Suspend further action to collect or re-sell. Placing a rule that prohibits a collector from reporting information to a CRA during the 30 day window would be a nightmare from elm street and only cause more problems. Unresolved disputes should not be sold and should be removed from collection..Period.
I have disputed debts with the credit bureaus but they do not even try to resolve the issues. You get a standard response from them. It is in their interest not to resolve issues. Furthermore, you cannot get them on the phone and if you mail your disputes to them you never get a response. They are part of the rip-off system to prey on consumers.
I have a collection story about my 90 year old mother in law. One day she receives a notice from a collection agency. My mother in law is listed in the phone book, and her name is similar to the supposed debtor although they live in different parts of the state.
They send a collection notice. We respond that they have the wrong person and sent it certified.
They receive our response, but do not respond.
She continues to get notices and an occasional phone call.
While you might say, just disregard them, this is incredibly stressful to my 90 year old mother in law.
I would like to propose my own solution to the problem and it is self-funding.
1. The consumer disputes with the collection agency via certified mail.
2. If the collection agency doesn't formally cease collections and write a letter acknowledging this within a period of time, the consumer can pay a filing fee ($50-75) and appeal to the CPFB.
3. If the collection agency is found at fault, they $50-$75 fee is refunded to the consumer and the fee plus a penalty will be assessed the collection agency. Failure to pay the fines will result in the collection agency losing their license.
Bottom line: there's need to be some "teeth" in any rules.
Bank of America, my mortgage holder, does NOT even allow a formal dispute to move forward. The past 12 months have been a continues headache with Bank of America. For example, our mortgage account have always been current, and never were we in Foreclosure status, nor even approaching default. However, every single month Bank of America reported to the three major credit bureaus that we were late. I've worked with their Military Liaison Officer on the resolution through phone calls, email messages, and formal letters but without success. Urgent Help/Assistance is needed for consumers to navigate and to resolve the problems that Bank of America is creating over simple and elementary issues of basic accounting procedures. Bank of America has the undue power of making reports to the credit bureaus which adversely affects the consumer. The Consumer lacks tools to challenge and fight back on Bank of America's abuse of power.
"Verify" needs to be thoroughly defined. It should be no less than documented court admissible evidence that the consumer is responsible for the debt. If the debt collector cannot produce this evidence, he should be barred from reselling the debt or reporting it to the CRAs.
RBell
1
Suspend further action to collect or re-sell. Placing a rule that prohibits a collector from reporting information to a CRA during the 30 day window would be a nightmare from elm street and only cause more problems. Unresolved disputes should not be sold and should be removed from collection..Period.
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linalex61
2
When I have a dispute thru FTC, credit bureau changes anything they can on my credit report.
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jfearon
3
I have disputed debts with the credit bureaus but they do not even try to resolve the issues. You get a standard response from them. It is in their interest not to resolve issues. Furthermore, you cannot get them on the phone and if you mail your disputes to them you never get a response. They are part of the rip-off system to prey on consumers.
View this comment in the discussion thread
TaxGuy
4
I have a collection story about my 90 year old mother in law. One day she receives a notice from a collection agency. My mother in law is listed in the phone book, and her name is similar to the supposed debtor although they live in different parts of the state. They send a collection notice. We respond that they have the wrong person and sent it certified. They receive our response, but do not respond. She continues to get notices and an occasional phone call. While you might say, just disregard them, this is incredibly stressful to my 90 year old mother in law. I would like to propose my own solution to the problem and it is self-funding. 1. The consumer disputes with the collection agency via certified mail. 2. If the collection agency doesn't formally cease collections and write a letter acknowledging this within a period of time, the consumer can pay a filing fee ($50-75) and appeal to the CPFB. 3. If the collection agency is found at fault, they $50-$75 fee is refunded to the consumer and the fee plus a penalty will be assessed the collection agency. Failure to pay the fines will result in the collection agency losing their license. Bottom line: there's need to be some "teeth" in any rules.
View this comment in the discussion thread
SJDuPlessis
5
Bank of America, my mortgage holder, does NOT even allow a formal dispute to move forward. The past 12 months have been a continues headache with Bank of America. For example, our mortgage account have always been current, and never were we in Foreclosure status, nor even approaching default. However, every single month Bank of America reported to the three major credit bureaus that we were late. I've worked with their Military Liaison Officer on the resolution through phone calls, email messages, and formal letters but without success. Urgent Help/Assistance is needed for consumers to navigate and to resolve the problems that Bank of America is creating over simple and elementary issues of basic accounting procedures. Bank of America has the undue power of making reports to the credit bureaus which adversely affects the consumer. The Consumer lacks tools to challenge and fight back on Bank of America's abuse of power.
View this comment in the discussion thread
drose977
6
"Verify" needs to be thoroughly defined. It should be no less than documented court admissible evidence that the consumer is responsible for the debt. If the debt collector cannot produce this evidence, he should be barred from reselling the debt or reporting it to the CRAs.
View this comment in the discussion thread