Complaint Review: Asset Acceptance

Mid September I filed complaints with the FTC and the Minnesota State Attorney General. October 17th I received a letter from the Attorney General's office with AALLC's letter attached. It stated that when they purchased the account that it was valid (no purchase date was listed), that they rely on information that is provided to them at the time of purchase.

Then they say:
"I have had a chance to review the consumer's complaint as well as the account history. Please inform the consumer that although we consider this to be a valid debt it is the decision of AALLC to close the file and cease all collection activity regarding the account in question. The consumer should not receive any future correspondence regarding this matter."

The letter is from:
Doreen L. Hoffman, Compliance Counsel
Asset Acceptance LLC
P.O. Box 2036
Warren, MI 48090

Again, thanks to all for good advice.

Jeff,

The only thing I would tell you in the way of advice is this.

Research The Fair Debt Collections Practices Act on your own.

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#805

Any questions you have about what this company does, in the way of collections, can be found on the ftc.gov site.


Fair Debt Collection Practices Act

805. Communication in connection with debt collection [15 USC 1692c]

(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --

(1) to advise the consumer that the debt collector's further efforts are being terminated;

(2) to notify the consumer that the debt collector 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.

If such notice from the consumer is made by mail, notification shall be complete upon receipt.

(d) For the purpose of this section, the term "consumer" includes the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator.



They must also have a licence to collect in your state (if you are not located in their legal mailing address/state).

If the statute of limitations has run out on this debt (what state was the debt in, check out that states offical web site under statutes of limitations), then the company cannot collect.

This company cannot over look state laws that govern them in the collections business.

816. Relation to State laws [15 USC 1692n]

This title does not annul, alter, or affect, or exempt any person subject to the provisions of this title from complying with the laws of any State with respect to debt collection practices, except to the extent that those laws are inconsistent with any provision of this title, and then only to the extent of the inconsistency. For purposes of this section, a State law is not inconsistent with this title if the protection such law affords any consumer is greater than the protection provided by this title.


Basically, if you find that your debt is past the "statute of limitations for collecting on debt" in you state, you don't have to pay the debt. Don't call them or talk to them about the debt. Send them a cease and desist letter, certified. End of problem.
I don't know of a state that does not require a collection agency to have a license, it would be on file with the state the company is working out of. They must also have a current licence to collect in the state you're located in.

Good luck!

First of all I want to thank everyone who has been kind of enough to respond. Your advice is very valuable and appreciated.

I sent them (Asset Acceptance) a letter on 9-8-06 (sent cerified with return sender notice) stating that all communication be ceased. I checked the Post Office web site and found that the letter was delivered and signed for on 9-11. I guess I will have to wait to see what happens next.

In my original letter I mentioned that I though the letter from Asset Acceptance letter looked like junk mail, well I guess it is. Their letters do not have theirname in the return address, just a PO box and city,state & zip in the return address window.

They sent me a new "invoice", dated 9-9-06, for a settlement amount. The original "invoice" was for $559. This "invoice" is for $391. It is titled "End of Summer Saving Days" like some flyer from Target. Pathetic.

Again thank you everyone for your responses.

Jeff
Minneapolis, MN

I HAVE WORKED FOR COLLECTION AGENCY FOR 6 YEARS NOW. AND THAT BILL IS PAST THE STATUTES..THEY CAN STILL BILL YOU BUT THEY CANNOT LEGALLY COLLECT ON THE BILL.. ALSO WE HAVE TO FALLOW THE FDCPA (FAIR DEBT COLLECTION PRACTICES ACT) WICH STATES IF A DEBTOR ASKED FOR PROOF OF BILL WE HAVE TO SEND ITEMIZED STATEMENT AND PROOF THE BILL IS THERES. IF WE DO NOT THEN WE ARE IN VIOLATION OF OUR OWN LAWS AND COULD BE SUED. I WOULD CONTACT YOUR ATTORNEY GENERAL TO MAKE A COMPLAINT AGAINST THAT COMPANY. IT DOESNT SOUND LIKE THEY ARE FALLOWING THE LAWS..

Jeff,

First, NEVER speak to ANY third party debt collector on the phone. NEVER.

Second, that "debt" is uncolectable and they know it. Not even Asset Acceptance would try suing on that one.

You need to send a CEASE COMMUNICATIONS request by cerified mail, return reciept requested, as per your rights under the FDCPA. Put the certified# on the letter itself, and keep a copy for your records.

In this letter, clearly dispute the debt and tell them that even if it was yours, it is not collectable due to the statute of limitations being expired. Inform them that any further contact or collections actions will be met with criminal charges and civil lawsuit.

Now go to FTC.gov and file a complaint for the illegal/unethical collections activity.

As soon as you stand up to them, they go away.

STAY OFF THE PHONE!!

Don't request any more information from them. I think I remember being told that by doing that you are acknowledging the debt exists. That could just be how you word it, but I wouldn't risk it until you know for sure. I'm sorry I can't remember better, but contact a lawyer or credit counsuling.

I don't know all the laws for every collection, but I don't think they can collect on this. I am pretty sure that it is past the limitations.

I, too have heard that this company tries to collect on old debt that can't legally be collected. If that is the case then you don't want to talk to them or write. You could start the limitations all over again.

Anyhow, Like I said, I am not an expert and I don't know all the laws. What I do know was related to my husband getting phone calls and collection letters on a car that he had repossesed (?)

I ended up contacting a guy that helps you clear up your credit. NOT one of those companies that you see on tv that consolidate your debt. It was a network of people who help people help themselves. I don't know if you can find someone like that in your area. I talked to him quite a few times on the phone with no charge. He gave me advice on what to do and asked questions about the letters, dates, etc. He said in my case that there was no way they could collect on it. It was over the statute of limitations. He told me to ignore them, don't respond, etc. After a while they were calling my husband threatening to take him to court. He told me what to say to them ( something like they were breaking the law, they cannot use threats that they cannot follow through on. Since they could not legally collect on the debt, I demand that they stop calling me. If they call again I will be reporting them to.....) I can't remember anymore, it has been a few years. But since then I haven't heard from them again.

So please contact someone in your area that knows the laws. You can tell the difference from these people and the consolidation places because they ask you questions about your problem and situation first. The cons. places want you to come in right now, or send your stuff in or they try to set you up on the program right away. They don't care what your problem is. They wanted to set us up on a payment plan to pay a debt that we were no longer obligated to pay!

Anyhow if you cannot find one, call a bk lawyer. I have spoken to one also and he gave me some good information without charging me. They can also help you write letters to the collection company correctly, for a small fee. They do alot more than just bankrupcies.

I hope this helps some, again contact someone as soon as possible to find out the laws and what your options are. Until then, do not talk or write to the collection agency. If they call just hang up.