Dealing with Debt Collectors When You Don't Owe Anything TMC Net
The Federal Trade Commission received more than 140,000 complaints about third-party and in-house debt collectors in 2010. The industry's propensity for immoral and sometimes illegal collection tactics led the federal government to create the Consumer Financial Protection Bureau, a new agency charged with the task of stemming debt collection abuse.
One of the many issues that the bureau will need to tackle is how to stop debt collectors from harassing people who don't even owe money in the first place.
George Gombossy at Foothills Media Group points out that the sluggish economy has given debt collectors new business, but they are not always calling the right people.
Gombossy references stories of friends and colleagues who get dozens of calls a week from various creditors looking for someone who doesn't even live there. Unfortunately, all creditors have the same contact information, so the calls won't stop even if you explain the situation to one of the parties.
Debt Collection - Tactics used by Debt Recovery companies
This is the 2nd part of a Panorama episode "Can't Pay Won't Pay" broadcast on the 10th November 2008, and shows some of the ...
TIPS on How to Negotiate a Settlement from Debt Collector?
I received a court summons a couple days ago and I'm in the process of negotiating a settlement for a $2100 debt. Any tips or negotiating tactics helpful during this process would be super helpful. I'm a college student and I'm trying to pay the least amount possible as I'm obviously broke.
Thanks for any help!
If you have 1000 or 1100 cash, right now, call them and ask if they will settle for that. They will not take payments on a settlement. If they agree to that, ask them to send you a letter saying that your money will be considered payment in full. Once you get that letter, send them the money and be done with it.
can a debt collector use your outgoing phone calls to collect a debt?
I dialed a call to a friend's house and instead of connecting, I got a message that "part of ths call may be used to collect a debt" (it sounded like collect a DAT, actually - which threw me) and that this call may be monitored etc.... I hung up because it threw me. I live in Illinois. Is this some new debt collection tactic and is it legal?
I have read that they can only contact you by post, because of some privacy laws.
I am not sure exactly where the article was but it'll be here somewhere:
http://finance.ebookorama.com
or here
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
good luck!
Is this an legal debt collection tactic?
Someone I know owes money on a car loan, and the company that loaned the money sent someone that works for an outside company to come to their home and take pictures of the vehicle and the outside of their home, this person also asked them questions about their residence and other general questions such as thier name and stuff before notifying them of their debt and who they were allegedly representing. This person said that he was an information collector , do these even exist?
Unfortunately it's legal. Stupid, but legal.
A lot of the "bottom feeder" companies are hiring private investigators to visit the debtor and "pass on the message" about their debt. They will start taking pictures of cars and the home. They won't say why. If they said something silly like they were appraising the property for when they foreclose or repo it, then that's a violation. But there is nothing wrong with them taking pictures or visiting you.
Yes it's harassment, but it's not specifically covered under the law. They do it because it works.....it scares the debtor into taking action.
Just inform them to take pictures from the roadway and not to trespass on your property. Call the police. They are NOT allowed to access your property if you have informed them to leave.
http://www.spendonlife.com/asktheexpert/credit_cards/credit_card_debt.aspx
amoung them are....
* Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
* The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof * The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment or sale of any property or wages of any person, when such action is unlawful or the debt collector does not intend to take such action.
* The false representation or implication that the consumer committed any crime or other personal conduct, in order to disgrace the consumer. Communicating (or threatening to communicate) credit information to any person which is known (or should be known) to be false, including the failure to communicate that a disputed debt is disputed.
* The false representation or implications that accounts have been turned over to innocent purchasers for value.
* The false representation or implications that documents are legal process.
* Communication with debtor at unusual (or known-inconvenient) times or places.
* Communication with third parties without debtor consent.
* False or Misleading Representations including:
* The threat to take any action that cannot legally be taken or that is not intended to be taken.
* The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.
If my company credit card goes to collection can I use a debt consolidation service to pay it off?
I ended up using my company credit card for personal use while on medical leave. I was not able to pay it off completely right away and it was sent to a collection agency. I have a very nasty debt collector calling me all the time now (which is to be expected) but her story seems to change so I'm not sure if she's being honest or using scare tactics.
I contacted a debt management program and am working on paying off the debt over the next 12 months. Meanwhile, this woman keeps calling me and now she's apparently (according to her latest voice-mail) set up a conference call with my corp office tomorrow.
I'm just wondering if there's some reason using a lump sum settlement won't work on a corporate card?
Debt Settlement, also called debt negotiation is an arrangement between a debtor and a creditor to repay a debt generally for a for a lowered payoff amount. When a debtor is not able to pay the debt any more for any reasons, debt settlement is the only option that remains.
Generally, only unsecured debts, like those accrued with credit cards , can be negotiated for settlement. This is because of the fact that there is no security attached with unsecured debts. Hence, the lender can't repossess anything. On the other hand secured debts, like home loans, mortgages, car loans etc. have a collateral attached to them and can be repossessed by the lender if a default on debt occurs. So, there is no debt settlement or negotiation with secured debts. Read more about it at: http://www.credit-card-gallery.com/article/216,The_secret_of_successful_debt_settlement
see if your company can help you out. it is there card if you default.
