Legal Question in Credit and Debt Law in California
Collection account. No contract.
I used the services of a pay in advance, unlimited local, no contract phone company. I purchased the phone from a private seller and used my name on the account. This service required me to pay at the beginning of each month or disconnected the service within a few days. I quit making payments but the phone stayed on for at least another month.
Four years later I discover a collection on my credit report. I immediately disputed it but was returned validated. After contacting the collection agency and the phone company they only provided me with a bill. No contact or agreement to pay any amount at any time between myself and the phone company.
I sent a demand to the collection agency to provide verification of this debt. They ignored this letter.
On my way to file a small claims action against them I decided to drop in at their office and give them one more chance to remove the collection on my credit reports.
Their ''agent for service'' yelled at me and told me to leave and get a good lawyer. I left and drove to court and filed for $2400 for violating the FCRA & FDCPA and for hurting my credit score resulting high interest rates and denials of credit.
Is it legal for them to report this no contract account?
2 Answers from Attorneys
Re: Collection account. No contract.
Good luck in small claims court. I am beginning to think federal courts are better places for FDCPA actions. But in the end, it's the judge you get that matters.
Re: Collection account. No contract.
If there was no contract, how could they have provided you with a contract? FDCPA requires them to validate the debt. It does not require them to produce a contract. I think you may still have a case, but don't let the whole thing hang on the fact that there was no contract. Make sure you have your cancellation in writing.
Oh, and as Mr. Stone said, good luck in small claims court with this. You may get a judge who has never seen a FDCPA claim before.
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