I've been harassed about a debt I have with them too. They entered a judgment against me a couple of years ago and are now threatening wage garnishment. What did you do after your employer received the letter?
A Mr. Covington from Trauner, Cohen, & Thomas contacted my aunt. When I called him back he was very rude and wanted me to verify the last 4 digits of my SSN. He was so harsh with me and violated laws. He told me my wages could be garnished, my assets could be taken, and demanded I paid a lump sum amount. When I offered to make a monthly payment arrangement he said I wasn’t serious about my debt. I told me I needed to go to a bank and with a loan officer contact him regarding the debt. However, during all this hassle I have yet to receive any type of document advising the settlement amount. I don’t understand how this type of BS is continuing. I’ve decided to contact the original creditor in writing to see if I can make a payment arrangement with them directly. I am GLAD I saw this website!!!
Collect America (CACH& CACV) franchisee. They are paid a commission to file suits on bottom feeder debts acquired by parent company Collect America. They are also involved in collecting on arbitration claims filed by the same. As with most bottom feeders, purchased debts usually have a tainted trail behind them and most attorneys have difficulty in obtaining the legal validation documents that meet court requirements. As with any bottom feeder, consumers are urged to flood them with dispute validation notices, challenge anything placed on a credit report and vigorously defend any legal claims they may make by utilizing the services of a local consumer law professional.
Head Debt Collectors:
Robert Trauner, Attorney
Michael J. Cohen, Attorney
Russell S. Thomas, Attorney
The deal is, they CANNOT threaten to "come to your work and serve you with court papers" unless they intend to do so:
§ 807. False or misleading representations [15 USC 1962e]
A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.
(2) The false representation of --
(A) the character, amount, or legal status of any debt; or
(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.
(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.
(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.
(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.
(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to --
(A) lose any claim or defense to payment of the debt; or
(B) become subject to any practice prohibited by this title.
(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer.
(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.
(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.
(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.
(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action.
(12) The false representation or implication that accounts have been turned over to innocent purchasers for value.
(13) The false representation or implication that documents are legal process.
(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization.
(15) The false representation or implication that documents are not legal process forms or do not require action by the consumer.
(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act.
Furthermore, they CANNOT collect on an alledged debt without first furnishing proof that you owe it:
§ 809. Validation of debts [15 USC 1692g]
(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.
I suggest that you first request copies of your credit reports from all three reporting bureaus (Experian, Transamerica and Equifax). If you find out that they have put derogoratory remarks on any of them without proof that you owe them, then you have grounds to sue the pants off of them for not only FDCPA but also FCRA (Fair Credit Reporting Act Violations) as well:
If a creditor can't verify a debt:
They are not allowed to collect the debt,
They are not allowed to contact you about the debt, and
They are also not allowed to report it under the Fair Credit Reporting Act (FCRA). Doing so is a violation of the FCRA, and the FCRA states that you can sue for $1,000 in damages for any violation of the Act.
The opinion letter from the FTC which clearly spells out that a collection agency CANNOT report a debt to the credit bureaus which has not been validated:
It also states that you can sue in federal or state court. So if you have them on a violation, then you have damages of $1,000 for the incident plus damages. Small claims court, anyone?
Send them this letter VIA certified mail and request a return receipt. Keep copies of everything you send:
Today's Date
Your Name
Your Address
Collector's Name
Collector's Address
VIA CERTIFIED MAIL
Dear {insert name of collector or company},
I am writing in response to your (letter or phone call) dated {insert date}, (copy enclosed) because I do not believe I owe what you say I owe.
This is the first I've heard from you, or any other company on this matter therefore, in accordance with the Fair Debt Collection Practices Act, Section 809(b): Validating Debts:
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
I respectfully request that you provide me with the following information:
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) Provide a verification or copy of any judgment (if applicable);
(4) Proof that you are licensed to collect debts in (insert name of your state)
Be advised that I am fully aware of my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. For instance, I know that:
because I have disputed this debt in writing within 30 days of receipt of your dunning notice, you must obtain verification of the debt or a copy of the judgment against me and mail these items to me at your expense;
you cannot add interest or fees except those allowed by the original contract or state law.
you do not have to respond to this dispute but if you do, any attempt to collect this debt without validating it, violates the FDCPA;
Also be advised that I am keeping very accurate records of all correspondence from you and your company including recording all phone calls and I will not hesitate to report violations of the law to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.
I have disputed this debt; therefore, until validated you know your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them of my dispute with this debt. Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act § 1681s-2. Should you pursue a judgment without validating this debt, I will inform the judge and request the case be dismissed based on your failure to comply with the FDCPA.
Finally, if you do not own this debt, I demand that you immediately send a copy of this dispute letter to the original creditor so they are also aware of my dispute with this debt.
If they refuse to comply and continue to try and collect on an UNVALIDATED debt (in addition to illgally dinging your credit report), it's a slam dunk:
Who Why Precedent/Law Fine
Creditors if they report your credit history inaccurately Defamation, financial injury US Court of Appeals, Ninth Circuit, No. 00-15946, Nelson vs. Chase Manhattan Extent of damages incurred by the wronged party as deemed by the courts.
Creditors, if you dispute a debt, and they fail to report it as disputed to the credit bureaus Protection under the FCRA FCRA
Section 623. $1,000.
If you dispute a debt, the collection agency fails to report it disputed to the credit bureaus Protection under the FDCPA FDCPA
Section 807(8) $1,000.
Collection agencies if they do not validate your debt yet continue to pursue collection activity (file for judgments, call or write you) Consumer protection afforded by the FDCPA FDCPA Section 809 (b), FTC opinion letter Cass from LeFevre $1,000.
Collection agencies if you have sent them a cease and desist letter and they still call you Consumer protection afforded by the FDCPA FDCPA
Section 805 (c) $1,000.
Collection agencies if they have not validated your debt and they still continue to report to the credit bureaus. Consumer protection afforded by the FDCPA FDCPA Section 809 (b),FTC opinion letter Cass from LeFevre
$1,000.