He writes:

I have an issue I'm hoping you or the fellow readers can help me out with.

My parents are getting into there elderly years and have become very easy marks for salesmen, financing and buying all sorts of stuff they don't want or need. I have tried to put a stop to it the best I can but nothing has worked, they are stubborn and wont listen to my pleas. My problem is now they have racked up debt greater then their social security can now pay. Being their son and one of the references they put on the credit applications, their creditors wont leave me alone. The worse offender is Conns (http://www.conns.com/) or who ever is there collection agency is.

They call my house, cell phone, office, and they have even started bothering my neighbors. I started out by politely telling them I have no control over my parents finances, and had they called me before they loaned the money I would have told them not to and to please stop contacting me. This has not helped, now the threats have started, and a few want me to pay. They are going to sue me, arrest me etc. I know their threats are B.S. but still the calls need to stop. This has got to be highly illegal, I'm not the borrower or even the co borrower. I'm simply their son they used as a reference.

I have started a log of all the activities but the numbers are blocked. I'm going to head down and file a police report but against who? I think I have 3-4 different ones bothering me but I can't tell as they us different tactics and names all the time for all I know its the same company.

Any advice??

If actual collection agencies are calling you, then they're breaking the law right from the beginning, because collection agencies aren't allowed to call a debtor's friends or family to attempt to collect the debt. You'll want to get the name of each agency that calls, and tell each one not to call you again and that they're in violation of the Fair Debt Collection Practices Act, and that you are going to report them to your state's Attorney General's office if they do it again.

CreditInfoCenter.com suggests you try to get a witness to listen in on the coversation, or if it's legal in your state then record it. Here's a list of what the law is on a state-by-state basis.

If retailers are calling you, ask them to remove you as a reference on the account. Make it clear that you have no connection to it and cannot help them. You may want to have your parents call and remove you from the account, or call on their behalf so that you can provide account information.

However, if on any of these accounts you were listed as a co-signer, then yes, you are responsible for the debt. It sucks, but that's what co-signers are there for. You might want to ask for the documentation on each loan and review it to see what your role truly is, so that your credit isn't hurt and you're not surprised with a lawsuit later on.

You might also want to block unlisted numbers from going through to your phone. If you've confirmed that you're not liable for any of the debt, there's no reason you should ever need to talk to any of these collectors again.

And finally, if your parents can't pay the debt they owe, you need to talk to them about bankruptcy. If they refuse to consider that option and refuse to otherwise deal with the debt, at least take comfort in knowing that their now bad credit should act as a warning sign to other lenders to stay away.

And tell them to stop using you as a reference on purchases and loans.

(Photo: Rev Dan Catt)

They said he is an account representative for Rent-A-Center and went to the 21-year-old woman's home Oct. 22 to discuss a delinquent account. During the discussion, he turned the conversation into a sexual nature, offering to make her bill go away in exchange for a sex act, police said.

Herron then exposed himself to her while taking her hand and placing on himself. The woman pulled away and Herron completed the sex act upon himself before leaving her home, police said.

In what universe is this a good idea? If the accusations are true, had he tried this same scheme on other women who simply didn't report it to police?

Bill collector accused of demanding sex for debt relief [Detroit Free Press] (Thanks, Adam!)

(Photo: striatic)

The guy's lawyer says he's already repaid the debt Mickey is seeking. It's a violation of the Fair Debt Collection Practices Act for a debt collector to use abusive language. Learn more about your rights here.

(Thanks to Sean!)

The Florida law firm Morgan and Morgan is looking to sue collection agencies that have made consumers' lives miserable—including those who don't owe anyone money in the first place. Tactics used by the worst collectors range from insults to racial slurs to calling debtors' friends and relatives to report their deaths. No, really.

On one of Howard's cases from July, he says, a debt collector called the best friend of a woman suggesting the friend had died. Ericka Cartagena of Winter Springs says her friend frantically called her brother, throwing her entire family into a panic when they couldn't reach her by phone.

"Everyone thought I was dead!" said an angry Cartagena who, to this day, has no idea why the debt collection company called. She is making payments on a used car, but says she previously made all her payments on time.

She and her attorney believe the statement suggesting her death may have been a mistake, but is often a deliberate attempt by collection companies to prompt an immediate call back from unsuspecting family members.

That's not just harassment, that's verging on evil.

More recordings show pattern of debt collectors making abusive calls (via Walletpop - Thanks, Steve and SteveDave!)

RELATED:
Debt Collectors Using Cute Chicks On Facebook As Bait
How To Fight Back Against Debt Collector Ninjas
New York AG Says Creditors Used Fraud To Collect Debt, Must Return Money

(Photo: bryanbope)

What happened to AP reporter Holly Ramer is sort of the legalized equivalent to identity theft. There's no criminal mastermind behind it, just government neglect and a bunch of passing the buck.

The problem involves three Pacific island nations, each of which has its own, independent Social Security Administration. The three — the Federated States of Micronesia, the Republic of the Marshall Islands and the Republic of Palau — grant defense rights in the region to the U.S., and in exchange receive aid, including grants and loans after disasters.

[...]

Some federal agencies collect locally-issued Social Security numbers from grant and loan applicants and report them to credit bureaus as if they were U.S. numbers, regardless of whether the numbers already are in use.

[...]

The U.S. Department of Agriculture has known for years that it creates "overlapping" Social Security numbers when granting loans in the three island nations, said Donald Etes of the agency's rural development office in Hawaii. The office that processes loans is working on a fix, but there have been no software or policy changes yet, he said.

One of the problems is that two of the three Pacific Island nations use 8-digit Social Security codes, but U.S. computer systems add a zero to the front of them—which then makes them identical to SSNs that have already been assigned to residents in New Hampshire and Maine.

Bottom line: If your U.S. number starts with 002-6, 003-9, 005-7 or 007-8, it could match a number in Micronesia. Numbers that start 006-4 could match numbers in Palau. Those that start with 004 could match numbers in the Marshall Islands.

In all, Ramer estimates about 135,000 numbers are in co-existence, but none of the major credit reporting agencies has any way of filtering for the problem. And since it's an error and not theft, the FTC won't get involved.

Ramer was unlucky enough to share a SSN and a bad loan from your Pacific Island doppelganger, something that she estimates has probably happened to about 200 other Americans.

"Some Social Security Numbers Duplicated" [Fox News] (Thanks to Marisa!)

According to reports on whocalled.us and 800notes, the number belongs to a telemarketer calling people, sometimes on their cellphone, about their "auto warranty" or about "lowering their interest rates."

One person says that when they called back and asked for the name of one of the customer service reps, he said his name was "Ben Dover." Right now if you call the number, a recording plays a few times of a young woman thanking you for calling back and informing you you can press 1 to be removed from their "preferred marketing list."

Truth in advertising, I guess. At least they're not "COLLECTERS."

[via Tits and Wits] (Thanks to Richard!)

And unlike vampires, debt collectors aren't allowed to lie to you. Examiner , well, examines the particulars of what debt collectors can and cannot do. One of the can nots, under the Fair Debt Collection Practices Act, is fib:

Debt collectors may not lie when they are trying to collect a debt. Among other false statements that are prohibited, they cannot falsely claim that they are attorneys or government representatives; that you have committed a crime; or represent that they operate or work for a credit reporting company.

That also are prohibited from saying that you will be arrested if you don't pay your debt and saying they'll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so.

The article also says debt collectors can't charge you interest or harass you, and advises that sending a certified letter to a debt collector makes it so he can no longer contact you once he's received it other than to confirm receipt.

Either that or stock up on holy water.

Consumer 101: How to push back when the debt collector calls [Examiner]
(Photo: hagner_james)

"Because the scammers have so much information about potential victims, BBB is concerned that this may be the result of a data breach," said Steve Cox, BBB spokesperson. "Thousands of people may have had their personal information compromised, and given the scammers' tactics, it appears that those who have previously used payday loan services could be particularly at risk."

According to reports received by BBB and posted online, the scammers accuse the victim of defaulting on a payday loan and claim they are being sued. The phony debt collector threatens that, if the victim doesn't pay as much as $1,000 immediately via wire or by providing bank account or credit card numbers, he or she will be arrested and extradited to California within the hour to stand trial.

As always with debt collectors, know your rights and be prepared to make some demands of the caller before you cooperate with anything they request. Here are three great places to start:

"Debunking The Debt Collectors' Spin Doctors"
Consumerist tag search: "debt collection"
Consumerist tag search: "debt collectors"

"Widespread Harassment from Phony Debt Collectors Raises Concerns of Mass Data Breach" [BetterBusinessBureau]
(Photo: _FXR)

America is truly the land of opportunity - here a collection agency owner figured out this was a better business model to service other collectors rather than having his own collection agency.

So, if you sue a collector you might just make it on Webrecon's database. Not a bad thing.

Remember, if you are dealing with abusive debt collectors who are leaving illegal voice mails, calling third parties, or suing you, contact us as we have special free reports for you to provide you with the more knowledge so you can determine if you want to sue the collector. And make Webrecon's list....

Lawsuits are best reserved for abusive debt collectors who violate the Federal Debt Collection Practices Act, and are not an alternative to paying off your debt. If you're struggling with debt, read our guide to get back on the path to fiscal solvency.

One Benefit Of Suing Debt Collectors - They Tend To Not Want To Talk To You Again... [Alabama Consumer Law Blog]

Santana had actually already sought permission from the bank to settle for as little as $10,000. It's an open secret that if a debtor is willing to wait long enough, he can probably get away with paying almost nothing, as long as he doesn't mind hurting his credit score. So Santana knew he should jump at the offer. But as an amateur psychologist, Santana was eager to make his own diagnosis - and presumably boost his own commission.

"I don't think that's going to work," Santana told the man...

Santana's classes had focused on Abraham Maslow's hierarchy of needs, a still-popular midcentury theory of human motivation. Santana had initially put this guy on the "love/belonging" level of Maslow's hierarchy and built his pitch around his relationship with his ex-wife. But Santana was beginning to suspect that the debtor was actually in the "esteem" phase, where respect is a primary driver. So he switched tactics.

