Debt Collection Complaints?

Have you been harassed by a debt collector? Threated? Called repeatedly at work even though you told the collector to stop calling you there? Harassed over a debt that doesn't belong to you?

Speak up! Share your debt collection problems here. If we want enforcement of the current laws, and better consumer protection, we need to share our experiences. That's especially true now, with so many people in trouble.

Just click on the Comment link below. You can make up a name if you want your privacy, and your email address will also be kept private. But do tell us what you are experiencing.

IMPORTANT: Please tell us what state you live in when you file your complaint. Due to the overwhelming response we are getting to the new book, we may not be able to answer individual questions right away. Make sure check out our new book Stop Debt Collectors as it may answer your debt collection questions. 

Gerri Detweiler – Personal finance author and Credit Advisor for Credit.com. Gerri contributes budgeting, debt recovery and savings information online. She is also the co-author of Stop Debt Collectors: How to Protect Your Rights and Resolve Your Debts

Comments

[katherine p]

I don't know if any one would be able to help me! I recvd a judgement from something that was back in 1997. garnishment was applied, but i called the the law office who filed and speak to mr.john hail a paralegal to see if i could make arrangements to pay this debt ($5000)agreement was to pay half $2500 (which i paid) and the other half in 30 days.

i could not come up with the other half within that time. mr.hail continued to call my place of employment almost every day with threats of sueing my employer for the balance stating that the initial agreement was off and the garnishment will be a contempt of court so he will sue my employer for comtempt and punititive damages.

Mr. Hail has spoken to my employer who was upset with me which in termed threatens my job. Mr. hail will give not a inch i told my employer to just have the balance of the $2500 garnished, but Mr.hail yelled no he wants the money now!

I don't have that kind of funds, i am a single mom supporting two kids in college and still 2 small kids at home. I cannot afford to lose my job. my boss is upset with me and states i will have to pay her attorney cost and court cost if she has to go to court. my boss will be calling her attorney today and i will get the bill, how am i going to pay for this i do not know!

I am getting more in debt all around. Mr.hail states he wants me whole check plus more and my boss want money for attorneys! how do i pay my rent and feed my children and buy gas for work!

This has totally depressed me. my questions is can people ruin your life like this? do I have any rights? how can this happen? am so angry at the same time i want to fight back. who can help?

IS THERE ANYONE WHO CAN HELP ME? AM GOING TO LOSE MY JOB, THAT MEANS I LOSE MY APARTMENT EVERYTHING!! HELP PLEASE ANYONE!!

[Gerri]

I am so sorry you have been through this!

These sound like very high pressure - and quite likely illegal - collection tactics to me.

First, you owe the debt, not your employer. Your employer cannot be sued to pay your debt. (In fact, you cannot be fired over a single instance of wage garnishment.)

Secondly, in a few states if there is a court order for a specific payment plan and you don’t adhere to it, then you could be considered in contempt of court. But it’s not likely the collector cannot “file contempt of court” proceedings against you simply because you didn’t follow a voluntary payment arrangement. And they certainly cannot sue your employer for it.

Your employer does not need an attorney - you do!

I would strongly encourage you to immediately make an appointment to talk with a consumer law attorney (visit www.naca.net to find one in your area who handles debt collection cases.) The collector may well have engaged in illegal harassment, and a consumer law attorney may be able to help you resolve the issue. The first consultation will likely be free. Please make an appointment today.

Please keep in mind I am not an attorney and this is strictly educational advice.

Please let us know what they attorney says!

What can I do to stop NCO from harrassing me about a debt they claim is mine and overdue. They called yesterday and said the debt was incurred in 2002 and it was with IDT Telecomm.

I told them I was not going to pay them anything unless I looked into this myself. The pushy rep told me that I could would not be able to get any info from IDT anyway because the debt was turned over to NCO.

So I sent to NCO today a letter disputing the debt and to provide me with information that outlines my date of activity with IDT Telecomm or date of service from IDT Telecomm.

NCO called again today and pushed me to try to pay them over the phone for this unsubstantiated debt. I told them i sent them a letter disputing that this debt was valid and that i was not going to pay until i get more information on this debt. The rep rattled off some verbiage that "any information about you will be used to collect this debt, and yada yada" then hung up.

