Product: Debt collection

Two final rules under the FDCPA will take effect in XXXX. The first rule, issued in XX/XX/2020, focuses on debt collection communications and clarifies the FDCPAs prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt. The second rule, issued in XX/XX/2020, clarifies disclosures debt collectors must provide to consumers at the beginning of collection communications. The second rule also prohibits debt collectors from suing or threatening to sue consumers on time-barred debt. Additionally, the second rule requires debt collectors to take specific steps to disclose the existence of a debt to consumers before reporting information about the debt to a consumer reporting agency. 

Before a collector furnishes information about a debt to a consumer reporting agency, the final rule generally requires the collector to take one of several actions to contact the consumer about the debt. These actions include speaking with consumers about their debts by telephone, mailing a letter to the consumer, or sending an electronic message about the debt to the consumer. If mailing a letter or sending an electronic message to the consumer, the collector must wait a reasonable period of time to receive a notice of undeliverability, such as 14 days, before furnishing information to a CRA and must not furnish if a notice of undeliverability is received unless the collector takes additional steps. Collectors are also prohibited from, and will be strictly liable for, suing or threatening to sue a consumer to collect a time-barred debt, which is defined as a debt for which the applicable statute of limitations has passed.

Under the final rule, collectors will be also be required to provide readily understandable disclosures that contain more information than consumers currently receive when the collector first begins to communicate with the consumer to collect the debt. The disclosures must include details about the debt and consumer protections, including the right to dispute the debt and to request information about the original creditor. The disclosures also must continue to include a statement that indicates the communication is from a collector and is about a debt. The disclosures will help ensure that consumers are able to recognize debt they may owe and raise concerns about unfamiliar debts. A model form in plain language is provided that debt collectors may use to comply with the rule. 

Stallings Financial failed to follow the regulations prescient on XX/XX/XXXX when this was added to my credit. At no point did they make any attempt to contact me, I have never received any notices from Stallings Financial, demands for payment, any disclosures, or any other requirements as defined by the XXXX regulations. 

They have failed to remove this collection from my credit report despite having no legal basis for applying it. 

I have made every effort to resolve this with the original debtor prior to this collection ever being placed. I did not, have not, and have never owed money to Stallings Financial, I have never made any payments to Stallings Financial nor can the prove I have sent them any money, they have never contacted me by phone or registered mail and yet they still report a balance against my account of {$51.00} having been paid. This is fraudulent.