"You spent this money," Santana said. "You made a promise. Now you have to decide what kind of a world you want to live in. Do you want to live around people who break their promises? How are you going to tell your friends or your kids that you can't honor your word?"

The man mulled it over, and a few days later called back and said he'd pay $12,000.

"Boom, baby!" Santana shouted as he put down the phone. "It's all about getting inside their heads and understanding what they need to hear," he told me later. "It really feels great to know I'm helping people in pain."

The debtor could have gotten away with paying only $10,000 but let his emotions get manipulated by the debt collector.

What Does Your Credit-Card Company Know About You? [NYT]

The New York Times Magazine takes a look at this new method of determining credit risk, pioneered by Canadian Tire executive J.P. Martin about 6 years ago.

Martin's measurements were so precise that he could tell you the "riskiest" drinking establishment in Canada - Sharx Pool Bar in Montreal, where 47 percent of the patrons who used their Canadian Tire card missed four payments over 12 months. He could also tell you the "safest" products - premium birdseed and a device called a "snow roof rake" that homeowners use to remove high-up snowdrifts so they don't fall on pedestrians.

It's not just that what you buy reflects your socioeconomic level and current financial status, however; what Martin did was take the raw data and tease out personality traits that explained the the purchases while predicting future behavior.

Why did birdseed and snow-rake buyers pay off their debts? The answer, research indicated, was that those consumers felt a sense of responsibility toward the world, manifested in their spending on birds they didn't own and pedestrians they might not know. Why were felt-pad buyers so upstanding? Because they wanted to protect their belongings, be they hardwood floors or credit scores. Why did chrome-skull owners skip out on their debts? "The person who buys a skull for their car, they are like people who go to a bar named Sharx," Martin told me. "Would you give them a loan?"

Lenders have been using this sort of data mining ever since, but until recently they've kept it on the down-low to avoid triggering any privacy fears from customers. Now, with billions of dollars of losses from formerly profitable customers (i.e. the slightly risker ones) who suddenly can't pay, the lenders are using their psychological data not only to screen for the "right" sorts of customers but also to try to convince the bad ones to pay off their debts.

There's another reason for this, too: it helps build a stronger relationship with the customer.

If a credit-card company detects unsettling patterns, it might start cutting credit lines, raising interest rates or accelerating repayment schedules. (Companies are expected to withdraw $2.7 trillion of credit by the end of 2010, according to a March report from the Meredith Whitney Advisory Group, a banking-analyst firm.) But the most useful information the card companies are deriving from their data are the insights that help them deepen their relationships with customers, particularly when a cardholder is going through a rough time. One of the strongest conclusions of the psychological studies is that cardholders are most likely to pay the bills of those companies with which they have an emotional connection.

"What Does Your Credit-Card Company Know About You?" [New York Times Magazine]
(Photo: aturkus)

Beware of 'friends' on Facebook! That random cute girl who added you on Facebook might be a skip tracer for a collection agency!!

About four months ago due to a forgotten bill I became a client of CBV Collections in Vancouver. I made my payments on time, and had no issues. A little bit afterward, "Jenny Anderson" added me as a friend on Facebook. As I did not want to be rude (and she was a cute girl), I accepted her as a friend. At the time no connection in my mind formed.

This morning, in my news feed, her status line was changed to:

"haha you guys i tricked you all my name is actually Emily and i work for cbv collections as a skip tracer i bet you guys got calls from them saying you owe money thats all my doing :) you want to call and bitch? i dare you to call me 604-[redacted]!!! I wait to hear from you :)"

Judging by the amount of friends she has (over 600), it looks like her ruse worked. Just another example of how sneaky collection agencies can get to keep track of their debtors. I am curious to see how few friends she has over the next few days.

Beware of random people adding you on Facebook.... it might be people (or companies) up to no good trying to keep tabs on you, or collecting information about you. From now on I'll be a lot more careful about whom I accept as friends.

I'm also curious to know why she decided to blow her cover, especially in such an unprofessional way. Was she drunk? Did she feel the urge to brag? Was it a friend or colleague blowing her cover for her?

Here's the interview:

1:55 Bryan: May I have your full name, please

1:55pm Jenny: why?

1:56pm Bryan: Because I am filing a formal complaint

1:56pm Jenny: :):) ok emily scarfo enjoy

1:56pm Bryan: And you are a Skip Tracer with CBV collections?

1:56pm Jenny: supervisor

1:56pm Bryan: Supervisor, sorry.

1:56pm Jenny: Skip trace supervisor hey no worries

1:57pm Bryan: Can I also have the name and contact information of your immediate supervisor, just for my records

1:57pmJenny: hmm andrew conely his number i dont know just good cbv collections you'll find the website

1:57pmBryan: Okay cool, thanks... I appreciate your help

1:57pmJenny: no worries

2:00pmBryan: So you say you got approval from your company to use Facebook to track down clients, correct?

2:03pmJenny: uh yah well from hr

2:03pmBryan: Did she give you permission to let people know who you are, and approve the wording in your status line?

2:03pmJenny: of coarse not

2:03pmJenny: you got a call from us didnt you :):) lol im emilys little birdy

2:04pmBryan: Can you explain what that means?

2:05pmJenny: i just know alot about that company ok no worries

2:05pmBryan: What does that mean?

2:05pmJenny: i gtg now if you see me on again you can msg me

2:05pmBryan: Please, I have a few more questions

2:05pmJenny: lol if you havent figured it out, i am not emily i am just a ltitle birdy i got in to this account through my sources

2:06pmBryan: So you are denying that you are Emily Scarfo, Skip Trace Supervisor for CBV collections?

2:06pmJenny: but i know about this account of coarse why would emily in her righ tmind do this? but you did get a call from cbv and this is how she found you?

2:06pmJenny: but im bored of all this i am gonna go

2:07pmBryan: Are tactics like this common place in your company?

2:07pmJenny: its not my company

2:07pmBryan: Please, I only have a few more questions, Emily

2:07pmJenny: I AM NOT EMILY goly

2:07pmBryan: I should tell you that I am a reporter, and I am doing a story about this, Emily. I am legally bound to tell you this

2:08pmJenny: really

2:08pmJenny:ok well i am not emily

2:08pmBryan: If you like, we can speak about this on the telephone

2:08pmJenny: i dont know f i trust anyone online

2:08pmJenny: and who i f i may ask do you report for?

2:09pmBryan: I am a freelance reporter, who writes for various publications, mainly for [redacted]

2:09pmJenny: your a photographer, not a reporter

2:09pmJenny:see you lie

2:09pmJenny: oh nvm

2:09pmBryan: I am also a freelance reporter

2:10pmJenny: so this is in alberta?

2:10pmJenny: or nation wide?

2:10pmBryan: Take a look at my profile, You will see that I have several stories and photographs printed newspapers and magazines around the world

2:10pmJenny: hmm ok

2:10pmJenny: i am not emly

2:10pmJenny: so please dont refer to me as such

2:10pmBryan: Why did you tell me you were Emily Scarfo, Skip Trace
Supervisor as CBV Collections?

2:11pmJenny: i will help you but thats it

2:11pmJenny: because

2:11pmJenny: the person who made this account is emily scarfo

2:11pmJenny: well acctually

2:11pmBryan: Then who are you?

2:11pmJenny: she had someone do it for her

2:11pmBryan: And why are you impersonating Emily?

2:11pmJenny: but she is the one who uses it

2:11pmJenny: whyu is she impersonating jenny?

2:11pmBryan: That is between her and her company. The main concern of my article is the privacy concerns. I now have a list of over 600 people who are supposedly clients of a collection agency

2:13pmJenny: she is cruel i am sick of people getting tricked on this account

2:13pmJenny: no matter how much they owe

2:13pmJenny: no matter how much they owe

2:13pmJenny: my internet sucks though

2:13pmBryan: Okay, so who are you?

2:13pmBryan: Facebook chat is not the greatest

2:13pmJenny: so if ytou have no more questions

2:13pmJenny:i wont tell you who i am

2:13pmBryan: Oh, I have many questions

2:14pmJenny: i dont need to be famous

2:14pmBryan: So you are not Emily Scarfo, you are just someone who
hacked her account

2:14pmJenny: her fake account

2:14pmJenny: but yes

2:14pmJenny: dont worry i dont acctually know how to hack

2:14pmBryan: Are you an associate of hers? Do you work for CBV Collections?

2:14pmJenny: i just knew the password to the fake e-mail attached to
this account

2:14pmJenny: no

2:14pmJenny: hmm why does it matter who i am

2:15pmBryan: Are you a client of CBV?

2:15pmBryan:Because I am curious about why you did this

2:15pmBryan:About why you blew her cover

2:15pmJenny: the more i tell you the more she knows who i am

2:15pmJenny: did you not get it

2:15pmJenny: SHE IS TRICKING PEOPLE

2:16pmBryan: And why you are suddenly claiming not to be Emily,
despite the fact a few moments ago you knew her Supervisor?

2:17pmJenny is offline.

People throw all sorts of personal information up on Facebook that can be very useful if you're trying to get in touch with them, or hunt them down. Phone numbers, email addresses, web pages, messages that mention your whereabouts, all of this is potentially useful to a professional skiptracer. The trick is that some people set their profile pages as private and you have to be their friend to see it. So, as a debt collection agency, just make a profile with a cute chick in it, put a plausible amount of real content in it, and have her friend the people you want to keep tabs on.

Sen. Charles Grassley of Iowa, the top Republican on the Senate Finance Committee, blasted the decision to end the program, saying the IRS was caving in to "union-driven political pressure."

"The administration has decided that after spending nearly a trillion dollars in the stimulus bill to keep people working across the country, they are going to cut a program that provides jobs to hundreds of people during the middle of a recession, including 60 in Iowa," Grassley said in a statement.

[..]

Under the privatized program, the IRS turns over delinquency cases, often in the $5,000 to $10,000 range, that the IRS lacks the manpower to pursue.

The program costs about $7.6 million a year to administer, and private contractors are allowed to keep about a quarter of the taxes they collect.