I called NCO and told them to quit calling me until they can substantiate this debt. And again the rep rattled off their legal verbage at me and hung up.

What can i do to stop their calls? And what is the statute of limitations on uncollected debts. 2002 is so far back. I have no idea what this debt is about and why it has reared its ugly head now (in 2008)! That's 6 years later. Why couldn't this have come up back in 2002 or 2003 if it is indeed a valid request to collect a so called debt?

I currently live in New Mexico but back in 2002 I was living in Maine. I'm afraid I've opened a Pandora's box because prior to my making the call to NCO to dispute the bill, they did not have my phone number. Now they do and I've been getting their harrassment calls.

[Gerri]

Regarding NCO - hopefully you sent your letter certified mail or with delivery confirmation so you know when they received it. As soon as they do, the calls should stop until they verify the debt. (Likely your verbal dispute should have stopped the calls too, so a consumer law attorney may already believe you have a case against them.)

I would recommend you make sure you have downloaded our free worksheet at www.Credit.com/StopDebtCollectors to record all the calls you receive from them as well as your conversations with them. Hopefully you have also read our new book Stop Debt Collectors: How to Protect Your Rights and Resolve Your Debts so that you understand your rights and know how to respond to any possible violations.

Once they have received your letter they must validate the debt in writing. If they don't, or if they continue to call and pressure you to pay then you can take one of the actions we describe in the book including filing a formal complaint and/or consulting a consumer law attorney.

As you point out, the statute of limitations may have run out on this debt - or may be about to. (In New Mexico it is 4-6 years depending on the type of debt.) You don't state how large the debt is, but generally the larger the debt the more likely a creditor/collector will sue before the statute of limitations expires.

Good luck -- we would like to hear what happens!

[Maggie McDonough]

I messed up a few years ago by going to Debt Settlement of America in Texas. I live in Los Angeles. Long story short I was able to resolve 2 out of 3 debts. I have a 3rd disputed debt with Bank of America who sold my disputed debt to MEXICANA??
Anyway, I have received 2 phone calls in the past 2 months from Harris & Zide law firm in pasadena, CA telling me they are collecting unpaid debt bought by Frederic Hanna & Associates in Marietta, Georgia. I paid Frederic J Hanna $4000.00 on 11/14/06 before I found out I have rights and they were illegally hasseling me. My question is how do I respond? I live in California, the debt is owned in Georgia but on the statements sent to me have a logo of MEXICANA on the top left hand side of every page but Bank of America's name is still on the statements......
I don't know who if anyone owns my disputed debt. Am I making any sense?
I am working on having a clean credit slate.
I would appreciate any assistance in this morass of credit debt.
thank you
maggie mcdonough

[Leigh]

Question about identity theft and validity of police report

---------------------------
Here's my situation... In 2003 (I lived in NY at the time) my purse was stolen along with all my personal information. Shortly after that several lines of credit were opened in my name. I filed a police report with my local police department and took care of all the known fraudulent accounts.

This year (2008) I was contacted with a debt collector that had aquired a debt that had been fraudulently obtained in my name. According to them, I am required to send them a notarized letter explaining that the debt is not mine, copies of documents that prove that I did not live at the address at the time the debt was incurred, and a police report.

I told them that I would have to obtain a copy of the police report since it was filed 5 years ago and I was unable to find the copy that I had previously recieved. The debt collection agency insisted that I would be able to file a police report where I currently live (Ohio). I called the local police department several times and was each time informed that they could not file a police report for something that happened in New York. I even talked to a detective and explained the situation. He was unable to help me.

So, about a month ago I requested a copy of the original police report from New York. I called a week ago to check on it because it still hadn't arrived. They told me there was an 8 week turnaround.

Tonight I got a call from the debt collector again. The woman was very rude to me and when I told her I was still waiting on a police report she told me that police report would no longer be valid and that I ought to go ahead and pay the debt. I told her it wasn't my debt and I wasn't going to pay it. She then hung up on me.

So... is this true? The original police report I filed is no longer valid? If that's the case what am I supposed to do? I've been told by multiple people by in the local police department that they can't file one here.

Sorry this was so long, but I wanted to include all the information I could.

Any advice is much appreciated!

[Gerri]

Ugh, what a mess!

