Dead silence from my collector after my 2nd Debt Validation Letter request.

[NickSheridan]

Long story short, I have about 41K worth of business credit card debt (with Wells Fargo Bank) which I signed to personal guarantee for back in 2002. My business closed due to the economy in June 2010, and I have no way to pay the debt. It appears that Wells Fargo sold the debt, when I got only 2 collection letters (just one month apart) from a collection company in Arizona (in February and March of 2011). Then last November, I get a collection letter from a collection company in California, for this debt. On December 13, 2011 I sent a certified request for a Debt Validation Letter (DVL) to that collection company (with a 30 day demand for them to answer or give up rights to collect the debt) requesting documented proof that I signed a personal guarantee, provide copies of documentation and or proof that I accumulated this debt, along with asking (who, when, date) how they acquired this debt.

Then on December 16th, I received my delivery confirmation of my certified letter, and I also received a certified letter from the collection company (on the same day) with their answer to my DVL. They only provided me with a one page (invoice looking) document that only contains basic information of the original creditor (name, address, account number, date opened, owed amount $40,564.40). Though I had a separate business billing address, this collector listed my home address as my billing address in their letter.

So on December 22nd, I just sent a 2nd Debt validation letter request (yet I just mailed it in the regular mail instead of spending almost $6 to have the letter sent certified), with a 30 day demand for them to answer or give up rights to collect the debt), with a request for them to provide me with documented copies of all proofs that I owe the debt. In that letter, I basically stated that I received their answer to my DVL, but they did not provide any copies or documented proof that I guaranteed the debt and nor did they provide any documents or proof that I made any purchases on the account and nor did they provide me with copies or proof that I owe this debt. So there is no way to determine if the debt is mine.

On a side note, their DVL looks more like a “here say” letter, just as their original collection letter does . . . with no documented copies of any proof that I owe the debt. Since this was my first time requesting a DVL, I really did not know what to expect from the collector, however I think that it would be reasonable that they should at least provide me with at least a few documents that showed that I signed a PG and that I signed/charged items to this account to accumulate the debt. What really should I have received from the creditor in my DVL? Is this all required by law for them to send me? I know that if they severed me a summons and I answered it, they would have to show documented proof that I owe what they would be suing for . . . yet since this has not turned into a lawsuit as of yet, I am surprised they did/will not provide me with any type of copies of any documentation that this is my debt.

Now that it is January 10, 2012, I have not heard anything from the collector. Should I be concerned or should I send them a certified letter of the second letter I sent to them, giving them one final chance to come up with the information and copies of the documentation I requested? Since they answered my first DVL within 48 hours of receiving it, I thought sure that they would have answered my second DVL with copies of the documentation that I requested, to prove the validity of the debt they are trying to collect from me.

Nick

[treehugger1]

1) As far as I know, there is no state law in Arizona that requires a CA to respond to your DV request within 30 days. Federal law only requires the CA stop collection attempts until they have sent verification to you. There is no federal time limit as to when a CA must respond. Many CA's never respond and the debt dies or gets passed on to another CA.

2) A CA is not required to furnish you with all the information you requested. That can be sorted out in a court of law. If you are sued then you can begin your request for documents.

3) It sounds as if the CA sent you more than enough information to qualify for verification. Again, they do not need to send you very much.

4) This is a business debt. The FDCPA may very well not apply to you. I don't believe business debt is considered to be consumer debt.

Good Luck.

[tobee43]

i very much agree with tree on this one. actually, just because you personally did not secure the debt does not mean you don't owe it, nor they (the agencies) don't have a right to attempt to collect it. they indeed do.

unfortunately, as long as they proved to you the first time the information from the original creditor, they have a right to do as they please in many cases, including begin suit. and actually as tree has pointed out they gave you more than enough information the first time, and if i can recall correctly, they really didn't even have to do that as a third party collector.

since the debt is that large, don't be surprised if the next letter they will attempt a settlement amount.

best of luck to you!

[GoingDown]

Nick, I hope you are not using your real name on here. You are giving very specific personal information out on a public forum which anyone can read.

For example, the amount of the debt could have been typed this way: $XX,XXX. We would understand from it that the debt is above ten thousand dollars.

And I agree with the other posters on here. The FDCPA does not apply to business debts, and DV letters really don't do a whole lot to stop them or slow them down. Escpecially in this case. They didn't even need to acknowledge it since it is a business debt.

If I were you, I would start looking into the possibility of filing chapter 7 bankruptcy, and get all your ducks in a row, get ready to file bankruptcy, and then wait to see what they do next.

If they file a lawsuit, I would then go ahead and file bankruptcy and get out from under this debt.