Validating Debt that Hasn't Been Reported To CRA

[masonuc]

Two questions:

(1)
If a collection agency sends me a 30-day letter claiming I owe a debt, and I respond to them asking them to verify, do they have an infinite amount of time, or 30 days, or just some reasonable amount of time to provide the verification. We're talking about a debt that has NOT been reported to a credit bureau.

Assuming there is a time limit, when does it begin to run (their receipt of my dispute letter?)? If they fail to verify within the deadline, does that just restart the rules -- i.e., they have to provide me with another 30-day debt letter and verify within the time frame before reporting the debt?

Lastly, can you provide me with a cite for any answers to this question?

(2)
I read on your site that collection agencies will sometimes pull your credit report. A) What right do they have to do that and B) Will that impact my credit score at all?

Thanks for any and all advice.



[Edit by masonuc on Friday, May 31, 2002 @ 12:36 PM]


[Edit by masonuc on Friday, May 31, 2002 @ 12:36 PM]

[admin]

Mason, I think you have debt validation and disputing information on your credit report confused. Very common. Here are the answers to your questions.

>> If a collection agency sends me a 30-day >>letter claiming I owe a debt, and I respond to them asking them to verify,

Actually, it's called debt validation. Verification is what the credit bureaus do when you dispute something on your credit report.

>>do they have an infinite amount of time, or 30 days, or just some reasonable amount of time to provide the verification.

Infinite. However, until they do validate, they can't pursue further collection with you like: reporting you to the credit bureaus, taking you to court, or calling you about the debt.

The 30 rule is when you dispute something with the credit bureaus, they have 30 days to investigate or remove the disputed information.