FCRA Tag

by Paul Mankin

Can a debt collector contact me after the statute of limitations has passed?

Yes, a debt collector can contact you after the statute of limitations is up. This is because the statute of limitations on debt collection only limits the amount of time a creditor or debt collector has to sue you in an attempt to collect on the debt; it does not limit the amount of time they have to attempt to collect the debt in other ways.

What Can a Debt Collector Do to Collect on a Time Barred Debt?

Once the statute of limitations on debt collection is up, a creditor or debt collector is time barred from suing you in order to collect on the debt. The statute does not apply to other attempts to collect, such as:

• Sending you bills
• Calling you and asking for payment
• Accepting payments on the debt
• Mailing you collection letters

These collection attempts are still subject to the Fair Debt Collection Practices Act (FDCPA) and may not violate any of the Acts provisions.

The FDCPA and Collection Attempts on Time Barred Debt

The FDCPA is a federal law that was passed in 1977 in order to help protect consumers from unfair, deceptive, and abusive practices by debt collectors. The Act prohibits a number of particular collection practices and leaves it up to the Court to determine if other practices, not specified by the law, are covered prohibited practices. Some of the things that a debt collector may do when attempting to collect on a debt after the statute of limitations has expired which violate the FDCPA include:

• Implying that not paying the debt may result in arrest, garnishment, or seizure of your assets
• Threatening to file a lawsuit if the debt is not paid
• Misrepresenting the legal status of the debt
• Falsely indicating that the sell or transfer of the debt will result in your loss of any legal defenses to payment of the debt
• Sending you documents made to look like they were issued by a court or other government agency

These are all prohibited collection practices commonly employed by debt collectors when a lawsuit is impractical, not financially feasible, or time barred by the statute of limitations in an attempt to then bully or scare you into paying the bill since legal action is no longer an option.

What to do if a Debt Collector Contacts You After the Statute of Limitations is Up

Depending on your state’s statute of limitations on debt collection, anything you say or do concerning a debt may start the time limit the debt collector has to sue you all over again. Therefore, you should be very careful when dealing with time barred debt. What you should do depends on how the debt is affecting your credit and if the debt collector’s actions are in violation of the FDCPA. An experienced consumer protection attorney can help you with this.

If a debt collector is attempting to collect a debt from you and the statute of limitations is up, please contact our office at 1-800-219-3577, for a free, no obligation consultation. We can help you determine the best course of action to stop the harassment, settle the debt, repair your credit, and possibly get the collector to pay you money.

by Paul Mankin

Do I owe a bill if it is not listed on my credit report?

Has a collection agency contacted you claiming you owe a bill you do not remember incurring and that does not appear on your credit report? Many unpaid bills will not appear on your credit report until after they have been turned over to a collection agency and some will never find their way onto your report.

When an Unpaid Bill Will Appear On Your Credit Report

When an unpaid bill appears on your credit report is basically up to the creditor to whom you owe the debt or any collection agency the original creditor hires to collect on the unpaid balance. Many creditors never report unpaid accounts to the credit reporting bureaus. Creditors unlikely to report anything at all on your credit report include:

• Local utility companies
• Insurance companies
• Small local businesses and trades people, such as plumbers, electricians, and accountants
• Landlords
• Credit Unions and small financial institutions

Other creditors may begin reporting an account as delinquent as early as 30 days after payment in full has not been made, may wait until the account is seriously past due to report anything, or may never report the account delinquency to the credit reporting agencies at all. Debt collectors, on the other hand, may begin reporting a past due account to your credit report as soon as they are hired to collect on the account or may attempt to collect on the debt for any number of days or months before reporting information about the account. Reporting information to the credit bureaus is completely voluntary and no creditor or debt collector is required to report anything at all. However, a debt collection agency is very likely to report a past due account on your credit report, as they use this as a way of getting you to pay the bill.

How to Determine if You Owe a Bill a Debt Collector Says You Do

Checking your credit report to see if the past due bill appears on it is not a good way to determine if you owe a bill, as it may simply have never been reported to the credit reporting agencies. In order to determine if you owe a bill that a debt collector says you do, you should:

1. Ask the collection agency to send you debt validation information. This information should include the name of the original creditor, the amount of the debt, and legal notices about disputing the debt. Once you receive the information, you have 30 days to dispute the debt and request the name and address of the original creditor.
2. Send the collection agency a simple letter saying that you dispute the debt and are requesting the name and address of the original creditor. Be sure to do this within the 30 days. The agency must then provide you with verification of the debt, such as a written contract or judgment, and the name and address of the original creditor.
3. Contact the original creditor and ask what the debt is for, when it was incurred, and to verify your name, address, date of birth, or any other information they may have to help you determine if the account belongs to you and if it is in fact past due.  

