Pallisades Collection LLCPallisades Collection LLC Ripoff After Payment Englewood Cliffs New Jersey
I had a bill from my first AT&T phone that Palisades Collection took in full. My second phone, that was being used by a friend (No longer a friend), was being billed back. The bill went to Palisades and they began to harass me. I let that go on for a while and finally gave in to them and agreed to pay the 50% of the $800+ bill. The CSR agreed to remove the remainder off my credit list and I was content.
As time went by I wondered why I could not recieve any credit (ex. AMEX cards, MC, Visa, even store credit cards). In my inquiry of the credit agencies I found that the bill had been reduced to $397 but was still there on my credit and was reinstated 01-2008. The bill I had paid was in Feb 2005. I have no proof left of the payment, but since I paid that bill they restarted the remainder I owed from the date I made the last payment.
I now have read most of the statements of others that were ripped off by the same company. They have had the same experience as I have and I wonder how can you stop them from continuing to rip off people. They have to be stopped from ruining peoples credit and they need to be taken to court for robbing people at the same time. Are the CSRs getting the money they recieve and pocketing it?
Who is the one that is really in trouble? Is it the company that sends the bill to the collection agency or the customer that owes because we're the ones being ripped off?
Still in debt to Pallisades
Chicago, Illinois
U.S.A.
6 Updates & Rebuttals
Tim
Valparaiso,Indiana,
U.S.A.
Some lengthy but important advice
#7Consumer Suggestion
Sat, April 12, 2008
As an addendum to Robert's post:
There are two types of third party collectors. The first type is an actual "collection agent." These folks generally work on a commission and collect the debt directly for the original creditor. I don't know what the industry standard is, but my partner does collection work and takes 25% of whatever he is able to collect. When you are dealing with a collection agent, you can generally still make your payments directly to the original creditor.
The second type of collector is the "debt buyer." Debt buyers typically purchase the right to collect old or otherwise uncollectible debts from the original creditor. When the debt is purchased, you are no longer indebted to the original creditor. They have already received all the payment they will get. Now you are indebted to the debt buyer (who, by the way, is still considered a third party collector).
If you are dealing with the debt buyer, you can not make payments directly to the original creditor, as they no longer have the right to collect on the debt.
Now for a few pointers:
When you enter into a payment agreement with any collector, you are basically creating a new contract and, in a legally fictitous manner, a whole new debt. So now you have this whole new debt that can possibly be reflected as such on your credit report. This is why, when you enter into an agreement with a debt collector, you have to have an eye on future litigation and therefore make sure ALL your ducks are in a row.
For a collection agency, if you are going to make payments pursuant to some kind of arrangement, make SURE that your agreement is memorialized in writing, signed by you and an agent of the collection agency, and stating (at least) the following:
1. That the collector is a duly authorized agent to collect on the relevant debt and is fully authorized to enter into settlements and payment arrangements, including settlement agreements for less than the full amount owed and payment arrangements that may differ from the original contract.
2. That the agreement serves as a novation of any previous agreements.
3. That the agreement shall not serve to change the date that the debt was originally incurred.
4. That the debt collector shall indemnify you against any liabilities claimed by the original creditor.
5. That the debt collector shall promptly and accurately report all activity on the account to the three major CRAs.
6. That, upon full payment of the settled amount, the collector shall issue to you a document stating that the debt has been satisfied in full pursuant to the settlement agreement.
As for debt buyers, usually they are trying to collect on accounts that are past the statute of limitations for collections in your state. This does NOT mean that they can't report the debt on your credit reports (which they can do for 7 years past the incurrence of the debt). So first check to see if they actually have any recourse against you. If they do not, send a cease and desist letter. If they do, and you want to make a settlement/payment arrangement, make sure you have a contract, signed by both parties, and (at least) including the following:
1. That the collector is the sole owner of the debt, having acquired and purchased such debt from [name of original creditor].
2. That this agreement serves as a novation of any previous agreements regarding this debt.
3. That the agreement shall not serve to change the date that the debt was originally incurred.
4. That the debt collector shall indemnify you against any liabilities claimed by the original creditor.
5. That the debt collector shall promptly and accurately report all activity on the account to the three major CRAs.
6. That, upon full payment of the settled amount, the collector shall issue to you a document stating that the debt has been satisfied in full pursuant to the settlement agreement.
Best regards!
Robert
Buffalo,New York,
U.S.A.
