Sending Violation Demand Letters

The Helstowski & Helstowski Law Firm works with select credit repair companies across California and certain states around the United States in representing our mutual clients when a FDCPA or FCRA violation is discovered. Once the client hires the law firm, they will send a violation demand letter on behalf of the client demand a certain amount of money from the data furnisher. This creates the leverage to create a deal quickly and with out the need to file a lawsuit against the data furnisher.

Program Highlights

What is a violation demand letter?

When a suspected FDCPA / FCRA violation is noticed, an attorney can write a demand letter asking for a certain amount of money based on the violation(s). Violations carry a statutory penalty of $1000. We usually then ask for $2500 in attorney fees on top of the statutory amount.

We have noticed that when we put a price on resolving an issue with the debt collector

Time is the main reason.

Most of our clients are trying to achieve a goal in the next 6 months or less. If they file a lawsuit, this issue may not be resolved for 6 months to years. One reason that lawsuits take much longer is that the attorneys are arguing over fees and how much they will be compensated. There is value in that BUT not when time is of the essence.

When we are hired we are looking to achieve the client’s goal in a very short period of time. We are not as worried about what the data furnisher is going to pay us. Keep in mind that the client is going to pay us something too and if the data furnisher writes a check for violations we consider that the “bonus” for doing good work.

When we send a violation demand letter we notice that one of 5 possible outcomes is expected.

  1. Just a Deletion The client receives an offer to remove the account from the credit report OR the data furnisher removes the account from the credit report without even informing us. In the former scenario, the client will usually have to sign a settlement agreement agreeing not to sue the data furnisher.
  2. Deletion + Money The client receives an offer from the data furnisher to issue a check plus remove the account from the credit report with a possible debt waiver. A debt waiver is an agreement that the client does not owe the data furnisher any money for the debt. This is more common when a Debt Buyer owns the debt. A debt collector that is working the debt for a percentage fee can not waive the debt. They can just agree to send it back to the original creditor and pay a check to the client.
  3. Settlement + Deletion The client receives an offer from the data furnisher that they will remove the account from the credit report but WILL NOT pay the client any money for the violation AND the client will be required to settle the debt with them. An example is LVNV Funding was sent a violation demand letter asking $3500 on a $23,000 debt. They came back and said they would not pay the client any violation money but they would agree to settle for a deletion of $1,500. Meaning that if our client paid LVNV Funding $1,500, they would agree to remove the account from their credit report, sign a debt waiver, and not issue a 1099-C.
  4. Nothing Happens The data furnisher may refuse to respond.
  5. Lawsuit Filed The client may choose to file a lawsuit against the data furnisher using one of our attorneys or another law firm.

Because we do not know what is going to happen when we send a violation demand letter, we have a multi stage compensation plan that we believe is very fair for the client and us as well. Our contract clearly lays out how we charge.

Initial Fee $100  (if a client was to come in from our website or loan officer we charge $250)

This fee is for all the creditors on the engagement agreement. The initial fee covers the certified mailing costs plus initial document review. Keep in mind for every demand letter we send out we mail a copy to Data Furnisher, up to 3 CRA’s (Equifax, Experian, TransUnion), if the data furnisher is a debt collector – we send a demand to the original creditor. 

Payment for Possible Outcomes

Just a Deletion If the client receives just a deletion they will pay us a nominal fee after the item is removed.

Deletion + Money If the client receives a check from the creditor, they will keep 55% of the check and we will keep 45% of the check. They will also have the deletion of the item from the credit report

Settlement + Deletion After the client as paid the creditor and obtained removal from the credit report the data furnisher’s reporting of the trade line, they will pay us a nominal fee

Nothing Happens They owe us nothing more.

Lawsuit Filed If we file the lawsuit the client splits the proceeds earned with the firm 50/50 with initial costs being deducted from the client’s side.

The best way to get us the documentation to review is to upload online at:

https://texascreditlaw.com/cro/uploads/

You can upload all the documentation that we need to review a situation and give you and your client the information you need. We will email you what we think or schedule a time to speak with you and your client.

Calling We are available via phone appointment only. You can schedule a phone call at http://cro.xcrbook.me  You can upload the documents on the appointment request. Often, a conversation will be futile without the documentation. I know that many want to speak to see if we will take on a scenario. The answer is Yes, we will if we can. The fastest way to know is to upload online at https://texascreditlaw.com/cro/uploads/

Email We find emailing scenarios to be the most inefficient way of receiving information about your client. We find that it often takes 3-5 emails back and forth to get everything we need and takes precious time to do so. Quite frankly with the volume of emails we receive daily make it difficult to keep track mentally of all of the scenarios people present to us.  I know that many want to email to see if we will take on a scenario. The answer is Yes, we will if we can. The fastest way to know is to upload online at https://texascreditlaw.com/cro/uploads/

Texting  You can text client information to us and we will reach out to them. Please upload documents through the portal or have the clients ready to do so.  I know that many want to text to see if we will take on a scenario. The answer is Yes, we will if we can. The fastest way to know is to upload online at https://texascreditlaw.com/cro/uploads/

While we prefer to be introduced through the upload form online at https://texascreditlaw.com/cro/uploads/

You can also ask them to reach out to us.

Email  & Text Intro

We refer our clients to the J. Gannon Helstowski Law Firm for issues like yours. 

