I received a letter today from a collection agency attempting to collect on a debt that I owe. I do owe an out-of-state creditor $250.00 of an original amount of $780. I was slowly paying them off, but I guess the creditor lost patience. The original loan was obtained online through a legitimate out-of-state lender licensed to loan money in my state. No problem there. However, the collection agency is not registered in my state of Oregon. I am in the process of writing the verification/validation letter, and thought I'd call the state AG's and Consumer Finance offices. While they cannot offer legal advice, they did check to see if the CA was registered here and told me if they were corresponding with me at an Oregon address, then they were in violation of the law. They even pointed out the relevant state revised statute. My question is, should I include the fact that they are required to be registered in my state in my request for verification and validation? I don't have a problem paying the $250 owed, however I have a serious issue with companies who violate the law. If I have to play by the "rules" then so should they. I don't understand why some CA's would not take the time to know the laws of the state they are trying to collect in. The consumer finance division followed up with an email and all but suggested I send my documentation (letter) of this unregistered CA doing business in Oregon. I intend to do this. Should I also mention in my letter to CA, that all future communication from them will be forwarded to the Oregon AG's office? Should I also call the OC and ask them to retract the CA assignment, explaining to them they are better off dealing with me then hoping to get some fly-by-night CA to collect for them?
I would get onboard with your Ag right away and cc all documentation to him.State attornies don't look too kindly on businesses operating without the required licensing/registration. What you wish to do with the oc is up to you.Most creditors are motivated by the bottom line anyway.
"I don't have a problem paying the $250 owed, however I have a serious issue with companies who violate the law. If I have to play by the "rules" then so should they." Seriously? Playing by the rules didn't include a payment plan. They wanted the money if full, and I'm sure that's what the bill reflected. http://egov.sos.state.or.us/br/pkg_web_name_srch_inq.login Have you checked there to see if they are registered? Out of state collection agencies can be exempt from payment of the license, so it would be possible that they did not check the correct records or may have over looked something. They are required, however, to be bonded in the state for $10,000. In the DV, I'm not sure why you're requesting that if you already know the debt and the amount is correct, but ask them for their license and bond information.
I'll elaborate. The amount owed to OC is $250 and this agrees with their last billing and my own records. Some lack of communication somewhere. I'm guessing that one hand of the finance company (OC) does not know what the other hand is doing. The CA is billing me for $675.00. I intend to dispute the debt, note no address is listed for OC, request registry number with state, declare all further communications will be forwarded to AG's office, and request all further communication be through USPS. I will pursue any and all violations as allowed by the Oregon Revised Statutes. I have nothing against CA's but it is their responsibility to perform their own due diligence, not mine. Not all out-of-state CA must be licensed and/or bonded here. But, all CA's must be registered. Being a state employee and having some insight into the Consumer/Business Division, Oregon is working to follow-through and crack down on collection agencies, payday loan lenders, high-risk unsecured lenders, etc. I think the ability of consumers to make loans from big and small creditors via the internet has created some real issues for many finance companies who seem to think that the internet allows them to bypass state laws. However, there are plenty of precedent cases here that state the internet is just another form of interstate communication, subject to the same laws as any other form of communication. The Ag's office only needs record showing my address listed in Oregon at the time the loan was made. According to their office if such is the case (it was), then they are doing business in the state of Oregon. It's pretty simple,...really. If I'm speeding, and if caught, I am fined. I am expected to know the law and speeds related to the roads I'm driving on. Same is true with finance laws. Companies, CAs included, need to follow the rules of states they are "doing business in." If not, they deserve to be fined. I'll even do my part as a responsible citizen of my own state to help them see the light. LOL I'm sending my requests to the CA and all current and future documentation to the AG's office. Cheers.
There is a discrepancy between your records on what is owed, and their claim of what is owed. At this point, how do you even know they are collecting on the debt you believe they are collecting on? Send DV timely (within 30 days of receiving their initial letter), to halt collection until they validate, and preserve your rights. I would probably not mention licensing and bonding in my DV letter, but if I ran into trouble in getting prompt and adequate validation, or continued collection without validation, I would file a complaint thru your AG, including any violations of Oregon law, without further notice to the CA.
Ontrack, Thanks for the advice. I'll keep the additional info out of my request for validation. It makes sense to let this play out over time and see what they might try that is illegal. Does it seem reasonable to state that they can no longer contact me via phone and must use my mailing address I provide them?
