California Debt Collections Agency

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What are the requirements for me to open my own debt collection agency in California?

Aug 15, 2006 by mansion7 | Posted in Other - Business & Finance

What are the requirements for me to open my own debt collection company in California? Are there any laws or licensing requirements? I know I will be subject to the fdcpa, but any licenses i must get first?

the licensing agreements that are needed is a vendors license and an occupation permit where your business will be located and the google the state of californis/business licenses and you will get the rest .

How long can a collection agency demand I pay a disputed debt (in California)?

Jan 13, 2009 by R D | Posted in Credit

In 2002 I donated a car and turned in the release of liability form to the DMV, but they recorded it as incomplete. I was not aware of this until a debt collection agency called me and said the car had been towed and impounded and I owed $2000 (after which I sent in a new release of liability form). I never admitted any wrong doing or signed anything, and still have the dated receipt for the donation. All I told them was that I had to dispute it with the DMV. They're starting to call me again. Can I just refuse to pay and get it removed from my credit report?
The release of liability was taken care of in 2002 when I found out about the mistake, but since the release of liability was compelted AFTER the "debt" was incurred, the collection agency says I need to pay it.

Length of time collection agency has to collect unsecured debt in California (i.e. statue of limitations)?

Dec 14, 2006 by Shaggy | Posted in Credit

On an unsecured revolving credit card debt. Agency has not yet filed law suit.

For CA it is 4 years. Go to http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml for more info.

can a collection agency sue in california over a $2,500 debt?

Jun 25, 2008 by hey u | Posted in Credit

the debt is about 3 years ago but they keep harrasing me can they really take me to court

Cancelled Bally's gym membership - being harassed by debt collection agency?

May 15, 2008 by cellar_door_films | Posted in Personal Finance

My boss cancelled a gym membership at Bally's nearly four years ago. Recently a collection agency started calling our office three or four times a day to collect a supposed debt. I've read that California has a statute of limitations on debt, but I'm not sure how it applies to a debt like a cancelled gym membership. Does anyone know how that applies or have any suggestions to get these guys to stop calling and harassing us at our office? My boss does not believe she owes this debt ($500).

Bally's Gym Membership is low because its a 2-3 contract you sign. The contract states if for some reason you were to terminate prior to the end, you would have to pay the remainder or some kind of fees

I would try to find the original contract she signed.
She is very much liable still to pay for this soon, or her credit will be in jeopardy.

How do I find a good debt collection agency?

Mar 13, 2008 by Jay G | Posted in Other - Business & Finance

I need help with ongoing debt collections. Is there a good company that has a great reputation in california?

Can collection agency add negative items to credit report after orig debt's SOL has expired?

Sep 13, 2007 by someoneoutthereishere | Posted in Credit

Sorry, this is my 3rd and final (hopefully) question about credit reports :)

I'm in California, and it appears that the state's Statute of Limitations for credit card debt collection is 4 years from the date of the last payment.

So if I had a debt that wasn't fully paid in 2001, it's on my credit report from the original creditor. This is fine, as I know it can stay for 7 years. But, since the SoL has expired (In July 2005, which was 4 years after the last payment), they have sold it off to a collection agency.

While I also realize that the collections agency can still contact me to "convince" me to pay it, I don't believe legally they can do anything about it now other than harass me. (Hopefully this is correct so far?)

But, can that collections agency legally keep adding new negative items to my credit report? It would seem to me that since the debt is past the SoL and expired, that while they can harass me, they can't actually add items to my credit report about it. Any ideas?
Just something to add:
I realize that they can keep reporting it until the debt is expired. But some of you have stated that the SoL has nothing to do with the debt collectors adding negative items to your credit report, but then say that they may do so when the account is "within the reporting period"...so does this mean that they can report it until the 7 year mark of the date that the original debt is removed, and then they must stop?

Or again, does this mean that they are bound to some other "reporting period". I'm confused now...

They have no right to do that, but trust me, they try.

Any time that has happened to me, I write the credit reporting agencies to tell them I have a "zombie" debt collection agency after me and explain that the SOL has expired. Every single time, the negative items have been removed from my report.

Here's part of a letter I wrote to TransUnion:


"1) The item I dispute is circled on the attached copy of the credit report and is further identified as X. This item is inaccurate because X bought an old debt from a previous creditor after the statute of limitations had expired, knowing that collection of this debt is not enforceable, and is reporting it as a new account opened on MM/DD/YYYY.

