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COLLECTION COMPANY - Shady practices, need help !

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Anonymous
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COLLECTION COMPANY - Shady practices, need help !

So, I have one more collection on my credit files to attack... Califronia Business Bureau. They colelct on medical debt, and they have account for me from 2009 due to age off in 1-3 months (Experian and TU are excluding early, EQ in spring time).  They are extrtemely crude, abrupt people and very difficult to deal with.  The thing is, my alleged balance with the hopsital is $1705 -- they are demanding I now pay $2800+, and they will delete it from my file immediately for this exorbidant payment!  They state it is "interest" and will ONLY delete if I pay all those fees, totalling $1000 over the prinicpal balance.  I am working with Experian executives to possibly get it removed earlier.

 

Is this legal to do?  I feel they are trying to extort money from me in exchange for deletion, and this can not be legal or ethical!  It has to be some kind of violation of the FCRA. The girl actually said that the only way she will delete is if I pay the $2800, otherwise she will only update to SETTLED.  I am sickened bhy this country's collection practices, and our government needs to step up and stop these shady people from operating.  I am very upset as my scores are now above 640 and climbing daily, but this last collection is a pain.  I know I can wait it out, but due to mortgage shop next week.  What is my recourse?  Please, anyone who knows anything about collection laws and ethics or what I may do here, let me know!  Thank you so much!

Message 1 of 4
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Anonymous
Not applicable

Re: COLLECTION COMPANY - Shady practices, need help !

Due to age off is the key phrase I saw.

 

if it's due to age off, one could just keep holding tight until it does.  It seems like a last ditch effort to get a settlement from 7 yrs ago with interest for being mad. 

Message 2 of 4
Anonymous
Not applicable

Re: COLLECTION COMPANY - Shady practices, need help !


@Anonymous wrote:

So, I have one more collection on my credit files to attack... Califronia Business Bureau. They colelct on medical debt, and they have account for me from 2009 due to age off in 1-3 months (Experian and TU are excluding early, EQ in spring time).  They are extrtemely crude, abrupt people and very difficult to deal with.  The thing is, my alleged balance with the hopsital is $1705 -- they are demanding I now pay $2800+, and they will delete it from my file immediately for this exorbidant payment!  They state it is "interest" and will ONLY delete if I pay all those fees, totalling $1000 over the prinicpal balance.  I am working with Experian executives to possibly get it removed earlier.

 

Is this legal to do?  I feel they are trying to extort money from me in exchange for deletion, and this can not be legal or ethical!  It has to be some kind of violation of the FCRA. The girl actually said that the only way she will delete is if I pay the $2800, otherwise she will only update to SETTLED.  I am sickened bhy this country's collection practices, and our government needs to step up and stop these shady people from operating.  I am very upset as my scores are now above 640 and climbing daily, but this last collection is a pain.  I know I can wait it out, but due to mortgage shop next week.  What is my recourse?  Please, anyone who knows anything about collection laws and ethics or what I may do here, let me know!  Thank you so much!


I assume you are in California? The state caps interest on debt collectors at 10% per year if there is no specific agreement regarding interest on the original debt. Medical debt fall in this category. Just ignore their ridiculous demands, and send settlement offers for what you consider a fair amount each month until it falls off. In you offers refer to it as "an old, time-barred debt" that you are willing to settle for xx amount *only* to remove it from your reports. Stress that it is nearing exclusion and at that point there is no value to you in settling at all. Ask them if they are more concerned with settling this old stale debt, or punishing you via your credit reports for a few more months.

Message 3 of 4
RobertEG
Legendary Contributor

Re: COLLECTION COMPANY - Shady practices, need help !

What a debt collector may or may not attempt to collect is also limited under FDCPA 808(1), which states that it is a violation for a debt collector to attempt to collect any amount, including interest and fees, that is either not specifically authorized in the contract that created the debt or otherwise permitted by law.

 

If upon review of your contract with the OC and of laws in your state, such as referenced by Norman, you determine that they are attempting to collect interest or fees not authorized, then you can either file a formal complaint with the CFPB or bring your own civil action for violation of FDCPA 808(1).

 

The CFPB has been very active in bringing debt collectors to task for violations of the FDCPA, and is also currently in the middle of a federal rulemaking process to provide strict regulations on certain debt collector practices.  The govenment is active in this area.......

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