Thread: All please read (legal heads!)

I need your help. I hope my hard reasearch pays off I've spent countless nights investigating my collectors and found something VERY strange:


Is it legal for a LawFirm who practices debt collection to establish themselves as another entitity who sells and buys debt ? In otherwords, a lawfirm to collect debts for themselves under a different business name?

The law says this:

§ 807. False or misleading representations [15 USC 1962e]

(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization.



Here is the real world scenario:


Acme Law firm are debt collectors but they send out notices that they __REPRESENT__ a client called FruitCup solutions who buys debt (still classified as debt collector). Allegedly, FruitCup Solutions bought my debt from American express.

FruitCup Colutions has forwarded my account to Acme LawFirm for collection by legal means if necessary.

Well I just ordered all the corporate records for FruitCup solutions and it turns out the president and VicePresident of FruitCup solutions are the same people who operate Acme Lawfirm!@. Is this legal ? It's screaming FDCRA violation but I'm not sure.


Remember these are the same people. I have proof from Governmental Agencies that would stand up in court proving this. As soon as I get the word, I'm on the phone with everyone. I just don't want to jump the gun if this is legal. Please read the above law again and tell me if I'm on to something.

Honestly edoggie,

I keep reading and reading this and can't figure out what your problem is.

Why don't you just send them a validation letter and be done with it?

Lots of people have more than one business or an interrelated business or dba's.

Sassy

Sassy I tried to make that clear as possible. I'll try to rephrase it.

Is it legal for me to be a debt collecting lawfirm that collects debt under a different business name. The way I read the FDCRA it seems like a violation that's all I'm trying to clarify.

Again:

§ 807. False or misleading representations [15 USC 1962e]

(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization.


It's like you are a lawfirm posing to collect for another business but you ARE that "other" business. You are just using a different name.

I'm not a legal wizard, I'm far from it. I am however, a person who operates two separate businesses that sometime intertwine.

On the face of this, it seems if Fruitcup and Acme do have two different businesses and whatever are the necessary licenses to operate those two businesses, they are not operating under a false name and thus aren't violating the FDCPA.

I don't think FDCPA addresses the ownership of the collecting business, just the name they use to identify it.

Not sure if this helps, but this is my take.

DemPooches

DemPooches is right, that's how I read it, it's about misrepresenting the name of the business; they aren't doing that.

Did you check to see how they are licensed? Does your state require licensing or bonding?

Heinz v Jenkins addresses attorneys subject to the FDCPA, but these aren't trying to get out of those provisions.

I asked above why you don't just send a validation letter. You've spent a lot of time digging up corporate information but the validation letter itself would address the sale and whether you were contractually obligated to them instead of the OC, that's one of the points.

You're making this too hard on yourself trying to catch them in a technical screw-up.

Sassy

EDIT: Sorry, was thinking, do both businesses share the same employees, edoggie?

Read this: http://www.edcombs.com/CM/News/news7.asp

I didn't have the time to find out exactly where your situation fits, but I think you'll find your answer here.

Sassy yes! That's what I'm trying to say. These are the __same__ people and yes I can prove it. The lawfirm is owned and operated by the same people who are president and vice president of the "client" they are representing.

That article that's posted above (the edcombs.com one addresses this)

I thought maybe you all had an experience like this with NCO / MEDCLR and could elaborate a bit more on the issue I'm experiencing.

Everytime I try to get the "clients" phone number from the attorney's they won't give it out. They ask why do I need the number then said they will relay the message to the client.


Thanks for that edcombs article too. Might be just what I need.

One thing I'm not sure on is this...Equifax Credit Solutions is a different entity from Equifax Collections (okay...can't remember the legal names here, but you get the picture). Even though it may be run by the same board of directors, or whatever, if it is a different legal entity, this may (or may not) put a damper on your case. I dunno...just thought I'd toss that out.


L

edoggie,

I just don't see the problem. They are doing what service companies do all over the country. Buy product {in this case defaulted debt} at wholesale and then, pass it over to there retail operation {in this case, actually collecting} with I'm sure, some sort of markup.
If there interlocking relationship could be found by surfing the net, they can't be too deceptive.

Originally posted by edoggie

Acme Law firm are debt collectors but they send out notices that they __REPRESENT__ a client called FruitCup solutions who buys debt (still classified as debt collector). Allegedly, FruitCup Solutions bought my debt from American express.

edoggie, I don't have anything I can add about your situation, but I read your post twice before I realized that FruitCup Solutions was not the real name! I kept thinking to myself, Who would call a collection agency FruitCup--how would they ever be taken seriously! ROTFL!