I've been reading both the FDCPA and the FCRA looking for any language that prohibits a business from being both a CRA and CA. I recently bounced a check. Got a letter from a CA trying to add fees not permissible under FL law. In the letter they state they are both a CRA and CA. Any thoughts?
Umm..that's totally illegal!!! There are only 3 CRAs as far as I know and it is DEFINITELY illegal for a CA to claim that they are a credit reporting agency. They really stated that to you???!
Enigma - Section 807 says the following is a violation of the FDCPA: (16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act.
Section 68.065 governs checks. In order for a person to collect they must send the letter listed in the statuate.
May 24, 2002 Enigma Address City state zip BALANCE DUE: $xx.xx The check(s) listed below have been returned not paid by your bank: <insert check info here> ABC has been authorized to process payment and has entered your account information in the ABC Check Verification Database, which may affect your check cashing ability. Please remit $ xx.xx I the enclosed envelope, which includes all fees and service charges as permitted by law. Upon receipt of payment in full, your account will be cleared from the Verification Database. To ensure proper credit, please return the top portion of this letter with your payment in the enclosed envelope. Call our office at (xxx) xxx-xxxx if you have any questions. Note: ABC will not waive fees due to bank errors, will not accept partial payment on checks and will not redeposit checks. If your check was stolen and / or forged, please dispute this in writing with an affidavit of forgery verified by a Florida Notary Public. This is an attempt to collect a debt, and any information obtained will be used for that purpose. Unless within thirty days from receipt of this notice, you dispute the validity of the debt, we will assume this debt is valid. If you notify us in writing within thirty days, we will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request in writing, within thirty days, we will provide you the name and address of the original creditor, if different from the current creditor. **ABC is a Debt Collections and Consumer Reporting Agency.** **The records of our merchant(s) reflects that your account is now over due.** Now at most they can charge is a $25 bounced check fee. They were trying to charge me the $25 plus a $10 fee for their services. I called them told them they could not do that. The women on the phone said they could and if I did not pay it they would sue. I sent them a standard validation letter from the board. I specifically asked them there statutory authority in determine their fees. I got back a very â??niceâ? letter that said in the interest of customer service and my timely response, I waited until 27 days, they would drop all fees and for me to send the original amount at my earliest opportunity. Now I think that I have them on the following violations: 1.They do not give you a toll free number to call. 2.Since this is the first letter for a bounced check it does not meet the FL requirements. 3.They state that they have entered my information into their database. That would leave me to believe that if I did not pay this right-a-way that I might suffer in my ability to write checks. Telecheck was slammed for this. 4.They say in their letter that they are both a CRA and CA. What do you think? I have paid off the check and it was due to a bank error, have letter to prove it from the bank. Should I send them a demand letter or just write to the FL AGâ??s office?
I have known people who had a BOUNCED CHECK DUE TO A BANK ERROR and the BANK was 100% at fault (sort of)~~~delayed payroll deposit...they wrote a letter to the CHECK COLLECTION PLACE ASSUMING 100% RESPONSIBILITY...they said SO!!! We want our money from the customer for the bounced check and fees... This is one reason I always check ON-LINE to see that my DIRECT DEPOSIT PAYROLL check is in the bank before I write any checks...(to be "REAL" safe wait one more day)
There's ALOT more than 3 CRAs! And, it's not illegal to be both a CRA and a CA, there's lots of them too, ummmmm Telecheck comes immediately to mind -- they are just more than others. It's illegal to use "credit bureau" as part of your name if you aren't. Sassy
hmmmmm enigma, Does FL require licensing? You could check there and see if they are licensed or if they are in fact both. If they aren't both, that's a definate violation. What about your state's procedure for bad checks -- did they follow it? Send the letter required by statute or is that letter their own and doesn't include the state verbage? You said you paid, did you pay them directly? I think if you have a letter of the bank's error, you should be getting reimbursed for the check charge. They have removed you from whatever check verification database they said they reported you to? They returned your check to you? How did they get your check anyway? There's hokey stuff going on with bottom-feeder companies trying to capitalize on the electronic processing and reimbursement laws. It really depends whether they are in fact both a CA and CRA and your state's laws for check recovery as to what your options are. Sassy
They are licensed as a CA. Did not follow prcedure on checks. They used there own verbage not the one set forth by the State. I paid them directly with a cashiers check that was made out to "XXXX, ONLY" that way it could only be cashed by XXXX. I did this before I heard of this board. My bank reimburshed me the fees without a problem. But the CA was trying to add fees in excess of what the State said they could collect. But they dropped the fees when I sent a letter for valdation. I never received the check back and I have since then closed the account. There people are bottom feeders. If they tried to do this to me I wonder what else they are doing to other folks. Instead of suing them for the violations I may just write the FL AG's office instead.