Although I am not an attorney, in my research on debt collection law with my coauthor, consumer law attorney John Ventura, I have not come across anything that would indicate a legal basis for their demand that you send them detailed proof that this debt is not yours.

In fact, when you are contacted by a debt collector for the first time you have the right to request that they send you verification of the debt.

It sounds like they are trying to turn the tables on you and make you prove the debt is not yours!

If you are confident that you do not owe this debt, you may want to send them a cease communication letter, asking them not to contact you again. Explain why (that the debt was due to identity theft), and send the letter certified mail. If they contact you again, it will be to notify you that they are taking legal action against you. At that point you can contact an attorney for help.

Of course, now, or at any point you may want to consult a consumer law attorney if you believe this debt collector has broken the law in its interactions with you.

Good luck!

[Leigh]

Interesting. I thought I had read that they were within their rights to ask me for this documentation. Yes, I know I read this. It's in the fraud affidavit information that you can get in various places on the internet. Unless I'm reading it wrong.

They did send me a photocopy of a Verizon bill (that was the creditor), but that's not proof that it was me I guess. I suppose I could push them to send me a document proving that it _was_ me. Like a signed application or something. They are very nasty on the phone though. I guess I'd have to request in writing.

Anyway, the good news is that I was finally able to get a local police officer to come and take a police report. I was more vauge on the phone and just told them I needed to file a report on ID theft, and didn't give any more details until the officer was here.

Apparently the old police report would not have been acceptable because it didn't document this EXACT debt. So, if that's the case I will have to get a new police report every time I learn of a new fraudulent debt. This is a PITA.

Thanks for your response. I wish I understood this stuff better.

[Lisa Jones]

Hello, I am a credit repair counselor and saw your quote on Oprah's website regarding negotiating a payoff for an old debt starting with a pay-off of 50% or 20% for debts 5-10 years old. I heard about the IRS form 1099C for debts waived over $600. Can you explain when a consumer would get a 1099C and how often it occurs?
Thank you.

[Gerri]

The creditor is required to send a 1099-C when they forgive $600 or more in debt. Do they do this? In many cases, yes. I spoke recently in front of a group of tax professional (Enrolled Agents) and they are seeing a lot of 1099cs. So anyone who has debt forgiven -- except through bankruptcy - should expect to receive one.

As for whether you have to pay it, that's another matter. Here's what the IRS says on the matter:

....do not include canceled debts in your income to the extent you were insolvent. If you exclude a canceled debt from your income because it was canceled in bankruptcy or during insolvency, or because the debt is qualified farm debt, qualified real property business
debt, or qualified principal residence indebtedness, file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment).

[sonia]

A MAN CALLED AT 830AM FROM NCO FINANCIAL SYSTEMS INC STATING HE WAS CALLING ABOUT A BILL OF CITIT BANK (MACY'S) WHICH HE WANTED TO RECEIVE PAYMENT, I TOLD HIM OK BUT I'M CURRENTLY NOT WORKING BUT I HAVE MADE A PAYMENT OF 16.OO OF WHICH IS WHAT I CAN AFFORD RIGHT NOW, HE BEGAN INSULTING ME WITH COMMENTS SAYING THAT ISN'T ANY TYPE OF PAYMENT AND I HAVE NO CHOICE BUT TO MAKE A PAYMENT OF OVER 60 DOLLARS. HE THEN TOLD ME, THAT I HAVE TO BE WORKING OR ELSE HOW DO I PAY MY BILLS, AND I STATED THAT I DON'T WORK RIGHT NOW AND I HAVE OUTSIDE HELP, AND HE SAID, 'THEN I BETTER GO TO TALK TO MY OUTSIDE HELP OR ELSE HE'S GOING TO PURSUE FURTHER ACTION.' HE ALSO STATED THAT I'M REFUSING TO MAKE PAYMENT, AND I KEPT TELLING HIM, I'M NOT REFUSING AND ALL I WOULD LIKE IS LETTER OF SUCH PURCHASE, BECAUSE I'VE REQUESTED FROM MACY'S AND DIDN'T RECEIVE ANYTHING. AND HE STATED THAT HE WILL NOT SEND ME ANYTHING AND I HAVE TO PAY AND HE'S GOING TO WRITE DOWN THAT I REFUSE TO PAY. I TOLD HIM I WOULD LIKE HIS INFORMATION AND ADDRESS SO I COULD WRITE A LETTER AND HE BEGAN REDUCULING ME SAYING, WHAT FOR, WHAT AM I GOING TO WRITE IN MY LETTER AND THAT HE WILL NOT GIVE ME HIS INFORMATION AND HUNG UP ON ME.

