Hello. I'm hoping someone here can point me in the right direction. I have a collection agency harrassing me about a supposed debt for my small business (in the incorporated business name, not mine). I don't owe it, but can't get them to leave me alone. What happened is that a few years ago, an overzealous Yellow Page ad salesperson sent me a certified letter saying that she couldn't get in touch with me to see if I wanted to renew my advertising for the year (I didn't), so if I didn't call her, she'd just do it anyway. I got the letter after the closing date of the book, and ended up with advertising for a service my business was no longer even providing. Bell Yellow Pages said that the "automatic renewal" clause was in the terms and conditions of my original contract (signed two years before), but when I looked at the back of my contract (where they said the terms were), it was blank. I asked them for a copy of whatever contract they had showing those terms, and they couldn't provide it. The billing person was reading off the screen and said, "we don't have it." They told me that the only thing they could say was that "the sales person said she sent it." To which I replied, "of course she did ...it was her sale and therefore her mistake." I have all the pages which were received in that fax, and nowhere does it includes terms of automatic renewal. I had told them if it was my mistake, I'll pay it even though I'm getting no benefit from it. But their copy apparently doesn't have those terms either, and they could never provide anything. Neither could the first collection agency they referred it to. So my question is not "do I owe it..." I know I have no legal or moral obligation to pay for something I didn't purchase and got no benefit from. My question is, how do I get the new collection agency they've referred it to to stop harrassing me? They tell me it's a commercial debt so the FDCPA doesn't apply, but surely there is a law somewhere that says they can't harrass me until I pay something that nobody, not even the original creditor, can find proof I actually owe. This agency is calling every day, several times a day, and one agent has been beyond rude and abusive, even screaming at me (which makes me even less inclined to send them money). Can someone offer some advice or guidance on where I go from here? Thanks.
Are they harassing you at your place of business, in your role as an employee or officer of that business, or are they harassing you as an individual, calling at home and claiming you personally owe a debt at best a disputed debt with a corporation? Have they taken any action to damage your personal credit? If the latter, you might still proceed down the road of disputing and suing under FDCPA, as they are harassing you as a consumer as defined in FDCPA. There are cases where individuals have been harassed for collection on debts of now-defunct corporations, where the court decided they were in fact consumers under the law. You don't get to harass some GM purchasing buyer at home just because GM sits on your invoice, whether it is fair or not. As to the "negative option" renewal without supporting contract language, file a complaint with your postal inspector for mail fraud, a criminal complaint with your local DA, and a BBB complaint, same as unapproved delivery of unordered merchandise. The sales person knew they were pulling something. That is why they sent it certified to create the appearance of an agreement when there was none. The reference to contract language that doesn't exist makes clear that it was either deceptive or an error on the part of the salesperson, in a manner that a judge would be able to see clearly. "What automatic renewal language? Where?" Did you protest the "sale" in writing when you found out about it? No means no, and absense of yes also means no. Contracts require a meeting of the minds. Anything else is fraud.
My corporation is now defunct. There is no corporate phone number. They are calling on my personal cell phone, but I haven't told them not to. Actually, I guess at one point I did scream at her to stop calling me, because I don't intend to pay anything, but I don't remember if I initially called them from that number or gave them that number when I first got the letter, or if they somehow found my cell number. I was the sole shareholder of the corporation, and the President. What do I do? Tell them the company is defunct, and I don't want any calls on my cell phone? I do have a post office box where I had all the company mail forwarded. There's not even any physical location anymore.
File mail fraud complaint, to get it on record, against the directory company and salesperson, same as shipment of unsolicited merchandise by mail, since U.S. Mail was used in perpetrating the fraud (the deceptive "Certified" letter). Certified letter was, in effect, a "negative-option" fraudulent invoice. Contract was "renewed" without any agreement by you, deceptively claiming non-existent contract language to do so unilaterally. Is this a legitimate directory company, or one of the marginal ones already in the phony invoice directory business? Send the CA a full C&D. If they call again, or take any action against you, sue under FDCPA or FCRA as appropriate. You are a consumer under FDCPA, regardless of the originally commercial nature of the alleged debt. Furthermore, you know you can produce the actual contract language, and they can't produce what they claim. You may want to contact an attorney specializing in consumer debt collection, FDCPA and FCRA litigation (they often also handle personal bankruptcy), to sue in state or federal court (not small claims), where you are likely to get better trained judges. Under FDCPA or FCRA, court could award you both damages and attorney's fees. You might try www.naca.net Note, I am NOT an attorney. The above is only my uneducated opinion.
Did you have paper correspondence back and forth with BYP? Or was the bulk (after the fax - and their letter) done via phone... If you have a paper-trail showing the dispute, and the fact that their clients are claiming a clause which wasn't in your contract was in your contract. You may have to sue the BYP for breech of contract. You have the contract which shows that the clause was not in there... Do a search on the FTC's web site for Leasecomm It has a nice complaint under the FTC Act for slightly similar circumstances (Trying to enforce contracts which were partially blank at the time the contract was signed.)
