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Regular Contributor
dwarfess
Posts: 149
Registered: ‎11-03-2007

NCO Group - hard inquiry - I want to file suit - need advise

NCO Group put a "hard" inquiry on my credit report for a medical collection that had already been paid.  NCO's "hard" inquiry was with TransUnion. NCO did the inquiry on the same day that they sent their collection notice. NCO & TransUnion have refused to remove the hard inquiry.  I would like to sue their butts in small claims court, I have the time and patience to do this.
 
More Background:
I was charged twice for my co-pay and was disputing with my HMO. The hospital was paid for everything except the co-pay. Payment was issued July 5th (check cleared bank July 13th). In the meantime, the hospital sent the balance due bill, for the co-pay, to NCO.

My position is that NCO had no "permissible purpose", therefore, had no legal right to:

1. Obtain my credit report unless it was in connection with a credit transaction and involving the collection of an account.

2. Make a hard inquiry before 30 days of when the debtor would be in receipt their collection notice: This kind of collection tactic, if allowed, would virtually eliminate the 30 day validation period we are entitled to under FDCPA.

3. Misrepresented their permissible purpose to obtain my credit report from TransUnion.
 
This is the first pass at my letter to NCO . . . need someone to put a critical eye to this and play devil's advocate:

Dear NCO Group:

On July 17, 2007 your company sent me a collection notice (copy attached) related to a medical provider and, on the same day, made an unauthorized hard inquiry into my credit report.
 
NCO Group has violated my rights under the FCRA and the FDCPA.  NCO's illegal actions have had an adverse affect on my credit report and score and I am entitled to bring civil action against your company and TransUnion.
 
NCO Group violated the FCRA by obtaining, without any FCRA-sanctioned purpose, my credit report from TransUnion (Pintos v Pacific Creditors Association, Case No 04-17485 (9th Circuit Court)):

• Obtaining my credit report for a debt collection unrelated to a credit transaction violates FCRA § 604(A), which can result in statutory damages of $2,500 for each proven violation.

NCO Group violated the FDCPA in connection with collection efforts related to a disputed medical claim (copy attached):

• Misrepresenting its “permissible purpose” to obtain my credit report, violating FDCPA § 807(10), which can result in statutory damages of $1,000 for each proven violation.

NCO Group did not send a collection notice within 5 days of the initial communication and therefore violated FDCPA:

• Collection notice dated July 17, 2007 was not sent within 5 days of the initial communication dated July 9, 2007 (copy attached) violating FDCPA § 809(a), which can result in statutory damages of $1,000 for each proven violation.

NCO's inquiry was made during the 30 day validation period violating the FDCPA:

• A hard inquiry is considered “collection activity” which is prohibited during the 30 day validation period under FDCPA § 809(b), and violations can result in statutory damages of $1,000 for each proven violation.
 
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: NCO Group - hard inquiry - I want to file suit - need advise

I say contact naca.net

Might just send a settlement offer. $1000 plus removal of the INQ.
New Contributor
hifiko
Posts: 56
Registered: ‎05-03-2007

Re: NCO Group - hard inquiry - I want to file suit - need advise

Dwarfess...Can you please tell us what state you are in?
Regular Contributor
dwarfess
Posts: 149
Registered: ‎11-03-2007

Re: NCO Group - hard inquiry - I want to file suit - need advise

California
 
We have pretty strict laws here regarding medical billing for insured individuals, that many folks don't know about.  I didn't know about balance billing until I ran up over $500,000 in medical earlier this year and my phone wouldn't stop ringing!  I started researching and found out that I was not legally responsible for any of the bills except my co-pay.  Thanks to California laws, my HMO had to pay ALL my emergency services.  I'm now down to just one item in dispute for $250.00 and the one hard inquiry from NCO.
 
Impact on my FICO was a 19 point drop because of NCO, which I still want removed!
Valued Contributor
netpanther
Posts: 1,694
Registered: ‎08-07-2007

Re: NCO Group - hard inquiry - I want to file suit - need advise

So did you pay the real copay and have proof of it? You are just disputing the second charged copay?
Regular Contributor
dwarfess
Posts: 149
Registered: ‎11-03-2007

Re: NCO Group - hard inquiry - I want to file suit - need advise

I paid the hopital, but haven't paid the HMO (double billed).
 
HMO deducted co-pay from their pymt to the hospital.  Hospital billed me for the co-pay.  HMO billed me for the co-pay.   I disputed.  HMO said to pay the hospital directly and they would credit my HMO account.  I paid the hospital (NCO did the hard inquiry on this one).  HMO is still billing me for the co-pay.  Thus we are still disputing.  Now being escalated to California DMHC (department of managed health care).
New Contributor
hifiko
Posts: 56
Registered: ‎05-03-2007

Re: NCO Group - hard inquiry - I want to file suit - need advise

I believe there may be some kind of "hanky panky going on when it comes to NCO Financial and Transunion. I have seen several complaints recently in this forum where NCO uses only TU for hard inquiries whether the inquiries are legitimate or not. Somebody with more expertise than me may want to check into this situation. Any volunteers?
New Contributor
kbella
Posts: 63
Registered: ‎11-17-2008

Re: NCO Group - hard inquiry - I want to file suit - need advise

dwarfess- - whatever happened with this?  i just recently received a NCO hard inquiry and have no idea what it could be for.  did a search for NCO hard inquiry and your thread popped up.  was there any resolution?
TU-579 EX-551 EQ-562 as of 1/14/09 (ouch)
Moderator Emeritus
ByrdMan
Posts: 7,975
Registered: ‎12-19-2007

Re: NCO Group - hard inquiry - I want to file suit - need advise

She may not be able to answer, as she hasn't logged on in 6.5 months.
___________________________________________________________________
Do what is true in spite of the consequences--your future is only as true as you are.
New Contributor
kbella
Posts: 63
Registered: ‎11-17-2008

Re: NCO Group - hard inquiry - I want to file suit - need advise

Oh, okay. Didn't see that, thanks.
TU-579 EX-551 EQ-562 as of 1/14/09 (ouch)

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