15 USC 1692a: 803.

Definitions
(6) The term debt collector means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.

809. Validation of debts

(b) 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 any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

813. Civil liability

(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of (1) any actual damage sustained by such person as a result of such failure; (2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; (3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorneys fee as determined by the court. (d) An action to enforce any liability created by this title may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs. http://www.ftc.gov/os/comments/debtcollectionworkshop/529233-00023.pdf

Under the current Fair Debt Collection Practices Act (FDCPA or the Act), when a mortgage servicer acquires a loan portfolio; it is generally exempt from complying with the FDCPA because the

Act extends the creditors exemption to the new lender/servicer. However, servicers are deemed debt collectors under the Act if they acquire servicing rights on a loan in "default."

http://www.ftc.gov/os/statutes/fdcpa/letters/demayo.htm
The exceptions to the definition of "debt collector" are assembled in Sections 803(6)(A)-(F). In determining whether the agency employees are exempt, we first look to Section 803(6)(F)(iii), which excludes any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity . . . (iii) concerns a debt which was not in default at the time it was obtained by such person. Thus, if agency employees are collecting debts that were not "in default" when the agency for which they work obtained them, they are not "debt collectors." The FDCPA does not define the term "in default," but whether a debt is in default is generally controlled by the terms of the contract creating the indebtedness and applicable state or federal law.

If the accounts that the agency employees in your fact situation are attempting to collect were in default when they were obtained by the agency, the agency employees are not exempt from the definition of "debt collector" by virtue of Section 803(6)(F)(iii).

COMPLAINT (36585465) filed with Federal Trade Commission using online form, 4/18/2012:
Green Tree, LLC acquired servicing rights to my mortgage from Bank of America in a 'default' status. Based on the letter from Green Tree dated 11/1/11, I immediately sent a letter disputing the validity of the debt to Green Tree. No response. In follow-up calls on several occasions in DEC 2011 I told the collections agent that I disputed the debt based on accounting errors while it was being serviced by Bank of America. I received the transaction journal that detailed the history of the account and was able to point out to Green Tree that the errors totaled over $3,749.69 and asked for help to correct this. Less than 60 days later, I received notification that my house was in a foreclosed status with no

acknowledgement of my dispute. Two inaccurate billing statements (DEC 2011 and JAN 2011) contained errors. When I spoke with the collections agent (Michael Dice) to talk about my dispute, he directed me to write a letter - again. So, on Jan 4, 2012 I sent another letter via UPS that proved delivery to the exact address he gave me. No action was taken on my letter other than to scan it into my account where it sat un-acted upon for over a month. I received two notices of foreclosure after that letter was sent along with having made a number of phone calls to both Green Tree and the foreclosure attorney. I have sent details of the errors with references to the transaction journal that Green Tree provided. No response. Currently, I have a temporary restraining order in place to avoid the foreclosure but am pursuing legal action pursuant to Green Tree's violations of the FDCPA. I believe that this activity and their ignorance of my disputes was willful and malicious disregard for the FDCPA and will be seeking damages and attorney fees as permissible under this law.

http://loanaudit.wordpress.com/2010/04/06/foreclosure-fraud-and-the-fdcpa/
Debt Collector Defined The FDCPA defines debt collector as any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. 15 U.S.C.A. 1692a(6) Furthermore, the United States Supreme Court has held that lawyers who regularly collect consumer debts, even when their collection efforts are through litigation only, are debt

collectors under FDCPA. Heintz v. Jerkins 95 Daily Journal D.A.R. 7134 (1995). However, courts have held that lenders who foreclose on their own mortgage loans are not debt collectors. Olroyd v. Associates Consumer Discount Co., 863 F.2d 23 7 (D.C., E D. Penn 1994). Assignment Before and After Default Creditors who take an assignment of the debt while it is in default are generally subject to FDCPA as debt collectors. Therefore, mortgage servicers who obtained the loan while it was in default are subject to the FDCPA as debt collectors [Games v. Cavazas, 737 F.Supp. 1368 (D.C., D. Del. 1990)] but mortgage servicers who receive a loan prior to default are not covered as debt collectors (Penny v. Stewart Elk Co., 756 F.2d 1197 (5th Cir., 1985); rehearing granted on other grounds, 7611 F.2d 237). Debt Collectors Duties Once subject to the FDCPA, a debt collector must disclose clearly to the debtor that, the debt collector is attempting to collect the debt, and, any information obtained will be used for that purpose. The FDCPA also requires that a statement be included in the initial communication with the debtor (or within 5 days of the initial communication), providing the debtor with written notice containing the following: the amount of the debt; the name of the creditor to whom the debt is owed; the statement that, unless the consumer, within thirty (30) days after the 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; the 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 a verification of the debt or a copy of the judgment will be mailed to the consumer by the debt collector; a statement that upon the consumers written request within the thirty day period, a debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor

