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dsrfinancial
Posts: 60
Registered: ‎05-09-2010

Unlicensed Debt Collectors Working in Florida

The Sun-Sentinel has an article about unlicensed debt collectors in Florida. They are being sued. "Owens' lawsuits are targeting LVNV Funding LLC, Allied Interstate LLC and Main Street Acquisition Corp., subsidiaries of major national companies." Maybe we should keep our eyes and ears open. http://www.sun-sentinel.com/news/local/crime/fl-unlicensed-debt-collectors-20111217,0,4017289.story

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Established Contributor
stan_the_man
Posts: 855
Registered: ‎06-29-2010

Re: Unlicensed Debt Collectors Working in Florida


dsrfinancial wrote:
The Sun-Sentinel has an article about unlicensed debt collectors in Florida. They are being sued. "Owens' lawsuits are targeting LVNV Funding LLC, Allied Interstate LLC and Main Street Acquisition Corp., subsidiaries of major national companies." Maybe we should keep our eyes and ears open. http://www.sun-sentinel.com/news/local/crime/fl-unlicensed-debt-collectors-20111217,0,4017289.story

Maybe this is a dumb question, but why should there be a licensing requirement to collect debts?

Established Contributor
veracious
Posts: 684
Registered: ‎04-21-2010

Re: Unlicensed Debt Collectors Working in Florida


stan_the_man wrote:

dsrfinancial wrote:
The Sun-Sentinel has an article about unlicensed debt collectors in Florida. They are being sued. "Owens' lawsuits are targeting LVNV Funding LLC, Allied Interstate LLC and Main Street Acquisition Corp., subsidiaries of major national companies." Maybe we should keep our eyes and ears open. http://www.sun-sentinel.com/news/local/crime/fl-unlicensed-debt-collectors-20111217,0,4017289.story

Maybe this is a dumb question, but why should there be a licensing requirement to collect debts?


3. Debt Collectors and Your Privacy

Public embarrassment and the prospect that your personal information might be shared with others are real concerns when dealing with a collection agency. The FDCPA includes provisions intended to safeguard privacy.

The FDCPA says discussions about the debt can only be held with (1) the individual, (2) the creditor, (3) an attorney representing one of the parties, and (4) a credit bureau. Public airing of your business intended to shame you into paying a debt is not allowed. Debt collectors:

  • Cannot exchange (with other agencies) information about individuals who allegedly owe a debt.
  • Cannot distribute a list of alleged debtors to its creditor subscribers.
  • Cannot advertise a debt for sale.
  • Cannot compile a list of debtors for sale to others.
  • Cannot leave messages with third parties, asking them to have the debtor call the collector.

The above reference among others can be found at : https://www.privacyrights.org/fs/fs27-debtcoll.htm

 

_________________________________________________
"You may never know what results come of your actions,
but if you do nothing, there will be no result" ~ Mahatma Gandhi
Valued Contributor
IOBA
Posts: 2,659
Registered: ‎08-13-2009

Re: Unlicensed Debt Collectors Working in Florida

Oh, the things that bring a smile to my face.  :smileyhappy:

 

And what is the SOL for a cc debt, from DOFD?

Valued Contributor
IOBA
Posts: 2,659
Registered: ‎08-13-2009

Re: Unlicensed Debt Collectors Working in Florida

The two - comment and question - are unrelated, but I thought I would ask anyways.  :smileyhappy:   

Established Contributor
stan_the_man
Posts: 855
Registered: ‎06-29-2010

Re: Unlicensed Debt Collectors Working in Florida


veracious wrote:

stan_the_man wrote:

dsrfinancial wrote:
The Sun-Sentinel has an article about unlicensed debt collectors in Florida. They are being sued. "Owens' lawsuits are targeting LVNV Funding LLC, Allied Interstate LLC and Main Street Acquisition Corp., subsidiaries of major national companies." Maybe we should keep our eyes and ears open. http://www.sun-sentinel.com/news/local/crime/fl-unlicensed-debt-collectors-20111217,0,4017289.story

Maybe this is a dumb question, but why should there be a licensing requirement to collect debts?


3. Debt Collectors and Your Privacy

Public embarrassment and the prospect that your personal information might be shared with others are real concerns when dealing with a collection agency. The FDCPA includes provisions intended to safeguard privacy.

The FDCPA says discussions about the debt can only be held with (1) the individual, (2) the creditor, (3) an attorney representing one of the parties, and (4) a credit bureau. Public airing of your business intended to shame you into paying a debt is not allowed. Debt collectors:

  • Cannot exchange (with other agencies) information about individuals who allegedly owe a debt.
  • Cannot distribute a list of alleged debtors to its creditor subscribers.
  • Cannot advertise a debt for sale.
  • Cannot compile a list of debtors for sale to others.
  • Cannot leave messages with third parties, asking them to have the debtor call the collector.

The above reference among others can be found at : https://www.privacyrights.org/fs/fs27-debtcoll.htm

 


Those are all regulations. Every industry has regulations. We don't, for example, require a license to be a bank teller -- or, for that matter, dozens of other jobs that put other people in direct contact with your private information.

 

Some debt collectors are unscrupulous, but -- reading this article -- it doesn't appear that the company committed any violation of the FDCPA.

Established Contributor
veracious
Posts: 684
Registered: ‎04-21-2010

Re: Unlicensed Debt Collectors Working in Florida

[ Edited ]

@ stan_the_man.

 

Not wishing to argue,  I presume you realize that a bank teller or any other example you could come up with

does not have the option of placing derogatory information on your personal records (credit reports) without

any recourse on your part. So you're saying, collection agencies can camoulfage their names ---(for example)---

as "Magical Mystery Corp"  collection agency, etc. , and that's all good too.

