Complaint Review: Collect America

so you can see what real "prizewinners" these guys are.Once you see how they treat people,you will definitely not want to pay them anything.

Also,have your sister get a copy of her credit reports from Experian,Equifax and TransUnion.

Everyone is entitled to one free report from each credit bureau,once a year.

Go to www.annualcreditreport.com to get them online.This is the free government ordered website.

But be careful,there are similar sounding websites like www.freecreditreport.com that make you sign up for their subscription service.

If you have already received your free reports,you can buy a new,updated report directly from the credit bureaus at their websites.They even have subscription plans if you want continuous monitoring.Usually they will have a 30 day trial period for $1.00 but you have to cancell before the 30 days is up or you will be charged the monthly subscription fee.

Everyone should get and carefully read a copy of the FDCPA-The Fair Debt Collection Practices Act.(Google-FDCPA.)

Also get a copy of the FCRA and FACTA.

You could also have your sister send (or you could send it for her)a letter to the effect:
__________________

Mrs.(Your Name) was not authorized by me to communicate with you.This is a violation of the FDCPA-(The Fair Debt Collection Practices Act) Section 805 b.I do not appreciate you doing so.I also believe that you violated sections 804(2), 807 and 808.I do not have any type of account with you.I have never had any type of account with you.I do not owe you any money.You do not have any rights in any matter related to me.Even if you previously had any right to bring suit in this matter,the time to do so has expired.If you try to continue this matter in any way,I am prepared to file complaints and take legal action as necessary.I am also fully prepared to defend againt any legal action you try to take.I request that you correct the information you have sent to any third parties regarding this matter,including the credit bureaus.I am also requesting that you cease and desist from all further communications with me.

________________

This should also help nullify any effect of what you might have said.

They really had no right to do what they did to you.It was dirty,devious and despicable.You should be angry and appalled at their reprehensible and unconsionable behavior.

Get a copy of the FDCPA at ftc.gov and review it for more info.

Do not give them any of your sister's information that they do not have.

No one is obligated to honor any agreement made as a result of Duress,Fraud,Misunderstanding or Misrepresentation.

If you only made an offer and it was not accepted it can be withdrawn at any time.If the offer was declined or there was a counter offer the initial offer is dead.

Also,an agreement to answer for the debt of another or for an amount over $500.00 has to be in writing to be enforceable.(Check the Statute of Frauds).

Never surrender.Never give up.If they think they are getting even a penny,they are going to have to take it all the way.The fight is never over.Never concede defeat.A good fighter could even get any money back that had already been paid.

Hope this helps.

Good Luck.

Standard Disclaimer.

I am concerned that you still think that someone has to pay this and that someone has to be paid.

Once the credit card company wrote it off,it's gone.To them,it's just a part of business.

You need to have the mindset that no one is going to pay anything to anyone,ever.

In fact,I think you should add to the letter:

"I also believe that it would be illegal and improper for you to try to continue this in any way.If you do,I am fully prepared to defend.And I will not hesitate to file complaints with the FTC,the Courts,the Attorney General,the Bar Association or anyone else as warranted.I am also prepared to take legal action as appropriate."

And whatever you do do not talk to them on the phone.If you pick up and it's them,hang up immediately.
________________

To Steve:I agree that the credit card companies have become completely irresponsible.

But it's even worse than that.

They have become predatory.They know exactly what they're doing.

They hire psychologists, psychiatrists, illusionists, marketers, and sales people who know every trick to getting people to make bad decisions. They are master manipulators and persuaders.The entire process has become adversarial.Both side trying to screw the other.And it's only going to get worse,much worse.Companies like Choicepoint and Acxiom creating supermassive databases on everyone will give them tremendous power.

For everyone:If you have a supermarket discount card who do you think gets all the information about what you buy? You think it's just about you getting 50 cents off on that block of cheese? Think again.All that info goes into giant central databases.And that info is sold to companies trying to get you to make bad decisions.Credit card debt at 30%,junk food,alcohol,gambling and other bad decisions.

If you believe that Collect America has lied to you and misrepresented the nature and the substance of the matter(and haven't they?),here is what you say in a certified letter.

I believe that you have misrepresented the nature and the substance of this matter.My initial reactions were based on my reliance upon your misrepresentations.Upon further review and investigation,I have concluded that there is no account and no debt.I do not believe that you have any rights,interest or standing in any matter related to(SISTER'S NAME).I am no longer willing to work with you in any way.I am aware of my rights in this matter and I will not allow your to violate them.I request that you cease all further attempts to communicate.

This should shut it down.If not and they file suit,follow the instructions for answering a lawsuit complaint.The above letter will take care of any allegations they might make regarding any agreement.Use the reasons in the letter to answer any allegations of agreement they might make in the complaint.

To answer your question about paying without getting screwed:You can't.

As far as the initial creditor is concerned it's over.You couldn't pay them even if you wanted to.

