i've had a rough couple days, so i apologize in advance for this stupid question.. if a check was returned and sent for collection in april with an attorney who demanding a settlement of $156 ($26.58 original check, $30 returned check charge, and $100 for potential civil penalty)...do you think a DV is appropriate? they claim they have the right to the extra $100 because it was not paid within 30 days of the original notice (which was not received). also, do they have the right to claim a civil penalty without going to court?
What stupid question? I must be a bit dense because I don't see any stupid questions below. LOL [/q] if a check was returned and sent for collection in april with an attorney who demanding a settlement of $156 ($26.58 original check, $30 returned check charge, and $100 for potential civil penalty)...do you think a DV is appropriate?[/quote] Yes, I do. But I would recommend that you don't get your validation letter from any of the message boards. They won't do you any good. What you will have to demand is that they give you the law that allows them to get the $100 potential civil penalty. I know where that law is and here is what it says. It says that a collection agency can assess you a potential civil penalty any time they want to. So based on that law I just assessed you a civil penalty of $200. Do you believe that? Don't!!! The word potential means "possible" or "might" and demanding $100 because there might be a civil penalty is silly. In fact it just might be an attempt to defraud you. I'll bet they can't prove that either. Best they don't try to claim that in court and tell the judge they tried to assess you a civil penalty. He just might frown on that a bit. On the serious side, they do have the right to demand the amount of the check and most states have a law governing the amount that can be charged as a collection fee for a bounced check. That varies from state to state and can be anywhere from about $15 to maybe $25. Most of the time that isn't worth the bother of trying to collect so some agencies will try to tack on a lot more. They often get away with it too. OK, lbrown59. Now its time for your 16,51?th announcement (LOL)
so basically send a debt validation letter and then IF they are able to prove it, offer to pay only the check and the NSF fee? edited to add - argue the civil penalty unless they can prove notice?
Re: Re: stupid question I'd look up your state law and see what is allowed as a collection fee and pay them that amount with a bank certified cashier's check. I'd be careful of them because they might just cash the check and still come back and want the rest. You might want to put some kind of contractual agreement on the reverse side that says that if they cash the check they agree that the debt is paid in full. Maybe someone here can suggest some good wording for such an endorsement.
Re: Re: stupid question i meant do a DV and see what they have and then if they CAN prove the debt, offer to pay amount less $100 after they sign non-report agreement. also, i need opinions about the whole attorney thing...do they have to be licensed in any matter to collect debts?
Re: Re: stupid question In most states, the potential civil penalty is only accessible IF you have been sued, and LOSE. I.E. if you haven't been sued, and lost, it is not a legal fee. There are a number of cases on this issue, most are on the "false & misleading representation of the amount character and legal status of the debt". You'll need to look at the section of your states law about when the CP can be accessed, and if its only after suit, it's a false & misleading representation.
Re: Re: Re: stupid question My opinion is that in most states attorneys don't have to be licensed as debt collectors as long as they are doing it from their law offices. In my opinion, I would think that if their principal business is the collection of debts in a state that requires license of collection agencies attorneys would be likely to get the licenses just to be on the safe side.
Its going to be determined strictly by your state's law. For example, in Texas, an attorney is not considered a 3P debt collector, unless he meets one of the two qualifiers. (7) "Third-party debt collector" means a debt collector, as defined by 15 U.S.C. Section 1692a(6), but does not include an attorney collecting a debt as an attorney on behalf of and in the name of a client unless the attorney has nonattorney employees who: (A) are regularly engaged to solicit debts for collection; or (B) regularly make contact with debtors for the purpose of collection or adjustment of debts. Bottom line, you will have to see what your state's definition of a 3P collector is.
so i called the state of minnesota attorney generals office and they told me that if an attorney's income for debt collection is 40% or more of their income, they must be licensed. he advised to file a complaint with the department of commerce since this guy isn't licensed to find out if he should be. secondly, this attorney is interpreting the law differently than it should be and that the civil penalty can only be charged (without court judgment) if there is proof the consumer rec'd first communication (CRRR). so the AG's office wants a complaint filed with them and send them copies of what was rec'd. just an FYI
Bumped Click here: CREDITNET | Straight Talk | | stupid question NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 -> Never read the fine print. There ain't no way you're going to like it.
do they have the right to claim a civil penalty without going to court? jenz ============== If they do wouldn't it be nice if we had the same thing for OC CA and CRA violations? You owe 1000 for the violation and no going to court. ****************************************************** NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 ******************************************************* >
Re: Re: stupid question ****************************************************** NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 ******************************************************* >OK, lbrown59. Now its time for your 16,51?th announcement lol Kk The Ca ******************* With a record like this one don't have to make announcements. lol ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1*Asset Management 20 Years 2*Financial Services 20 Years 3*Insurance 20 Years 4*Stock Mark 20 Years 5*Owner of - BUDGET HOMES CO. for 31 Years ~~~~~~~~~~-----------~~~~~~~~~----------------------------
What state are you in? Jane =========================== If you look real close you may find a clue here. LOL so i called the state of Minnesota attorney generals office jenz ****************************************************** NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 ******************************************************* >
NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 >bumpNever read the fine print. There ain't no way you're going to like it.
