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New Member
Posts: 4
Registered: ‎10-08-2013
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Collection agency unethical practice

[ Edited ]

Metro Collection Service in Salt Lake city added a collection account to my credit report.

I never received any communication from them about the debt. So I was frustrated. I called them up and they said that they mailed the letter to an old address of mine and as it was not returned to them, they went ahead and added the collection account.

I explained them that I haven't lived then in their mailing address in about two years and since I was not give a chance to pay off the debt, I requested them to delete the collection account from my CR and then I'll be happy to pay off the debt. While I was emotionally explaining this, the guy kept repeating that I should pay it off and then they will mark it as paid. But I tried to explain that it was a communication issue and I should be given a chance to pay it off and have the account deleted. He then said that he doesn't want to repeat himself and harshly hung up on me. It was very very low.

 

I did put in a dispute with the credit agencies and filed a bbb complaint but not sure if I can get them delete the account and do it fairly. Any suggestions? Should I pay it off now and would the dispute be successfull with/without paying it off first? And does anyone have any similar experiences dealing with such collection agencies?

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: Collection agency unethical practice

Welcome to the forums.

 

Unfortunately, no prior notice of reporting is required and they do not have to give you a chance to pay before hand.

 

I would send them a DV letter now.  It has already reported but until they validate they cannot continue collection activity.

New Member
Posts: 4
Registered: ‎10-08-2013
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Re: Collection agency unethical practice

Thanks. But how would a DV help delete the collection account? 

I think they will be happy to send me a Debt Validation response to me but how should I follow up to have it removed?

Valued Contributor
Posts: 2,661
Registered: ‎04-25-2011
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Re: Collection agency unethical practice


guiness56 wrote:

Welcome to the forums.

 

Unfortunately, no prior notice of reporting is required and they do not have to give you a chance to pay before hand.

 

I would send them a DV letter now.  It has already reported but until they validate they cannot continue collection activity.


I am not sure, Guiness, if the DV would stop collection since they already sent the dunning notice to a record they had on file. Will the new DV be timely?

 

Ultimately; OP, it will come back to you. The debt, well, all debt that is legit falls back to the person who accrued it. While it wasn't fair, at this stage it is what it is. Now you need to figure out the next steps to remove.

 

If I were you, I would send a DV like Guiness said, to get the information and stop collection activity temporarily if it is considered timely. If not, well the DV isn't a horrible place to start if the debt is smallish.

 

I would then offer a PFD to see if they will accept deletion upon payment. Alot of times they won't do it over the phone but will in letter.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Epic Contributor
Posts: 20,928
Registered: ‎03-19-2007
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Re: Collection agency unethical practice

The reporting of the collection is accurate provided they have/had legitimate collection authority, either by assignement from the OC or by purchase of the debt.

Absent a showing that they did not in fact have authority to collect on the debt, there is no basis for compelling deletion of their reporting of that fact.

 

The usual way to get a reported collection deleted is to offer payment in exchange for deletion.

However, if you send a timely DV (i.e., sent either without receipt of dunning notice, or within 30 days of receiipt of dunning notice), you get the advantage of barring further active collection on their part until they send verification, but you also precludes any negotiations on terms of collection, such as a PFD offer, until they have provided the requested verification.

Valued Contributor
Posts: 2,661
Registered: ‎04-25-2011
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Re: Collection agency unethical practice


RobertEG wrote:

The reporting of the collection is accurate provided they have/had legitimate collection authority, either by assignement from the OC or by purchase of the debt.

Absent a showing that they did not in fact have authority to collect on the debt, there is no basis for compelling deletion of their reporting of that fact.

 

The usual way to get a reported collection deleted is to offer payment in exchange for deletion.

However, if you send a timely DV (i.e., sent either without receipt of dunning notice, or within 30 days of receiipt of dunning notice), you get the advantage of barring further active collection on their part until they send verification, but you also precludes any negotiations on terms of collection, such as a PFD offer, until they have provided the requested verification.


If a dunning is sent to an old address, how does that impact timeliness? techincally OP didn't get a dunning, but in the CA's mind one was sent.

 

I am unsure myself.

 

Thanks!

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Epic Contributor
Posts: 20,928
Registered: ‎03-19-2007
0

Re: Collection agency unethical practice

I think it would be a legal tassle over what they relied upon for the current communication address.

If the consumer did not update their address with the CRA, then they might have a case of reasonable communication, with the consumer being responsiblle for checking mail at the address currently of records.  A decision for the CFPB or a judge to make.

 

It would only become an issue if the debt collector resumed collection without first providiing verification.  They may not even hold the DV as untimely.

One wont know until they make their determination, and either respond or resume collection.

I guess if they resume collection without first providing verification, the consumer would have to assert a violation of section 809(b), and get it before either the CFPB or the court for determination.

New Member
Posts: 4
Registered: ‎10-08-2013
0

Re: Collection agency unethical practice

[ Edited ]

I have checked my Credit Report and it does show my new Address. But the collection agency sent the notice to my old address. Does this help me start a legal suit agaist them? 

 

Also I spoke with the original company that transferred the debt to the collection agency. They said they'll talk to the collection agency but I feel like the chances are slim. I'm thinking about waiting for how BBB arbitration goes and then get an attorney involved (I know its expensive but I'm willing to pay upto a few thousand dollars to fight it as I have no choice but to have it deleted).

 

Should I still send them a Debt Validation letter now?

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