 

Licensing requirements require a business to be accountable for their services.

Personally, I think licensing should be required in such instances.

Dozens of other jobs?  That affect your personal info?  Please site examples.

Remember of course, we are talking about privately owned entities, not the government.

 

_________________________________________________
"You may never know what results come of your actions,
but if you do nothing, there will be no result" ~ Mahatma Gandhi
Established Contributor
stan_the_man
Posts: 855
Registered: ‎06-29-2010

Re: Unlicensed Debt Collectors Working in Florida


veracious wrote:

@ stan_the_man.

 

Not wishing to argue,  I presume you realize that a bank teller or any other example you could come up with

does not have the option of placing derogatory information on your personal records (credit reports) without

any recourse on your part. So you're saying, collection agencies can camoulfage their names ---(for example)---

as "Magical Mystery Corp"  collection agency, etc. , and that's all good too.

 

Licensing requirements require a business to be accountable for their services.

Personally, I think licensing should be required in such instances.

Dozens of other jobs?  That affect your personal info?  Please site examples.

Remember of course, we are talking about privately owned entities, not the government.

 


I don't really want to defend the debt collection industry, but I'm against professional licensing for all but a few jobs that literally mean life or death.

 

First, anyone can report derogatoy information to the CRAs. Nothing makes a collection agency any different from, my landlord or any other creditor.

 

Second, what do you mean "without recourse"? The FCRA and the FDCPA already provide penalties for violations of both the laws. Under both laws, for the most part, you don't have to prove neither economic damage nor meet some impossible standard like "intetional infliction of emotional distress" to get damages.

 

Third, licensing does little in most industries, other than to increase the cost of entering the business. The oft cited example is taxis in New York City. Some estimates suggest twice as many gypsy cabs exist compared to licensed cabs because it costs more than $1 million to own a license to operate a taxi.

 

Fourth, it's a myth that licensing requirements require "a business to be accountable for their services". Nothing stops the scammers and the unethical people in doing what they do.

 

Fifth, I'm not sure your exact point with respect to names. I think some debt collectors are unscrupulous (which licensing does not stop) in creating serial businesses. In other cases, licensing is probably the reason that "Magical Mystery Corp", "Magical Mystery LLC," "Magical Mystery West LLC," and "Magical Mystery South Corp" exist. For example, watch any national mortgage or insurance ad and you will see that Bank Z doesn't operate in three states, and operates in three other states using very similar names.

 

Sixth, if licensing is so great, why not require government workers to become licensed?

 

 

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Unlicensed Debt Collectors Working in Florida

IMO, licensing is required within this industry because it isn't uncommon for a CA to go under due to bad or illegal practices and then reopen as a new CA to continue with the same under a new name. In putting the State Resources thread together we found that less than half of the states out there required full licensing of CAs and in each of those states, the owner of the CA was the one targeted via bonding requirements, name registration within the state, ongoing training provided by the state for that owner, etc.

 

I'm an employer and got interested in this field after some of our employees were threatened with jail time by CAs for non-payment or were asked to pay thousands in fees just to collect on an accounts that were that were in the hundreds at worst, including interest (the latter happened to me personally). I even spoke to one CA on an employee's behalf who said they'd take a warrant out for my arrest for aiding and abetting for not turning over my employee's paycheck to them. When I played along and asked him how they'd do this, their reply was that they were within the DA's office and that he's ready to sign that warrant.

 

I'm all for less government in our lives (please no politics), but I support licensing due to practices like these. Doctors are and should be licensed. Nurses are and should be licensed. Electricians, plumbers, dentists, tree removers, etc., all are and should be licensed because one slip up or mistake can permanently harm someone. Same with CAs. If the industry is left unchecked, and because the feds will not and should not get involved on the state-level, there needs to be some oversight above and beyond allowing CA ownership to close up shop and reopen to avoid charges, complaints, etc.

 

 

Established Contributor
stan_the_man
Posts: 855
Registered: ‎06-29-2010

Re: Unlicensed Debt Collectors Working in Florida


llecs wrote:

IMO, licensing is required within this industry because it isn't uncommon for a CA to go under due to bad or illegal practices and then reopen as a new CA to continue with the same under a new name. In putting the State Resources thread together we found that less than half of the states out there required full licensing of CAs and in each of those states, the owner of the CA was the one targeted via bonding requirements, name registration within the state, ongoing training provided by the state for that owner, etc.

 

I'm an employer and got interested in this field after some of our employees were threatened with jail time by CAs for non-payment or were asked to pay thousands in fees just to collect on an accounts that were that were in the hundreds at worst, including interest (the latter happened to me personally). I even spoke to one CA on an employee's behalf who said they'd take a warrant out for my arrest for aiding and abetting for not turning over my employee's paycheck to them. When I played along and asked him how they'd do this, their reply was that they were within the DA's office and that he's ready to sign that warrant.

 

I'm all for less government in our lives (please no politics), but I support licensing due to practices like these. Doctors are and should be licensed. Nurses are and should be licensed. Electricians, plumbers, dentists, tree removers, etc., all are and should be licensed because one slip up or mistake can permanently harm someone. Same with CAs. If the industry is left unchecked, and because the feds will not and should not get involved on the state-level, there needs to be some oversight above and beyond allowing CA ownership to close up shop and reopen to avoid charges, complaints, etc.

 


The crooks exist with and without licensing systems. If you're going to threaten to have someone arrested, something that is against the law, what's another civil or minor criminal penalty?


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