The contracts the private agencies were working under expire Friday. The IRS has been reviewing the program for the past month to determine whether to extend the agreements.

Private debt collectors are notoriously ruthless, and cutting them loose is a big win for taxpayers. The federal government plans to replace the private debt collectors with 1,000 new federal tax collectors.

IRS to drop private debt collection program [AP]
PREVIOUSLY: I.R.S. Employ Of Private Debt Collectors Criticized
(Photo: olarte.ollie)

The Good: What You Should Do

The article does include some good information. For example, consumers should definitely never share bank account information with a debt collector. Doing so makes it a cinch for the debt collector to take payments right out of your account, even if you did not authorize one.

It never hurts to request verification, but it will not stop the collection in most cases. They will send what they have, and then start calling again.

Most importantly, you should take careful notes, record the calls if you can, and call a consumer rights lawyer. Because the FDCPA includes attorney fees and costs, most consumer rights lawyers will not charge clients up front; the bill will come out of any settlement, or the debt collector will pay it when you win your case.

I say this again and again and again, but getting a lawyer early in your case is the best way to protect your rights. As a foreclosed homeowner recently said "If you're going to take my house away from me, you better own the note." The same goes for credit card debt.

The Bad

The article says the FDCPA does not apply to debt buyers. Wrong. It does, as long as the debt buyer purchased the debt after default. In the case of credit cards, this is almost always the case. If a defaulted-debt buyer, violates the FDCPA, you can probably sue.

Henricks exhorts consumers to work out payment plans, neglecting to mention that consumers should first make sure the person calling actually has the right to collect the debt. He threatens—in quotation marks—that "failure to work out a repayment plan may result in legal actions such as wage garnishment or a judgment being filed." Of course, the collector has to sue and win in order to get a judgment or garnish wages, no easy task when most collectors cannot prove the consumer ever incurred the debt.

Just Some Lazy Reporting

Nearly everyone interviewed in the article is a collection industry insider, from lobbyist Scott Talbot and Nat'l Assoc. of Retail Collection Attorneys president, the ironically-named Robert Markoff. The lone exception is the AARP's project manager for consumer protection issues, Sally Hurme, who is quoted only once as saying it is difficult to settle debts. I think she would probably have more to say, given a chance.

The Silver Lining

The best thing in the article: Scott Talbot of the credit industry group (read: lobbyists), Financial Services Roundtable, says "There is going to be a consumer protection wave, which we support, that will sweep through Congress."

I'll believe it when I see it.

Sam Glover is a consumer rights lawyer, enemy of shady debt collectors, previous Consumerist contributor, and writes the Caveat Emptor blog. His column appears the first Monday of every month on Consumerist.

When Debt Collectors Disrupt Dinner [Washington Post] (Photo: mason bryant)

Now who’s drowning in debt? Bill collectors [The Buffalo News] (Thanks to Eric!) (Photo: Sharon Cantillon)

K writes:

I first became aware of this company when my sister called to tell me she had been contacted by "Harry Wilson" from the phone number 951-200-3254. He yelled at her on the phone, demanded that she pay him the money I owed immediately or he would use her Social Security Number to take all the money from her bank account and ruin her credit. He would not tell her what her Social Security Number was when she asked. She hung up on him.

I called and spoke to "Ryan Smith", a man with an extremely heavy Indian accent and was told I was going to jail on Saturday if I did not pay immediately. When I asked for verification of this debt in writing, he told me he was not required to provide that and I would go to jail. He gave me a fax number 914-462-3657 to fax my bank account number, debit card number, social security number and mailing address to so he could get payment.

The loan in question was supposedly taken out on 4/13/2007, a full 7 months before I even opened an account with the bank he claimed the deposit was made to. Then he changed his mind and said the deposit was made on 12/04/2007. I checked my bank account statements and no deposits were made to my account on or near that date.

My sister again received 2 calls yesterday from "Harry Wilson" threatening her with jail time if she didn't make me pay them.

I can deal with the threats to myself, as I am well aware they are bogus, but my young nephew took one of the threatening calls yesterday and was understandably shaken and upset over the incident.

I filed complaints with the FTC and with ic3.gov. I talked to a consumer lawyer to find out my rights in this matter. I was terrified at first, as I'm sure many other victims are, but I knew none of this sounded right. I've not always been the most financially responsible person in the world, but I have always repaid my debts. I took notes on everything this man told me, even making him repeat himself to be sure I had the correct information.

Then the bottom-feeder called me at work yesterday to tell me I was going to jail in an hour if I didn't give him my debit card number immediately. I told him in no uncertain terms that this was a scam and I knew it. I detailed for him every step I had taken and the fact that if his harassment of my family and me continued he would cost his company $1000, which is the amount the lawyer I spoke with told me I would be able to get in judgment against USNB.

He started off trying to talk over me and resorted to yelling at several points, but I continued to speak in a calm, forceful voice and eventually he was silent. I told him one more call to my home, my sister or my place of employment would result in my telling the lawyer the law suit was on. He hung up on me.

My sister spoke with my nephew and explained that there are people out there who steal information they have no right to have and this was a case of that happening. She also told him again that when she is not home he is not to answer the phone unless he knows the person calling (they have caller ID).

I hope they do stop calling. Maybe they will now that you've shown you can't be intimidated. What the consumer lawyer told you was correct, if USNB was actually a legit debt collector based in the US. Because they call from overseas using caller-ID spoofing and never give out their address, it's unlikely you would be able to hit them for that $1000 statutory judgment.

PREVIOUSLY:
Interview: I Fought Off The US National Bank Scammers
Harassed By US National Bank "Debt Collectors?" Let's Talk
Fake Debt Collectors Are Trying To Intimidate You Out Of Your Money

(Photo: Getty)

Now, she can't pay $260 a month and doesn't want to sign this document, but is looking for advice about whether she should or not. I haven't heard about this kind of affidavit so I'm just going to throw that part out to the readers, but I do know that collection agencies are not allowed to just keep calling you at your home and work to get you to pay. That's a violation of the Fair Debt Collection Practices Act. Inside, Sarah's story and what she can say to NCO to get them to stop calling.

Sarah writes:

I'm 27 and graduated with about $40k in student debt. Around the time my loans went into repayment, I got very sick and had to pay a lot of medical bills and ended up going into default on my student loans. Since then I've been trying to dig my way out of the hole. I recently rehabilitated my Sallie Mae loan. I'm in a rehabilitation program with collection agency Windham Professionals— I'm paying $335 a month for nine months, not a small amount on $38k a year. I've got one other loan with a collection agency, NCO Financial.

I've been making payments on time to NCO for 27 months, long enough that my debt should have been rehabilitated months ago. Here's the thing. They want me to sign a statement that says I am able to afford to pay $260 a month should my loans be rehabilitated, triple my current payment. I can't afford that. I sent them a letter three months ago explaining that I have a chronic medical condition that requires me to pay hundreds of dollars in prescription copays each month, and therefore I cannot afford another $260 a month. It's on record. Now they're telling me that if I don't sign this (false) legal document, they will never rehabilitate my loan. In fact, they told me that if I keep paying the amount I'm currently paying, they'll place me back into collections and step up their harassment. Repeat: I've been making my payments on time for 27 months! One representative told me that they're doing this to all of their victims— er, customers— because the company is in trouble. Guess they took on too many toxic debts... seems to be an epidemic!

I'm concerned that if I sign the document, I'll be held liable for the $260. Furthermore, I'll be signing a legal document that is (a) false, and (b) contradicts a statement I've already put on record. If I don't sign the document, though, I'll continue to be in default and may be subject to further penalties. Meanwhile, NCO is harassing me with daily phone calls to my work and home numbers.

My questions for you and your readers:

1. Is this legal? If not, do I have any recourse?
2. What happens if the company goes out of business?
3. What should I do? I could:
(a) sign the document, pay the triple amount, and stop taking my medicine and paying my rent;
(b) continue to pay the current amount, in the hopes that external circumstances (the election, the company going under) intervene; or
(c) stop paying anything, since they're telling me that the consequences will be the same whether I pay the current amount or nothing at all.

I'm at a loss here... has anyone faced a similar situation?

Next time they call, say this:

"I am requesting that you not contact me by phone in the future. I do not want to receive any more calls from you at home or at work and am asking you to communicate with me only in writing."

If they give you static, say this:

"The Fair Debt Collection Practices Act requires that you stop phoning me at home and at work once I request that you do so. I intend to send you a certified letter tomorrow putting my no contact request in writing. If you continue to phone me, then I will file a complaint with the FTC and the attorney general."

Then send them this letter by certified mail:

Date

Your Name
Address
City, State Zip

Debt Collector’s Name
Address
City, State Zip

Re: Account Number

Dear Debt Collector:

Pursuant to my rights under federal debt collection laws, I am requesting that you cease and desist communication with me, as well as my family and friends, in relation to this and all other alleged debts you claim I owe.

You are hereby notified that if you do not comply with this request, I will immediately file a complaint with the Federal Trade Commission and the [your state here] Attorney General’s office. Civil and criminal claims will be pursued.
Sincerely,

Your Name

Any advice about the affidavit?

(Photo: Getty)

Nancy writes:

I had an MBNA credit card for years, which I canceled, and naturally after the cancellation, I never received any correspondence from BoA or MBNA. It turns out, however, that several months after I cancelled the card, a charge apparently went through, on a new account number that I had never used before. The first I heard of the charge, however, was when I received a collection notice several months after *that*. When I contacted BoA about this issue, they insisted on calling me "delinquent," hung up on me twice, and also insisted that they sent statements to my home and "called" about the charge.

They also told me that I should have contested the bogus charge within 60 days after it was made, even though I continued to try to get them to understand that I did not know about the charge until they wrote off the account and sold it to a collection agency, who somehow had no problem contacting me repeatedly by phone and mail.

Finally, they instructed me to send my complaint in writing, which I did, in mid-August (certified and return-receipt requested). I have not heard a thing since then, and I figured 6 weeks was long enough to wait for a result. My credit report is, not surprisingly, unchanged at this time as well.

