dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
5271
share rss forum feed


faughro

join:2007-04-10
New Port Richey, FL
reply to pcdebb

Re: Collection Agency...What Is Typical?

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
Reviews:
·Champion Broadba..

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.


reply to Zach1

You, as an Employer, can sue the collection agency for harassment. This falls under the FDCPA (Fair Debt Collection Practices Act - Google it). It matters not that the debt is not yours, nor the value of the debt.

EACH VIOLATION is worth $1,000 TO YOU. Put these collectors in their place.

Since they are calling outside normal hours, there's $1,000.
§ 805. Communication in connection with debt collection [15 USC 1692c]
(a)(1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o'clock antimeridian and before 9 o'clock postmeridian, local time at the consumer's location;

(a)(3) at the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving such communication.

If they told you why they are calling (disclosure to a 3rd party) - There's $1,000.
(b) COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer...

You can definitely get them for harassment - another $1,000.

§ 806. Harassment or abuse [15 USC 1692d]
A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt.
(5) 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.

If they lied to you, there's another $1,000.
§ 807. False or misleading representations [15 USC 1692e]
A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

§ 813. Civil liability [15 USC 1692k]

(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of --

(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;

(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.


reply to PeteC2

They cannot call you if you write to them and tell them to cease communications. You (and/or your nephew) can sue THEM for $1,000 plus costs, if they continue to call.

FDCPA -
(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --

BTW - Not all debt collectors are weasels. Some are doing an honest job of collecting money that someone is trying to skip out on. All of us pay for deadbeats through higher costs.

Expand your moderator at work

reply to tcope

Re: Collection Agency...What Is Typical?

They are violating the FDCPA, and the TCPA.
$1,000 per incident under the FDCPA, and $11,000 under the TCPA.

They are NOT allowed to call a cell phone with an auto-dialer. Absolutely NOT ALLOWED.

The United States Federal Communications Commission (FCC) implemented the Telephone Consumer Protection Act of 1991 (the "TCPA") to prohibit the initiation of telephone calls using the following:

• automatic telephone dialing systems
• artificial or prerecorded voices to telephone numbers assigned to paging services, cellular telephone services, specialized mobile radio services or other radio common carrier services, or any service for which the called party is charged for the call

"(Entities violating the ruling are subject to financial penalties by the FCC of up to $11,000 per incident.)"

Time to up the ante, I think.


reply to craig70130

Snakes are snakes and very well may violate the rules.

Selling a debt to another, then charging off the debt, gives the 2nd party the ownership of the debt. THEY MOST DEFINITELY CAN FOLLOW THROUGH WITH LEGAL ACTION - YOU NOW OWE THEM FOR THE DEBT, regardless of what they paid for that debt.

This is a common thought, but it is incorrect. They own the debt just as legitimately as the original debt holder.


reply to faughro

This is ABSOLUTELY INCORRECT. The FDCPA says nothing about this. The statute of limitations, which varies by state, starts counting when a) the last payment was made, or b) when the installment debt was contracted to be paid off.

Within that time, legal actions may be taken, including getting a judgment for the debtor to pay the debt AND interest. Judgments can be renewed. You will be on the hook for another decade, at least. AN interest accumulates on the judgment, above and beyond what you originally owed.

Expand your moderator at work

reply to Draiman

Re: Collection Agency...What Is Typical?

In Ohio, only ONE party needs to know the call is being recorded, not both.

Expand your moderator at work

PrntRhd
Premium
join:2004-11-03
Fairfield, CA
reply to iLearn

Re: Collection Agency...What Is Typical?

Agree, the other little "stinger" is the debt charge off can appear on his taxable income and he will have a hard time convincing the Federal IRS to make that one go away.