Enclosed are copies of the following documents supporting my position:

A. Letter from Y, which attempted to collect on behalf of X.

B. “Request for validation” letter sent to Y, for which I have not received a response.

If I’m incorrect in my claim that this information is inaccurate, then please inform me how, as a consumer, I am protected against any debt collector who wants to purchase an old debt 20 years from now and report it as new debt."

By the way, this only works as long as the original delinquency took place over 7 years ago.

California Collection Agency Statue of Limitation?

Jun 07, 2008 by Ruben O | Posted in Credit

There is a Collection Agency which is trying to collect an old debt that doesn't show up on my Credit Report anymore. At one point I did have a payment plan with another Collection Agency, but stopped paying after they called me, and threaten to sue if I didn't pay the balance within 24 hours, which I couldn't do.

Today I received a letter from another Collection Agency trying to collect on the same debt, and they show up on my Credit Report with date of last activity being 05/2008. I know there is a Statue of Limitation of 4 years in California on which they can collect. My question is since I did make a payment to the prior Collection Agency, did the Statue of Limitation start over again?
Thanks for the answers, they were helpful. The original debt had been charged off, and then I made a arrangement with a Collection Agency in 2006 to pay it off, did that reset the Statue of Liminitations even though the agreement was with the Collection Agency?

Like some of the others mentioned, if it is past the reporting period it would be illegal for them to reage the account and place it back on your reports.

In California once the account is charged off (book is closed) NO payment can reset the collecting SOL:

"However, if the obligation sued upon constitutes an open book account, the statute of limitations begins to run from the date of the last entry on the account. Code of Civil Procedure § 337(2). But an open book account becomes closed, and the statute of limitations begins to run, once the account creditor ceases to extend credit on the account and there is no further activity on the account other than payment being made. RNC, Inc. v. Tsegeletos (1991) 231 Cal.App.3d 967, 972."


Along with the protection the FTC offers under the FDCPA (and FCRA), California also has it's own version of an FDCPA and the California Penal Code.

An example of what you can find in the CPA:
PENAL CODE SECTION 523.
Every person who, with intent to extort any money or other property from another, sends or delivers to any person any letter or other writing, whether subscribed or not, expressing or implying, or adapted to imply, any threat such as is specified in Section 519, is punishable in the same manner as if such money or property were actually obtained by means of such threat.


An example of the California FDCPA
81.
In Kimber v.Federal Financial Corp.(M.D.Ala.1987)668 F.Supp.1480, the court held that it is "unfair " within the meaning of the federal statute to file a time-barred collection suit against a consumer,and that it is a deceptive act to even threaten to file such a suit.


I would suggest that you read the FTC FDCPA and FCRA and also the California FDCPA and Penal Code.
I have links to the FTC sites listed in my profile, but not the to the California sites.

++++++
edit for your additional details

In California - once the account is charged off by the original creditor - any payment you make to anyone "cannot" reset the collecting SOL.
You might click on the last link I have listed in my profile to a free credit discussion board. Do some reading in the Newbie Forum and then in the Credit Forum.
It is a totally free site where you can learn more about the laws in your state, use the sample letter templates, post any questions you may have, etc.

california medical privacy act and collection agencies violation?

Sep 16, 2008 by 12345 | Posted in Law & Ethics

As yet another american being punished for needing medical care by being buried in debt, I am trying to crawl out of it, however I was surprised to learn that a collection agency had detailed information about my medical information.
Isn't it a violation of the privacy act for hospitals to provide medical information to debt collection agencies?
Any info on this would be appreciated.

No, billing people need to know the diagnoses and procedures. In particular, the collection agency would need to be able to prove that you owe the debt, which would mean that they would have to have a list of procedures performed.

Can a collection agency place a lein on your house for $850 in California?

Oct 16, 2006 by wubba1 | Posted in Credit

It was a Sears credit card debt of $300 from 2003. Now a collection agency has the account and said if I dont pay in full, they will put a lein on my house. They will take a payment of 650, but I cant make payments. Can they do this?

Not until they get a judgment against you. Then, it depends upon homestead exemption laws in CA. Odds are they are trying to scare you (and are using a tactic against the FDCPA) to collect their money. If you want to settle with them; fine---just make sure you get the settlement offer ahead of payment and in writing.
If you can't pay the settlement offer in full, usually a partial payment will get them off your back for awhile, but only for awhile. Do not give them your checking account info or credit card info to allow payments over time unless you are sure of what you are doing.