Charged with Fraud from Debt Collector??!?
Boy I hope someone knows the legal aspect of this situation!
I have a debt collector HOUNDING me for $2,900. I was set up on a payment arrangement for 6 months, them taking $29.00 a month out of my checking account. On the 7th month they took another payment without my permission. This caused some alarm, so we closed our checking account. But not before the debt collector made me commit to the $2,900 lump sum payment. The thing is, he said it was "just for the credit card record" that the payment wouldnt go through in the bank until I autherised it after the 25th of the month. Well, I just cancelled my checking account. Never heard back from him until today, when he CALLED MY HUSBANDS WORK! He told my husband that I commited fraud authorising a check to be debited, and then closing the account. Is this serious? Or just another scare tactic? He said the check "bounced" which is impossible because there was no account to debit it from?? ugh.. help!
Tell him to show you your signature on something that stated you gave any form of authorization, or intent. PERIOD.
It is not Fraud... he is trying to scare you.
Don't sweat this guy.
It is a crime to call him at work to begin with, so the next time, counter his threat with that.
It is a form of harassment.
A check can bounce because an account was closed. That is one of the definitions of a bounced check.
But it is a scare tactic. Don't loose any sleep over it. People bounce checks daily, but usually the police aren't interested especially for $29.
You should remember, however, that cancelling the direct debit authority may be in breach of your contract, so you should check your contract and seek professional advice. Further, it may not relieve you of your obligations under your contract with your service provider
My guess is if you did authorize a payment and than you closed your account than you could be in breech of contract.
I would suggest you tell the creditor by certified mail letter that you did not authorize a charge to your bank account, and that you are asking them to cease and desist, this means leave you alone, they are a third party collector and can NOT harrass you. I would also advice you send them a letter called validation of debt, this means they have to provide you proof of debt, I have these letters In word doc forms if you would like them email me your information and I will be happy to help I have been in your situation and you need to play hardball back
Just remind them of that in the future when they get ugly.. Depending on your state, you may be able to record the call and not let them know.. If you are in a one-party state, you can record the call and not let the debt collection agency know.. If it is a two party state, all parties must know. However, you can just tell them in the beginning the call is being recorded to recap the conversation at a later time, etc....
Hope that helps..
Has anyone been sued over credit card debt?
My Dad has been in credit card debt since about 2005, he's been passed on by a few debt collectors that have all told him that the Credit Card Company was going to sue him. He's 13000 dollars in debt, and once again they called and said that the Credit Card Company was getting ready to make legal proceedings in our County. They want 50.00 by tonight at 5 or by the 21st (good faith payment). Do you think that they will sue him this time around, or is it another scare tactic?
It's just a scare tactic. I once owed over $120,000 in credit card debt. I got threatening phone calls, letters, etc. I even had Process Servers knocking on my door telling me I was being sued, and handed "legal looking papers" telling me I was being sued with the court date, etc., telling me to appear in court on a certain date at a certain time. I just threw them in the trash and never heard from them again.
I was never sued. It's all just an attempt to get you to pay something.
They will continue to harass you by phone calls and threatening letters as long as they can. They will sell the debt account to another collection agency and they will harass you for a while and then they will sell it to somebody else. You have to move and change your phone number to avoid the harassment. Good luck.
By the way, Capital One was one of my biggest debts that I owed, and that always threatened me with letters, phone calls, etc. They have now issued me a new credit card.
Your Dad should tell them in writing, not to phone you anymore. Advise the collection agency that you will only accept correspondence by mail.
Have him watch his credit report closely. I have heard that some collection agents will make a minimum payment for you just so they can say you made a payment and reset the statute of limitations.
Also, send them a debt validation letter. This would then require them to validate the debt before taking any other measures, including suing him.
I once had a lawyer try to sue, but he had gotten ahead of himself. He sent to a letter trying to collect and filed suit at the same time. I sent him a debt validation letter and he had to drop the lawsuit.
Good Luck
LEGAL DISCLAIMER: This is not legal advise and I am not a lawyer. This is personal experience only.
Are debt collectors paid by commission?
I have started aggressively to pay my debts. I was past due on a credit card. Online I set up the payment plan. To bring the bill current in one week and then $50 twice amonth till paid in full. It will be paid off in 2 months. I received a call from a debt collector and he said if I didnt make a payment today on the phone I would get charged a late fee. I already made the payment schedule online. He said he could delete it and since I was making the payment over the phone wave the late fee. Was this a tactic for him to get commission on the payments I was setting up?
Debt collectors don't get paid necessarily by commission but "top collectors", those with the most money collected, get bonuses. At least that is how it is at the credit company I work for. A payment on the internet wouldn't help his cause(you paid it on your own instead of him being the reason) so he would probably have removed the late fee you got (you'd have to already have a late fee for him to have called you) if you'd pay him over the phone so he'd get credit for your payment. Also, payments on the internet typically take a few days to post. He may not have been lying but you're right that he was offering these things because it may benefit his paycheck.
Should Consumers be able to sue Debt Collectors?