My question for you is- what is the next best step, in your experience?
- email an executive
- snail-mail an executive
- hire an attorney (extra expense, but as my credit is ruined, it may be worth it)
- other?

* other. Your next best move is to dispute the item with all 3 credit bureaus. It's not hard, you can do it online, for free, at annualcreditreport.com. Simply by disputing it as invalid you may be able to get it taken off your credit report if the agency reporting the debt to the bureaus doesn't respond to the verification request.

(Photo: Getty)

Also - have you considered the fault might be with NES and not MBNA/BoA? NES could have either gotten your and someone else's records legitimately mixed up - or they could be knowingly attempting to fraudulently collect an invalid debt. Either are entirely possible.

R from California writes:

It all started about 12 years ago when I got my first credit card. I can make any number of excuses for myself but the bottom line is I was not smart with my credit. I let a Discover card go into collections and ruined my credit for the last 10 years.

I have maintained a checking and savings account in addition to many bills in my name including Verizon, Sprint, EB Mud, and PG&E. I got serious about getting my credit back in order about 3 years ago. No one would give me a credit card so I ended up getting a First Premiere Bank Master Card. I know people have terrible things to say about this company but paying there ridiculous yearly service fees, and monthly account fees in full each month helped boost my credit enough to obtain some real cards.

In the last 6 moths my credit score has inched its way into the 700+ range As a result I have received credit offers from real credit cards like CapitalOne and a BestBuy card with a surprisingly high credit limit. It was at this time i got my first call.

A company called RSI Claims Process Services, LLC called me about litigation involving me and a creditor. The "Judgment amount" was $5203.32 and didn't go very far to explain any more. I was told they had mailed me about the issue and that I had not responded. She went on to tell me that I had probably thrown it out by mistake and that's why they called me. It all sounded very serious. They were demanding payment or go to court. I talked to two people in the company and I realized that this was about my Discover card from 12 years ago.

Let me discuss this for a min. I called Discover in an attempt to make good on this old account. The card had a $1000 Credit limit and I figured I probably owed then $2000. Discover didn't hold the account any more. Collections told me who did and I followed them to a dead end where they had no idea who held the account. My Credit report has not had such an account listed in the last 3 years i have been checking.

That brings me to last month, talking RSI about an account that had fallen off the planet. I panicked and asked them what I could do to postpone any litigation. They made me an offer of $4000 and I refused. I just don't have that kind of money. I countered with $1500 paying them $100 in good faith that I would come up with the rest some how in the next 6 weeks. I have yet to pay them the remaining $1400. I planned to at the end of the month.

Keep in mind that I recognize that I owe SOMEONE this money and I DO want to make good on it assuming its a legitimate transaction. The reason I Responded to the posting was the tactics were heavy handed. I would have paid the bill without the scare tactics. I would love a payment plan but that was not an option. I know no one owes me any favors but I have worked hard to earn my credit back and I don't want this mistake to ruin it again.

Did I make a mistake by offering to pay this account to a creditor that has offered me little to prove they actually hold the account? Was I wrong to strike a deal when the account was not on my credit report in the first place? I don't feel as though the final sum is unfair. I guess I just wanted some insight on anything else I could have done. Was RSI was in the right to treat me this way?

Hi R.,

Ok here's the details:

The statute of limitations for the debt has passed. In California, where you live, that's 4 years. That means they can no longer sue you to collect on the debt. If they threatened you with jail time, that's a violation of the Fair Debt Collection Practices Act. Right now you might be able to already sue them for statutory violations, something that can easily be done in small claims court.

Now, if they don't have any proof of owning the debt, or proof that you have the debt....then that's also illegal. You might owe the debt to "someone", but there's no proof that they are the people. They could have just bought your records from someone, but might not be able to provide the purchase agreement and the paper trail of debt ownership from the first piece of paper you signed to the one that allegedly put the debt in their hands. It's very common. So you could pay off these people, who might not even own the debt, and then the real company who owns the debt could come along and ask you to pay them.

How did you pay these people? If it was a credit card, call your credit card company and reverse the charge. If it was a check, call your bank and see if you can put a stop payment on the check. You might owe these people, but right now the only obligation that you have to pay them is moral, not legal, and they haven't done the necessary work to prove that you have any obligation to pay them in the first place.

First, bone up on your rights under the FDCPA.

Next time they call, tell them you will only communicate with them via mail from now on, and then mail them this letter to make it official. Then send them this letter to make them "put up or shutup." Either they have to provide proof they own the debt, or they have to cease all collection efforts.

Make sure to send both these letters by certified mail so they can't lie and say they never got them. I respect that you want to have a clean report and make good on everything, but you gotta make sure they play fair too.

(Photo: TrailofTerror)

UPDATE: R. may have put himself in a bad position and "reset" the debt clock by paying RIS the $100. Check the comments for more on this debate.

I interviewed Laurie about her experience successfully fending off the US National Bank scammers. Read the transcript and learn how you too can protect yourself, inside...