Never agree to a settlement with a 3rd party debt collector - PERIOD.
#7Consumer Suggestion
Wed, April 02, 2008
When you settle with a debt collector, most of the time that only gets that debt collector off your back. The CREDITOR is free to come after you at a later time for the remainder of the debt.
IF you're going to negotiate or offer a settlement, ONLY offer the settlement to the CREDITOR!!! No exceptions to this.
The debt collector can be very tricky with a written agreement using phrases as:
"As far as our office is concerned..."
"This debt, in our office, is closed..."
"This offer closes this action in our office..."
And so forth. These types of statements do not absolve the debt or forgive the remaining balance of the debt. ONLY the creditor (or the creditor's legal agent) can absolve the debt or forgive the remainder.
ONLY SETTLE WITH THE CREDITOR.
John
Louisville,Kentucky,
U.S.A.
RE:
#7Consumer Comment
Tue, April 01, 2008
Most people do not understand how they should deal with debt collectors and the debt collectors take full advantage of this.....
NEVER, EVER pay a debt collector without first getting a written agreement from them that they will accept your settlement offer as a payment in full....NEVER accept verbal agreements over the phone from debt collectors that can't be proven.....if you don't, well....the problem as outlined here is what can happen to you.....Without a written agreement, you have no way to stop them from coming after the remaining $397 balance...If you call them on the phone they will invariably deny that any settlement offer was ever made and you won't be able to prove otherwise....
In your case, all you can do is pay the remaining balance due to clear your credit....This time around, get a written agreement FIRST from them stating that this account will be settled/paid-in-full after receipt of this amount. Pay ONLY via USPS money order...photocopy for your records. DO NOT pay by giving them your bank account#.
John
Louisville,Kentucky,
U.S.A.
RE:
#7Consumer Comment
Tue, April 01, 2008
Most people do not understand how they should deal with debt collectors and the debt collectors take full advantage of this.....
NEVER, EVER pay a debt collector without first getting a written agreement from them that they will accept your settlement offer as a payment in full....NEVER accept verbal agreements over the phone from debt collectors that can't be proven.....if you don't, well....the problem as outlined here is what can happen to you.....Without a written agreement, you have no way to stop them from coming after the remaining $397 balance...If you call them on the phone they will invariably deny that any settlement offer was ever made and you won't be able to prove otherwise....
In your case, all you can do is pay the remaining balance due to clear your credit....This time around, get a written agreement FIRST from them stating that this account will be settled/paid-in-full after receipt of this amount. Pay ONLY via USPS money order...photocopy for your records. DO NOT pay by giving them your bank account#.
John
Louisville,Kentucky,
U.S.A.
RE:
#7Consumer Comment
Tue, April 01, 2008
Most people do not understand how they should deal with debt collectors and the debt collectors take full advantage of this.....
NEVER, EVER pay a debt collector without first getting a written agreement from them that they will accept your settlement offer as a payment in full....NEVER accept verbal agreements over the phone from debt collectors that can't be proven.....if you don't, well....the problem as outlined here is what can happen to you.....Without a written agreement, you have no way to stop them from coming after the remaining $397 balance...If you call them on the phone they will invariably deny that any settlement offer was ever made and you won't be able to prove otherwise....
In your case, all you can do is pay the remaining balance due to clear your credit....This time around, get a written agreement FIRST from them stating that this account will be settled/paid-in-full after receipt of this amount. Pay ONLY via USPS money order...photocopy for your records. DO NOT pay by giving them your bank account#.
John
Louisville,Kentucky,
U.S.A.
RE:
#7Consumer Comment
Tue, April 01, 2008
Most people do not understand how they should deal with debt collectors and the debt collectors take full advantage of this.....
NEVER, EVER pay a debt collector without first getting a written agreement from them that they will accept your settlement offer as a payment in full....NEVER accept verbal agreements over the phone from debt collectors that can't be proven.....if you don't, well....the problem as outlined here is what can happen to you.....Without a written agreement, you have no way to stop them from coming after the remaining $397 balance...If you call them on the phone they will invariably deny that any settlement offer was ever made and you won't be able to prove otherwise....
In your case, all you can do is pay the remaining balance due to clear your credit....This time around, get a written agreement FIRST from them stating that this account will be settled/paid-in-full after receipt of this amount. Pay ONLY via USPS money order...photocopy for your records. DO NOT pay by giving them your bank account#.