What to do if You Do Not Owe a Bill a Collection Agency Says You Do

If you determine that you do not in fact owe the bill that the collection agency says you owe, what you should do next depends on why you do not owe the bill.

You Paid the Original Creditor and Should Not Have Been Turned Into Collections

If you already paid the original creditor and the bill should not have been turned over to a collection agency, you will need to prove to the collection agency that the debt has been paid. The easiest way to do this is to contact the original creditor and get them to agree that the bill was paid and to notify the debt collector that they should stop collection attempts against you. In order to do this, you may need to provide proof of payment, such as cancelled checks, bank or credit card statements, and/or copies of bills the creditor previously sent you showing the balance as paid. If the creditor does not agree that the bill has been paid and allows the collection agency to continue collection attempts, you can try to submit evidence of payment to the agency, although as long as the original creditor claims you owe the bill, a debt collector is unlikely to stop trying to collect on it.   

The Bill Belongs to Someone Else

If you are not the person who incurred the charges that the collection agency is attempting to collect, you should explain this to the agency and then cooperate with them by completing any forms they request or providing any information you can in order to prove that you are not the person who owes the bill. If the debt is a result of identity theft, you may also want to see What To Do If You Are The Victim of Identity Theft.   

Your Health Insurance Company Should Have Paid the Bill

When a debt collection agency is attempting to collect on a medical bill that your health insurance company should have paid, it will do you no good to argue with the agency or even explain to them that your insurance should have paid the bill. Debt collectors are hired by original creditors to collect whatever amount the creditor claims is owed and have no authority to contact an insurance company about payment of a bill. Therefore, you will need to work out payment of the account with your healthcare provider and insurance company and then ask the provider to inform the collection agency that the bill has been paid and collection attempts should stop.

I Do Not Owe a Bill, But the Collection Attempts Will Not Stop!

If you have determined that you do not owe a bill that a debt collector is attempting to collect and have done everything you can to prove to the original creditor and the debt collector that you do not owe the bill, but it isn’t working, you can try filing a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB is a federal government agency created to help protect consumers from unfair and abusive practices of financial institutions such as banks, credit card companies, and debt collection agencies. The CFPB will forward your complaint to the collection agency and ask for a response. This may convince the debt collector to investigate your claim more thoroughly and close the account as paid or not owed. You can file a complaint online by visiting the CFPB’s File a Complaint web page.

If filing a complaint with the CFPB does not resolve your issue with the debt collector, you may need to consult a consumer attorney to help you stop the harassment and possibly even get you money from the collection agency. If you live in California and are being harassed or abused by a creditor or debt collector please contact our office at 1-800-219-3577, for a free, no obligation consultation.  

by Paul Mankin

Owner Resource Group Purchases Debt Collection Agency

Owner Resource Group is a private investment firm located in Austin, Texas. In 2016 the company acquired GC Services, one of the country’s oldest and largest providers of call centers and debt collection services. The collection agency collects for a wide range of businesses and government entities, including utility companies, credit cards, retailers, and mortgage companies.  It has been in business since 1957 and has more than 20 locations and 8,000 employees.

Since GC Services’ purchase by Owner Resource Group, it has had a handful of lawsuits filed against it for violating the Fair Debt Collection Practices Act (FDCPA), a federal law enacted by Congress in 1977 to help protect consumers from unfair, deceptive, and abusive collection practices.  Consumers have also filed several complaints with the Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB).

Complaints Against Owner Resource Group’s GC Services

Since Owner Resource Group’s purchase of GC Services, the collection agency has had over a dozen complaints filed against it with the BBB and CFPB. These complaints allege that the debt collector violated the FDCPA:

• Continued to contact a consumer after being asked in writing to stop
• Failed to provide consumers with debt validation information
• Reported false information to the credit reporting agencies
• Contacted third parties about a consumers debt
• Continued contacting consumers after being told repeatedly they had the wrong person
• Contacted consumers at work when they knew the employer did not allow that type of call
• Attempted to collect fees not authorized by the original contract

Many of the complaints also allege that the debt collector refused to honor payment arrangement agreements and failed to report accounts as disputed on consumers’ credit reports.