BEN POPKEN: First things first, please state your first and last name for the record.
LAURIE LUCAS: Laurie Lucas.
BEN POPKEN: Where are you calling from?
LAURIE LUCAS: Ohio.
BEN POPKEN: Ohio. The heartland.
LAURIE LUCAS: Yes.
BEN POPKEN: Why don't you basically tell me when the calls started, what their tone was like, what they asked you, and how it made you feel.
LAURIE LUCAS: Ok the calls started about the beginning of September. The phone call was, I answered it, it was a very foreign-sounding person, and he said I need to speak to Laurie Lucas and I said this is she. And he said this is Eric Matthews from Legal Affidavit Office and I am going to read you charges that have been pressed against you. And he began to read off this list of charges, like bank fraud and a couple of other ones, and he said you are being charged by US NATIONAL BANK, because you had a loan with them which you didn't pay, you owe them $5,000 and they've decided to write it off. He was very matter of fact, very serious. These are serious charges. He said there was nothing that I could do at this point. Bottom line was I was charged. The company would not accept any money from me or anything to take care of this. And that I would be arrested tomorrow morning at 11am. They would be coming to pick me up.
BEN POPKEN: Did he say who was coming?
LAURIE LUCAS: No.
BEN POPKEN: Just "they."
LAURIE LUCAS: "They." "They" would be coming. So I'm not sure who was going to come. But anyway, and I kinda knew right away...just too many things that didn't make sense. Just from the first readings and all that kind of nonsense. Then also, I don't know anyone who has a foreign accent whose name is Eric Matthews.
BEN POPKEN: Could you kinda tell what kinda accent it was?
LAURIE LUCAS: Really, I think it was Indian. And I only say that because we have so many companies that end up calling, we end up talking to customer service there with "Pete" or you know... I do believe it was an Indian accent. So I said to him, you know, well, you'll have to send me something by mail. Or you can go ahead and send them out to arrest me. And I started to hang up and he said you know, you're not taking this seriously. And I said, tell you what, let me take your information again. You said your name was Eric Matthews, and who do you work for? And he said Legal Affidavit Office. And I said where is that located? And he said California, and you'll have to appear in California for court. I said, well, are you an attorney? And he said no, he kept repeating the name of the office. I said, do you work for an attorney. He said yes, he said he was The Prosecutor. And I asked, for what county? And he said no, I work for the attorney. And I said, for what attorney? And he finally gave me the name of an attorney, and the man's name was Michael Johnson, and I asked where the office was located, and he said, and he didn't want to tell me and I pressed a little more, and he said Hanford California. So the whole time he's talking I'm typing in on Google Legal Affidavit Offce, and it immediately comes up on ripoffreport. And so I'm now aware I'm now talking, as if I wasn't aware before, that I'm now talking to a scam artist. So I said, do you have a number for him, is there a number where I can reach you? And he said no no no, I'll be calling you back. Well, I hung up. I immediately looked for a Michael Johnson, an attorney, and I found him in Hamford California. And I called him. And he had never heard of this company, he was just shocked. And he was thrilled that called him up and let him know that they were using his name. And he filed a report with the Federal Trade Commission, and also with Ventura County police. Since it was Ventura county where they were calling from. And the next I got another call and I just said, send me a letter by mail. The thing that's concerning to me is about it, is that they have my Social and all my information, but it's all jumbled. It's not correct.
BEN POPKEN: Really.
LAURIE LUCAS: They immediately want you to validate it. And they also said it was a payday loan. And that they needed the name of my two references to verify more information, they needed the name of the two references from my loan application. And then, a couple other things he asked me for and I just kept, trying to find out more information, and immediately, as soon I pushed, he hung up. And I received maybe 3 or 4 calls, and been getting more, and then today, I got a call from my husband, now using my husband's name, from them, saying that he's going to be arrested. And they need to talk to him right away.
BEN POPKEN: Same thing all over again.
LAURIE LUCAS: Right. About his debt with US National Bank. And so I just said, send it in writing, and hung up. But again, they were reading all the charges, and telling me his social, and again, it was jumbled, but it's still concerning.
BEN POPKEN: Sure. What do you mean by jumbled?
LAURIE LUCAS: They have the numbers transposed. So they have the right numbers, but not in the right order. You know, if it's 123, they have, 231.
BEN POPKEN: Did they also have information like your bank's name and account numbers?
LAURIE LUCAS: Yes, they did. They did. They had my bank number. They did not have my account numbers. They wanted me to give them those, of course. But they did know my bank, and they also knew my birth date, and things like that.
BEN POPKEN: Have you ever in the past taken out a payday loan?
LAURIE LUCAS: No.
BEN POPKEN: Ok. Not an online cash advance or anything like that?
LAURIE LUCAS: No.
BEN POPKEN: You said you were familiar with these kinds of calls from customer service reps, and you're on the debt forums...have you had troubles dealing with debt?
LAURIE LUCAS: No, actually the reason I'm on the debtforum is I started just trying to do some more research and I typed in Legal Affidavit Fraud and scams and I was just kind of reading all this information and I came across this one. And I was reading the forum where people posted that they had been called and what do we do and all this sort of thing and I saw yours on there.
BEN POPKEN: Right. So, basically, upstanding citizens, your accounts are in good standing....
LAURIE LUCAS: I'd like to think so, yeah
BEN POPKEN: Pay your bills on time, that sort of thing...
LAURIE LUCAS: Yeah.
BEN POPKEN: The foreclosure crisis is not going to land on your doorstep anytime soon.
LAURIE LUCAS: No no no no.
BEN POPKEN: Great. Can you describe for me, you said his tone was matter of fact—
LAURIE LUCAS: It was very intimidating. It was very matter-of-fact, very intimidating, very authoritative, he would not stop talking. I said hold on a minute, and he just continued to read these charges.
BEN POPKEN: What did he say when called after 11am the next day and you hadn't been arrested?
LAURIE LUCAS: He told me that he held it, to try to make arrangements, for a settlement on my behalf. And he was talking to his attorneys to see if they would in fact accept a settlement from me. And he kept warning me, I don't think they will. But depending if you can pay today, they might be willing to work with you.
BEN POPKEN: So he's helping you out, so he's your friend.
LAURIE LUCAS: Exactly. Right. He's going to be the one to work on my behalf, with the other attorneys.
BEN POPKEN: The bad guys.
LAURIE LUCAS: Right. My buddy.
BEN POPKEN: Besides the threat of arrest, did he specify any other threats against you or your family or anything?
LAURIE LUCAS: No. He just said he hoped that I "understood the gravity of the situation." And that he "felt sorry for," how did he put it, "the tragedy that was getting ready to befall me."
BEN POPKEN: Wow. That's some language.
LAURIE LUCAS: It is, isn't it?
BEN POPKEN: What did he say when you told him you had never taken out this loan, you had never heard of US National Bank and you had no idea what he was talking about?
LAURIE LUCAS: He said that I should keep better records. And that indeed I had. and I said, when then you will need to send that to me, so that I can verify it, all the original information, where I had taken out the loan, where I had signed for it, all that information. The original documents. He said that he was not required to do that. And if I didn't have the paperwork, I should have kept better documents.
BEN POPKEN: Now, I have to commend you Laurie Lucas because you did a very good job from fending this guy off, and you sound like a real solid citizen and a pretty—
LAURIE LUCAS:—I knew right away it was a scam, I just wanted to hear what they had to say. Without giving any of my information away. I really wanted to hear what the deal was. I'm just always concerned, and I have two daughters in college and they get calls, or things like that, my daughter got an email from someone saying that she was going to inherit $50 million from Nigeria and she called me right away. And I said nonono, send that back
BEN POPKEN: Right. There is no Nigerian Prince. While you were able to fend them off pretty well and stand your ground, what do you think happens to other people out there who might be a little scatterbrained, might have a bunch of loans out, for whom this might not be the only call of this kind that they've received?
LAURIE LUCAS: I actually have, I used to be military. And I'm retired. And I used to have some young troops who would take out payday loans and I would get calls at the office for them you know that they hadn't paid the payday loan and this and that and the other thing. These kids were terrified. And they were in way over their head, and, there was no way they were ever going to pay them off. So, I have some experience with the payday loan deal. Just...it has to be terrifying for them. Because I think what happens, and I know with one of my troops, he had signed up online with two different companies and tried with several, so he had no idea who had his information... you're just filling out forms online with all your social and your everything and I think for someone like him, if they had called him he would have panicked. He would have just been panicked. And I believe he would have paid the money. Any amount of money. And I think that's probably what happens. And he starts off by reading all these you know legitimate-sounding charges against you and if you don't really understand how things work, that you can't be arrested for bad debts, you go to court and be sued, I'm sure people panic. And I know payday loans, I mean, nobody wanted me to know that they had them. They're very embarrassed and didn't want kids to know. And that's even more fuel for the fire for these people. And that they don't want to tell people, yeah, I had a payday loan and now these people are calling me, so I imagine they get quite a bit of money from people trying to not be in trouble and you know they get in such a circle with these things they don't know who they owe. I imagine it's got to be terrifying to get this call and think you might be arrested. To me it was almost comical.
BEN POPKEN: It sounds like you were having a little fun with him.
LAURIE LUCAS: I kinda was, I mean "the prosecutor who works for the attorney..." That's gotta be, his caseload has got to be incredible, his record is impeccable if he's working for the attorney, just, none of it made any sense. But I know some people don't understand a lot of things, how a lot of things work, and they may just be so terrified that they send the money. And I'm sure it's working, otherwise they wouldn't be calling so much and you wouldn't see all those things on ripoff report, this particular forum and there's several others where they're out there. So it's obviously working or they wouldn't continue their scam. It's really sad. To me, those people who are taking out those payday loans, they're already in trouble, and they're already overwhelmed, these are people who probably don't have a lot of money or financial skills to start with. I just think it's sad.
BEN POPKEN: They're not in a great place to begin with. They kind of pick the perfect targets.
LAURIE LUCAS: They do, I think they must. I'm just curious, because there's a few people who don't have payday loans, or anything like that.
BEN POPKEN: Pardon?
LAURIE LUCAS: I'm just curious how they get people like me, because there's a couple other people who never had any payday loans, who never did anything online like that. So I'm just wondering. So that's the only curious thing to me, is how did you get my information.
BEN POPKEN: They have to have bought it from somewhere. I was surprised when you said you hadn't taken out any payday loans... When you were helping out your troops did you ever list yourself as a contact, or a reference or a guarantee on any of them?
LAURIE LUCAS: No the only thing I ever did is say if it doesn't get paid you can give me a call and I gave them my name and phone number to the company.
BEN POPKEN: That might have been it.
LAURIE LUCAS: That might have been it, huh?
BEN POPKEN: What these guys do, a lot of places online where you're entering your information, they collect all that, and then they resell it to other people, and these other people create these massive databases by buying information from all these different sites and then they're able to combine them together. So they could have had your name and phone number, and at some point, other pieces of your information fell into some other guys hands, and they collected that together, built a record...
LAURIE LUCAS: Oh my gosh.
BEN POPKEN: And once they built it up enough, they were able to throw all this balderdash at you. And say we have your social your bank and dadadada then they sell it to this illegal debt collector, collection group, what have you, the fun begins.
LAURIE LUCAS: That's amazing.
BEN POPKEN: So you have to be really careful who you give your info to, I guess, is the takeaway on that.
LAURIE LUCAS: I have a credit watch monitoring service on my credit report and my husband's and my two children, I'm, as I said, I'm retied Air Force. It happened about a year ago that the Department of veteran affairs lost all our information, or it was stolen.
BEN POPKEN: Yeah, I heard about that.
LAURIE LUCAS: And I received a letter that said yeah, you're one of them. Also, the Department of Defense, the tri-care health insurance company, also all my information was released from them. Without even trying, there's two sources are out there.
BEN POPKEN: It's crazy.
LAURIE LUCAS: There's so much that you can't do anymore unless you do it online. Even with your regular bills. Our car payments, they want you to be set up online, they want you to set up the auto debit stuff and have it come out of your checking automatically and they want you to pay it online and they encourage it because with our car payment, we get a $15 processing fee if pay our bill by calling it in. but if you do it online, it's free. if you mail it in, and they process it later than the date it's due, then you get a late fee. so, it's no win. I'm always amazed at how crooked the whole system is.
BEN POPKEN: It is. But hopefully, by exposing the information from the US National Bank scam and your story and the other stories I've gathered, we'll be able to help inform consumers to protect themselves.
LAURIE LUCAS: I hope so.

PREVIOUSLY:
Harassed By US National Bank "Debt Collectors?" Let's Talk
Fake Debt Collectors Are Trying To Intimidate You Out Of Your Money

(Photo: scentzilla)

DANNY: Hi this is Danny, is this [your girlfriend]
BEN: No it's not.
DANNY: Can I speak to [your girlfriend]?
BEN: What company are you representing?
GIRLFRIEND: (in background) I'm not here!
DANNY: (low chuckle) What, are you her husband?
BEN: No. What is this about?
DANNY: This is Danny. I'm calling long distance, from Denver, from blahblahBank. I'm trying to reach [your girlfriend]. She was listed as an associate of Jane Terry (name changed), who I'm trying to get in touch with regarding an important matter.
BEN: There's no [my girlfriend] Terry here.
DANNY: I didn't say [your girlfriend] Terry, sir, I said Jane Terry. I'm trying to get a hold of [your girlfriend], she's over there at uh at [this address]?
BEN: She's not here—
DANNY: —What's your problem, pal? Are you having a bad day?
BEN: I'm having a great day—
DANNY: —Tries to talk over me—
BEN: —And it's about to get a whole lot better because I'm going to stop wasting it on mother******* like you. Don't call here again.

Hung up. Phone rang immediately. Muted.

Under the Fair Debt Collection Practices act, debt collectors are allowed to contact third parties but only to find out your address, phone number, and where you work. This guy didn't break any rules, there's no law against having being condescending and arrogant.

(Photo (no that's not me): Getty)

In a series of letters, Jeremy writes:

7/03/08

Today, I got a letter in the mail, at my Grandma's house, where I lived up until 6 years ago. It was a "settlement offer" from Palisades Collection.

It stated that I owed $237.64 and I could pay half of the "debt" and settle the account.

There are numerous problems here (like the fact that I don't ever remember having this service through Verizon North, even if I did it was from at least 8 - 9 years ago), but the main one is the fact that, by going through old credit reports, I found that this was originally posted to my credit in 2006. It was actually removed from my credit report 05/08. There is no traces of it. This is the first communication that I have gotten from this "company".

What should I do? What are my options here? I'm sorry, I'm totally credit illiterate.

8/11/08

I sent a Debt Validation letter to Palisades Collections. They received the letter on July 11. The 30 days are now officially passed for them to validate my debt. Also, on the date I mailed out the letter to them, I filed a complaint with the BBB, because I knew it was an invalid debt simply because it was outside the statute of limitations in Michigan. Today, I got a letter in the mail from the BBB that had the response from Palisades. Their response included, now get this, the debt validation materials they were supposed to send to me. So, the BBB got it, and I didn't. Also, according to the "validation", the date listed as the first date of default was December 13, 2001, which is one year outside the statue. I re-contacted the BBB with this new information, but I am unsure of where to go from here.

