"If you dont pay today, your fico score will be lowered by 150 points". You read this correctly; One hundred and fifty. Heres what happened. I called to pay off a $70 old phone bill. They wanted to charge me a 7 dollar over the phone fee. I asked for the mailing instead. She said, If we update this in the bureau before you pay, it will lower your fico about 150 points. The only way to prevent that is to, (of course) pay now with the fee. I thougth to myself, Its already on the bureau. And even if it wasnt 150 points for a 70 $ phone bill is overly exaggerated. When it first appeared it lowered my score 10 points. I cant immagine how the same already reported account could cause it to drop another 150. Nothing has changed and they arent entitled to collection cost per the phone company. I gave her an example to make sure I understood her correctly. "If my score is now 600..... Your telling me that I need to pay you today, and not mail the payment in, otherwise my socre will be at 450...? She said yes. I paid ..............But I recorded the whole thing consistent with the law. Should I file suit under the FDCPA and attempt to settle for 500 and a deletion.....
One more thing my statement shows they took an extra buck, not that is a lot of money but it is my money nevertheless
It's definately a false and misleading representation, and I would go as far as saying extortion; YOU PAY THIS OVER THE PHONE, PAY US FOR THE PRIVELEGE OF TAKING YOUR MONEY; OR YOU'LL REGRET IT WHEN YOU CAN'T GET AN ACCOUNT BECAUSE YOUR FICO SCORES ARE 150 POINTS LOWER. Doesn't *THAT* sound like what she *REALLY* said?
Update I received a letter in the mail saying they are in receipt of my letter (Notice of Intent to Sue). They maintain that they accurately reported the debt and made proper notification prior to such reporting. However, I never claimed it was inaccurately reported, rather I took issue with the representation regarding the impact on my credit score (150 points per update to the bureau) In any event, as their letter did not contain the check I demanded (they did delete from bureau though) I filed suit last week in small claims. It was served Friday. Today I received a call from their attorney. I have yet to return the call but I would assume since they are calling me they want to settle. My offer will be $800 plus cost. Otherwise, I have no problem playing the tape in court and forwarding a copy to other interested agencies. I'll keep you posted.
Your suit is under FDCPA, for the manner in which they collected. They used threats and deception, which is illegal regardless of whether they carried them out, whether you owe the debt, or whether they are reporting accurately. Do not be surprised if their call was to threaten you again, perhaps with having to pay their attorney's fees for filing a frivolous suit. They already tipped their hand to how they play in their first call. If you intend to file complaints with state agencies, you should probably just do it now. If you just threaten it while you are litigating, they will probably claim you filed it to "extort" money from them. It appears cleanest when it has already been done, and you never used it as a threat. They broke the law, you file a complaint. Regulatory complaints, and recourse under FDCPA, are two different things, and one doesn't have to depend on the other. When she called, had they yet sent you an initial letter required under FDCPA outlining your dispute rights? Or was her call the first contact, did she fail to inform you of your FDCPA dispute rights in that phone call, and you paid by phone so they never sent a letter? If that was the case, you could also argue another FDCPA violation for failing to send you that letter, since the effect of her deceptive claim was to illegally coerce payment without notifying you of your dispute and validation rights. In effect it would have overshadowed the letter they never sent. While you are at it, are you asking for your $1 back?
More News I called this attorney back. Her voice mail said she was out today and to talk to her assistant. Her assistant immediately said that collection magazines use these figures as an example of credit impact and that is what the collector relied on. He said I would be mistaken to pursue this. He said the attorney will call me to discuss. I told him that if that is the position he is taking than save the calls and I will play the tape in court. He said its not his call and hung up in my face. I called the attorney back and left a voice mail saying that if she plans on calling me to settle my terms just went up. You dont hang up in the face of people who are suing you. Also, to answer your other question, since the day of the incident, i received to correspondence from them: (1) a letter that did not address the issue. It had no disclaimers, and (2) a phone call which was nothing other than who she was and her number.
"He immediately said that collection magazines use these figures as an example of credit impact and that is what the collector relied on. " Maybe her dog ate her training manual would be more believable. She got her legal compliance training by "reading magazines"? And if the magazines had any other erroneous or illegal advice, she would be free to follow it with no consequences? Why should you care what magazine she read? She didn't call you to gossip about magazines, she called to collect a debt, and what she told you to collect that debt was false. What are they going to do, bring that magazine with that article into court? I bet it doesn't exist. She probably didn't just wake up that morning and say "I think I feel like threatening a consumer today, like that magazine said." It is probably her standard routine, and it has probably worked well for her for years.
Update II Today I spoke with the attorney. She wants to settle. My terms were very specific. The settlement amount is $1,000.00. They save around 50 or so for cost. I explained that I was forced to file a lawsuit before my claims were taken seriously. Therefore, I want more. Check will arrive via fed ex by Friday.
Keep copies in your permanent files. Check your reports in 3 months to make sure they removed as agreed. You may owe taxes on it.