[clb]

I have been disputing a delinquent Capital One account that was opened on 3/1/1996 for the past four years. It was finally removed and then in August 2007, it re-appeared as a derogatory on my credit report by Portfolio Recovery Services, who said they purchased the account on 8/23/2007. They have said in phone conversations that the last payment on the account was in 2001. I have asked them for the records on the account for the past year, including the method of payment in 2001. They have now sent me an Identity Theft Affidavit to fill out (I never asked for this)and no other new information. I live in California.
Isn't this past the the reporting period? When will they legally have to remove this? What can I do to resolve this?

[Gerri]

Sonia,

The "refuse to pay" argument is one that is commonly made by debt collectors. Don't sweat it. It doesn't matter anyway. He's just trying to pressure you to pay the debt.

If you cannot pay, you cannot pay. Make sure you keep records of all conversations with the collector using our free debt collector contact worksheet.

As we point out in Chapter Two of Stop Debt Collectors, you have to prioritize your payments and do the best you can. Hang in there and I hope you find work soon.

[Gerri]

Collection accounts may be reported for seven years and six months from the date you first fell behind leading up to the delinquency. The last date of payment isn't really relevant, unless that was the last payment before you fell behind.

When did you stop paying on this account? That's when the 7.5 year reporting period starts. We've devoted an entire chapter in Stop Debt Collectors to this topic, because it is one where so frequently there are problems.

[Gerri]

Leigh,

Regarding my earlier advice on your question about the old identity theft debt you are being hounded for, I double checked my advice (above).

I received a reply from Super Lawyer Robert Brennan at BrennanLaw.com. Robert is very knowledgeable on both id theft and debt collection laws. Here is what he had to say:

"Gerri, the debt is complete b.s. and tell your reader that there is no need to pay. She can take her sweet time getting the police report because she has an absolute defense to any lawsuit brought against her. However, she should continue to do what she can to get the police report. Perhaps the credit bureaus or other former creditors may have retained copies. If she has to wait the eight weeks for the NYPD to get it to her, there’s no rush, really. The lady who told her that “a police report is no longer valid” was lying, as debt collectors have been known to do.

If she cannot file a police report with a local agency in Ohio, she can always file an identity theft report with the Federal Trade Commission (www.ftc.gov), and she can also file one through the Federal Bureau of Investigation or the Office of the Comptroller of the Currency (“OCC”). Each would have the same force and effect as a police report.

If I were she, I’d just start tape-recording the phone calls to put together for herself a fine case under the federal Fair Debt Collection Practices Act. If she wants a referral to an Ohio attorney, have her contact me."

Robert has a great deal of good credit advice on his website at SoCalCreditDamage.com.

[scott andrew]

I had 15,400 dollars that a lawyer bought and put a lien on my wages. I am now unemployed and struggling to make ends meat. The interest they charged was $4.22 A DAY. They garnished over $6,000 dollars from the Sheriff Lean. How do I go forward and resolve this open issue. What do I say and what do I not say to the lawyer? How do I find the date of breach of contract to see if the statute of limitations may have passed.

Kind regards.

[Lianne]

I have a credit card that is late and overdue. I have asked the creditor to not call my job (twice I've asked this) as I am unable to receive personal phone calls. They have my home phone as well as cell phone as contact. They never leave messages when they call my home/cell, and they continue to call my job. My job has caller id so it's very embarrassing to see card services show up on the phone at my job and then they are asking to speak with me. Sometimes they will hang up when someone answers and sometimes it's automated versus a representative. Is there anything I can do to stop them from calling me - other than paying? I've had a very good credit history with them, but with the economy I've paid late somet times and other time I have been unable to meet the minimum balance because they have increased my interest rate to 28%! Help!

[Gary]

US BANK calls looking for someone not associated with my phone number. We have told them to not call, they continue to call stating my phone number is the one they have on file and they will continue to call me. I have filed a complaint on-line with the "do not call" registry, FTC.gov & the Ohio AG's office. Where or what do I need to do next to file a lawsuit or to gen them to stop calling me to obtain information about someone who does not live here or should be linked to my phone number.