9/10/08

Just wanted to update you once again on this whole thing with Palisades Collection.....

I got another letter in the mail from the BBB with their response from Palisades Collection. It included something that I thought was interesting....

"Please also note that it is my understanding that while the expiration of the statue of limitations prohibits a creditor from enforcing the debt through litigation, it does not prohibit collection of the debt."

What does that mean? How are they thinking they might be able to collect on something that they can't legally collect on?

Jeremy,

If it's any consolation, this is not the first time we've heard of Verizon selling dead old accounts to debt collectors who then try to fraudulently collect on them. One time they tried to pry $142 from a fluffy white dog.

If the debt is valid and the statute of limitations have passed, they can't sue you to collect the debt but there's nothing to stop them from sending you letters. In other words, free kindling. If the debt is invalid and they didn't verify the debt to you, I believe you can sue them under the Fair Debt Collection Practices Act (FDCPA) for statutory damages. I'm not a lawyer and you might want to speak to one about the particulars of your case, but I've also seen people successfully sue FDCPA violators in small claims court on their own. You might just want to send them a "drop-dead" letter, this post has a template for writing one.

(Photo: TrailofTerror, Getty)

His story hit the Digg front page. As it was on its way to becoming popular on Digg, a gal named Carly at Zocalogroup, apparently the PR firm Orbitz has hired to monitor blogs and maintain a Twitter presence, reached out to help Josh. An Orbitz insider said that over 16 Orbitz employees have forwarded Josh's story to the internal customer experience team.

For his part, Josh writes, "Thank you for posting my story. I'm contacting Carly right now and will follow up with you about how Orbitz DID send me to collections, my communication with that company, and whatever Orbitz is willing to do now that they couldn't be bothered to do before."

PREVIOUSLY: Orbitz: Pay For Ticket We Never Sold You Or Else

Allen wrote in this week to say, "The issue between Lowe's, their attorney and I were settled amicably and in a timely manner last year." He wasn't able to provide further details due to the terms of the settlement. Lowes-sucks.com is now a placid "coming soon" page.

Congrats on your success, Allen! Your tale is proof of how one consumer's voice, telling their true story, leveraged online, can force a company to play on equal terms. If you would like to get started doing something like what Allen did, check out our post "How To Fight Companies Online And Win."

PREVIOUSLY: Lowes Resorts To Legal Bullying Instead Fixing Their Horrible $3500 Fence Job
RELATED: Intellectual property laws abused in quest to shutdown Lowes-Sucks.com [Ars Technica]

Garry writes:

First, I want to say that I was a happy Vonage customer for 4 years. The only reason I chose to leave them was I got a better deal. Leaving is the rub. Even after you leave, Vonage keeps on billing, and they resurrect dead service without notice. This company is technically a good operation, but the customer service and billing has earned this fiasco of a company the right to a dirt nap.

In late September 2005 I ordered VOIP service form another carrier and canceled Vonage. Several calls to Vonage sent me through a succession of people, many who had poor command of English, and eventually led me to wait on hold for the person authorized to end my account. The wait was too long, and I finally believed I closed the account on a Saturday after spending more than 2 hours on the phone with them. When I had allegedly discontinued service, I had been using my new carrier for several weeks and had disconnected the Vonage ATA box. They billed my American Express charge for the entire month, and I paid the entire bill. All was well until the next American Express bill arrived and the usual charge from Vonage was again on the bill again. I had now not used the service for 2 months Long waits finally got assurances form a Vonage employee that the service was discontinued, although no one would agree to credit me for the illegitimate charges. I paid the bill and moved on to more productive endeavors rather than fight over $30. The next month, you guessed it. Vonage billed my American Express again. I phoned American Express, and they contested the charges and since Vonge did not bother to prove they were legitimate, the charge was reversed. Every Month following that time, I had a new charge from Vonage that was contested and reversed. I repeated called Vonage and emailed them to no avail. As a rule no one could find my account when I phoned them or I was told it was an error. This continued for more than 2 years until I finally closed the American Express account. Finally all was quiet after 2 years of trying to get read of the Vonage beast.

Today I received two collection notices from an agency writing on Vonages' behalf. They say I owe more than $250 for Vonage service including charges from last year - more than 2 years after I canceled service.

First, ask your ex-phone company for written confirmation that you canceled your service two years ago. Send your request directly to Vonage's executive offices. Forward a copy of the confirmation letter to any debt collector that demands money. If, like Vonage, they don't relent, threaten to report them for mail fraud.

RELATED: Sample Letter For Disputing A Debt Collection Notice
Unlawfully Billed? Threaten To Report Them For Mail Fraud
(Photo: Getty)

Imagine a mugger holding a gun to you and saying, "I need you to pay for that gold watch I gave you last week." Confused, you say, "Uh, you never gave me a gold watch." The mugger says, "Hey buddy, pay me for that watch or else..." He cocks the hammer. Ok, that's a little melodramatic, but essentially that's what Orbitz is doing to Josh; they want him to pay for a ticket they never sold him, or else they'll send him to collections.

June of last year, I tried to book a ticket for my brother through Orbitz. The process went as usual and when I completed my transaction, I was presented with a screen telling me to expect a confirmation email shortly.

Several days later and with 48 hours to go before the flight, still no email. So I called the fine customer service folks at Orbitz and was told, in no uncertain terms, that they did not have a reservation for my brother or myself (just in case I had made a mistake on my end filling out the form). I was then offered the opportunity to buy a new ticket at $200 above what I had originally signed up for. I had to pass and my brother missed a very important family event.

Move forward in time a week, and I find that my BofA checking account has charges from Orbitz and the airline I had originally booked through (American Airlines). You know, the flight that didn't exist.

I called Orbitz again and was now told that Orbitz never gives refunds. I escalated from one outsourced call center worker to another equally inept call center worker who read from the same script. Since that went nowhere, my next call was to BofA.

It took a lot of time and documentation, but I finally received a letter in October from BofA letting me know that the funds I had been forwarded when I initially disputed the charge was to be made permanent.

So what's the problem? The call I got today from Orbitz telling me that they got a letter from American Airlines hadn't received payment and that I would be sent to collections.

Is this true? How can this be? I am lost and confused and just plain fed up. Any guidance or suggestions would really help.

Let's see, some options:

1) Resubmit your disputation of the charges with Bank of America
2) Forward your complaint to BoA's CEO (address here).
3) Hire an attorney specializing in consumer debt cases

Any other notions out there?

(Photo: Shermeee)

They didn't care about Adam's explanation, they just wanted his money. True to form, all of Adam's attempts to contact anyone at Paypal to resolve the issue were unsuccessful and unanswered. So far, though, the debt hasn't appeared on his credit report.

So here's what Adam, or anyone in an similar position should do. Here's a sample letter for making them prove they own the debt. If they can't come up with anything and keep contacting you, here's a sample letter for telling them to drop dead (and stop contacting you).

(Photo: irina slutsky)

My boyfriend and I moved into our apartment about two months ago. When we moved in, we were told by the property management that we had to cancel our RoadRunner service and sign up for an account with the local phone company, Cincinnati Bell, for our phone and internet. No big deal, we initially thought. We signed up, got our (slow) DSL connection and free-incoming-calls-only phone line (we did not sign up for a regular phone plan since we use Skype). The activation of that line is when the trouble started.

In the 2 months of having our phone line we have received more phone calls from debt collectors looking for the people who used to have our number, than I have on my cell phone over the past 4 months combined, and I love to talk! They always ask for either the husband or the wife, and push and try to harass me into "giving them a message" the next time I talk to them, no matter how many times I repeat to them that I do not know these people. I looked up my phone number and saw it listed with these people and sent them a letter nicely asking them to update their information with the people and companies they have associated with because I am so tired of these calls, but nothing has happened as of yet.

I am sorry if this seems rather long, but I am almost at wits' end with all of these collection calls, and I just received another one while typing this out, bringing the total to 3 today. Is there any way to stop collectors from calling me for these people, or am I stuck wondering if I have to answer the phone to find a rude collector on the other end?

Any advice would be very much appreciated!

Well, what these debt collectors are doing is illegal, so the first thing you'll want to do is start a journal and make a note in it every time they call you. If you can record the calls, do it. Make sure to write down their information and be as detailed as you can.

Inform the debt collectors that they are breaking the law by continuing to harass you over someone elses' debt, and that you intend to file a lawsuit. In addition to the harassment, the Fair Debt Collection Practices Act also forbids the debt collectors from comminicating details about debt with a third party, which you most certainly are. So if they're trying to get to you "deliver a message" about the debt, they're breaking the law.

Hypothetically, that should clear it up. If it doesn't, you'll need to either change your number or consult a consumer lawyer in your area for advice. We have the feeling that consumer lawyers would be enthusiastic about representing you.

If you're not interested in having some fun with our legal system, try changing your number. Some phone companies are sympathetic to customers who are receiving harassing phone calls and are able to waive the fee.

(Photo: Getty)

Meet Andy Fanelli. He's a Lhasa Apso who apparently doesn't have enough personal responsibility to pay his debt to Verizon. Sure, Andy's owners, Steve Fanell and Shawn Donovan, say that Andy has never been a Verizon customer, but should we believe them?

From KCRA:

"The point is that Andy has never had a Verizon account. We were just curious why this showed up," Steve Fanelli said.

KCRA says the debt actually belongs to another Andy Fanelli who lives on the east coast. So how did the bill end up at the wrong Andy's doorstep? Well, it's probably because Andy has his very own American Express Card.

"It's an active card. From time to time I take my girlfriends to lunch on Andy," Donovan said. The dog's debt has been canceled by Verizon, but it seems there are lots of complaints (to the Illinois Attorney General and posted online) about the debt collector, AFNI, trying to collect outdated or incorrect debts. AFNI says that it is diligent about debt verification.

$142 Collection Bill Sent To Couple's Dog [KCRA](Thanks, Anna!)