Standard Disclaimer.

Thank you for your responses, but what do I do now? I did "negotiate" over the phone and told them that I would pay $5000 to them. My dad got involved and retained a lawyer who pretty much said that I would have to pay what I promised unless I had a good reason not to. His suggestion was that I didn't have enough credit to use. Collect America has not been harassing me, but have been calling every morning and leaving a message (we have caller ID and don't answer the phone)

My sister is responsible for the over $7000 she charged on her credit card, so who does she pay? The credit card company? They have charged off her account, obviously. Should I turn it all back over to her and tell Collect America that I am out of the picture?

Thanks for your responses,

Tom,

This has been my argument for along time on credit cards and other unsecured debt. I am an advocate of responsible lending. Responsible lending in the cc industry is very rare.

During the period of 14 years when I had perfect credit, not once did any creditor actually verify my employment and income, or my overall ability to pay. Not once, and I had 34 accounts.

I used my credit as a tool in the slow times to live on, then in the fat times would pay them way down. After doing this for a few years, they automatically raised my limits like $5k at a time, companies would send me new cards, unsolicited for like $12.5-$15k. All based soley on my credit score which was only 735.

I know 735 is good, but does not justify that kind of credit with no verifications.

I would be more sympathetic to creditors offering unsecured credit, if they were more responsible. Responsibility has to go both ways, but the creditor has to lead by example.

Holly,

NEVER pay or agree to pay any third party debt collector or debt buyer. NEVER!! And NEVER speak to them on the phone!! NEVER!!! Always communicate in writing and by certified mail, return reciept requested.

Always demand validation and itemization of charges. Make them prove everything. By making an offer to repay, you just validated the debt for them. Now they can sue you and win, where before they may not have been able to. You just restarted the SOL for collections.

Good luck.

Credit cards are a business like any other.They exist to make a profit.Unfortunately,what has happened due to natural evolution,is that the drive for profit has created a monster.

Credit card companies make money in three primary ways.Interest,fees and penalties.So how do they increase their revenue? They do everything they can to encourage people to run up a balance as high as possible and then they jack up the interest to 29.999999%.They want you to just barely be able to pay without "breaking" you.

Of course the card account holder is ultimately the person who has to take responsibility.All too often we use credit like it's some sort of free magic money that we'll never have to pay back.Buying unnecessary luxuries that we really can't afford.Some people will even have as many as 34 credit cards and over $100,000.00 in debt.

But the card company is definitely trying to manipulate the situation. They have experts who specialize in this kind of thing. Balance transfers at 0% interest.Special offers and such.

Well,a lot of people fall into the trap.Barely getting by,paying 30% interest + $80.00 in fees and penalties each month,on each card.

Some of these people will "break".They will stop paying because they just can't do it anymore.And often,they resent being manipulated by the card company.They place at least some of the blame on the card company.

Now What?

First the account goes to internal collections, who try to get you back on track.One option is a "hardship" plan.That's where you negotiate a settlement.Usually the best they will do is 2% of the outstanding balance per month at zero interest.If you can't or won't do that,the company has to write off the debt in about 90 days.

Another option is a credit counseling program. Some people think that they are really nothing more than collection agencies and should not be dealt with.

The next option is bankruptcy.This is the best option for some people.You really need a lawyer's advice related to bankruptcy and to see if it's right for you.It's a big step.

Another choice some people make is to just disconnect and try to forget all about it.

But it usually isn't that easy.

What happens next is that the bank will put out a list of about 200 names with an average of $5000.00 of bad debt each,for a total of $1,000,000.00 up for auction.

Companies like Collect America,Midland Credit Management and Asset Acceptance will bid between 1 and 10% depending on their evaluation of the debt.That's $10,000 to $100,000.Anything they collect above that is profit.

Some people believe that the collection agency only bought a list of names and not real accounts or debts,and therefore,are not really owed anything.

If you are of this belief and want to fight for it,here's how:

The first thing the collection agency will do,we'll use Collect America,is to call you and try to convince you that you now have an account with them and that you now owe them the money.They will usually tack on about 100% in misc. charges,interest and fees.Real fair,right?

What to say when they call?
"Put this number on your do not call list"
and then you hang up.Do not allow them to talk. Do not debate.Do not say anything else.If they call back,you do the same thing.If they call back a third time you say "It is illegal to continue to call a number when you have been told not to" and then you hang up.Do not slam down the phone, just hang up normally but quickly.Tell any friends,family or neighbors to follow the same procedure if they are contacted.I know that this is not an easy thing for some people to do but this is what it takes to win.

Next a letter will arrive in the mail trying to convince you that you now have an account and a debt with Collect America and that you'd better pay-Right Now-Or Else!They want you to think they can "place a judgment" against you,garnish your wages,seize your property or bank accounts,have you arrested or other horrible things.They want you to think that,with one phone call,they can have a S.W.A.T team surrounding your house in under 10 minutes.They can't do any of that.