Law Suits Against Owner Resource Group’s GC Services

In October of 2016, both GC Services and Owner Resource Group were sued by an Indiana resident for falsely informing her in a collection letter that a dispute of the debt must be in writing, when an oral dispute is valid under the FDCPA. In June of 2017, the court found that the law “plainly does not impose a writing requirement” when disputing a debt. The lawsuit was certified as a class action suit by the court in July of 2017 and has not yet been concluded.

In 2017 a complaint was filed by the Federal Trade Commission (FTC) in federal court in the Southern District of Texas. The FTC alleged that GC Services left voicemail message that disclosed information about consumers’ student loan debts to third parties and called consumers multiple times after being told they had the wrong person or the wrong number. The collection agency settled the lawsuit, agreeing to pay $700,000 in civil penalties.

Another lawsuit against GC Services was filed in Michigan in 2018, alleging that the debt collection agency violated the FDCPA in its attempts to collect on debts owed to the Michigan Treasury Department for back taxes. The letters contained the state of Michigan seal, a state of Michigan email address, and included a physical address is in Lansing, although the company is located in Texas. Under the FDCPA, a debt collector cannot falsely imply that is it affiliated with any government agency, which the letters clearly did. The complaint also alleges that the debt collection agency’s letters demanded payment within 10 days and threatened to levy consumers’ property and/or garnish their wages if payment was not received. The lawsuit has not yet been settled.

In December of 2018, a proposed class action lawsuit was filed in Texas alleging that GC Services’ failed to disclose in a collection notice that the consumer’s American Express debt was incurring interest and fees. The complaint says that this is an unfair, deceptive, misleading, and unconscionable way to collect on a debt and caused the Plaintiff to be unable to prioritize paying her debts properly, causing her damage. The suit is still ongoing and no settlement agreement has been filed or decision issued.

If Owner Resource Group or GC Services is using any unfair, deceptive, or abusive practices in order to collect a debt from you, it is time to hold them accountable for their actions. Please contact our office for a free, no obligation case review at 1-800-219-3577.

by Paul Mankin

PNC Bank Accused of Assisting in $85 Million Fraud Scheme

A federal lawsuit filed in June of 2019 in Florida’s Southern District court alleges that Jeremy Lee Marcus used PNC Bank accounts to run a fraudulent debt relief scheme that bilked consumers out of $85 million. Marcus used over a dozen business names, including 321 Loans, Helping America Group, Instahelp America Inc. and Financial Freedom National Inc., 142 internet domain names and 440 direct-dial phone numbers to convince consumers to participate in the phony debt relief program. The lawsuit was filed by Miami attorney, Jonathan Perlman, who was appointed receiver in a previous suit filed by the Federal Trade Commission (FTC) in May of 2017. As receiver, it was Perlman’s job to manage and investigate Marcus’ affairs and attempt to recover funds for consumers who were defrauded.

Marcus’ debt relief companies falsely told consumers that their unsecured debts would be settled or payment terms modified to reduce balances, interest rates or fees. Some were sent what appeared to be loan documents for low interest rate loans that were supposed to be used to consolidate and pay off their debts. Consumers’ bank accounts were debited monthly to pay off remaining debt, however, no loans were ever made and monthly payments were not applied to the consumers’ debt. Consumers eventually were told by their creditors that no payments were being made, and many were sued by their creditors, left in financial distress and forced into bankruptcy.

According to the lawsuit, “more than $32.8 million passed through PNC Bank accounts over the life of the banking relationship between the bank, Marcus, and the various companies he created.” Shortly after Marcus began his debt relief scheme in 2014, PNC Bank became suspicious of his companies activities and shut down his accounts. Despite this, PNC Bank resumed its banking relationship with Marcus just nine months later. The lawsuit alleges that PNC Bank assisted Marcus in funneling millions of dollars through his various PNC accounts and hundreds of thousands of dollars to offshore accounts held by Marcus’ different business entities. Marcus has repeatedly refused to comment on his relationship with PNC Bank and bank officials have stated that the bank does not comment on legal matters.  The SunSentinel reports that a spokeswomen for the U.S. Attorney’s Office in the Southern District of Florida said by email that the Department of Justice “does not confirm or deny the existence of an investigation” into PNC Bank.

If you believe that you were a victim of a fraudulent debt relief agency, please contact our office for a free, no obligation consultation at 1-800-219-3577.

by Paul Mankin

Does a Debt Collector Violate the FDCPA By Offering to Settle A Time-Barred Debt?

Holzman v. Malcolm S. Gerald & Assocs., Inc.

