My husband's credit report was in good shape in July. I regularly check both of our reports (monthly). This month (August) I find a collection debt of $70 from Capital Ventures Management on his report which, of course, dinged his FICO score to the tune of 75 points downward! The collection indicates an 'open date' of July validated by Experian August doesn't indicate the 'original creditor' and indicates the collection is 1 month past due. Sounds fishy already, huh? This company is in the business of buying small debts and ruining people's credit WITHOUT following federal regulations.
CMV validated the debt without any communication with my husband... Nothing at all! And, Experian went ahead and placed the debt on my husband's credit report.
Plain and simple, Capital Ventures Management (CMV) violated the Fair Debt Collection Practices Act. CMV claims to treat customers with 'respect.' They list an "Integrity Top Ten" on their website under their Code of Conduct. Ha! I think not. No respect or integrity coming from this company.
CMV reported a debt to Experian WITHOUT following FDCPA regulations. They violated the 30-day notice rule under Validation of Debts, Section 809,15 USC 1692g (b) which states: If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
CMV faces a civil liability of up to $1,000 under FDCPA under Section 813, Civil liability, 15 USC 1692k for not following regulations regarding communication with the consumer (my husband).
How do these debt buying companies get away with such illegal behavior? I can only assume that they simply state they tried contacting the consumer via mail (no signature required) and then ruin our credit.
Shouldn't something be done to require these debt buying companies to prove their communication attempt?
We work so hard to keep our credit files clean only to have these sleazy and dishonest businesses mess up our hard work. Without written notice, how do they know the debt belongs to my husband? They don't know.
Today, we filed a complaint with the Federal Trade Commission. I urge anyone with a similar situation to do the same.
And, beware of Capital Management Ventures. They show an address in Harrisburg, PA, but their phone contact info indicates Boston.
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