How to respond:
A certified letter stating the following:

I do not have an account with you.I have never had an account with you.I do not owe you any money.You do not have any interest in any matter related to me.I know all of my rights and I will not allow you to violate any of them.I am requesting that you cease all communications with me.

This should make them quit.But,if they don't and they file a lawsuit you need to send an answer to their complaint or petition.Usually the complaint will only say that you owe a certain amount due to an account that you had.And since you do not believe that you have ever had an account with Collect America and that you do not owe them anything,that's what you say in your answer.

"I have never had an account with Collect America and I do not owe them any money.They do not have any interest in any matter related to me.I do not know why they have brought this action."

If handled correctly,you can probably get out of paying anything.But of course,you have the right to settle if you feel it is the right thing to do.

But,you should not even think about it until you have them completely convinced that they are going to get nothing.

That way they will take whatever you offer.You should also know exactly how much they paid for your name and account info.

I am not a lawyer.This is not intended to try to give legal advice to anyone,for any purpose or to address any specific matter.It should not be relied on or utilized as such.Most of this information is opinion and unverified information.It is not presented as known facts.It is important for everyone to do their own research and make their own conclusions.You should consult an attorney anytime you need legal advice or are involved in a serious legal matter.

Be sure to read all of the other posts related to collection agencies, not just the one you're dealing with. All collection agencies operate exactly the same way. They all use the same dirty tricks.

Key Rules for dealing with collection agencies.

1)Never talk to them on the phone.
2)See rule number one.
3)Only communicate in writing,by mail.
4)Use certified mail,return receipt requested.
5)Track cretified mail online at usps.com
6)Request,in writing,a complete explanation of their claim,including all documentation.
7)If you do not owe them any money,write them a letter and tell them that.
8)Never offer to settle until you are satisfied with their explanation of why you owe THEM any money.
9)If you want to make an offer to settle,you can do that,just be sure not to admit liability.(See below for a how to).
10)Get a lawyer,if you can. But it's still important to do your homework. Not every lawyer is good or will make you a priority. Remember someone had to graduate first from Harvard Law School and someone had to graduate dead last from Podunk Community College. If you don't have a lot of money you'll be lucky to get anyone above two standard deviations to the left of the mean of the bell curve.
11) You can file a complaint with the FTC for any violations of the FDCPA,the FCRA or FACTA.
12) You can file a complaint with the Bar Association if the lawyers do anything unethical,improper or illegal.
13) You can counter sue for Malicious Prosecution if they bring suit after you deny their claim and they "know or should know" that you do not owe them any money.
14) You can counter sue if they do anything that causes you harm.
15) Remember time is critical.The clock starts ticking as soon as a summons is served.Lady Justice may be blind but she knows what time it is.You need to be ready to react immediately.You need to have a plan of action if you even think you might be served a summons.Don't wait until you're served and think "Oh No! Now what do I do".
16) Do your homework,good research is critical.
17) Keep good,detailed records of everything.
18) Never ignore a summons. If you do you will automatically lose. They win most of their cases by the defendant not responding or not showing up to a court date. File all papers on time and show up on time,every time to every court date.If you can't make an upcoming court date,you need to file a motion to continue and give the reasons.
_________________________

How to offer to settle without getting screwed.

Example:

_______________________

July 31 2006 Monday

To: XYZ LLC

From:John Doe

Re:Case or Dispute number.


I am denying and disputing your claim.I do not agree that I owe you anything. However,I am willing to settle this dispute for a total of $1000.00 payable in 36 monthly payments of $27.78 with zero interest. The late fee for any late payments will be $5.00. I wiil be allowed to skip any 5 payments, at my discretion, by sending you notice of skip payment on time, with the payments being added to the end of the payments. I will not be considered in default until any payment or notice of skip payment is 60 days late. The jurisdiction for any dispute arising out of any agreement we may make,will be at my discretion.

This offer expires August 07 2006 Monday at 4:59pm.est.

This offer may be withdrawn by me,at any time,by mail or by fax. The withdrawl will take effect upon receipt of such at your office.

If you do not accept this offer, I am fully prepared to defend myself against your claim.

This is not an admission of liability it is an offer to settle a dispute.


John Doe

______________________

The key is not to offer to settle a "debt" or an "account". Do not refer to an "account" number it is a Reference number.

Do not admit any liability.

You are offering to settle a "dispute" or a "disagreement".

Collection Agencies pay less than five percent of the outstanding debt. So anything above that is profit to them.Offer whatever you feel is fair.

If they accept your offer you have created a new binding written contract, so don't offer anything you can't do.

The person making the offer is in the power position, if they know what they are doing. You can make up any terms you think are fair and that you can do.

I do not think anyone should ever pay a third party collector. But that's my opinion. You need to do what you feel is right.