Re: is this funny or what i asked ZARZAUR& SCHWARTZ

Posted by Why Chat (209.240.205.61) on August 14, 2004 at 01:05:56:

In Reply to: is this funny or what i asked ZARZAUR& SCHWARTZ posted by sid on August 13, 2004 at 14:26:49:

I am reposting my reply to your query on this original thread.

The FDCPA set up the validation proccess and rules to protect people from being dunned for debts that were not theirs.
If a creditor CAN NOT "validate"a debt, it. of course, would have no legal basis to sue.

However, there is NO "law"that prevents a creditor from suing, once they have have established that they have the correct person,and have sufficient proof to prove their claim in Court.

In fact, on a newer debt, where the access to sufficient legal documentation is easily available, the USUAL procedure is to file suit if "validation" is requested.

The creditor, is of course, not ALLOWED to provide any additional "validation" during this proccess as it is considered a "collection actvity" which IS prohibited once "validation" is requested.
The ONLY permitted communication is that related to the filed lawsuit, so a statement of account, identifying the account legally is all that is needed for the claim.

Of course, if the account is NOT yours, or if there are serious questions of identity fraud or excess interest or fees added, the answer to the lawsuit can challenge those issues.
However,your contention that because the claim of lawsuit did not fulfil the "validation" standards means they can not sue,or prove their case is mistaken.

There are many "so-called" credit repair or advice givers, some of whom post here,that tell EVERYONE to "validate" even on accounts that are recently charged off. They use a kind of "voodoo" system in a belief that sending a validation request will be a magic charm that prevents lawsuits, in a convoluted theory that a CA has no right to sue because they have not "signed" a contract with the CA.

An account, even charged off for accounting purposes, is a legal obligation that can be assigned,or sold, together with ALL the rights that an original creditor had, including filing suit, reselling or settling.

The ONLY thing a CA who has bought the debt can NOT do legally, is to "forgive" an unpaid portion of the debt in a settlement and issue a 1099,as that is an IRS accounting method that is reserved for the OC.

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