Advice on lawyering up... (scumbag debt collector content)

Since everyone else tends to ask for life advice, I figured I would too.

Part of my past I'd rather forget involves lots of bad decisions made with money. One of these bad decisions is involved opening a joint bank account with an ex. It didn't end well. One of the last things done with said account was a check advance that of course was never paid.

A few years ago I started getting flooded with debt collection calls from all those old unpaid bills. I made settlement offers for most and never heard from them again. About 3 years ago I started getting calls from an agency about this check advance. I didn't remember anything about it and ignored it. Eventually I owned up and made a settlement (or so I thought?). If I actually did I never received a payment letter from the place. Then I start getting the "imminent legal action, we must hear from you by the end of the day" calls. Since I had no proof of payment and honestly didn't remember all the info, I made an arrangement and paid it off in November of last year. I got a email from the company with the creditor info and the payment info.

I just got another call today from a different debt collector trying to collect the same debt but for an amount 200 dollars higher. At this point I've paid it off at least once and obviously am not forking over anymore money.

I'm assuming at this point I need an attorney to make this stop. What's my best approach?

Step 1: Debt dispute letter. It's on them to prove that they're the legal owners of a valid debt.

If they do not respond, then they have to strike it. If it stays on your credit history, THEN it's lawyer time.

Bear in mind you asked for free advice.

How are you not keeping records of this? This is serious E36 M3. Like, keep you from buying a house or getting a loan E36 M3.

Ok, I do have some experience in this--I was a Collection Agency Performance Analyst--the collection agencies were the vendors for my company, I was responsible for their performance. You may not need a lawyer. How much money was it? (yes it matters). What collection agencies are you dealing with?

Do the debt dispute letters. But do the below as well, be proactive about this.

First we have this:

moparman76_69 wrote:

Eventually I owned up and made a settlement (or so I thought?).

When was this? How would you have made the payment (ACH payment, Check, Western Union)? Go through those sources and scour every transaction you've made. There should also be tax records of this, as the excused debt needs to be recorded as income (You'd have gotten a 1099C). Find the info if it is there, and go to that collection agency and request the settlement letter, and ask them to send a certified letter to the credit agencies, the original creditor/lender, as well as the following collection agencies asking them to mark the debt as Settled In Full.

Ok, now lets assume that you have found proof that you SIF. Inform them that they need to contact the 2nd and 3rd collection agencies to make you "whole" and if they don't, you will be reporting them to the CFPB and the FTC, and that their neglecting to report the debt as SIF is in violation of the FDCPA as well as UDAAP.

Okay, now go back to the 2nd agency that you paid with proof that this was a prior SIF. Ask for your money back, and tell them that if they don't comply, you will be reporting them to the CFPB and the FTC, and that their collection of the debt after it was SIF is in violation of the FDCPA as well as UDAAP.

Then inform the 3rd collection agency that this was SIF, and reporting them to everyone. Yay.

Ok, now for the second scenario: You settled the second time but the first was imagined.

In this case, go to the agency that you settled with, and tell them to send you a settlement letter, and ask them to send a certified letter to the credit agencies, the original creditor/lender, as well as the following collection agencies asking them to mark the debt as Settled In Full. Then tell them that if all of this continues, you'll report them to the CFPB, etc.

If that doesn't work the first time, lawyer up. Lawyers basically just make things too expensive to pursue, but if you had done this right it wouldn't be necessary. If you have the documents needed you'll be ok.

[Cletus] My time to shine! [/Cletus]

I actually do stuff peripherally related to this for a living - I'm a bankruptcy and consumer debt defense attorney.

A debt dispute (or validation) letter is a first step, but in all likelihood will accomplish little or nothing. Shady collectors frequently ignore them altogether, or mail you something they made up out of whole cloth. Send it anyway, certified, return receipt requested, and KEEP THE RECEIPT.

What you need is a lawyer experienced with the Fair Debt Collections Practices Act, plus any state collections regulations (varies widely state to state). Trying to collect a debt that has been paid (as well as threatening action they can't legally take) is a barefaced FDCPA violation. So is not responding to a debt validation request.

You take your evidence (email, bank records, etc.) to said FDCPA lawyer, lawyer files FDCPA enforcement action, creditor gets slapped by judge, Judge awards attorney fees to your lawyer and nominal damages to you, creditor goes away.

Couple things about this system - first, the attorney will make more money than you will here. The statute provides for reasonable attorney fees. You may get next to nothing in damages, but this creditor gets removed from your credit report and your phone stops ringing. That's what you wanted in the first place, right?

Second-GET AN ATTORNEY WHO KNOWS THE FDCPA. You wouldn't go to a psychiatrist to remove your appendix, even if he was the best damn psychiatrist in the world. Same with lawyers - find one who knows the FDCPA. Google is your friend, as is www.avvo.com .

http://www.clarkhoward.com/news/clark-howard/consumer-issues-id-theft/sample-letters-drop-dead-letter/nFbC/

http://www.clarkhoward.com/news/clark-howard/consumer-issues-id-theft/know-your-rights-when-dealing-debt-collectors/nPgJX/

In reply to mtn:

I can't find records in my bank statements from the first time so I'll take that one as a loss. I'll admit I was naive on this stuff before, but when I made the second payment arrangements I made sure I got paperwork to cya. If I were to have "done it right" what would I have done?

In reply to psteav:

Looking around online it seems CFPB and FDCPA are the magic words.

I called the place back and they did the whole "imminent legal action" line and I told them I had a arrangement letter from the other agency. The lady gave me a number to fax that to. I'll probably fax a validation letter with it. I'll contact the agency that I just paid and tell them I need a letter stating I have paid the debt and make sure they report it to the necessary or I'll report them and they'll hear from my attorney.

In reply to psteav:

What's the time frame that they're required to respond to a validation letter? I may message you off board if that's ok with you?

In reply to Swank Force One:

Sure. If you don't still have my email, it's the same as my username here at gmail.

You should also read the rules for collection agencies, to see what the FDCPA says they can and cannot legally do: http://www.nolo.com/legal-encyclopedia/illegal-debt-collection-practices.html

Zombie Thread. Spam delete. 

No, this is not the triumphant return of Swank Force One

I saw it and thought,  "DAMN! Swank's back!"

Nope.

I still wanna know how this worked out for the OP.

AngryCorvair said:

I still wanna know how this worked out for the OP.

I agree damn those Zombies. I started reading an interesting story I didn't know the existence of, and no conclusion. I guess I need to make up my own conclusion.

Moparman and his lawyer went to trial, and was awarded millions in damages from a jury. That's why he disappeared. He's drunk as a skunk living on an island.  

That's how the story ends. In my world.

Do you have access to a Sarlaac Pit to toss the scumbags into? 

In reply to StephanieRussellkk9 :

you also want info on how to pilot a canoe?

apparently this should be deleted since "debt collector" probably attracts more canoes than a lazy river in July.

Also for a conclusion to this 5 year old post, I paid the debt off with that collection agency and got an email confirmation it was paid.  Continued to get new collection agencies trying to collect it again (which I easily fought off with the payment letter). Then later (maybe years later) found the paper copy of the letter from me paying it off the first time.  I have since gotten better with organization of such things to prevent future dumb mistakes. (I also pay my bills and don't take check advances out with my 10 additional years of experience).  Dave Ramsey also helped with my money situation.

They will also send a repo man out if you don't make your canoe payments on time. 

minivan_racer said:

apparently this should be deleted since "debt collector" probably attracts more canoes than a lazy river in July.

I'll lock it, instead