First off, this really should have been posted in the Personal Finance forum as the involvement of debt collectors and credit reporting have moved this out of the realm of landlord-tenant law. That said, I'll address it here.
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Originally Posted by thecainman
This past Nov, I get a letter that now the debt is in collection. I asked for debt validation but the debt showed up on my credit report.
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First, I assume (and I hope) that you did this within 30 days of receiving their initial letter. That preserves important rights for you.
Second, when did the debt show up on your credit report in relation to when you received their communication and when you sent your dispute?
Have they marked it in dispute on your credit reports?
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I am now left with two options:
1. Pay off the debt and sue in small claims the landlord for both the debt and costs of repairing my credit.
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Do not do this.
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2. Sue the landlord for the debt and costs of repairing my credit BEFORE paying off the debt.
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Unfortunately, you cannot do this under the Fair Debt Collections Practice Act. While generally, a principal can be held liable for the actions of their agent, the FDCPA specifically exempts them from this unless they are also in the business of collecting debts. Now, you might be able to hold them liable under the debt collection laws of your
state (we could, in Florida) but I didn't see you mention where you lived.
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I'd like know if there are any options in which I basically get the court to say this debt is invalid and I get the debt removed from my credit score. That would be my preferred course of action.
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You could do that without suing, but if you sue you could get paid as well.
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But can I sue the landlord for sending me the bill I contest and then sending it to collection? Or do I have to pay it first?
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See above.
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Originally Posted by nealrm
Don't sue you would lose, unless you can PROVE that the item on your credit report caused you actual damage. Where you turned down for a loan????
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This is incorrect. The FDCPA and FCRA both carry $1000 maximum statutory fines PLUS an allotment for actual damages, punitive damages and legal fees.
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A better solution would be to contact the credit agencies and dispute the item. Then the collection agency must prove that the claim. To do so they would need to take you to court and prove the cleaning was justifiable and necessary. The burden of proof would be on them.
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Again, incorrect. Disputing the account with the credit bureaus is a good idea, but they don't have to "prove it" then. They simply confirm to the credit bureaus that the account is correct.
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Item like that also follow off a credit report in 5 years, you are 2 year into that. That even if that single item effected your rating at all.
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It's actually 7 years, from the date of first delinquency.