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mocycler
Premium
join:2001-01-22
kudos:1

1 recommendation

reply to AZinOH

Re: Collection Agency...What Is Typical?

A true, somewhat related story...

For several weeks I would come home home from work and there was a message for me from a collection agency looking for a relative. I'm not sure how they found me; I'm guessing they just called everyone in the area with the same last name and hoped for the best. My last name is somewhat uncommon enough to make them think they might get lucky.

I blew it off for a while until it started getting on my nerves. I broke my silence and purposely called back after hours when I knew they would be closed because I did not want to actually speak to them. I left a voicemail and said that I would pass the message along to my relative on the condition that they never call or contact me again. If I got so much as one call or piece of mail, I would fix it so they will spend countless hours chasing false leads and never find who they are looking for.

I never heard from or of them again. And I have no idea if my relative ever cleared their debt .


Draiman
Let me see those devil horns in the sky

join:2012-06-01
Kill Devil Hills, NC
Reviews:
·Verizon FiOS
said by mocycler:

A true, somewhat related story...

For several weeks I would come home home from work and there was a message for me from a collection agency looking for a relative. I'm not sure how they found me; I'm guessing they just called everyone in the area with the same last name and hoped for the best. My last name is somewhat uncommon enough to make them think they might get lucky.

I blew it off for a while until it started getting on my nerves. I broke my silence and purposely called back after hours when I knew they would be closed because I did not want to actually speak to them. I left a voicemail and said that I would pass the message along to my relative on the condition that they never call or contact me again. If I got so much as one call or piece of mail, I would fix it so they will spend countless hours chasing false leads and never find who they are looking for.

I never heard from or of them again. And I have no idea if my relative ever cleared their debt .

The FDCPA requires them to stop contacting you if requested. I have a lawsuit going right now with a collection agency who failed to stop when asked. They drag the process out as much as possible knowing they'll lose and have to pay eventually. We're donating all the proceeds to Big Brothers Big Sisters when they finally settle.
--
What we're saying today is that you're either part of the solution or you're part of the problem. - E. Cleaver 1968

tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2
reply to AZinOH
Several years ago Blockbuster debited a closed checking account for some DVDs they stated I did not return. As I had closed that account, the bank charged me around $60 in late fees. I did not realize this as I had moved and they turned it over to a collection company. I did not handle this correctly and told the collection company I would follow up with BB as I felt I did not owe them anything. A month or two went by and the collection company turned it over to an attorney who filed suit in big boys court (not small claims). As I had a contract with the bank, I now owed around $400 in collection fees. I filed an Answer and we went to mediation. They were now asking for $600 and told them I'd drag the bank into it and spend all day in court. They refused and would not take less then $600. I figured I had little to loose by rolling the dice in court. We went back the following money and I did as I stated. I ended up loosing a owing $650... which I paid right away and the collection company agreed to file the correct paperwork with the court. It never showed up on a credit report... probably as I agreed to pay very quickly.

Your nephew does have a contract with the company and it probably does state that collection fees can be added onto the debt. In my state a company can garnish wages with a judgement but I don't think this is very typical (this is why I agreed to pay in the end) and it basically takes wages down to minimum wage. It can also affect someone's credit and cost them a _lot_ more in the long run. It might be difficult to obtain a checking account, it might be difficult to obtain a debit or credit card. Credit card rates might be higher, auto insurance might be higher, some employers won't hire you if they run a credit report (I work as a claims adjuster and they _always_ run a credit report).

You never know what a collection company will do. I'd recommend that he research this and send the proper letters to have the collection company send the proper documentation or drop the case. It's needs to be done now instead of later. It might already be too late. Sticking your head in the sand almost never makes these issues go away. They only get worse.

tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2

1 recommendation

reply to Draiman
said by Draiman:

The FDCPA requires them to stop contacting you if requested. I have a lawsuit going right now with a collection agency who failed to stop when asked. They drag the process out as much as possible knowing they'll lose and have to pay eventually. We're donating all the proceeds to Big Brothers Big Sisters when they finally settle.

I'm filing in small claims court this week over an issue like this. A collection company called by mobile phone twice at 6:45am with a auto dial system. It's strict liability so I just need to show that they called before 9:00am. I gave them the choice to speak to me about it for up to $2,000 or I'd file for $4,000 (2 calls before 9am and 2 auto dialed calls that did not release).