In a recent published decision by the Eleventh Circuit Court of Appeals, the court reviewed a district court’s dismissal of a set of federal claims against a debt collector for attempting collect on a time-barred debt. As detailed in the Southern Florida District Court case Holzman v. Malcolm S. Gerald & Assocs., Inc., Plaintiff Holzman asserted claims under the federal Fair Debt Collection Practices Act (FDCPA) and various Florida state consumer protection statues arising from an attempt by the defendants to collect on a time-barred debt. In brief, the plaintiff alleged receiving a collection letter that violated § 1692e and § 1692f of the FDCPA for being “false, deceptive, or misleading” and “unfair or unconscionable,” respectively.

On the defendant’s motion, the district court dismissed the plaintiff’s claims under Federal Rule 12(b)(6), finding no violation under either section of the FDCPA and declining to exercise jurisdiction over the remaining state law claims. On review, the appellate court reversed the lower court’s dismissal of the § 1692e claim and reinstated the Florida state law claims. In its review, the Eleventh Circuit panel agreed with the lower court that an attempt to collect a voluntary repayment of a time-barred debt is not “unfair or unconscionable” under § 1692f of the FDCPA but carefully reconsidered the district court’s rationale regarding whether the collection effort was “false, deceptive, or misleading” under § 1692e.

In its decision in Holzman, the court stated its controlling principle that the FDCPA permits a collector to seek voluntary repayment of time-barred debt as long as the collector does not initiate or threaten legal action in connection with its collection efforts. Citing matters in the Fifth, Sixth, and Seventh circuits, the court noted that a collections letter offering to “settle” a time-barred debt would amount to a threat of legal action in violation of § 1692e of the FDCPA. In Holzman case, however, the defendant’s collection letter uses the word “resolve” effectively in place of the word “settle,” which the Holzman court found to be benign compared to “settle.” Finding that the word “resolve” failed to raise the defendant’s collection letter to the level of threatening necessary to violation § 1692e, the district court dismissed the plaintiff’s claim.

As noted by the appellate court in reviewing the Holzman dismissal, the FDCPA is intended to protect even the least sophisticated consumer. Consumers of many levels of sophistication may reasonably be unaware of what time-barred debt is or the fact that it is not illegal to attempt collection of time-barred debt even if legal action could not be sustained. It is far less likely that consumers of any sophistication would understand the legal distinction between a letter that uses the word “resolve” in regard to old debt versus “settle.” At the end of the day, the purpose of § 1692e is to prevent the consumer from being fooled or tricked by a debt collector, and protection of even “the least sophisticated consumer” requires the courts to conflate words like “resolve” and “settle” and any comparable language that suggests the existence of an active dispute or implies that something will happen but for the recipient’s compliance with the letter’s demand.

Using language such as “settle” or “resolve,” the court notes, is not unlawful in itself, so the burden of the lower court’s decision was not unduly heavy on the defendant. Had the defendant used the word “settle” in place of “resolve,” it simply would have been required to also state in the letter that the debt is time-barred and not subject to legal action. The Eleventh Circuit found that this additional requirement, which is designed to protect the consumer under the FDCPA and correlating state laws, is not a heavy burden and should be included in letters where there is any suggestion whatsoever that there will be a consequence for failing to comply with the collection letter’s demands.

by Paul Mankin

Can a Debt Collector Send A Collection Letter With A Visiable QR On The Envelope?

DiNaples v. MRS BPO, LLC, et al.

In a recent published decision, the Third Circuit Court of Appeals upheld a judgment issued by the Western District of Pennsylvania in a class action matter regarding the lawfulness of printing confidential information in the form of “QR” codes on the outside of collection letter envelopes.

Under the Federal Debt Collection Practices Act (FDCPA), collectors are prohibited from printing confidential or sensitive personal information on the accessible portion of an envelope or other mailer sent to a borrower for the purpose of collecting a debt. Under the court’s prior decision in Douglass v. Convergent Outsourcing (765 F.3d 299), it was determined that printing a borrower’s internal collections account number on the outside of a collections letter envelope constituted unauthorized disclosure of confidential information in violation of the FDCPA.

In reviewing the recent matter of DiNaples v. MRS BPO, LLC, et al. (D.C. No. 2-15-cv-01435), the court was faced with the question of whether a “QR” (or “quick response”) code in which a debtor’s account number is in bedded constitutes an unlawful act or a violation of the FDCPA. In DiNaples, the plaintiff debtor received a debt collection letter inside an envelope bearing not only the plaintiff’s name and address but also a scannable QR code. Upon scanning the code with a free app on the plaintiff’s smart phone, the plaintiff was directed without any further action or barrier to her account number provided by the debt collector.