Thanks. I'll try that. It's a legitimate company -- SW Bell Yellow Pages. And yes, I have the contract I signed and it's totally blank on the backside where the terms/conditions are supposed to be. The OC couldn't provide the contract I asked for because apparently, their copy is blank too. The CA asked me to send them a copy of MY contract, which I refused to do, so they obviously don't even have a copy of the copy. Though they lied and said they do and that they'll take me to court. But I"ll try your advice, and I thank you.
Fraud is fraud. If they want to claim it was an "accident", they have to back down. File your complaints against both the company, and the salesperson as an individual. Since they are attempting to collect from you as a consumer under FDCPA, if they fail to take you to court, it is another FDCPA violation.
Unfortunately, the bulk of the correspondence was by phone, although I believe I did tape some of the later calls (I'm in a one-party state where I don't need consent). I hadn't thought about filing an FTC complaint. I'm not sure what good those complaints actually do, but I'd be real surprised if I'm the first business that got stuck by SWBYP. This seems to be their modus operandi. Most businesses just have the money to pay them so they'll go away. I even offered the SWBYP at one point early on to pay half, just so it would go away (clearly stated that I don't owe it, but would pay half if they'd leave me alone), but then they sent me a "settlement letter" which said they might later come back for the rest -- I told them that their letter implied that I had a legal obligation for the debt, which wasn't the case or the terms of our agreement. I said, "send me a letter which clearly spells out the situation, that we've agreed for purposes of goodwill even though I deny that I purchased the service." They told me the computer doesn't print out those kinds of letters.
The certified letter, plus your contract, already makes the case for mail fraud. File with Postal Inspector, and then send another complaint thru BBB, including copy of your contract and copy of the certified letter, including in it that you have filed a mail fraud complaint with the Post Office. That should get their attention thru a different channel, probably get it kicked into Legal, who will look around for the contract terms and find they are up a creek. Stay on top of BBB, and make sure they don't mark it as "resolved" due to company's say-so, when it isn't.
Just do it. Include a copy of the "negative-option renewal", along with a copy of the contract, making clear there is no such renewal clause, they have admitted they can't find it either, yet they have continued to harass you trying to collect money you never agreed to pay. The "unilateral renewal" is clearly intentional. This is not about threats. It is about notifying the authorities of a crime, in this case, an economic one. You do that as a public duty, not to make threats. It is the Postal Inspector's job to handle such complaints, and it is their job to determine whether they are valid and what action to take, not yours. If they had wanted to resolve the matter, they would have done so by now. Maybe they will learn to backpedal faster next time.
I also just found the collection regulations for my state, and it specifically says that the penalties for harrassment, making false statements, etc. (all of which they've done) is a violation of state law, and it doesn't seem to be limited to consumer debt. It talks about unethical actions taken toward debtors in general, which I would assume also means business debts since it doesn't specifically define a debtor as "natural person" or consumer etc.
Actually, in this situation, you are a "consumer" subject to harassment, as defined in FDCPA. The former corporation was the alleged "debtor" against which the order was fraudulently placed. Since the former corporation is not around, it cannot sue. But you, being a witness of and aware of the crime, can report it to any and all appropriate authorities. And you, being a consumer subject to the protections of the FDCPA, a consumer protection law, can use it against the CA. They are not collecting an alleged debt from a business, as there is no business, and they are harassing a consumer. They have no blanket immunity from FDCPA violations against all consumers just because the alleged debt originated as a fraudulent business transaction. The salesperson tried to create the appearance of an order and contract when he knew, or should have known, there was no agreement. You already disputed the order thru the company. Establish that the order was fraudulent by reporting it as such to authorities, including documentation. One area you might have a problem with the above is if, after receiving his notice, you sat on it a long time before disputing with the directory company, creating the appearance that you were benefitting from the order but just trying to get out of paying it. But if you disputed immediately on becoming aware of it, even if they could not rescind the order at that time, that would support your position that you had no agreement and their loss if any, was due to their own error. To protect yourself from harassment, draw the line as provided in FDCPA, and sue when they cross it. FDCPA has a one year SOL, so you wouldn't want to wait too long. Keep all communications in writing, sent CRRR so you can prove they got it. There may be other state laws that may provide protection, but FDCPA provides two advantages: 1) You can sue, in either state or federal court, where you live, not where the CA is located. 2) You can be awarded attorney's fees. http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#813 "§ 813. Civil liability [15 USC 1692k] ... (a)(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. ... (d) An action to enforce any liability created by this title may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs." There may be additional state criminal law that comes into play if you have reported a crime, and because of that, they proceed to harass and threaten you. That would be a matter to discuss with your local DA. At least that is how I see it. Note: I am NOT an attorney.