Draiman
Let me see those devil horns in the sky

join:2012-06-01
Kill Devil Hills, NC
Reviews:
·Verizon FiOS

1 recommendation

said by tcope:

said by Draiman:

The FDCPA requires them to stop contacting you if requested. I have a lawsuit going right now with a collection agency who failed to stop when asked. They drag the process out as much as possible knowing they'll lose and have to pay eventually. We're donating all the proceeds to Big Brothers Big Sisters when they finally settle.

I'm filing in small claims court this week over an issue like this. A collection company called by mobile phone twice at 6:45am with a auto dial system. It's strict liability so I just need to show that they called before 9:00am. I gave them the choice to speak to me about it for up to $2,000 or I'd file for $4,000 (2 calls before 9am and 2 auto dialed calls that did not release).

Yea it's $1,000 max per incident. We started the lawsuit on 10/17/2011 and they are still dragging it out. We hope to have it wrapped up by this Summer. It's a long painful process but that's the only way to teach them a lesson.
--
What we're saying today is that you're either part of the solution or you're part of the problem. - E. Cleaver 1968

peterboro
Avatars are for posers
Premium
join:2006-11-03
Peterborough, ON
said by Draiman:

Yea it's $1,000 max per incident. We started the lawsuit on 10/17/2011 and they are still dragging it out. We hope to have it wrapped up by this Summer. It's a long painful process but that's the only way to teach them a lesson.

Good for you. That's the only thing that will stop them is a hit to their bank account. Wish we had those regulations up here.


Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1
reply to AZinOH

The thing that I understand about collection agencies, they buy a bundle of outstanding bills from credits for pennies on the dollars.
So my couple hundred dollar debt, had only cost them may 30 to 50 dollars to pick up. If I paid it, the person bugging me would have gotten a portion of that, and the rest goes to the agency.
Yes, the person you talk to one the phone is paid on commissions. Hence why they are so eager to talk to you and to get you to cut an e-check right then and there.

And like others have said, they have a 7 year window to collect on that debt. Though sometimes it will circulate for longer then that and agencies will still try to collect on it.
--
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.


Draiman
Let me see those devil horns in the sky

join:2012-06-01
Kill Devil Hills, NC
Reviews:
·Verizon FiOS
said by Snakeoil:

And like others have said, they have a 7 year window to collect on that debt. Though sometimes it will circulate for longer then that and agencies will still try to collect on it.

Actually they have a 7 year window to put it on your credit. There is a statue of limitations on how long they can file a lawsuit against you over the debt as well that varies by state. The fun part is they can bug you for the rest of your life on the debt. There's nothing preventing them from trying to collect the debt 20 or 30 years from now.

»www.consumer.ftc.gov/articles/01···ed-debts
--
What we're saying today is that you're either part of the solution or you're part of the problem. - E. Cleaver 1968


faughro

join:2007-04-10
New Port Richey, FL
reply to CylonRed
This is the law the governs collection agencies:
»www.ftc.gov/os/statutes/fdcpa/fdcpact.shtm

Some agencies may not follow the law but if they do not there are steps you can take.


craig70130
Premium
join:2004-04-27
New Orleans, LA
reply to AZinOH
I'd like to point out that there are generally two types of collection agencies out there.

The ones I consider legitimate are acting as agents of the lender - basically just the lender outsourcing their collections and they almost always follow the rules. They are the only ones that can sue you and so forth. They try to collect for whatever time period the lender wants them to then either sue or charge off the debt. Rarely does that process go on past 9-12 months. As an agent of the lender, they can negotiate payments, lower the amount owed if they wish, and you actually can sometimes negotiate with them to remove the negative entry from your credit report if you pay the debt.

The snakes are the ones that purchase charged off debt from the lenders - at that point the lender has charged off the debt and they are done with it. These are the ones that break the rules about when and where they can call you, often chase the debt way past any statute of limitations for sueing, etc. They have -NO- legal standing to do anything to you - they can't put anything on your credit report, they can't sue you, -nothing- despite what they may claim.

The snakes can't remove the charged off entry from your credit report even though many will promise, even in writing, to do so. Only the original lender can do that and once they charge off a debt, they generally won't. (and legally can't take any monies from you)


faughro

join:2007-04-10
New Port Richey, FL
reply to pcdebb
Payments do not re-age a debt. Once a dept is charged off - which normally occurs prior to going to collection - the charge off date is what is used to determine the seven years.