Please contact them directly at:

Phone / Text |  (800) 891-6988

Schedule a Phone Appointment | http://cro.xcrbook.me

Upload Your Scenario | https://texascreditlaw.com/cro/uploads/

Caveats of Sending Violation Demand Letters

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Our law firms can send violation demand letters in all states under the Federal Fair Debt Collection Practice Act (FDCPA) and Fair Credit Reporting Act (FCRA). In order to send a demand letter referencing state law, we must have an attorney licensed in that jurisdiction. 

Currently our attorneys are licensed in CA, TX, FL, NJ, NY, LA, GA,

But there is NO GUARANTEE that the client will obtain a deletion or any money for the violation(s). A violation demand is just a more aggressive way to go after a debt collector or creditor. We are confident that most outcomes after sending a violation are to the client’s benefit.

At no point will we speak through you to speak with the client. 

We must communicate with clients directly at all times during the process. You can help the client by submitting documents to us to review. We will respond to you and the client each time. We will keep you in the loop as to what is going on.

Under Federal FDCPA, original creditors are not included. However, certain states have laws that include the original creditor in their versions of FDCPA. If the state that the consumer resides in does not have a state statute that includes the original creditor AND we do not have an attorney in that state, we can not send the violation demand letter to an original creditor.

Under Federal FCRA, original creditors are required to report accurate information. We hold that they are required to adhere to the Metro 2 standard adopted by CDIA.

In deciding possible outcomes of sending a violation demand letter  it is important to make a distinction between how the debt is being collected. Debts are usually being collected by the debt buyer themselves or through a third party debt collector that is collecting on the percentage of the money collected.

Debt Buyers When we discover violations against debt buyers is possible to obtain a debt waiver (where the client does not owe the money.), a removal of the account from the credit report, a check for the violations, and no issuance of a 1099-C. This is possible because they own the debt.

Debt Collectors When we discover violations against debt collectors we are only seeking removal from the credit report and possibly a check for violations. If they remove the account from the credit report they are sending the account back to the original creditor. They original creditor may decide to send this account to another debt collector at a later date. We will try to discourage them from doing this BUT we can not guarantee they will not send to another debt collector.

If a client receives a check from us on behalf of the data furnisher, they will be issued a 1099 from us in January the following year.

There will be times that we may decide not to send a violation demand letter to a specific creditor even if there is a good violation. There are many debt collectors that decide to delete a trade line because they see that a client is being represented by an attorney. 

If this is the case, then we will explain to you and your client that this creditor will most likely remove from the credit report in less than 30 days for us. We can be hired to represent them for a nominal fee. But we will not agree to send out a demand letter on their behalf.

If they still want to pursue the violation, we can certainly recommend other attorneys that may be able to assist them.

Law firms can not split fees with layman.

What we are willing to do for you is help you and your business grow. We are willing to share all the knowledge we have. We are willing to review documentation, contracts, training materials, and advertising to help you maintain best practices and compliance. We are here for you and want to be your partner in the credit repair industry.

The violations that we most commonly go after

Interest on Account

What are we looking for in the letter from the data furnisher?

We are looking for the word “Interest” appearing anywhere in the letter. We want to see the letter even if the Interest = $0.00. There may be a violation if this word appears in the collection letter.

What do you need to upload to us?

The letter with the word “interest.”

What are the currently known data furnishers with a potential violation?

  • IQ Data International
  • Hunter Warfield
  • AWA Collections
  • Allied Collection Services

Demand does not match documents

What are we looking for in the letter from the data furnisher?

We are looking for a demand letter that is accompanying the “proof” of debt shows one amount due BUT the “proof” of debt they attach does not have that dollar amount anywhere on it. A solid example is if a debt buyer were to respond to a validation letter you sent with a demand letter attached to some documents that are supposed to prove the client owes the debt. But upon further examination, the documents attached do not confirm the amount demanded in the debt buyers letter. There may be a violation if this occurs.

What do you need to upload to us?

  • The letter sent from the data furnisher with all documentation sent.
  • Access to credit monitoring to the client

What are the currently known data furnishers with a potential violation?

  • All Debt Buyers
  • Apartment Debt Collectors
  • All data furnishers

Overshadowing

What are we looking for in the letter from the data furnisher?

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What do you need to upload to us?

  • Placeholder

What are the currently known data furnishers with a potential violation?

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Not Reporting Consumer Dispute

What are we looking for in the letter from the data furnisher?

  • Placeholder

What do you need to upload to us?

  • Placeholder

What are the currently known data furnishers with a potential violation?

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Manufactured Documents

What are we looking for in the letter from the data furnisher?

  • Placeholder

What do you need to upload to us?

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What are the currently known data furnishers with a potential violation?

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Non Response to Validation Request

What are we looking for in the letter from the data furnisher?

  • Placeholder

What do you need to upload to us?

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What are the currently known data furnishers with a potential violation?

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Overshadowing

What are we looking for in the letter from the data furnisher?

  • Placeholder

What do you need to upload to us?

  • Placeholder

What are the currently known data furnishers with a potential violation?

  • Placeholder

Overshadowing

What are we looking for in the letter from the data furnisher?

  • Placeholder

What do you need to upload to us?

  • Placeholder

What are the currently known data furnishers with a potential violation?

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