COLLECTION AGENCIES

Negotiating With Which Agency

Suzette:
Whether you deal with the Washington or Arizona office greatly depends on the agencyâ??s internal policies. Both states require an agency to be licensed and place bonds. As far as using the lack of such as leverage, I suggest against this tactic unless youâ??re forced to play hardball (use it only as a very last resort).

I presume, based on your comments, that the Washington based office is collecting? If Iâ??m correct Iâ??d suggest contacting the Washington office and request that the file be transferred to Arizona, where it may be easier to settle. Donâ??t be surprised, however, if your request is turned down. Inter-office rivalries are pervasive in the collection biz, so one can never tell whether or not the respective managers are on good terms. A transfer, after all, would be in their hands.

That notwithstanding, here are some tips regarding requirementsâ?¦

A Washington state collection agency must:
1) Itemize the debt;
2) Use its street address, ONLY;
3) Use the license agency name;
4) Cannot threaten credit damage;
5) Attempt collection at residence first;
6) Contacts limited to 3-weeks at home;
7) Contacts limited to 1-week at employment;
8) Maintain a trust account; and,
9) Report satisfactions to CRAs within 45-days

Keep The Faith,
Anthony Villaseñor

 

Was Verification Sent?

Suzette:
You mentioned that on 4/00 you sent a demand for verification, then again sent a follow-up letter 5/00. Was the second letter a result of the Washington office NOT validating with an itemized accounting? If so youâ??ve got some possible leverage here, but negotiations must be handled delicately.

Keep The Faith,
Anthony Villaseñor

 

Time To Step Up The Action

Suzette:
Since OSI hasnâ??t validated the debt as required by FDCPA, now theyâ??ve got something to be concerned about and youâ??ve got some leverage. Granted the agency may attempt to allege that validation was done through answering your CRA dispute(s), but that doesnâ??t cut it! So itâ??s about time to step up the action a bit, but within reason so as not to completely alienate them from cooperating.

First I suggest that you contact the current Program Manager for the Washington state Department of Licensing Services: P.O.Box 9649, Olympia, WA 98507 (360-586-4567/Fax: 360-664-0458). I believe the agency bond requirement for Washington is at about $5,000; yet the DLS can provide the correct info if Iâ??m wrong. What youâ??ll want to do is sustain that the agency in fact has a license to collection, and that their bond is active.

Next, since they have an office near you (in Arizona) youâ??ll want to do the same with the Arizona Superintendent, State Banking Department: 2910 N. 44th St.-Ste. 310, Phoenix, AZ 85018 (602-255-4421/FAX: 602-381-1225). The Arizona bond requirement is as much as $35,000 but the Superintendent, the regulator, can verify or correct this as applicable to OSI.

If everything is in place, in order the way it should be, compose a complaint letter to both regulating bodies. Advise them that the agent has not validated the debt and provide them copies of your material, anything suitable that will help substantiate your claim. Certainly the Department of Washington will look into the matter, because thatâ??s (essentially) what theyâ??re there for â?? as an overseeing entity. Although just prepare the letter(s), donâ??t send them off just yet.

Now contact the collections manager at the Washington branch, certainly by phone. Indicate that you havenâ??t received validation, that youâ??ve documented your efforts, and that youâ??re prepared to file formal Administrative complaints unlessâ?¦ Now hereâ??s the tricky partâ?¦

Tactfully propose that rather than going through all the hassle of seeking a formal redress, expressly for the agencyâ??s failure to properly validate. Suggest (and I mean â??suggestâ? not overtly demand) that a more amicable compromise are terms that suit your agenda, getting the debt removed once paid. If the collections manager is smart he/she will look into the matter before giving a decision, but if he/she gets hostile send off the regulator letters! Itâ??s also important NOT to document your contact with the collections manager, in writing.

Now if you still donâ??t make any headway, send me a private email post and Iâ??ll clue in you on what to do next. You may want to remind me of our discussion, just to refresh my memory (which sometimes fails me in old age).

Keep The Faith,
Anthony Villaseñor

 

RE: Negotiating With Which Age

Anthony,

Are the requirements you listed only valid for the state of Washington?

I live in VA and would be very interested in the guidlines that you are describing. I am trying to deal with a creditors in MD and NM.

 

MD Collectors

Kate:
The Washington requirements I mentioned are applicable to â??collection agenciesâ? only. However, in the state of Maryland creditors must follow the same guidelines as collection agencies, which are: 1) a bond of $5,000; 2) a license to collect and, 3) the agent may not collect on HMO related matters.

Keep The Faith,
Anthony Villaseñor