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Christine
Administrator
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Posted: Fri Feb 23rd, 2007 08:57 pm |
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The CURRENT law:
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
ยง 809. Validation of debts [15 USC 1692g]
(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
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a) should read:
A debt collector shall not attempt to collect a debt, report a debt to credit reporting agencies or obtain a consumer's credit report until 45 days after the date the debt collector sent to the consumer's last known address a written notice containing --
1) ....
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It is totally absurd to allow collectors to LOWER consumers' credit scores by obtaining their credit reports and destroying their credit by reporting collections without ever notifying the consumer!
Additionally, it should probably be in the FDCPA that the collector must notify the consumer again if it turns out that the address changed.
One of the reasons collectors obtain credit reports is to locate debtors. If the initial letter wasn't received by the consumer because they moved, the collector should have to send another letter to the address on file with the CRA they report to or from which the obtained the consumer's credit report.
Many creditors CLOSE accounts without warning and raise rates due to collections, see Chase increases rates after balance increases on other accounts.
In the early 90s, I found out that a creditor reported INCORRECT late payments to the CRAs when I received the American Express letter advising that they CLOSED our accounts.
This section of the FDCPA must be amended to protect consumers ASAP.
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