Any collection agency calculating the date in any other manner is violating the FDCPA


Draiman
Let me see those devil horns in the sky

join:2012-06-01
Kill Devil Hills, NC
Reviews:
·Verizon FiOS
said by faughro:

Payments do not re-age a debt. Once a dept is charged off - which normally occurs prior to going to collection - the charge off date is what is used to determine the seven years.

Any collection agency calculating the date in any other manner is violating the FDCPA

It depends on the state as to what a payment does.

"Make a partial payment on the debt. In some states, if you pay any amount on a time-barred debt or even promise to pay, the debt is 'revived.' This means the clock resets and a new statute of limitations period begins. It also often means the collector can sue you to collect the full amount of the debt, which may include additional interest and fees."

»www.consumer.ftc.gov/articles/01···ed-debts
--
What we're saying today is that you're either part of the solution or you're part of the problem. - E. Cleaver 1968


craig70130
Premium
join:2004-04-27
New Orleans, LA
reply to faughro
said by faughro:

Payments do not re-age a debt. Once a dept is charged off - which normally occurs prior to going to collection - the charge off date is what is used to determine the seven years.

The 7 years should be from the date of last activity (meaning you making a payment), not the charge off date.


Draiman
Let me see those devil horns in the sky

join:2012-06-01
Kill Devil Hills, NC
Reviews:
·Verizon FiOS
reply to AZinOH
All the 7 years is for credit reporting. It doesn't make the debt collectors stop and they might even be able to sue you for another 3 years as the state statue of limitations is 10 years in some states. After that time they can try to collect but cannot sue or report to the credit agencies unless you make a payment and that resets the SoL in your state. There's nothing you can do to stop them from trying to collect the debt except your death. Even then depending on the amount they might go after your estate.
--
What we're saying today is that you're either part of the solution or you're part of the problem. - E. Cleaver 1968


faughro

join:2007-04-10
New Port Richey, FL
reply to craig70130
You are correct, for some states - I was stating for my home state of Florida the charge off date is considered the last activity date even if a payment is made after the charge off. I should have been more clear in the information I was providing.


Draiman
Let me see those devil horns in the sky

join:2012-06-01
Kill Devil Hills, NC
Reviews:
·Verizon FiOS

2 edits

1 recommendation

reply to AZinOH
Here's the list of states that require a new written promise to pay to reset the SoL.

"If you live in one of these states, simply sending in a check doesn't restart the clock. The statute of limitations is only extended by new written promise to pay in these states:
Arizona, California, Florida, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, Texas, Virginia, West Virgina, Wisconsin."
»www.creditinfocenter.com/rebuild···ns.shtml

Also note the debt collector can pick the state the debt was incurred or the state where the person lives now if they are different. You can bet they'll pick whatever state's SoL benefits them. If you opened a credit card in Florida then moved to Ohio they can pick Ohio and a partial payment will reset the SoL on that debt.
--
What we're saying today is that you're either part of the solution or you're part of the problem. - E. Cleaver 1968


motoracer

join:2003-09-15
united state

1 edit
reply to tcope
said by tcope:

Several years ago Blockbuster debited a closed checking account for some DVDs they stated I did not return. As I had closed that account, the bank charged me around $60 in late fees. I did not realize this as I had moved and they turned it over to a collection company. I did not handle this correctly and told the collection company I would follow up with BB as I felt I did not owe them anything. A month or two went by and the collection company turned it over to an attorney who filed suit in big boys court (not small claims). As I had a contract with the bank, I now owed around $400 in collection fees. I filed an Answer and we went to mediation. They were now asking for $600 and told them I'd drag the bank into it and spend all day in court. They refused and would not take less then $600. I figured I had little to loose by rolling the dice in court. We went back the following money and I did as I stated. I ended up loosing a owing $650... which I paid right away and the collection company agreed to file the correct paperwork with the court. It never showed up on a credit report... probably as I agreed to pay very quickly.

Your nephew does have a contract with the company and it probably does state that collection fees can be added onto the debt. In my state a company can garnish wages with a judgement but I don't think this is very typical (this is why I agreed to pay in the end) and it basically takes wages down to minimum wage. It can also affect someone's credit and cost them a _lot_ more in the long run. It might be difficult to obtain a checking account, it might be difficult to obtain a debit or credit card. Credit card rates might be higher, auto insurance might be higher, some employers won't hire you if they run a credit report (I work as a claims adjuster and they _always_ run a credit report).

