Debt collection -- Attempts to collect debt not owed -- Complaint #12930366

Complaint Overview

Complaint ID: 12930366

Company: Biehl & Biehl, INC

Product: Debt collection

Sub-Product: Other debt

Issue: Attempts to collect debt not owed

Sub-Issue: Debt is not yours

State: California

ZIP Code: 91423

Date Received: 2025-04-10T12:00:00-05:00

Date Sent to Company: 2025-04-10T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

Please reference our initial closed complaint ID # XXXX. Although we are aware the account is closed, Biehl & Biehl informed me that they have noted the account as paid. We asked the collection agency to provide the legally required correspondence for the dismissal of the debt in error. They were rude and indignant about our request. When we shared with them the fact that we were aware of what the protocol should be in regards to dismissal of the debt in error, they challenged our veracity and asked me, I quote " Tell me what the law is, or quit making stuff up '' unquote. As a Business we must assure that the proper procedures are in place for the security of our operations moving forward. The XXXX XXXX has greatly diminished any trust we would ever have in them through their unorthodoxed behavior. We believe they have demonstrated the potential of being hostile, and have the propensity to revisit this issue at a later date with possible reoccurrence of actions to collect if dismissal is not as prescribed as follows ; The primary law that mandates a collection agency to cease collection efforts and acknowledge an error upon receiving proof of non-liability is the Fair Debt Collection Practices Act ( FDCPA ). Specifically, Section 809 of the FDCPA ( 15 U.S.C. 1692g ), titled " Validation of debts, '' outlines the consumer 's rights to dispute a debt and the collection agency 's obligations upon receiving such a dispute. Here 's how it applies to your scenario : Initial Communication and Validation Notice : Within five days of their initial communication with a consumer ( which would include a company mistakenly identified as owing a debt ), a collection agency must send a written " validation notice. '' This notice must contain, among other things : The amount of the debt. The name of the creditor to whom the debt is owed. A statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector. A statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer. A statement that, upon the consumer 's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. Disputing the Debt : While the FDCPA primarily refers to " consumers '' ( individuals owing debts for personal, family, or household purposes ), the principle of disputing a debt as not owed logically extends to a company that has been wrongly targeted. When the company provides written proof that the debt was not incurred by them, this acts as a formal dispute of the debt 's validity. Collection Agency 's Obligation Upon Dispute : Subsection ( b ) of Section 809 clearly 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 a copy of a judgment against the consumer and a copy of such verification or judgment is mailed to the consumer by the debt collector. '' Error Acknowledgment : While the FDCPA doesn't explicitly mandate a specific " dismissal letter '' format in the case of a clear error and proof of non-liability, the spirit and intent of the law require the collection agency to : Acknowledge the receipt and review of the provided proof. Recognize the error in pursuing the debt against the wrong party. Formally cease all collection efforts against the company. Ideally, provide written confirmation that the debt is not the company 's responsibility and the matter is closed. This serves as the " proper correspondence '' in this situation, even if the FDCPA doesn't dictate the exact wording. In summary, while the FDCPA focuses on consumer debt, its provisions regarding debt validation and the obligation to cease collection upon dispute provide the legal framework requiring a collection agency to acknowledge a clear error and stop pursuing a debt from a company that demonstrably does not owe it. The " proper correspondence '' dismissing the debt is a logical and necessary action for the collection agency to comply with the spirit and intent of the FDCPA 's consumer protection goals and to rectify their mistake professionally.

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Disclaimer

This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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