Rant! Debt collection agency-UPDATE: Their Back!

[writersblock42]

I used to work for a well known law firm doing loss compensation for a very well known business (sorry can't disclose which one). The first thing that happened was the company tried to get their money-by sending invoices and calling. Then they sent it to us at the law firm. At this point, there are no hits to your credit report at all. As the law firm we never hit the credit report. We would look at the debt send out a letter saying we were from a law firm. We would have the number of the transaction, the amount owed, the store number, and other information. If we did not hear back we sent another letter, and then a third letter. If they did call back we tried to work out payment plans, find out the reason they did not pay (was it a bad job, was there damage, an incomplete job and so forth). If they did not call back or pay after the third letter we made a decision-if it was under a certain amount, then it went to collections. If it was over a certain amount we filed with the court house. (Now if that is ever the case, you better respond). The moment it is sent to collections, it hits your credit report.
Now keep in mind that people can buy somebody's else's money that they are owed and that is a totally different story.
But they should sent out a letter not just a phone call.

 

[calypso*a*go-go]

Be very careful when these "debt collection agencies" either call or mail correspondence out. My elderly parents starting receiving phone calls from an agency that claimed they had an outstanding towing bill of around $600 from a vehicle they sold almost 10 years ago. They verified the make/model and I don't know if it was just coincidence, or it they had some stolen records from somewhere, but it was the car they owned (what senior citizen did not own a Buick?).

Anyway, they called about four times and got more forceful with each call trying to get my parents to pay the bill. Fortunately, the mom and dad are still very capable of handling their own affairs and told them they had recorded the conversation and would be providing it to the State Attorney General. Guess what -- they never called back!

 

[Tnkrbelle565]

Anyway, they called about four times and got more forceful with each call trying to get my parents to pay the bill. Fortunately, the mom and dad are still very capable of handling their own affairs and told them they had recorded the conversation and would be providing it to the State Attorney General. Guess what -- they never called back!

Is this what you should do in this situation? Call the state Attorney General's office? DH started getting letters regarding a supposed gas card that he "had" (oddly enough for a gas station we don't have around here). We got the first letter like 2 years ago. He originally tried disputing them over the phone and got no where. A month later, an identical letter arrived. We disputed by mail AND fax (and have confirmation). 6 months later ANOTHER letter. Disputed AGAIN by mail and fax. A year later, a 3rd letter letter- this time for another creditor who supposedly bought the debt. Again disputed by mail and fax. Never have received any proof (which we off course know they don't have). The last letter was in August and we haven't gotten anything since. But I would love to file a complaint about this if that's possible. Mind you- the bill is only for $86, which we would have paid ages ago...but I think it's the point that it isn't his debt.

 

[calypso*a*go-go]

Yes...I would file a complaint against them w/the State Attorney General. My parents got the idea because I personally had a situation where we were receiving phone calls night and day from a collection agency about a debt that belonged to someone else with the same name (they didn't even live in the same city!). After filing a complaint, they finally stopped calling.

 

[Tine731]

well not much of one. I just wanted to let y'all know that I have received the return receipt from the Post Office so I know they have the letter requesting proof of the debt. I will let you know what happens next. Thanks for all the advice....except the bit about paying the debt and then disputing it. Um...NO!

 

[Experiment #626]

If you acknowledge a debt it does not start the SOL again. IF the debt is past sol you can freely admit it and dare them to do anything about it. If they do it illegally you sue them. If you pay on a debt you do not restart the SOL in most states. Sure some states have odd statutes that require stuff like a signed paper from the consumer stating they will restart the SOL but it would take alot to do so. If you want the statutes try google or creditboards.

Payment on the debt does restart the SoL in most (if not all) states. For example, in Michigan the SoL is 6 years from the date of contract, date of last transaction (ie purchase on a credit card) or date of last payment - - - whichever occurred last

 

[Experiment #626]

Then IF they do keep hounding you without sending validation (this includes putting anything on his credit report and/or updating info on his report) it's $1000 per violation. So say after they recieve your letter they put a tradeline on his credit report, it's $1000 for that for EACH report then if they update each month or verify when you dispute, another $1000 for each.

If a debtor decides to sue under FDCPA, it is not $1,000.00 per violation. Pursuant to § 1692k of the FDCPA, the civil liability of a debt collector who fails to comply with FDCPA is potentially liable for:

"(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; or

(B) in the case of a class action, (i) such amount for each named plaintiff as could be recovered under subparagraph (A), and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and

(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney's fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney's fees reasonable in relation to the work expended and costs."

So, the liability would be actual damages, additional damages of up to $1,000.00 (note this is not per violation), and reasonable attorney fees.

 

[Tine731]

Update on post #1

 

[bedgraynexl]

I believe that you can challenge it on your credit report. Contact the bureau in question and challenge the item. The collection agency has to provide them proof or the item is deleted. Others are probably more knowledgeable than me but I think that is your best course of action.

Good luck

 

[mtblujeans]

I believe that you can challenge it on your credit report. Contact the bureau in question and challenge the item. The collection agency has to provide them proof or the item is deleted. Others are probably more knowledgeable than me but I think that is your best course of action.

Good luck

This advice sounds logical. But, I would run...not walk...to the Better Business Bureau and report them for their business practices, too. They must not get paid very well on their collections if this is the way they do business!

 

[The Disney Bunch]

I would challenge it on your credit report. I don;t think they can ask you to pay for them to prove something in their records. Especially when you asked on a timely basis.

 

[dbarker]

I suggest that you contact the Bank also. They need to know that their name is being misused for a scam. The bank will have a bit more muscle than you about getting this resolved.

I had a not quite similar incident w/ a collection agency saying I owed our local newspaper. I called the collection agency, and they verified my ID and insisted that I owed this debt. I then called the newspaper office and had them research it (2 minutes) and they verified that not only did I not owe them anything, I wasn't even in their system. The newspaper handled the collection agency (I think they sent me copies of everything...they were very nice)

 

[Aristomommy]

If you send them a letter requesting proof of the debt, they must send you evidence of it (either a bill from the original debt, a signed contract etc.) or delete the entry from your credit report. This doesn't always happen though, so I would 1. dispute the debt on your credit report by writing to Experian, Equifax and Transunion. 2. Send the debt collection agency another letter demanding proof of the debt or delete it immediately 3. send a letter to Better Business Bureau and state attorney general. If you do all 3 at the same time, they will feel the pressure to "retrieve the records from their archive" or you will receive a letter that they will delete this and leave you alone.

I have had this happen also for a Sprint cell phone bill that "I owed". I thought it was funny that I had a Sprint phone currently and never disconnected it, so how could I have a final bill from them unpaid. Anyway, good luck in this matter.

 

[tink2dw]

Send the letters back, write "undeliverable" on it, or write "paid off" and the date on the out of their envelope.

If they call, let the answering machine get the call and if they harass you you can use the tapes as evidence that they are breaking the laws.

It works.