On filing legal action on her own behalf and on behalf of those similarly situated, the plaintiff sued the defendant collector for violating the FDCPA by making unauthorized disclosures of confidential information. The district court certified the class action and, in response to cross motions for summary judgment, found in favor of the plaintiff class, finding unequivocally that the actions of the defendant collections agency violated the FDCPA. The defendant timely filed an appeal, arguing that it was a simple, harmless error of fact and that it innocently misunderstood the law’s specific prohibitions regarding printing information on collections envelopes. The Third Circuit Court of Appeals reviewed the matter and sided in full with the lower court’s ruling in the plaintiffs’ favor.

In its de novo review, the appellate court asked whether there was a legal equivalent between the QR codes printed on the envelopes at issue and printing the borrowers’ account numbers as was determined prohibitive in the Douglass case. The Third Circuit panel found that the problem with printing account numbers on collections envelopes is because it results in disclosure of confidential information and that providing account numbers by QR code is not functionally different. In the case at issue, the same confidential information was simply made available via a QR code that can be scanned without tampering or otherwise leaving any indication for the recipient that sensitive information was accessed by a third party. Since QR codes can be scanned using any number of free applications and since nearly everyone is in constant possession or at least has access to a smart phone these days, the account number revealed by scanning the code is effectively equally accessible as simply printing the account number on the envelope.

The court made no finding as to whether the same violation would occur if a password or other information were required to access the account information after scanning the QR code, but the appellate court was clear in its rejection of the defendant-appellant’s argument that providing access to the account numbers via unprotected QR codes was excusable error. In sum, the court concluded that printing embedded confidential information in a QR code on the outside of a collections envelope is the legal equivalent of printing the confidential information directly on the envelope and that both constitute unauthorized disclosures in violation of the FDCPA.

Significantly, the appellate court’s opinion also included an analysis of the plaintiff’s standing to file the matter in Federal court in the first instance. The Court notably disagreed with the defendant-appellant collector that some actual incident of harm must be shown by the plaintiff in order to meet the requisite threshold and, instead, found that the mere disclosure of sensitive or confidential information, including the disclosure of a collection account number embedded in a QR code, constitutes a tangible injury. No evidence or allegation of interception or access by an intended third party is required to show requisite harm. The disclosure itself is sufficient to establish injury.

by Paul Mankin

I am Being Harassed by a Debt Collector and My Insurance Should Have Paid

If you are being harassed by a debt collector to pay a bill that your insurance company should have paid, you may have found that simply telling the collector this did nothing to persuade them to stop their collection attempts.  This is because it is not a debt collector’s job to investigate insurance payments or question your healthcare provider about amounts it claims are past due. If your doctor or hospital has turned your account over to a collection agency when it shouldn’t have, it is up to you to find out why your insurance company did not pay the bill and work with them and your healthcare provider to ensure that they do.

When a Debt Collector is Attempting to Collect on Medical Bills

A debt collection agency attempting to collect on a past due medical bill was hired by your healthcare provider to collect the past due amount for them. The agency receives just enough information from your doctor to know how to contact you and how much you owe. Its only job is to collect the amount past due for the doctor so that it can retain a percentage for its fee. Debt collectors simply accept their client’s information as true; that you owe this amount and did not pay it. They know nothing about your medical treatment, insurance plan, or payments that should have been made by your insurance company. Not only do they know nothing about this, it would violate privacy laws for your insurance company or healthcare provider to discuss this with them. They also are only being paid to collect on the account, not to investigate any claims that the bill should have been paid by a third party. So, telling the debt collector your insurance should have paid will not stop collection attempts and you must then work with your insurance company and healthcare provider to ensure the bill is paid by the insurance, if in fact it should have been.

Stopping Collection Attempts for a Bill the Insurance Should Have Paid

If a debt collector is attempting to collect on a medical bill you believe your health insurance company should have paid, ask them to send you validation of the debt. Once you receive complete information about the debt from the collector, contact your insurance company to determine why the bill was not paid. You may have to talk to your healthcare provider and insurance company several times in order to get the bill paid or an explanation of why the insurance company is not responsible for paying it. If the debt collector continues to harass you after you have determined that the insurance company is responsible for paying the bill, mail them a letter telling them that you dispute the debt and want them to stop contacting you. You should also keep a copy of the letter for yourself, and mail one to the Federal Trade Commission at 6th and Pennsylvania Avenue, NW, Washington, D.C. 20850. Under the Fair Debt Collection Practices Act (FDCPA), the debt collector may then only call or write one more time to let you know that they received your letter and will stop contacting you and advise you of any other action they intend to take, such as filing a lawsuit against you.