You never know what a collection company will do. I'd recommend that he research this and send the proper letters to have the collection company send the proper documentation or drop the case. It's needs to be done now instead of later. It might already be too late. Sticking your head in the sand almost never makes these issues go away. They only get worse.

Must have been a BBV franchise store that sent your debt to collections as BBV corporate did *not* use a collection agency. The only thing they did was send bills to customers for money owed to them.

tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2
said by motoracer:

Must have been a BBV franchise store that sent your debt to collections as BBV corporate did use a collection agency. The only thing they did was send bills to customers for money owed to them.

Yeah, I'm still not sure what the deal was. I mailed in the DVD's and never heard anything. All of a sudden they debited the bank account. I had something like $15 in the account and had just not completly closed it out. They paid the BB charge but turned a few dollars into a $63 over draft fee. When I called BB they claimed not to know about me. I was buying a house and moving out of an apartment at the time (which is why I cleared the money out of that account) so I was kind of business and ignored it... like the OP's nephew. This was not the right thing to do and I learned my lesson in that it turned into a $600 debt. No one to blame but myself and I learned a lot. I learned how to file an Answer to a lawsuit, found out what letters to write to the collection attorney and argued my case in state court. I deal with this stuff all of the time in my job so I took it as a learning experience. I am now using this knowledge in attempting collection from another scumming collection company.


craig70130
Premium
join:2004-04-27
New Orleans, LA
I learned the same thing many years ago.

-ALWAYS- close a bank account properly. Don't leave a few dollars, in it, etc. Bad bad bad.


Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
kudos:2
Reviews:
·Time Warner Cable
reply to AZinOH
said by AZinOH:

I've never had to deal with one, but my almost 21-year old nephew who is living with me temporarily soon will be. I have seen him throw two unpaid bills in the trash as if he thinks nothing bad will happen. I know one has gone to collection already and the other one will within the next 30-60 days. Both of these bills are approx $460 total. Is it likely that his wages will be garnished? If yes, how soon could that happen? What other downsides should I look forward to hearing about?

Tell him to pay them other wise he will never be able to buy a car (unless you have a 100% down payment.)or house even renting a apartment/house will be hard with poor credit.

I'm 24 and have perfect credit, Own my own car (100% paid and have pink slip in hand.)

he can also get sued and have a lien placed on any assents he owns.
--
Well, does your car at least turn into something else? Sometimes I turn it into a trashcan. Hmm...


Blogger
Jedi Poster
Premium
join:2012-10-18

1 recommendation

reply to AZinOH
Actually, for once at least on this subject anyway I'm actually a legal expert. Unfortunately, as in all these threads the posts are a mix of accurate and bullshit and so you can't tell the difference so over all they are of little help.

I could post a detailed accurate moderately lengthy reply but then some talking out his ass poster, the minority of posters here but still a significant number, would just contradict something I posted and you would still be confused.

Speaking generally remember two things:

1. It's your nephews problems and not yours in any legal obligation way. I wouldn't hesitate to give his phone number out if the agencies bother you. But that's just me.

2. There is nothing that the collection agencies have that you want but there are things that they want from you. They have no legal power over you. Remember that.
--
The signal is usually drowned out by the noise.


pcdebb
RIP lil hurricane
Premium
join:2000-12-03
Brandon, FL
kudos:5
Reviews:
·Bright House
reply to CylonRed
said by CylonRed:

Unless Clark Howard is being paranoid but the collection agency will have you recorded identifying yourself, the debit and then your admissions that you owe it. Clark has said for the last couple of years that simply saying you owe the debit is enough to reset it (it could be a state by state thing as well).

might be a state by state thing, but i can't see this being legit in any case. i can be the evil twin answering the phone and giving the answers you seek just for the hell of it. collection agencies will tell you anything to scare you into forking over money. not everyone knows the rules and regulations of the fair credit reporting act. I've had my share of dealing with them back in the day and learned plenty from them and their tactics (not everyone that ends up dealing with them are deadbeats)
--
| map your city |


pcdebb
RIP lil hurricane
Premium
join:2000-12-03
Brandon, FL
kudos:5
Reviews:
·Bright House
reply to faughro
said by faughro:

Payments do not re-age a debt. Once a dept is charged off - which normally occurs prior to going to collection - the charge off date is what is used to determine the seven years.

Any collection agency calculating the date in any other manner is violating the FDCPA

In our good ole state of Florida it does.