The Right to Validate Your Debt

http://www.creditinfocenter.com/rebuild/debt_validation.shtml
Under the FDCPA, you are allowed to validate this debt, and the creditor (in this case, the collection agency) must show you proof that you owe the debt to the collection agency (not to the original creditor.) The specific section of the FDCPA: FDCPA Section 809. Validation of debts [15 USC 1692g]

(b) 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 any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. Plus, they must show proof positive that you owe them this debt. It's not enough to send you a computer-generated printout of the debt. There is an opinion letter from the FTC to back this up: http://www.ftc.gov/os/statutes/fdcpa/letters/wollman.htm

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 validate 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

US v. National Financial Services, Inc., 98 F. 3d 131 - Court of Appeals, 4th Circuit 1996
http://scholar.google.com/scholar_case?case=9931686330947590692&hl=en&as_sdt=2,11
The FTC Act authorizes a civil penalty of up to $10,000 for each violation of the FDCPA. A separate violation occurs every time a prohibited threat or misrepresentation is made, or each time the required validation notice is not provided. Thus, each of the millions of collection letters that threatened suit was a separate violation of 15 U.S.C. 1692e(5) and (10), and each letter with a defective validation notice was a separate violation of 1692g. The government requested a penalty of at least $1,500,000. In light of the millions of accounts involved, and the fact that most accounts received more than one letter, the district court would have been within its discretion to impose penalties far greater than $550,000. Although the penalty was larger than in most other FDCPA cases, the large scale of the violations justifies the penalty. Without a real sting, the defendants would be

unlikely to be deterred from violating the Act, in light of the substantial profit to be made using aggressive and improper collection practices.

Call Records TO/FROM Green Tree Servicing, LLC

Green Tree, letter dated November 1, 2011, invokes RESPA - Real Estate Settlement Procedures Act
If the borrower believes there is an error in the mortgage account, he or she can make a "qualified written request" to the loan servicer. The request must be in writing, identify the borrower by name and account, and include a statement of reasons why the borrower believes the account is in error. The request should include the words "qualified written request". It cannot be written on the payment coupon, but must be on a separate piece of paper. The Department of Housing and Urban Development provides a sample [1] letter. The servicer must acknowledge receipt of the request within five business days. The servicer then has 30 business days (from the request) to take action on the request. The servicer has to either provide a written notification that the error has been corrected, or provide a written explanation as to why the servicer believes the account is correct. Either way, the servicer has to provide the name and telephone number of a person with whom the borrower can discuss the matter. The servicer cannot provide information to any credit agency regarding any overdue payment during the 60 day period. If the servicer fails to comply with the "qualified written request", the borrower is entitled to actual damages, up to $2,000 of additional damages if there is a pattern of noncompliance, costs and attorneys fees.

Sample Written Complaint to Lender

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/ramh/res/reslettr
The following is a sample qualified written request from you, the borrower, to a lender. Use this format to address complaints under the Real Estate Settlement Procedures Act (RESPA). Be sure to read more about RESPA, and your rights under this Act, elsewhere on the RESPA site. Attention Customer Service: Subject: [Your loan number] [Names on loan documents] [Property and/or mailing address] This is a "qualified written request" under Section 6 of the Real Estate Settlement Procedures Act (RESPA). I am writing because:

Describe the issue or the question you have and/or what action you believe the lender should

take. Attach copies of any related written materials. Describe any conversations with customer service regarding the issue and to whom you spoke. Describe any previous steps you have taken or attempts to resolve the issue. List a day time telephone number in case a customer service representative wishes to contact you.

I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days. Sincerely,

[Your name] REMEMBER: This letter SHOULD NOT be included with your mortgage payment, but should be sent separately to the customer service address. You SHOULD continue to make the required mortgage and escrow payment until the request is resolved. You may bring a private right of action under Section 6, if you suffer damages due to the lender's servicing of the loan. See the RESPA statute and regulations.