If you are being harassed by a debt collector for a medical bill that your insurance company is responsible for paying, please contact our office at 1-800-219-3577, for a free, no obligation case review.

by Paul Mankin

How to Deal with a Debt Collector

How you should deal with a debt collector depends on whether you owe the debt, do not owe the debt, or are unsure if you owe the debt, your financial situation, and your current and ultimate financial goals.

How to Deal with a Debt Collector if You Owe the Bill

If you know you owe the bill and the amount the debt collector is attempting to collect is correct, what you do next depends on whether you have the money to pay the bill or not.

 You Can Afford to Pay the Entire Bill or Make Payments on the Bill

If you can afford to pay the bill in full, simply ask the debt collector what forms of payment are accepted. If the collection agency has a website where you can pay using a credit or debit card that is the best way to make a payment. Using a card will provide you with proof of payment via your statement and allow you to enter the amount of the payment yourself, to help ensure that you are not over or undercharged. If you have a credit card to put the payment on, that will provide you with more protection against the agency double charging you than a debit card would give you. If debit and credit card payments are not accepted, or you do not have a card, the next best option is to mail the collection agency a check. Be sure to include a payment coupon with your payment and/or write your account number on the check. You should never pay a debt collector with a money order if you can avoid doing so; there are just too many things that can go wrong which may result in you losing money and spending unnecessary time resolving the issues.

If you can afford to pay the bill, but not all at once, tell the debt collector how much you can afford to pay each month and ask if that will stop the collection calls. If the agency is agreeable to that, make your payments on time each month to prevent further collection attempts and harm to your credit. Always pay in a way that provides you with a receipt without having to obtain one from the debt collector.

You Cannot Afford to Pay the Entire Bill or Make Payments on the Bill

If you are simply unable to pay the bill or even make payments on it, do not waste your time explaining your situation to the debt collector.  The collection agency was hired by the original creditor to collect the debt and cannot reduce or forgive any part of it. You basically have two options; ignore the collection attempts or write the agency a letter forcing them to stop. Which option is best for you depends on your financial goals and future ability to pay the debt. For example, if you anticipate being able to make payments in a couple of months, you might just be able to ignore the calls until you can pay. If you have no intention of paying, are considering filing bankruptcy, or will not be able to pay for quite some time and simply want the calls to stop now, you will need to write the debt collector a letter telling them to stop contacting you. Include your account number and full name in your letter. Be sure to keep a copy of the letter for yourself and mail a copy to the Federal Trade Commission at 6th and Pennsylvania Avenue, NW, Washington, D.C. 20850. Under the Fair Debt Collection Practices Act (FDCPA), the debt collector may contact you only one more time after receiving your letter in order to let you know that they received it and will stop contacting you, as well as to advise you of any other action they intend to take, such as filing a lawsuit against you.

How to Deal with a Debt Collector if You Do Not Owe the Bill

If a debt collector calls you to collect on a bill that you do not owe, how you should deal with them depends on why you believe you do not owe the bill.

You Already Paid the Bill

If you paid the bill in full to the original creditor and the account should not have been turned over to collections or should be removed from collections, you will need to contact the original creditor and discuss this with them. A collection agency is simply hired by a creditor to collect a debt for them. They believe whatever information they are given by the person who hires them and will not waste their time second guessing the creditor or acting as a go-between for you and the creditor. This is because they get paid if they collect the debt, not if they resolve it in any other way.

The Bill is Not Yours

If the bill is a result of identity theft or the debt collector has you confused with someone else, ask them to mail you information about how to report the identity theft or confusion regarding your identity to them and stop them from attempting to collect the debt from you. Complete whatever forms you receive, gather any documentation or information requested and return it to the debt collector. If this does not stop the collection attempts, you may need to consult with a consumer protection attorney to help you enforce your rights.

You Dispute the Original Creditor’s Charges

If you do not believe that you owe the bill because you dispute the original creditor’s charges, you will need to contact the creditor and discuss this with them. Debt collection agencies are hired by original creditors to collect on the debt they claim you owe them. They have no authority to renegotiate the original contract or settle disputes regarding the contract.  If the original creditor refuses to reach a new agreement and reduce the amount you owe or remove the account from collections, you may need to consult with a consumer attorney to help you understand your rights and your options.