The article says,

“It was like somebody decided ‘we’re going to send stuff to her, and she’ll pay for it,” [her son] Teddy Vail said.

Over five years, anywhere from 6 to 10 different agencies have asked his mother to pay for the unsolicited datebook, Teddy Vail said.

Vail said he must have explained the situation to collection agencies 30 times.

“They listen patiently. Then they say, ‘Well, can we work something out here to get this paid for?’ It’s like they’re not really listening. All they want is the money.” Teddy Vail said the amount the credit card company claims is owed has risen to about $130.

He paid $200 in fees just to file the lawsuit, he said.

“Yes, she could have paid for it a long time ago. But that’s not my ma. I know it sounds frivolous, but you’d have to be here, getting phone call after phone call after phone call, for five years. There’s a principal involved —- feeling like we’re being extorted and strong armed by these collection agencies,” he said.

Most people would just roll over and pay the money, but that's probably what Sears is banking on. Being harassed by debt collectors for five years is no way to live, especially for something you never ordered. We hope Margaret's lawsuit sends a message to shady companies that make a practice of pilfering our nickels and dimes.

Mansfield 80-year-old fights Sears with lawsuit over $6 datebook [Mansfield News Journal] (Thanks to Rachel!)

Third-party debt collectors are regulated by the Fair Debt Collection Practices Act (FDCPA) which is overseen by the FTC. Here are few practices which are prohibited under the law:

Harassment
Debt collectors cannot make threats of violence against consumers or publish lists of those who don't pay their debt. They may contact you in person, by mail, or by fax but can only call you between 8 a.m. and 9 p.m. unless you have agreed to alternate hours. They are also not allowed to use obscene language or call repeatedly (i.e. several times a day).

False statements
Debt collectors cannot misrepresent themselves. They cannot not falsely imply that they are attorneys, government agencies or that they work for a credit bureau. They cannot say that papers being sent you are legal forms if they are not, or say that they are not legal forms if they are.

Unfair practices
Debt collectors may not collect an amount greater than your debt, unless your state law permits it. They cannot use deception to make you accept collect calls or pay for telegrams. They also cannot threaten to take your property or contact you by postcard.

Linda Sherry of Consumer Action recommends that if a debt collector contacts you, the first thing you should do is ask for proof of the debt which should consist of a paper document with your signature stating that you applied for the debt. Also, be aware that some debts have a statute of limitations which could be from 3 to 15 years. Check your state's laws to see if your debt is still collectible because once you pay a portion of the debt the clock resets again.

You can stop a debt collector from contacting you if you submit a written request to them. Once they receive the letter, they cannot contact you again except to tell you there will be no more contact. Additionally, if you have an attorney presiding over your debt, they must contact the attorney instead of you.

Just because you are in debt, doesn't mean that debt collectors have the right to harass you or operate outside of the law. If you feel that a debt collector has violated the law, you can file a complaint with your state's Attorney General office and the Federal Trade Commission.

Debt collectors on the rampage [CNN]

Fair Debt Collection Practices Act [FCC]
(Photo: Getty)

Dear Consumerist,

Unfortunately, this blog did not exist when I was 21 and trying to make it through college. I was poor, and the fed was stingy with the financial aid. So, I turned to credit cards and it is the biggest regret that I have. Debt collectors call daily, and I know just by the look of the envelope if there's a collection notice in the mail. Thankfully I have a place to live and a car that runs fine, so I feel as though I don't need a good credit score (but I'm sure it would help in the future).

Lately I've been getting pre-approved credit card offers in the mail, but they're of the type that already have a $200 balance on them before you even get them. I've already had enough trouble with credit cards, so I immediately throw out these offers. Today I got what looked like another one of these, but after reading the notice it turns out that it's not quite the same.

The offer I received today is from one of the companies that bought one of my debts. There is a picture of the offer on my flickr account here. In this offer, they tell me that I can have my debt placed on a Visa card and pay off the card. The interest on the card is 19.9% and there is an annual fee of $35 which is waived for the first year. I have such bad credit that I don't worry about identity theft, so these terms are better than anything I've seen in quite some time.

So, I'm just wondering if this is a good idea. The notice says that I have until July 7th to accept this, so I'm in a bit of a rush to find out if it's worth it. If so, I think the first (and only) place this card would go is into a block of ice.

Thank you!
Ryan

It may seem like an attractive offer on the surface, your debt of $1,364 gets reduced to $1,200 if you accept the card. But this difference will most certainly be mitigated by fees and interest that this card has cleverly implemented. This particular credit card is probably one of the worst credit cards ever, it is riddled with booby-traps designed to hit you with fee after fee. Here are some of the pitfalls you should be aware of:

• Simply by submitting the application for the credit card, you will temporarily get 3-5 points subtracted from your credit score, but this is true with any credit card.
• According to the terms, your first minimum payment is $37 which is due 20 days after you receive your statement. If you don't pay in time there is a $19 late fee.
• This card is designed to make you spend over your credit limit. Your balance starts at $1,220 and the credit limit is $1,270. Considering your interest would be about $20 dollars a month at 19.9%, a small purchase could easily put you over your limit, incurring an additional $19 fee.
• According to the terms, if you miss a payment in the first 3 billing cycles, the card will be revoked and your original debt of $1,364 will be reinstated even if you have paid off some of the balance already.
• Default rate - We haven't seen this card's full terms and conditions but typically if you violate one of the conditions in the agreement such as late payment, NSF check or charging over your limit, your interest rate could be jacked up to as high as 36%. This is true with any card.

Naturally, paying off your debt is the best idea, short of that, this card is nothing to mess around with. They are just trying lure you with a shiny piece of plastic so they can get their hooks in deeper. The only way a card like this would be useful is if you made a large payment on it every month. Of course, if that were possible, you probably wouldn't be in debt in the first place.

If you need assistance paying your debt, each state has non-profit angencies that can assist you, usually for a small fee. In many cases, they can sit down with you and help you work out a monthly payment plan without any nasty 19.9% interest rate. Some websites that can provide you with more information are:

http://www.nfcc.org

http://www.cccsatl.org

http://www.aiccca.org

http://www.creditcounseling.org

One other tactic involves trying to cut a deal with the debt collector. They pretty much assume they won't be getting all of their money so they are often agreeable to reducing your balance if it gets paid within a certain amount of time. However, not all debt collectors operate in this way. Good luck, Ryan.

(Photo: Getty)

New York Magazine pulled from their files the subscription card that authorized the subscription to New York Magazine (shown at the top of the post). The postcard was received on 11/19/2007. The card was sent to Keith's house by first-class, meaning it should have gone directly to them.

Tova Abrahmov, New York magazine's Retention Director, wrote via email, "Once the order was placed on the file, we then mail out seven invoices over a seven-month period asking for payment before threatening any collection agency action."

Keith says he got the invoices. What is unclear to me," he wrote, "is why I had a responsibility to respond to them at all. If neither of us initiated the "free trial", there can be no foundation for a claim that we are responsible for canceling a non-request for your magazine."

"I can not say with 100% certainty that she is the person who dropped that postcard in the mailbox," said Abrahmov, "...[w]e cannot guarantee that your wife is the one who "authorized" this order or mailed the order back to us (versus someone else in your household or even a neighbor, for argument's sake)..."

Keith wrote, "The proof that NY Mag sent was a blank postcard with two options (neither of which was checked) and no name or address on the card. Is this a joke?"

New York Mag was highly apologetic and canceled the subscription and waived all charges.

Then, two weeks after the parties finished corresponding, Keith and Stacy received another message in the mail from New York Mag. It was a letter thanking them for renewing their subscription.
After being notified of the error, New York Magazine's Retention Director expressed her deep sorrow, writing, "In requesting a copy of the original piece of mail through our fulfillment company, a clerical error led to it being processed again and treated as a new order. Needless to say, this order is being removed immediately."

PREVIOUSLY: UPDATED: NYMag: Collections Threatened For Sub You Think You Never Ordered

Third-party collectors, who buy old debts for pennies on the dollar and are the largest source of complaints to the FTC, are also the companies most likely to sue. The courtroom approach works in their favor: defendants often don't have lawyers, and a new law passed last year in Illinois and "pushed by creditors' lawyers" took away a judge's power to limit the amount that could be garnished from wages. It's at least partly why the third party debt collection industry raked in around $15.5 billion in 2006.

Consumer groups say the high number of default judgments can mask flaws with the lawsuits. Credit agreements and payment histories are often not included when suits are filed. Instead, debt collectors file an affidavit attesting to the validity of the debt, and it's not unusual for that affidavit to be erroneous, said Bob Hobbs, deputy director of the National Consumer Law Center.

Andersen acknowledged that there is ambiguity about the minimum evidence needed to verify a debt. In New York, an Urban Justice Center study in 2006 found that in 99 percent of a sampling of default judgments that the evidence used to obtain the judgment did not meet the state's legal standards.

"Debt collectors pushing to get their day in court" [Chicago Tribune]
(Photo: Getty)

Erin was the recipient of a recent scam attempt from Moreno and Woods, a debt collection agency that—according to her account and others found online—uses abusive tactics and fraudulent claims to try to con people into paying off debts they never owed to avoid things like wage garnishments and lawsuits. Erin fought back, and shared her story with us to warn others.

I received a voicemail today (5/27/08) out of the blue from a man who identified himself as David Cooper from Moreno and Woods. He said he was calling regarding Case Docket #93659, and that I must return his call immediately or else "the matter" could result in wage garnishment, denial of credit, or closing of existing lines of credit. He gave his number as 866-928-3160, ext. 109. Since the voicemail didn't provide any information that would allow me to discount the matter out of hand, I returned my call.

Cooper retrieved my file, asked if I was Ms. [redacted] - I said I was - and asked me to confirm the last four digits of my SSN - I did not reply to that. I asked him what the call was regarding, and he said that they had a "judgement" against me from Bank of America regarding an outstanding balance of $20,000 on Visa account ending #1181 that was opened in 2001 and closed in 2004. (To the best of my knowledge this account never existed, let alone belonged to me - even supposing someone else had opened it in my name, there should have been some contact regarding it at some point, or a record of it on my credit report). I asked in what court the judgement was obtained, and he said they had the judgement "in the office." I asked again what that meant, and what court of law had entered a judgement against me. He said that technically there was not a judgement yet, but three debt collections agencies had tried to get this money and so the claim was being filed in [redacted] County (where I reside - looks like they're smart enough now to Google area codes before they get on the phone) on May 30.

