Collection Agencies

[wdfifteen]

Does anyone here know anything about collection agencies? Last fall I got a bill from my electric company for a reconnection fee and new deposit for an account that they canceled for me. I still owed them about $18 for electricity and I told them to send me a bill without the recon fee and deposit on it and I'd take care of it. The idiots turned it over to a collection agency.
Waging hate mail wars with people like credit card companies is a bit of a hobby of mine, but I've never dealt with a collection agency before.
I have already responded to two dunning notices by telling them I dispute the claimed charges. I assume ignoring them is not the best thing to do, and I doubt that they would ever do anything rational like ask me WHY I dispute the charges - the electric company never bothered to. All I can do is keep disputing the charges. Where do these things typically go from here?

[stomachmonkey]

Originally Posted by wdfifteen

Where do these things typically go from here?

If the current collection agency does not collect they will eventually give up and sell the debt to another collection agency who will try to collect and if unsuccessful will sell to another collection agency. The cycle will continue until it's paid or resolved with the original creditor.

[Tobra]

or seven years pass and you tell them to go pound sand

Be careful not to send them a single penny until you get the amount straightened out, sounds like $18 of it is a valid charge.

[krystar]

lol they're trying to collect $18?

[Christien]

The problem is that it'll damage your credit rating. If you're disputing it, then (if I'm not mistaken) it shouldn't show on your credit history, however many collection agencies don't operate 100% by the book. If the debt is enough to warrant it, they'll pursue you in court, but by the sounds of this, that's not likely.

[RWebb]

you should have paid them the $18 up front - it was not in dispute, right?

[RWebb]

I am not an attorney in your jurisdiction, am not taking your case, do not take private clients at all, and assume no liability whatsoever for whatever...

but I did find this on the big bunch of connecting tubes that they call the internet:


Dear Collector,
I am writing in response to your attached letter or phone call because I do not believe that I owe what you say I owe.
This is the first I've heard from you, or any other company on this matter therefore, in accordance with Section 809, The Fair Debt Collection Practices Act, I respectfully request that you provide me, in writing, with the following:
• What the money you say I owe is for;
• Explain and show me how you calculated what you say I owe;
• Provide me with copies of any papers that show I agreed to pay what you say I owe;
• Provide a verification or copy of any judgment if applicable;
• Identify the original creditor;
• Show me that you are licensed in Oregon, and provide me with your license numbers

I also demand that you immediately send a copy of this dispute letter to the company that you allege I owe money to, so that they do not report this on my credit report. I further demand that, if you have reported me to a credit reporting agency, you tell them that I have placed the debt in dispute and provide me with proof that you have done so.

Finally, stop contacting me about this or any other matter, except via mail and then only to:
1. advise me debt collection efforts are being terminated;
2. notify me that you or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or
3. where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

[RWebb]

Fair Debt Collection Practices Act (FDCPA) which clearly regulates the type of letters and the language that collection agents can use. Section 807 explains what collectors can and cannot do and provides sixteen specific examples of false or misleading tactics. Bill collectors face fines up to $1,000 per violation and, if you or your reputation are damaged, the FDCPA allows for punitive damages as well.

Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act § 1681s-2. If you damage my credit rating, I may seek punitive damages.


- can add this to your letter

[RWebb]

Can complain to:
FTC – has web form to fill out

15 U.S.C. § 1692g. - Validation of debts
(a) Notice of debt; contents
Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing -
(1)
the amount of the debt;
(2)
the name of the creditor to whom the debt is owed;
(3)
a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
(4)
a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
(5)
a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(b) Disputed debts
If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.


15 U.S.C. § 1692k. - Civil liability
(a) Amount of damages
Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this subchapter with respect to any person is liable to such person in an amount equal to the sum of -
(1) any actual damage sustained by such person as a result of such failure;
(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or
(B) in the case of a class action,
(i) such amount for each named plaintiff as could be recovered under subparagraph (A), and
(ii)such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and
(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney's fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney's fees reasonable in relation to the work expended and costs.
(b) Factors considered by court
In determining the amount of liability in any action under subsection (a) of this section, the court shall consider, among other relevant factors -
(1) in any individual action under subsection (a)(2)(A) of this section, the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or
(2) in any class action under subsection (a)(2)(B) of this section, the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector's noncompliance was intentional.
(c) Intent
A debt collector may not be held liable in any action brought under this subchapter if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(d) Jurisdiction
An action to enforce any liability created by this subchapter may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs.
(e) Advisory opinions of Commission
No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the Commission, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason

[RWebb]

finally, you can complain to your state COnsumer Protection agency; usually in the AG's office

BUT, you might have signed something that allows them to eff you with the reconnect fee

Remember,

...lots of funny men
Some will rob you with a six gun,
Others with a fountain pen.

- Woody Guthrie

[A930Rocket]

If it's on your credit report already, paying it won't change anything. It'll still be there after you pay.

We found a $61 dollar medical bill we didn't know about on our credit report after closing our home years ago. Called the collection agency, told them we didn't know anything about it, but paid the amount due and it's still there 5 years later.

[RANDY P]

if you generally pay your bills, don't worry about it. Anyone who sees the CR is going to see the pattern.

Tell them to go to hell. Next year it'll be back to business as usual.

[RWebb]

yes, you may want to get a free copy of your credit report - you should do it periodically anyway, as all sorts of stuff gets tossed on there that is not valid

[KFC911]

Some years back I recieved one of those bs "red light camera" tickets (before they were removed here), and ignored it. For a couple of years a credit agency would occasionally call and threaten to "ding my credit rating" if I didn't pay. I'd tell 'em I was guilty as hell but there wasn't a snowball's chance of me paying without my day in court and to knock themselves out. They gave up after awhile. I haven't used credit since I purchased my first (of three) houses, and have had my credit reports frozen for many years (it was still perfect at that time). If your credit is otherwise good, I wouldn't sweat it...YMMV.

[wdfifteen]

Originally Posted by stomachmonkey

If the current collection agency does not collect they will eventually give up and sell the debt to another collection agency who will try to collect and if unsuccessful will sell to another collection agency. The cycle will continue until it's paid or resolved with the original creditor.

That selling of the debt may be what's happening. I got a letter from one agency in early March. It said, "Unless you dispute the claim or any part of it, we will seek a judgment against you." Six weeks later I got an almost identical letter from another company. I'm wondering it they will just pass the bill around until I slip up, miss sending a dispute letter, and they get a judgment.
Resolving with the original creditor is not likely to happen. I do legitimately owe them $18 or so, but they tacked on a deposit and reconnection fee even after I told them I DO NOT want the service reconnected. When I asked them to remove the charges, they sent the bill to a collection agency instead of communicating with me. I had the meter taken out in January and they still send meter readers out! There aren't any adults running this place, which is scary since these guys hold the monopoly on the delivery service here.

[wdfifteen]

Originally Posted by RWebb

Fair Debt Collection Practices Act (FDCPA) which clearly regulates the type of letters and the language that collection agents can use. Section 807 explains what collectors can and cannot do and provides sixteen specific examples of false or misleading tactics. Bill collectors face fines up to $1,000 per violation and, if you or your reputation are damaged, the FDCPA allows for punitive damages as well.

Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act § 1681s-2. If you damage my credit rating, I may seek punitive damages.
- can add this to your letter

Good stuff. I think it would be a mistake to come across to them as a lawyer, but know ing my rights sure helps. Thanks.

[HHI944]

Sounding like and even subtly implying that you're a lawyer isn't likely to get you in trouble. The 'collection agencies are usually very small and have no on-staff counsel.