[Not Going to Take This Any More]

Portfolio Recovery Associates is Bad News!

If you have had an encounter with someone from Portfolio Recovery then you aare probably feeling angry, insulted, humiliated, demeaned and frustrated.

This company’s bad business practices must be stopped. If those of us who have been abused by this company fail to speak up then no one with the authority to stop this company is ever going to pay attention or seek to investigate because we sit by and are quiet.

I am writing to say to everyone that we MUST take the time to record statements against this company here on this site, and also on as many Internet sites or blogs or discussion groups as we can each find.

You don’t have to write a long statement when you post – but you need to at least document in several different places on the Internet that you had a negative experience.

Even if your encounter was several years ago, but you still carry the emotion inside yourself from how the encounter makes you feel years later – then you too need to take the time to record your complaint.

If enough of us will stand up and begin to document on this company, then eventually some responsible entity is going to realize that this company is out of control and needs to be stopped.

My hope is that some local or national television news program which is searching for an investigative piece will choose to expose this company – but that can only happen if we will each take the time to write our experiences down and post on the Internet so that the negative PR against this company can no longer be ignored.

If you are just beginning to enter a situation with this company then you should know that everything you read on this site and other complaint sites regarding this company is true. You cannot believe anything they tell you because they lie, lie, lie! And they will harass you at home and on your job, plus they will do all the things that we are told as consumers that collection agencies cannot do. They will ignore you when you ask them questions or refuse to listen when you notify them in writing to no longer call you on your job. They will disclose your personal business on voice mail messages where others can hear what is being said. They will literally yell at you on the telephone when they call. They will say horrible things to you and accuse of things when you cannot pay.

These are heartless people who will say anything and do anything they can to get money. They are rude and will not hesitate to attack you verbally when talking to you. They are giving collection agencies a very bad name. They will make arrangements and then change their mind without any notice.

Their so-called litigation department is a disgrace and if they really are lawyers (which I don’t believe most of them are) – then they should be disbarred for inappropriate and unprofessional actions. They will try to come after you about debt even after you consult a lawyer who says they are too late. They will report false debt to your credit reports. They will issue judgments against you with increased dollar amounts beyond the debt amount. I’ve not experienced all of these things personally but I know people who are dealing and coping just as I am with these crazy people.

This company needs to be shut down and their employees need to be hit hard by our national Internet campaign to warn others about them and to speak up about how they behave.

Most of us who have dealt with any other collection agencies know that this particular company is the very worst of the bad ones.

Please join me in an effort to get this company exposed for how they operate. EVERY time they call you and harass you, post a complaint somewhere on the Internet – EVERY time! Don’t let them continue to do this to you or to anyone else.

Writing to the Better Business Bureau does no good because they will just turn it all around in their rebuttal – so that’s a waste of time. Instead we need to publicly humiliate them in the same way they do us each time they make contact.

If you are willing, send a letter to the Attorney General for your state telling them about your bad experience with this company.

Stop the madness. Let’s all work together to put in writing enough documentation that will enable a state or national agency to finally put these guys out of business!!! Please share the link to this site so others can learn of my call to action against this company.

[Leigh]

I just wanted to let you know that I got my identity theft resolved finally. I did get the Ohio police to file a new report for me (only had to talk to about 50 people to get that to happen- LOL), sent everything off with a sort of snotty letter. I requested in the letter that they inform me in writing when it was resolved, which they haven't done and I'm guessing they won't, but I haven't heard back from them since.

Thanks for all the advice!

[Gerri]

Thanks Leigh for keeping us posted. Hopefully it will be resolved and you can move on.

[Cindy Merrill]

From Kentucky:Former students who default on their student loans are not only denied their college transcripts, they're not eligible for Job training programs UNTIL
they've paid off their loans. This helps to keep millions of social workers
gainfully employed because their clients cannot find decent jobs and are therefore trapped with nowhere to turn except for welfare or a life of crime.
This merciless catch 22 dooms thousands of Americans, like myself, to a marginal life, at best. The most recent job experience I had was working at Mcdonald's over 6 months ago. Please explain what options I have open to me. How can I hope to pay off my student loan without an opportunity to improve my
job skills???