So, if a creditor can’t verify a debt:

Nor can they ask you to pay for digging up records of your debt:
http://www.ftc.gov/os/statutes/fdcpa/letters/krisor2.htm
So, if a creditor can’t verify a debt:
• They are not allowed to collect the debt,
• They are not allowed to contact you about the debt, and
• They are also not allowed to report it under the Fair Credit Reporting Act (FCRA). Doing so is a violation of the FCRA, and the FCRA states that you can sue for $1,000 in damages for any violation of the Act.
The opinion letter from the FTC which clearly spells out that a collection agency CANNOT report a debt to the credit bureaus which has not been validated:
http://www.ftc.gov/os/statutes/fdcpa/letters/cass.htm
It also states that you can sue in federal or state court. So if you have them on a violation, then you have damages of $1,000 for the incident plus damages. Small claims court, anyone?

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