Whether an original creditor is selling a debt, or contracting another party to collect on their behalf - they should have liability for the actions taken to collect that debt. I has an original creditor reach out in 2004 about a debt for a former roommate. I told the creditor the person moved and I lost touch with them. Several months later the company had a collection firm send collection letters in my name. That debt in my name was sold to two separate collection firms which I had to take to court to have my credit repaired. I heard nothing about the debt until 7 years later when $10K was seized from a bank account without warning or notice. It was that same debt that was already validated as not belonging to me. I had been ensnared unfairly into the court system and a judgement rendered for failure to appear as a result of court service notice going to an address I never resided at. The original creditor who knew they debt was not belonging to me received no penalties for their original clerical error that spiraled into a battle exceeding 9 years to resolve.
There should be clear guidelines on what constitutes "irrelevant and frivolous". In my own experience, the CRA's consistently refused to delete trade lines not belonging to me even when I had provided documentation from the original creditor validating the debt was not mine. They falsely claimed they received additional information from the original creditor that superseded the documentation I had. When I circled back to the original creditor, I had learned the debt was sold to a junk debt buyer which leads to a separate issue. If the junk debt buyer is reporting to a credit reporting agency, why are they misrepresenting themselves as the original creditor. Junk Debt buying should be prohibited all together. The original creditors should know their vendors just as the law mandates they know their customers. If the vendor is violating the law on the original creditor's behalf the original creditor should hold responsibility to some extent.
grinwithin
1
Whether an original creditor is selling a debt, or contracting another party to collect on their behalf - they should have liability for the actions taken to collect that debt. I has an original creditor reach out in 2004 about a debt for a former roommate. I told the creditor the person moved and I lost touch with them. Several months later the company had a collection firm send collection letters in my name. That debt in my name was sold to two separate collection firms which I had to take to court to have my credit repaired. I heard nothing about the debt until 7 years later when $10K was seized from a bank account without warning or notice. It was that same debt that was already validated as not belonging to me. I had been ensnared unfairly into the court system and a judgement rendered for failure to appear as a result of court service notice going to an address I never resided at. The original creditor who knew they debt was not belonging to me received no penalties for their original clerical error that spiraled into a battle exceeding 9 years to resolve.
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grinwithin
2
There should be clear guidelines on what constitutes "irrelevant and frivolous". In my own experience, the CRA's consistently refused to delete trade lines not belonging to me even when I had provided documentation from the original creditor validating the debt was not mine. They falsely claimed they received additional information from the original creditor that superseded the documentation I had. When I circled back to the original creditor, I had learned the debt was sold to a junk debt buyer which leads to a separate issue. If the junk debt buyer is reporting to a credit reporting agency, why are they misrepresenting themselves as the original creditor. Junk Debt buying should be prohibited all together. The original creditors should know their vendors just as the law mandates they know their customers. If the vendor is violating the law on the original creditor's behalf the original creditor should hold responsibility to some extent.
View this comment in the discussion thread