Your Insurance Company Should Have Paid the Bill

If you do not owe the debt that a collection agency is attempting to collect from you because your health insurance company should have paid it, you will need to discuss this with your insurance company and healthcare provider. Debt collection agencies do not have the legal authority to speak with your insurance company and have no real interest in helping you resolve the matter with your healthcare provider, as they generally only get paid if they collect money from you, not if they help you get your insurance company to pay it.

The Debt Was Discharged in a Bankruptcy

If a debt collector is attempting to collect a debt that was discharged in bankruptcy, let them know that it was discharged and ask them to send you information about what documentation they need and how to provide it to them. Once you have sent them all of the requested information and documentation, the collection attempts should stop immediately. If they do not, contact a consumer protection attorney to help you enforce your rights and possibly make the debt collector pay you money.

How to Deal with a Debt Collector if You are Unsure if You Owe the Bill

If you are contacted by a debt collector and are unsure if you owe the bill, ask them to provide you with debt validation information. This should come in the mail and include the name of the original creditor, the amount owed, and any contracts or judgments the debt collector may have regarding the debt. Keep in mind that oftentimes debt collectors do not have any documentation of the debt, such as a signed contract, and if after receiving the name of the original creditor and amount owed, you are still unsure if the debt belongs to you, you should contact the creditor to help you determine if you do in fact owe the debt.

If you are being harassed or abused by a creditor or debt collector please contact our office at 1-800-219-3577, for a free, no obligation consultation.

by Paul Mankin

Can I Pay a Debt Collector and What Do I Need to Know Before I Do?

Debt collectors are hired by the original creditor, or person who is owed money, to collect the debt for them. Once a creditor hires a debt collector, all payments should be made to the debt collector and not the original creditor. However, before paying any debt collector you should obtain certain information from them about the debt and keep records of any communication with the debt collector or any payments made to them.

Before You Pay a Debt Collector

One of the newest ways scam artists have come up with to defraud consumers is the fake debt collector. Scammers call you claiming to be collecting on a debt and attempt to pressure you into paying it immediately, before you have the chance to discover that you do not really owe any money and the collection agency is not real. So, before you pay a collection agency, ask them to send you debt verification information, which should include the name of the original creditor and the amount owed. If you do not recognize the original creditor’s name or believe the amount to be false, contact the creditor and ask what you owe them and why. If you recognize the creditor and the amount claimed as due is correct, be sure to make any payments to the debt collection agency in a form that provides you with proof of payment; do not expect the agency to provide you with a receipt, as many do not.

How to Pay a Debt Collector

The best way to pay a debt collector is by credit card on the collection agency’s website. This will provide you with proof of payment via your credit card statement, ensure that you are the one entering all of the information so that the payment amount is correct, and provide you with more protection against the agency double charging than a debit card would give you. If you do not have a credit card or do not wish to use one to make the payment, the next best option is to mail the debt collection agency a check. Be sure to include a payment coupon with your check and/or write your account number on the check. Review your bank statements regularly until you see that the check has cleared in order to ensure that it was cashed and then call the debt collector to make sure that the payment was posted to the correct account. If you must pay using a debit card, make the payment on the agency’s website to ensure the amount of the payment is entered correctly, and then keep an eye on your bank statements to ensure that your debit card is not charged again without your authorization. You should never pay a debt collector with a money order. There are too many ways for you to lose your money if your payment is lost or not applied to the correct account.

If a debt collector has misapplied your payment, double charged you, or abused you in any other way, please contact our office at 1-800-219-3577, for a free, no obligation consultation.  

by Paul Mankin

Former Con-Artist Tells Consumers How to Prevent Becoming a Target of Identity Theft

Frank Abagnale, Jr., a notorious conman and identity thief, turned trusted FBI consultant and one of the world’s most respected authorities on fraud, forgery and cyber security is now offering his advice on protecting yourself from becoming a victim of identity theft.

Who is Frank Abagnale, Jr.?

The academy award nominated feature film, Catch Me If You Can, starring, Leonardo DiCaprio is based on Abagnale’s story. While some details of his story concerning his scams, frauds, and identity thefts cannot be verified, he served less than five years in prison for his crimes before beginning work for the federal government. He is currently a consultant and lecturer for the FBI academy and field offices and runs Abagnale & Associates, a financial fraud consultancy company, and author of his 1980 memoir, Catch Me If You Can, 2008 book, Stealing Your Life: The Ultimate Identity Theft Prevention Plan, and newest book, Scam Me If You Can: Simple Strategies to Outsmart Today’s Rip-off Artists.