I said that I had no recollection of that account, had never been contacted by a collection agency, and that I have done business with Bank of America regularly over the past several years. I asked if he thought it was odd such an issue would not have arisen in that time. He said it was odd but he wasn't making it up and if anything someone might have stolen my identity. I said that I check my credit report regularly, and said that if someone has accumulated this debt by using my information, it would be extremely odd that it had not shown up on my credit report, and that neither BofA or a debt collection agency had contacted me in the intervening six years since the account was supposedly opened, or the four years since it supposedly defaulted. He agreed and said he was just trying to figure it since "the judgement" was against me for $20,000. At that point I told him that there might be people who fall for this sort of thing but I wasn't one of them.

He again tried to say that it wasn't up to him, there wasn't anything to "fall for" because he was looking at my folder right there, and there was a judgement against me in court. I asked in what court the claim had been heard - he said again it was going to [redacted] County and would be entered there. I said I understood that, but he had already referenced a docket number (93659) and I wanted to know what court of law had provided that docket number, since a docket number would not have been generated unless a claim had already been filed against me somewhere. He said, "The docket number is here - it's number 93659." I asked again what court of law had provided that docket number. He could not answer (obviously, since it is a scare tactic and no claim has been filed against me anywhere).

Finally I said he had already told me so many falsehoods I had no reason to believe anything he had to say - he asked, "What, falsehoods?" I said, "You called my home, you left a threatening message saying that a claim had filed against me in court and that I could face financial penalties, then when I called you said a judgement had been entered against me - none of that is true!" He asked me to hold on (sounded like he was trying to get a supervisor on the line or something) and I refused, saying "And I'm going to ask here not to call here again," and then hanging up.

Immediately following this conversation, I went online and obtained my credit reports from the three credit agencies (I had not obtained them in just over a year). Everything was in order - I printed off the reports - but while I was printing the last one an inquiry showed up on it from Marshall & Ziolkowski, a well known rip-off company who are now apparently using Moreno and Woods as a front. I immediately put a fraud alert on my reports as well. Hopefully this is the end of it, but I'm prepared to take legal action if they continue to contact me or try to report this fraudulent debt to the credit agencies.

I am just disgusted. The attitude would have been bad enough even if the debt existed, and since it DOES NOT EXIST, it's even worse. And as mad as I am, I'm glad they called me instead of someone who might have believed their scare tactics and paid them - I've worked in the legal field before (specifically, I have worked with creditors on debt consolidation and relief for the disabled and injured), I know my few debts down the cent and I am current on all of them, I am not easily intimidated over the phone, I know how to check my credit report, add a fraud alert, and dispute fraudulent claims, I know my rights and I know what information a legitimate company would have to prove any real debt - how absolutely terrified would I be if I didn't know any of those things? If I thought maybe there WAS some huge bill out there that I now had to pay or face legal penalties? These people should be in prison.

Erin points out that, should they call back, she has several options open to her:

The next steps, if they pursue this, could include me sending a demand for debt validation and/or cease and desist orders; reporting them to the BBB and relevant AGs [Attorney Generals]; and suing them for any violations of FDCPA or FCRA.

RELATED
Moreno and Woods [800notes.com]
"Report: Moreno And Woods"[Rip-off Report]

Has anyone else ever gotten a debt collection notice for a magazine they never ordered or received?

In response to this post, New York Mag's Communications Manager, Lauren Starke, said, "[T]he invoice in question was for a valid renewal order made for the magazine (which has since been cancelled through customer service and the subscriber won’t receive further invoices). I know it’s easy to lose track of everything one orders...Based on the name and zip code our circulation department was able to locate this customer's account. In this case, the specific code on the account was from a renewal offer that was mailed to her and mailed back to us."

We asked Keith for a followup response to see if there was any way his wife had somehow forgotten that she sent in a renewal, or if they even had ordered NYMag in the past at all. He says, "My wife says that when she signed up for a website www.vault.com, she started to received New York Magazine. They never charged her for it (and we barely glanced at it). When I called them (NY Mag) yesterday (shortly before I e-mailed you) the representative said (in no uncertain terms) that the subscription was made through an affiliate (no doubt, vault.com). To be clear, she has never, ever, not even once ordered or paid for a New York Magazine (subscription or otherwise)."

Despite having several opportunities to check the car's license plates, the only thing Steinberg got from the police was a $200 ticket for the parking violation the thief had committed. Steinberg sent letters to the police and DMV and informed them that his car had been stolen and he would not pay the ticket, so the DMV reported him to a collections agency.

Ticketed While Stolen: Theft Victim Vows He'll Never Pay [WUSA9] (Thanks to Dyniece!)
(Photo: Superchou)

Tom's email:

Hi Consumerist -

I recently disconnected my AT&T home phone and DSL service. I received a final bill in the mail shortly thereafter for $118. Checking the due date, I noticed that it says "due upon receipt," and I thought, "Wow, I'd better run IMMEDIATELY to the nearest AT&T store and pay this bill because I received it 2 hours ago and IT'S ALREADY PAST DUE!"

Just kidding. What I actually thought is, "Due upon receipt, my big fat white ass." And I scheduled it for payment 27 days later. Since AT&T was not capable of indicating a reasonable due date, I came up with my own, and for no particular reason, 27 days seemed about right. Seemed like the outer limit of right, but still right, still OK, still within reason.

Exactly three weeks after getting that bill, I received an extremely aggressive "collection" notice warning me that I was a delinquent and a menace to society. I honestly assumed I must have missed an earlier payment, because I couldn't fathom receiving such an aggressive collection notice only 21 days after receiving a bill from a company I've never paid a day late in my entire life (I have perfect credit).

I called AT&T and was, indeed, transferred to their collections department. FANTASTIC. A collections specialist named Barry picked up and wanted to know if I've called to make a payment over the phone to settle this unpleasant matter. And I tell him, no, I did not. I tell him I'm calling to complain about getting a rude collection notice a mere 21 days after getting a bill.

And he says, "Sir, many times we send collection notices 10 days after the bill has been sent."

And I say, "Wow, really? Doesn't that seem kind of rude and stupid?"

And he says, "Sir, I apologize but apparently you are not on our schedule, and that's when we send collection notices."

And I say, "No, Barry, YOU are not on MY schedule, and when you fail to give reasonable and specific due-by dates, I make up my own."

The Consumerist website has rightly counseled its readers never to be rude or disrespectful in situations like these, and I completely agree. I have always followed this advice and it's worked well, and everyone should always follow it. You can't always blame the underlings for the moronic and offensive decisions of its brainiac executives. There is never any excuse for abusive language, and nobody should every use it under any circumstances, ever.

But in this case I thought, screw it, enough with the executives hiding behind of the underlings who invariably tell me it's not their fault. And I let loose with an offensive and totally inappropriate insult that surprised me even as I began to speak it.

[offensive and totally inappropriate insult]

My question is, what is the official Consumerist position on bills that are "payable upon receipt" for no reason other than vendor churlishness? Do your readers actually feel obligated to snap their heels, salute, and rush out a payment immediately? What's a reasonable period of time?

38.6% demanded more money than allowed by law
19.7% harassed consumers with repeated calls
9.2% used obscene, profane, and abusive language
2% called before 8am or after 9pm
.3% threatened violence
6.5% falsely threatened lawsuits
13.2% called third parties repeatedly to get information about the consumer

Here's more information about the FDCPA. You can lodge complaints with the FTC about FDCPA violations by calling filling out this online form or calling 1-877-FTC-HELP.

In May of 2005 my wife was mugged at one of the elevated train stations in Chicago. After calling the police and filing a police report, she started calling each credit card company to cancel each account. Except she forgot about one card, her CapitalOne card. A card hardly ever used and only had a $500.00 limit...

When we got the bill, we immediately realized our mistake, called Capital One and faxed in the police report showing she had been mugged on that day. We even got the signatures on file from the local grocery store that showed the mugger's girlfriend signature was used, rather than my wife's signature. The mugger even signed my wife's last name wrong and the clerk who checked out the girl, knew the mugger (I guess they live in the same project housing complex, and threw a party with all that liquor they bought...on our dime). Anyway, any sane, logical person could see this is a pretty clear case of someone else using her card. However, Capital One refused to budge on the issue since it was out of the standard reporting time. They indicated we were responsible for all of the charges.

We tried fighting it longer and refused to pay the card. After a few months of trying to fight Capital One, the card now racked up $700.00 of late charges and over-limit fees that they said we were additionally responsible for on top of the thief's purchases. Finally, after talking to one of their bill collectors we said we were willing to pay the $500.00 of unauthorized charges and just be done with the whole thing. Them, in true greedy corporate fashion, refused that deal and said we were responsible for the whole $1200.00. We refused, and they have been sending threatening sounding collection notices since then (as well as ruining my wife's credit, for the sport of it).

Apparently, when we were on vacation this week, Capital One took us to small claims court, supposedly they sent us a notice but I am unaware and unable to find such court notice (It doesn't help that Chicago's postal system is notoriously unreliable). Since we were unaware of the court date, and we were out of town to begin with, the judge ruled in Capital One's favor. Now we have to pay them $1200.00... or we go to jail.

Mugger: 1
Capital One: 2
Average Joe consumer: 0

I'm pissed, frustrated and don't know what to do. Any advice?

-Andy

Your first action, do this now, is go to the courthouse that your case was heard at and file a motion to overturn the default judgment that was filed against you in your absence. You will have another court date, in front of a judge. You can explain there that you never got the summons to court. In most cases, the judge will overturn the default judgment and schedule another court date. I've seen this happen in CC dozens of times. Obviously it's better if you get a lawyer to help with this, but the CC Court Clerks are also pretty helpful.