It would probably be a simple matter to remedy their licensing or bonding oversite, although it might cost them more than they expected to make on collecting this debt, so if you might have to play that card, give them the chance to document their violation solidly first. Include in your validation request that you want a full accounting for what they claim is due, including all payments made and fees charged, in accordance with the terms of applicable contract, and a copy of that contract. Determine what your goals are in dealing with this debt. You don't want to be stuck paying amounts you do not owe, just because some CA thought they could throw on some "fees" they made up. You may, for example, want to force this back to the OC, and settle or pay off the loan to close it out.
I'll wait for their validation and any further attempts to collect on a debt that is incorrect. If they fail due diligence, I'll send them a note that I am referring correspondence to the AG's office. As I said, it will be much simpler to pay what I truly owe and not create a credit reporting mess that needs to be cleaned up later. We'll see. Thanks.
Is their a civil penalty under the Oregon statute you are referencing? If so, you may consider applying it to the collection agency which is violating the provision as to registration.
The statutes do imply a penalty for operating as an unregsistered CA. I wouldn't have the slightest clue how to go about invoking it.
Here is a brief synopsis: "Exemption for out-of-state collectors: Contact state authorities. Out-of-state agencies may be exempt if [1] collecting for out-of-state client; [2] the debt was incurred by an Oregonian outside the state; and [3] the state where the collection agency is headquartered has a registration program comparable to Oregon's law." (These are "and" statements). I incurred this small debt as a resident within the state of Oregon. In addition to state penalties, there also appears to be: 646.641 Civil action for unlawful debt collection practice; damages; attorney fees; time for commencing action. (1) Any person injured as a result of willful use or employment by another person of an unlawful collection practice may bring an action in an appropriate court to enjoin the practice or to recover actual damages or $200, whichever is greater. The court or the jury may award punitive damages, and the court may provide such equitable relief as it deems necessary or proper. (2) In any action brought by a person under this section, the court may award reasonable attorney fees to the prevailing party. (3) Actions brought under this section shall be commenced within one year from the date of the injury. [1977 c.184 §3; 1981 c.897 §79; 1995 c.618 §99] There are also several fair trade violation fines, etc. I'm learning...
So it would appear that if you incurred the debt as a resident within the state of Oregon, they are NOT exempt. Just to examine that path, what state is the CA located in?
The company is located in Utah. They are listed with the BBB with some complaints over the past 36 months, but nothing that suggests they are "out to get" folks. I'm guessing they are registered with the state of Utah, so that leaves the only issue of involving themselves with a debt that was incurred in Oregon, albeit via online. I was reading through the short-term note contract and it states the contract falls under the laws of Utah, but the Ag/consumer division here in Oregon implied that is not relevant. A citizen of Oregon can not "sign" away their rights as a citizen of Oregon. Interestingly, there could be an issue if I was in Utah at the time the loan was applied for and accepted. However, my IP address clearly shows the original loan was applied for through an Oregon domain, and they accepted my application with an Oregon address. I'm thinking there are an incredible amount of finance companies and home equity loan companies that are struggling with the issue of state's rights when dealing with internet applications from out-of-state. But, the orginating IP address tells the story. Interstate commerce is interstate commerce, no matter what the lines of communication are. Again, I'm not adverse to paying what I owe and have an agreement with OC for partial payments. What I am concerned about is the CA reporting something negative to a CRA. In addition, I am opposed to paying an amount that clearly is not correct. How should I proceed and still protect myself?
The agreement was not in writing other than an acknowledgement to "pay what I can" in an email several months ago. The original contract doesn't allow for any additional late fees, etc. Additional interest doesn't account for the discrepency between the CS's number and mine.
New Info Yesterday, I sent off my request for verification/validation. I decided to go all out and lay everything on the line. I went so far as to notify them that they obviously know I live in Oregon (that's where they sent the dunning), and mentioned that should they not be registered in my state, all past, current, and future communications will be forwarded to the state attorney general's office. They were notified not to communicate with me by phone, and I told them they must use my mailing address (different from street address). I sent it all receipt/registered. The local consumer advocacy here said I could ignore any written communication from this company to my street address, and only deal with mail coming to my mailing address (some kind of statute). Does this sound correct? Can I require, in writing, that a CA must use my mailing address (PO BOX)?
