Thank you for your question. I will do my best to assist you with your concerns. If you would like me to clarify my answer, I will be happy to do so.

As you have two direct questions, please permit me to respond to each directly:


1) This "law firm" has threatened to take legal action bar they are not registered the the bar in my state so they cannot bring any legal action. If CACH was truly considering a lawsuit to recover this alleged debt (which is only $2,000) why wouldn't they find a different law firm legally can bring a lawsuit. If this law firm that is trying isn't registered in my state have the violated the FDCPA by threatening legal action, when they can't bring any legal action against me themselves?
There is no violation, at least no direct violation, of a third party agent (and a law firm is an agent) that may not be barred in your state from claiming that pursuit can take place. They can always retain counsel to represent their interests, or they can file in court vai 'pro hac vice' and request that the local courts permit them to represent in this case per the temporary order. The latter is highly unlikely as the petition is very expensive, but otherwise sending a message about possible breach of contract and collections can still be permitted.

2) Collection agencies are required in my state to be registered with the Division of Corporations and Commercial Code and post a bond. This law firm is (or should say was) registered with my state, but their license expired on 6/12/2012 citing failure to file renewal. Does this mean they have violated this state law?
Yes, it does, if they attempt to collect once and if they are no longer bonded. If they renew their bond, you can demand that they re-serve you from the date when they are re-bonded becaus otherwise they would not be able to pursue this debt against you.

At the same time, Square Two is currently registered and has an active license. So since they're collecting on behalf of them can them use this in their defense?
Yes, they can, but they would have to expressly note that they are working under their license and on their behalf. It is still no defense because if they are acting in their own capacity, they have to have their own license.

But on my credit report it doesn't state Square Two and on the initial letter the law firm sent it says the owner of the account is "CACH LLC" it doesn't say anything about Square Two. I have checked and there are no collection agencies with anything close to CACH registered.
In that case should they file, bring that to court and point out that if they cannot prove and show that they are bonded OR that they are the same business entity, they have no right or grounds to collect. Frankly I am surprised that they are pursuing this if they cannot prove or show that they are the proper holder of the debt.

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