Well, I'm actually posting this for a friend. My friend owed a collection agency for a credit card that he maxed out. As of this moment, I don't know the CA name or the credit card issuer. When he first told me the story, I instructed him to do validation, etc. but it was too late as he already started paying them $200/mo. thus resetting the clock. So I left it alone. Next thing I know, he contacts me to tell me that the collection agency tired to debit his checking account for $2200! Blew my mind...I guess he gave them his checking account info LIKE A FOOL and instructed them to debt $200/mo out of his account. Apparently the CA is trying to get their money early by debiting his account for the full amount remaining. He's also being charged bounced check fees since the draft that the CA submitted for $2200 came back unpaid. I instructed him to go to the bank first thing Monday morning and close his account since there is nothing he can do from stopping them from doing this again (or is there?). He was worried since he has so many automatic payments to his checking account and he also has 3 checks outstanding. I told him to contact everyone once he had his new checking account info...even though that's a pain, better to be safe than sorry, right? So, is there anything he can do besides close his account? I didn't think. The bank told him to put a stop payment on the check number but I told him that it obviously wouldn't work since all the CA has to do is use a different check number for their next draft. Man, talk about shady CA's. When I find out who the CA is, I'll let you all know. Anyone have any ideas???
Per the FDCPA, when advance payment arrangements are made, the ca is to notify the debtor, I believe 3 days in advance of any withdrawal. They obviously did not do this. That would be a major violation and I would do one of two things in addition to closing the acct. 1) send a demand letter certified mail, advising them that he is very aware of his rights per the FDCPA and the violation they have committed. Demand that they close their file on this acct, send a copy of the UDF to him, that he expects them to immediately send to the cra's asking for deletion. or 2)sue them immediately in small claims for that violation. If this was me, that would piss me off to no end, and I'm not sure I would give any advance warning. Maybe just sue them now and see how they respond.
They ARE a trustworthy bunch, aren't they! Are these being debited by ACH? You can do a stop-payment on that company in general, regardless of the check number. I had a similar situation, where I paid a CA by check-over-the-phone. ( Stupid, I know now) Months later, I had a new collection with them, and they tried to debit it without my knowledge. My bank put a STOP payment on them by company name, not check number, and then reversed the ACH! Problem solved. It seems to me that what happened to your friend should be illegal. Similar to altering the amount on a paper check. Perhaps you have grounds to have THEM pay YOU??? Ask the bank while getting the stop payment. They should be glad to help especially if it's fraudulent. Radi8
§ 808. Unfair practices [15 USC 1692f] A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. (2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit. (3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution. (4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument. (5) Causing charges to be made to any person for communications by concealment of the true propose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees. (6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if -- (A) there is no present right to possession of the property claimed as collateral through an enforceable security interest; (B) there is no present intention to take possession of the property; or (C) the property is exempt by law from such dispossession or disablement. (7) Communicating with a consumer regarding a debt by post card. (8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.
This one would be my choice. The next communication from me would be a summons. Then offer to "consider" dropping the suit in exchange for deletion and closing the file. Also, I'd fire off a letter to the AG. What they've done (or attempted to do) is called "criminal converstion". Good luck
I think I agree. As you know, I have not been one to push lawsuits right off the bat, but, the more nonsense I see like this situation, the more my thoughts on this are changing. Even though these things aren't happening to me, I am getting sick and tired of the b.s. these ca's think they can pull and get away with.
It's nice to have a bank that supports it's customers in such a manner. I for one had a credit union that didn't help me out, they tried to profit from a similar situation involving AOL. Who do you bank with?
National City. They have been excellent. Opened the account online, but they have a local branch as well. Radi8
Well, I'm actually posting this for a friend. My friend owed a collection agency for a credit card that he maxed out. As of this moment, I don't know the CA name or the credit card issuer. When he first told me the story, I instructed him to do validation, etc. but it was too late as he already started paying them $200/mo. thus resetting the clock. So I left it alone. Next thing I know, he contacts me to tell me that the collection agency tired to debit his checking account for $2200! Blew my mind...I guess he gave them his checking account info LIKE A FOOL and instructed them to debt $200/mo out of his account. Apparently the CA is trying to get their money early by debiting his account for the full amount remaining. He's also being charged bounced check fees since the draft that the CA submitted for $2200 came back unpaid. I instructed him to go to the bank first thing Monday morning and close his account since there is nothing he can do from stopping them from doing this again (or is there?). He was worried since he has so many automatic payments to his checking account and he also has 3 checks outstanding. I told him to contact everyone once he had his new checking account info...even though that's a pain, better to be safe than sorry, right? So, is there anything he can do besides close his account? I didn't think. The bank told him to put a stop payment on the check number but I told him that it obviously wouldn't work since all the CA has to do is use a different check number for their next draft. Man, talk about shady CA's. When I find out who the CA is, I'll let you all know. Anyone have any ideas??? ....................................................................................................................... Mp 40 ....................................................................................................................... Responce Sounds illegal to me. LB 59
Yepper!! They have to notify you no more than 10 days before and no less than 3 days before they post a payment. The CA can not use the postdated checks to threaten or harass. BTW, a postdated check to a CA done over the phone is just like mailing a check you wrote out. What they did is fraudlent! Tell your friend to go get 'em!
this happened to me to on a judgment a collection agency garnished my checking account without even serving me for the danged judgment, needless to say i am disputing this judgment. by the way, i never gave them my checking account number, they pulled my credit report and i guess got it from my name or something like that??? i am not sure. make sure that you never never never give any info to the bastards no matter how nice they seem. hang up on them. or else you may be put in a situation like mp$40's friend and i. btw, this isn't the only violation i have them on. after chod if this isn't gone we will have some fun. (GRIN).
In this case, I agree with the other posters who say to proceed to a lawsuit. This type of behavior is HIGHLY ILLEGAL and the CA deserves to be held to account for it. A question: Does your friend have any letter or written confirmation from the CA showing the $200 per month arrangement? How many $200 payments were debited prior to the big debit? It seems to me that two or three $200 debits at regular intervals will establish sufficiently the intended payment schedule. Greg
crebre, When you use the word "dispute" as refering to the judgment, I really hope you mean you are trying to get it vacated via whatever legal process is available in your state. Disputing or demanding validation will do you no good since the matter is now a judgment.
Whether 2 or 3 debits at regular intervals establishes a regular pay pattern is not the question. The problem is they did NOT notify him properly per FDCPA law within the time period mandated.
MP$40, I had the same situation with NCO before I founf this board. As soon as I learned what my rights were I sent a letter to stop all payments. I paid only once then put then sent out the stop letter. I faxed over the letter validation/stop payment letter and about 20 minutes later they called. I let "Tommy-the supervisor" know that he is in violation of my cease and desist request and that they were not to debit my account. This all took place back in August, since them I file a complaint with the BBB. BBB sent me a letter from NCO's legal cousel stating that they will delete all trade info with the credit bureaus. NCO Legal 150 Crosspoint Parkway Getzville, NY 146068 800-227-4000 716-404-2100 716-404-2120 fax John M Emmons Assistant Cousel, Corporate Legal Dept.
actually it's two judgments from the same place one paid before court and was supposed to be dismissed and the other is my headache. the only place that they show up on my credit report is in the public records section. when CHOD is over i am going to go back to court on the matter and state to the judge the law that they violated including improper service and i actually found a case that was similar to mine which stated that you have 30 days to dispute the debt and that improper time was given for me to dispute the debt and demand vacating of the judgment and the jduge ruled against the ca. there is nothing like an informed consumer. sorry this is so long and totally of the subject.
