with them for some sort of settlement, or communicating by mail if it's better. Everything I've read says that the first step is to always send a validation letter but I thought maybe it was different for OCs. My main goals are to 1) have the debt marked as paid/settled or whatever would be satisfactory and 2) have it removed from my credit report (which I know may be unlikely).

Edited by Nate128
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Although the FDCPA doesn't apply to OCs, the FCRA allows you to send a 623 letter AFTER a CRA dispute. I've gotten older debt removed with the 623 for re-aging and incorrect debt amounts.

a)  You have to dispute with a credit reporting agency first. The 623 is done after a debt is verified by a CRA.

b) The 623 is not validation but an "investigation" request. You're saying "XYZ credit reporting agency verified my dispute, but it is incorrect because of (why you're disputing). Please investigate your records regarding this account. They have to respond in 30 days with the results of their investigation. If no response, the next step is a possible lawsuit.  As with all steps in the process, there are no guarantees. It's just another step avaiilable to consumers disputing debt.

 

Language from section FCRA 623:

https://www.bankersonline.com/regulations/fcra-623

Edited by tmcgill
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If you defaulted in 2016, you can still be sued in NY on at least one of these; Chase. The SOL is 6 years for credit card debt in NY. 

 

The Kohl's is  DOA if it is a store issued card that can only be used at Kohl's. SOL in that case is 4 years.

 

https://www.nycourts.gov/courthelp/goingtocourt/SOLchart.shtml

 

Chase isn't known to be sue happy; I would let that one alone if they haven't been contacting you.  The SOL could expire next year if you defaulted in 2016.Debt validation won't help you get a tradeline removed. Very few things will.

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On 3/12/2021 at 3:34 AM, legaleagle2012 said:

If you defaulted in 2016, you can still be sued in NY on at least one of these; Chase. The SOL is 6 years for credit card debt in NY. 

 

The Kohl's is  DOA if it is a store issued card that can only be used at Kohl's. SOL in that case is 4 years.

 

https://www.nycourts.gov/courthelp/goingtocourt/SOLchart.shtml

 

Chase isn't known to be sue happy; I would let that one alone if they haven't been contacting you.  The SOL could expire next year if you defaulted in 2016.Debt validation won't help you get a tradeline removed. Very few things will.

 

Thank you for your help. At this point I am trying to get approval for a mortgage so my main goal is to have the debt marked as satisfied/settled, and a bonus if it could be removed.

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