Edit: Actually, things may have changed since I've had to deal with things. We're talking about 10 years in my case. I retract my statement.
--
| map your city |


Draiman
Let me see those devil horns in the sky

join:2012-06-01
Kill Devil Hills, NC
Reviews:
·Verizon FiOS
reply to pcdebb
said by pcdebb:

said by CylonRed:

Unless Clark Howard is being paranoid but the collection agency will have you recorded identifying yourself, the debit and then your admissions that you owe it. Clark has said for the last couple of years that simply saying you owe the debit is enough to reset it (it could be a state by state thing as well).

might be a state by state thing, but i can't see this being legit in any case. i can be the evil twin answering the phone and giving the answers you seek just for the hell of it. collection agencies will tell you anything to scare you into forking over money. not everyone knows the rules and regulations of the fair credit reporting act. I've had my share of dealing with them back in the day and learned plenty from them and their tactics (not everyone that ends up dealing with them are deadbeats)

There are one-way and two-way recording laws but none that allow you to record a conversation without any consent at all. If they just started recording without your permission and you found out they'd have a lawsuit on their hands. Clark Howard loves drama that's his job after all!
--
What we're saying today is that you're either part of the solution or you're part of the problem. - E. Cleaver 1968


AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1
reply to CylonRed
said by CylonRed:

Since he is living with you - a collection agency will try and get you to agree to pay his bills if you answer their phone call. If you do this - then you are on the hook.

I believe Clark Howard has information on what they can and can't do - ClarkHoward.com

»www.clarkhoward.com/categories/c···gencies/

Hang up the phone.
--
* seek help if having trouble coping
--Standard disclaimers apply.--


AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1
reply to Draiman
said by Draiman:

There are one-way and two-way recording laws but none that allow you to record a conversation without any consent at all.drama that's his job after all!

You understand what a one party recording law means right?
--
* seek help if having trouble coping
--Standard disclaimers apply.--


AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1
reply to Blogger
Blogger:

what do I say when the other guy says "this is an attempt to collect a debt"? I read that you could say "this is an attempt to compromise a debt".
--
* seek help if having trouble coping
--Standard disclaimers apply.--


Draiman
Let me see those devil horns in the sky

join:2012-06-01
Kill Devil Hills, NC
Reviews:
·Verizon FiOS
reply to AVD
said by AVD:

said by Draiman:

There are one-way and two-way recording laws but none that allow you to record a conversation without any consent at all.drama that's his job after all!

You understand what a one party recording law means right?

I have a lawsuit against a collection agency right now involving illegal recording among a few other issues. There's so many twists to the laws. Do you know none of that applies if the collection agency calls from another state? They need all party consent no matter if they are calling from a one party consent state to a different one party consent state. Interstate calls become all party calls per the FCC. There are quite a few other twists and bumps in the laws that the average person doesn't know either. It's amazing what a lawyer can teach you.
--
What we're saying today is that you're either part of the solution or you're part of the problem. - E. Cleaver 1968


Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT
kudos:1
reply to Snakeoil
said by Snakeoil:

The thing that I understand about collection agencies, they buy a bundle of outstanding bills from credits for pennies on the dollars.
So my couple hundred dollar debt, had only cost them may 30 to 50 dollars to pick up. If I paid it, the person bugging me would have gotten a portion of that, and the rest goes to the agency.
Yes, the person you talk to one the phone is paid on commissions. Hence why they are so eager to talk to you and to get you to cut an e-check right then and there.

And like others have said, they have a 7 year window to collect on that debt. Though sometimes it will circulate for longer then that and agencies will still try to collect on it.

That happened with me and Sprint and a CA, since my account was still open I paid sprint directly.
--
It's NOT Ni-kon It's NE-KON!




LG is NOT Lifes Good It's Lucky Goldstar!


iLearn

join:2013-01-16
canada
reply to AZinOH
They probably will not take the route of wage garnishment for such a small amount but this will definitely hurt his credit.

After the account is charged off as bad debt, the collection agencies start collection efforts. These agencies are not original credits and are known as third party collection agencies which are more aggressive than in-house collection departments.

Before they garnish your wages, they have to serve you. They will either serve you in person or send you a certified letter. After this is done, the judge rules for or against wage garnishments. This is a long process and creditors usually take this route for bigger debts etc.

For about $1000, they will probably charge off this amount as bad debt.

The best thing for your nephew is to face the problems and pay or at least try to settle the amount with the agencies for a reduced sum. Settlement on your credit file is still better than a charged off account.