When debt collectors go too far

Privacy Rights Clearinghouse ^ | August 24, 2004 | Brytani

[CDHart]

Thanks! I hope your situation improves as well!

Carolyn

[Xenalyte]

My ass. He's getting upset.

[Xenalyte]

Worst of all, the one thing that is just the Mother of All Ass Buggings is when someone's ass is bugged because my ass got bugged over someone else's ass getting bugged over another guy's ass got bugged. Dear God, heaven help us all!

Oh, man, do I ever hate it when that happens.

[Hegewisch Dupa]

Whoa - I would have thought it was a she. Excuse me for a while, I have to go blow some Crying Game chunks....

[Toby06]

You have such a nice ass.

[Skooz]

Spell checking is the last refuge for those that who feel inferior.

*sigh*

[PleaseNoMore]

A creditor can delete an account if it's paid just as they can update it if it's not. There is NO LAW that says a creditor must report at all and there is certainly no law against a creditor deleting a paid collection.

[Xenalyte]

It's hairy. ;)

[Onelifetogive]

a great resource to help if you ever have to deal with a scumbag debt collector.

That, or you could pay the money you owe.....

Sorry my post seemed to be directed at you (Brytani). It was actually meant as as continuation of your statement directed to other "yous".

[NCLaw441]

A paid collection may be reported as paid, but if it was reported as delinquent, that entry cannot be deleted if it was accurate. You are correct, of course, that a creditor is not required to make any report to credit reporting agencies if it doesn't wish to. One way to deal with this is for the parties to agree that the entry was incorrect (wink, wink, nod, nod) and settle the case for something approaching the amount claimed to be owed.

[Toby06]

Not Brazilian, obviously.

[Smoke6]

We don't buy or sell debt. Firstly, because we don't have the resources to fork out $150,000US for $500,000 face-value debt and, secondly, because you're dealing with 'brokers' who pick and choose who gets what.

Many of the national firms have problems because of poor training, compensation schemes, and poor management.

Today's debtors are more astute and know most of the ins and outs of collection practices. Since we deal solely in small debts (i.e., less than $5,000 and our portfolio is split 60/40 consumer/commercial), volume is an issue. We rely on automated tools, repetitive contacts and simple letters to get across the point that 1)money is owed; 2)disputes have been resolved; 3)please contact us to resolve the debt in a manner you can afford.

As for debtor 'phishing', it's stupid to waste resources calling all the John Smiths listed in a regional phone directory when you can access a subscription database and locate current address/telno for the debtor using an SSAN or prior address info with about 80% success in about 30 seconds.

Failing to follow the FDCPA and reporting laws is stupid, deserves to be punished, and gives all of us a bad name.

[Hydroshock]

I would have sent them 38 pennies glued to a piece of paper.

[Smoke6]

Almost all states regulate collection agencies in some form or another. The licensing process is extremely rigorous and does require background checks, etc. but only on the principles, not employees and it can be quite expensive to be licensed in some states.

You do need to investigate a wee bit more before making a blanket statement regarding credit reporting. There are penalties for malicious erroneous entries, failing to report payments, etc. and the onus for the original legitimacy of the debt is the responsibility of the client, not the agency. That is one reason why there is a 30-day period after initial contact to resolve any disputes prior to actively initiating any collection action, including derogatory entries on retail credit reports and why we carry an enormous fidelity bond.

[APRPEH]

is this the sort of rigourous licensing process you are referring to:

Collection Agency Laws & Licensing Requirements There are no licensing or bond requirements for governing collection activities in Alabama. However, there is a license tax that must be paid to the town and/or city location where the collection agency's place of business is. PER BUSINESS, VOCATION OR OCCUPATION PRIVILEGE LICENSES, Article 2 Each collection agency shall pay the following: License tax License Tax Information: Alabama Department Of Revenue $100.00 (towns & cities 20k or more inhabitants) $25.00 towns and cities of less than 20,000 inhabitants. [C.O.A. 40-12-80]
collection regulation

[APRPEH]

rigorous licensing process for Arkansas

[american spirit]

Something I've done is to do a common law copyright on my name and in a couple siutations I've sent letters back to an atty/collector where I fired them, ordered them to "prove up the claim", and threatened to invoice them for one million $ because they have used my intellectual property (my name) in commerce/ for profit without my expressed written consent......haven't heard boo since from them. Think about it.......what does Disney do if they see someone using Mickey Mouses image for profit w/o consent?

[BJClinton]

Not that there's anything wrong with that.

[Brytani]

Excuse my skepticism but having had dealings twice with debt collectors for bills that were not ours I don't think the safeguards you're talking about do anything.

The worst case was a guy who lives in CA who has the same very common first and last name as my husband and his information going on my husbands report.

We pulled my husbands tri-merge credit report and saw that a national mortgage company was reporting a mortgage loan in default. In the section for judgments etc the same mortgage company had foreclosed on the house.

After contacting the lender, sending them copies of my husbands ID, birth certificate and social security card, they acknowledged the error. They could not explain how it was put on my husbands report however they removed the tradeline and furnished us with a letter acknowledging the mistake. Within 72 hours, it was removed from all three reports. All should be well, right?

Wrong. We started getting letters from a collection agency dunning us for the balance owed after the home had been auctioned. We also received phone calls. Within the 30 day limit, I furnished the collection company with a copy of the letter from the original lender, told them it was not my husbands account and to go find the guy who actually owed the money.

They kept calling, sending nasty-grams etc. One of the collectors claimed we'd forged the letter from the original mortgage company. That was enough for me. I called the original lender to let them know what was going on and demanded they fix it. They sent the collection agency a letter explaining the mistake, told them to remove the account etc. I was sent a copy of that letter.

Even AFTER the original lender became involved, they continued to call our home and send mail. They also placed the account on my husbands credit reports after being informed the debt was not his. To make a long story short, I knew nothing about my rights prior to this. After, I knew my rights. It took my states AG's office, a FTC complaint and the threat of a lawsuit to get this collection agency to stop coming after us.

Even after all of that, they didn't really "stop" trying to come after my husband, they sold the account to Asset Acceptance. I promptly sent them copies of all my documentation plus the results from my AG's office and FTC investigation. A few additional letters and we never heard from them again.

After that experience plus the harassment I'm getting from Bay Area Credit and a 38 cent bill (which dropped my score over 50 points)now on my report I don't have much good to say about your industry.

In my opinion, collection agencies have WAY too much power, not enough oversight and most could care less about laws passed by the feds or the states. They know most consumers really do not know their rights and take full advantage of it.

[MadLibDisease]

LOL, touche', fact remains, people that need to correct have a screaming need to be recognized due to a perceived shortcoming in themselves. Maybe they got the snot beat out of them on the playground and never dealt with it. Who knows? Whatever the cause it's childish at best. Now, have a climax and correct away.