Collection Agencies
You may have found that one or more creditors has sold fraudulent accounts to collection agencies, who then contacted you, or you saw collection accounts on your credit report.
You have additional rights under the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act, including the ability to demand the following:
As a victim under the FCRA, once you notify orally and in writing the collection agency, it must do the following:
♦ Notify the original creditor that you have indicated it is a fraudulent account. 
Legal Lingo
The Fair Debt Collection Practices Act is a federal law that governs how debt collectors can collect debts. It does not affect the internal collection departments of creditors, only independent organizations that purchase uncollectable debt from companies at a discount and try to collect the debt to earn a profit.
♦ If you request so in writing, provide you all documentation they have of the account.
♦ Stop collections activity.
♦ Require that the original creditor repurchase the debt as fraudulent.
In addition, the collection agency must provide you with the following on your written request:
♦ Written notice of the amount of a debt.
♦ The name and address of the original creditor.
♦ A statement that you have 30 days to dispute the validity of the debt.
♦ Documentation and verification of the debt.
You also have the right to demand that the original creditor not re-sell the fraudulent account to a debt-collection agency. If you receive a phone call from a collection agency, tell them of the fraud, and demand written notice, which the agency is obliged to give you within five days. Once you receive the written notice, you have 30 days to write your letter, provide the FTC affidavit and police report, ask for the documentation, and demand that they no longer attempt collection. You will also need to immediately dispute the collection account with the CRAs.
When sending a letter (return receipt requested) to the collection agency, include everything you would for any credit report-listed debt as described earlier in this chapter. In addition, you want to add the following:
♦ A demand for the name, address, and phone number of the original creditor
♦ A demand that, because the debt is fraudulent, all collection activity immediately stop and that the collection agency sell back the account to the creditor
♦ A demand for all documents of the account in the possession of the collection agency pursuant to FCRA 609e
Then write the original creditor, using a letter with attachments as described earlier in this chapter, to challenge the account as fraudulent and the result of identity theft. Also remind the creditor not to re-sell the account to collectors.
The Least You Need to Know
♦ Dispute department store accounts and loan accounts with CRAs similarly to disputing fraudulent bank-issued credit cards.
♦ When it comes to identity theft, collection agencies are governed by the Fair Debt Collection Practices Act and also the Fair Credit Reporting Act.
♦ Most loan applications require more extensive information that can help you prove your innocence, so demand that it be provided to you under FCRA 609e.
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