Can CA's collect on Taxes?

Here's something interesting I came across:

Goto "http://www.ftc.gov/os/statutes/fdcpa/commentary.htm"

and scroll down to part with heading of:

FEDERAL TRADE COMMISSION STAFF COMMENTARY ON
THE FAIR DEBT COLLECTION PRACTICES ACT

It is an FTC Staff Opinion on what the definition of "debt" is ...

... and it clearly states that unpaid taxes is NOT considered a debt, since there was no transaction and no exchange or product or service involved.

... So, question is, can a CA legally try to collect on a tax bill?

Was disputing a tax bill I was receiving on an auto I got rid of in 2001, yet was being sent a tax bill on auto for 2002. I was disputing this, and did not pay it, until just this June because the DMV would not let me renew tags on my current vehicle, so I just went ahead an finally paid it.

Then a few weeks later, I found out the Tax Dept had turned this over a CA about 1 or 2 months ago, and not the CA is reporting this as a Paid Collection on my CR's.

Question is this then, since the FDCPA has modified it's defintion of "debt" to NOT include unpaid taxes, did the CA even have authority to try and collect on this?

If not, I should be able to use this definition of debt, that taxes are not debts, and force them to delete the Tradeline, right? Or not? Does it just mean I'm not protected under FDCPA as far as the CA collecting on taxes?

FedUp2003

 

jlynn wrote:

"The definition wasn't modified, the opinion letter clarified. Have you read the FDCPA? Here is the definition of a debt:

5) The term "debt" means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment. "

It was while reading through the FDCPA that I came across this "clarification." I said modification, you said clarification, I think it's just semantics on what term we use, but the thrust of the post was that the FTC was somehow refining the definition of what is a debt, and they said that "Unpaid taxes" is NOT by deifnition, a debt.

It went on to clarify that position because there was no product or exchange of service.

So, that made me question then if a CA can be used to collect an unpaid tax. I was somehow thinking that CA's can only participate in collecting "debts" and not other items, such as tax bills.

Was trying to determine if that was the case, or did it just mean that since unpaid taxes are not "debts" that if an Agency's actions in trying to collect on it was protected/covered by the FDCPA.

I guess what you are saying, is that Yes, CA's can collect unpaid taxes even though they are officially not defined as a "debt," and that all this "clarification" meant was that it's not covered under FDCPA.

So that means, I'm not allowed to send a Validation Letter and/or Dispute with the CRA's, etc ....?

 

Thank you,

I'll dispute the tax bill with the CA, and if they say I do owe or did owe it, then I'll send a Validation Letter, and once I get the Return Receipt, then Dispute with the CRA?

That's all I can think of to do in this situation then, as it's been paid, even before I even knew it was sent to a CA.

Guess if the CA does actually Validate, i.e. send proof of tax bill from the County, then I could send a LN letter, or dispute some more, saying that I didn't owe the taxes (which I still contend, cause how can I be liable for 2002 taxes on an auto I got rid of in 2001???)

Maybe, by continually disputing with the CA that it was not a valid tax bill, just paid it to get them off my back, and therefore the CA had to right to try and collect and therefore no right to report to the CRA's ...maybe I can ge them to Delete that way ..

... otherwise, I see no other strategies.

FedUp2003

 

I don't know, but they did, that's why I'm so pissed and frustrted. I'm sure you've read about my fiasco with Sylvan and how I got screwed by that.

And now this. I've been disputing all of 2002 about that tax bill, kept telling them that I got rid of the car on 2001, how can I be liable for 2002 taxes on it?

All they ever did was send a new notice a month later telling I owe this tax bill plus a few dollars more for interest.

Then, when I couldn't renew my current vehicle plates at the DMV because of the "Tax Hold" I was basically forced to go downtown and pay that old tax bill.

But, like I said, I didn't even know they has sent it to a CA.

I had a CR that I pulled on 29 May 2003 and nothing about this was there. I paid the tax at the County tax dept. on 02 Jun 2003.

I pulled my CR again on 23 June 2003 to see if a dispute for a late pay on some account was there, and lo and behold, here is the collection account for the tax bill, yet showing a Zero balance, Paid Off, and that they had this collection activity going on since April 2003??!!

Seems like I have extremely bad luck with these CA's and stuff, that's why I feel so abused and beat-up.



FedUp2003