WASHINGTON, D.C. – In a win for consumers, a federal appeals court ruled Wednesday that a private California debt collector can be sued for its overly aggressive tactics, even though the company is working on the behalf of local prosecutors.
The company, American Corrective Counseling Services Inc. (ACCS), is a so-called “check diversion” company, meaning that it uses its contract with local prosecutors to send out letters on official stationary threatening consumers who have written bad checks with criminal prosecution or jail.
The company then gives the prosecutors a share of its revenues. Consumers represented by Public Citizen claim that ACCS’s threats of prosecution violated their rights under state and federal consumer protection laws.
“In an era of increasing privatization of public functions – from private prisons to Blackwater in Iraq – this decision is an important reminder that private contractors can be held accountable."
Is this OK?
I think so. The fair debt collection act prohibits this type of activity. The fact that they were sending letters on prosecutors stationary makes it worse. The fact that real prosecutors were getting a cut is disgusting and a violation of attorney ethics.
Prosecutors are supposed to uphold the law. They, in this case, are breaking it. Absolutely deplorable.
DEBT COLLECTORS HELP?
My Girlfriend got a call from a debt collections agency saying she owed £471 that had been from a credit card and passed to them. She was told that she had two days to clear the balance fully or there would be further action taken to include bailiffs entering her property. They refused her offer to pay it in installments. Are the warnings scare tactics or is there no other option for her but to pay immediately or face severe consequences?
Not sure of exactly where in the UK you are located, but collection laws there are somewhat simular to ours in the US.
As to the collection agencies, there are rules regarding what they can and can not do such as the following:
SECTION 40 OF THE ADMINISTRATION OF JUSTICE ACT
"S40 Punishment for unlawful harassment of debtors"
"A person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt under a contract, he:
harasses the other with demands for payment which, in respect of their frequency, or the manner or occasion of making any such demand, or of any threat or publicity by which any demand is accompanied, are calculated to subject him or members of his family or household to alarm, distress or humiliation;
falsely represents, in relation to the money claimed, that criminal proceedings lie for failure to pay it;
falsely represents himself to be authorised in some official capacity to claim or enforce payment; or
utters a document falsely represented by him to have some official character which he knows it has not.
A person may be guilty of an offence by virtue of sub-section (1)(a) above if he concerts with others in the taking of such action as is described in that paragraph, notwithstanding that his own course of conduct does not by itself amount to harassment".
"Putting pressure on debtors or third parties is considered to be oppressive."
This includes:
contacting you too frequently;
pressurising you to sell property or take out more debt;
using more than one collection company at the same time or not telling you when your debt has been passed to another company;
pressuring you to pay in full or in large instalments you cannot afford;
making threatening gestures or statements;
ignoring disputes about whether you owe the money;
trying to embarrass you in public or threatening to tell a third party such as a neighbour or your family about your debts.
If you owe a debt on a credit card or an overdraft , the company (or another company on their behalf) will take you to the county court if you don't pay up. If the court decides you should pay up, they will make a County Court Judgement against you, and can send County Court bailiffs to collect items of value to auction off to settle the debts. They should give you 7 days warning of a visit, which gives you time to pay up if you can.They can come at any time of day or night but the National Standard recommends that they come only between 9am-7pm. If you are not in, or pretend you aren't, they may keep coming back until you open up - or they may take other action to make you pay (you may have to go to court).
I have included references for you to research Office of Fair Trading (OFT) Debt Collection Guidance
Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
Can Debt Collectors tell you your account is red flagged to get you to call them back?
While I was out today someone called my house and left a message on my answering machine telling me my account has been red flagged and I was to call them back immediately. They gave me an account number they said it was in reference to. Once I got the message I called back and was put on hold for what seemed like forever. I got impatient and hung up and started looking at all my bank account numbers and credit card numbers so I could have my info in hand when I called back. None of them match the number they had given me.
After doing a search for the phone number online I found out it is NCO collection services.
Are they really allowed to tell you your account has been red flagged when really that is not why they are calling?
I understand the new red flag laws are there to protect us in case of identity theft, but can they also use it as a "scare tactic" to get you to return their phone call thinking something is really wrong?
Do not believe them, this agency is a rip off collection company. In fact just recently they were ordered to pay Texas the amount of 1.5 million dollars. According to investigators," the Texas AGs office said, "NCO Financial Systems representatives made harassing and sometimes profanity-laden telephone calls to Texans, some of whom had never incurred the debt at all. NCO Financial Systems also improperly claimed that certain individuals owed debts when, in fact, the actual debtors had different middle initials or Social Security numbers."
If they call back (don't waste your time on hold for them) tell them that under the FDCAPA rules, they have to send you in writing a validation of the debt, and until you get this information to not call you anymore as this is your right under the FDCPA. Do not make any arrangements, send any money or give them any of your banking information. Doing so would reset the statute of limitations on the debt if it is yours not to mention that they would use any acknowledgment as an admission to this debt.
You can read more about them at the following link.
http://budhibbs.com/debtcollectorpages/nco_financial_systems.htm
Also if you are a Texas resident you may be entitled to some of the damages awarded to residents
Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
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