What Does Abagnale Recommend You Do to Protect Yourself From Identity Theft?

Abagnale says that telephone and e-mail scams where the thief contacts you directly will generally raise one of two red flags: the scammer or thief will ask you for money and will want it immediately or they will ask you for your personal information. The easiest way to combat these types of direct contact theft attempts is to hang up on the caller or simply delete the e-mail and not give out your information or send anyone any money. But what else can you do to protect yourself?

Stop Making Mistakes With Your Internet Passwords

If you use the internet a lot, you have probably noticed that some websites now offer alternatives to passwords, like signing in with your phone. This is the future of technology, which is now seeking to eliminate passwords all together. As Abagnale says, passwords are 1964 technology, and a major contributor to the success of scammers and identity thieves. So, if your bank or financial institution, ATM, e-mail provider, or commonly used retailers offer you a way to sign in without a password, use it. Until passwords are a thing of the past, however, there are things you can do to help minimize your risk of becoming a target of identity theft by those trying to steal your passwords:

1. Use passwords containing at 8 to 14 characters, with 14 being the ideal number.
2. Do not use personal information such as pet’s names, social security number, or birthdates in your passwords.
3. Do not use the same password for everything. Limit each password to only a few websites so that if it becomes compromised, it is easier to change.
4. Use a combination of letters, numbers, and characters in your passwords.
5. Change your passwords on a regular basis.
6. Write your passwords down on paper; do not use electronic means to help you remember them.

            Never Use a Debit Card

Many consumers live on their debit card and rarely carry cash or use credit cards. But this may leave them vulnerable to identity theft. While cash may offer the greatest protection, it may not be practical for most consumers in most situations. Who wants to go into the gas station to pre-pay for fuel, when they can just swipe their card at the pump? But credit cards can offer the same convenience as a debit card, while providing more protection in case the card is compromised. For example, if an identity thief gets a hold of your debit card number and uses it, the money will come out of your bank account almost immediately, but you will not be able to get it back for days, or sometimes weeks, once you discover and report the charge(s) as fraudulent. This can leave you unable to cover checks for important bills or extract cash at an ATM for daily living expenses. For those are not willing or able to get and use a credit card for everyday expenses, there are pre-paid debit cards to consider and now many retailers are offering options such as Google Wallet, Square Cash, and Apple Pay. While these apps may use debit card information, it is more secure than swiping or handing over your card and may offer additional ways to load money to your account.

            Pay Attention to What You Post on Facebook

Your Facebook profile most likely already contains personal information that can be a good start for a patient identity thief. You may have included some of this information in your profile, posted some on your timeline, or unwittingly shared it by just being someone’s Facebook friend. This information might include:

• Your birthday (even if you do not intentionally share it, you may receive public birthday wishes from friend and family)
• Information you may use in passwords such as your pets names, anniversaries, and favorite foods or vacation spots
• Your home address, when you create events that you are hosting or post items you wish to sell or give away, or when replying to a friend in the comments of a post
• Your mother’s maiden name, if she is your friend on the social media site and is currently using her maiden name as part of her screen name

This does not mean that you have to stop sharing on social media sites, but Abagnale recommends that you simply be more selective about what information you share and with whom you share it.

            Protect Your Personal Information

The most important thing you can do to help prevent becoming a target of identity theft is to protect your personal information. Abagnale says that some of the things you should to in order to protect this information is:

• Shred anything with your personal information on it when throwing it out, including social security statements, old checks, and bank statements
• Never give out personal information over the phone to someone who called you
• Do not send any of your personal information to anyone via e-mail
• Never share your personal files or information on or over the internet
• Do not print your social security number on your checks or carry your social security card with you
• Always pick up your mail as soon as possible, do not leave your mailbox overflowing
• Do not trust ATM or credit card devices that look suspicious
• Cover the ATM keypad with your hand when entering your PIN
• Be on guard for spyware, malware, and other malicious software when using your computer, tablet, or smart phone

Where Do I Get More Identity Theft Protection Information from Frank Abagnale, Jr.?

Abagnale is the co-host of the American Association for Retired Persons’ (AARP) The Perfect Scam podcast, has videos posted on YouTube, and his books, Stealing Your Life and Scam Me if You Can are available for purchase on Amazon. His website also contains information about his company and books and other publications.

If you are a victim of identity theft and are unable to correct any of the results of such theft, feel free to contact our office at 1-800-219-3577, for a free, no obligation consultation.