FedEx sent invoice to collections...no warning (help needed )

[tempaccount767]

I'll try to lay the situation out as briefly as possible, since the "full version" would take up an entire page.

Basically I had a package mailed to me from Canada (I'm in the US).  It was being returned to me because I sent it out for a warranty repair.  As a matter of fact, I should owe no duty / import tax because of this, but FedEx sent me an invoice a few weeks after the package was delivered, basically saying I owe them 4% of the value of the package ($2000).  I looked at the customs forms that were attached to the invoice, and I immediately wrote to them using their dispute form, but it wasn't until 3 months later that I received an email back from a FedEx rep asking for clarification of my dispute.  I explained it again and in a few days I was emailed 2 forms that basically declare "this s a warranty repair, the value of the item wasn't increased, etc etc".  The rep said that he was going to close the dispute and reopen it once I submitted the forms.

I said to myself "ok I assume this isn't time sensitive then" and the forms fell off my todo list.  Flash forward to last night, nearly 2 months after receiving the forms and I have a debt collection letter for the balance of the invoice.  No warnings or final notices...just the initial invoice and a debt collection notice.  The notice was post-dated to July 16th, and there's no way it took 10 days to be delivered to my mailbox and basically it says I have 30 days from receiving to dispute the debt.

I immediately contact the original sender of my package to get his signature on the forms sent out before, and I fire off a reply this morning with these forms.  The problem is it looks like FedEx is being stubborn and trying to argue that the invoice is correct even though it's wrong in several ways.  The guy I was communicating with "suddenly disappeared".  I call him right after he sends me an email reply and he doesn't answer.  I left a voice mail...hasn't been returned 3 hours later.  I call the "backup" he gives in his voicemail message and he's not answering his phone either.

So....what do I do now (I have 1 week to figure this out)? I pulled my 3-bureau report and it doesn't appear the debt has been reported yet.  I don't want to initiate a dispute with the debt collection angency because then they'll call FedEx who will say "yep the debt is valid" and then my report gets dinged.  Do I try to pay FedEx the invoice amount and eat it as a loss?  Do I then initiate a dispute with the debt collection agency who will ding my report because "I only paid after going into collections"?

I really don't know what to do.  At this point I'd just pay the freaking invoice balance to make this go away, but FedEx involving a debt collector with no warning has really gunked everything up.  I'm scared to call the collection agency because I assume that'll "unleash the dogs" and they might report the debt anyways even if I pay it now.

[RobertEG]

You have a factual issue over the accuracy of the asserted debt.  Their is no requirement that a creditor give prior notification to the consumer before referral of collection to a debt collector.

You can file a DV request within 30 days of their dunning notice, which will impose an automatic cease collection bar against the debt collector until they have provided verification of the asserted debt.  So that gives a temp reprieve against reporting of a collection.

However, the DV process is unlikely to resolve the factual dispute.  In providing verification of the debt, they are required under FDCPA 809(b) to obtain basis for concluding the debt to be valid, and communicating that finding to you.  They are not required to provide supporting documentation for that determination, or "prove" the issue.

Once they have provded verification, they are then free to report their collection.  If they verify without adequate supporting basis, that is a violation of the FDCPA.

You need to get the issue before a party with authority to compel both sdes to produce all facts, and make a determiantion as to whether the debt is legitimate.

That party is a court.  The DV process is not a legal fact-finding process that will resolve the issue.

[guiness56]

You don't have to be notified before hand.

If you don't believe you should have been charged, I would sent a direct dispute to Fedex.  You will find it in the blue stickies above the forum.

[tempaccount767]

Thank you for the reply.  I'm still frantically trying to work with FedEX to get this resolved before my "debt validation" window is up.  I would have never let it go to collections had I know it was going there...because I'd pay the $80 debt to not deal with the hasle.

Should I say anything to the collection agency at all or will that set them off?  I'm guessing they're not the brightest bulbs and won't understand that I'm still trying to get this dispute resolved with FedEX.  I'm scared to even call them at all and ask "if I pay now wil it get reported" because that could be interpreted as acknowledgement the debt is valid.

[RobertEG]

Send them a simple, vanilla DV, such as:

"This is a request for debt validation under FDCPA 809(b).

Specifically, I request verifcation of the debt, an itemization of the asserted debt, and the name of the original creditor."

[tempaccount767]

So I want to make sure I update this thread with the results of today.  I hate when someone posts something and then you never get to hear how it turns out.

Basically I just said to FedEx (when I got ahold of the Duty and Taxes rep) "I just want to get this invoice out of collections".  The situation was the invoice was "tagged" as "closed - pending documentation" and the FedEx system is automated in sending them to collections past a certain time period regardless of this status.

So it's a different department that handles the invoice billing (the Duty and Taxes guy said to ask for a "Temporary Credit" so I could pay the invoice).  I called up the number on the invoice that's basically a switchboard, and got transferred to a nice sounding lady with a southern accent.  She pretty much immediately said "we'll just forgive the balance because it's so small" (it was around $80).  She also said that for "invoices with no account number and just a name and street address" the collections process does NOT affect your credit score.  In fact, the "NCO Financial Systems" collection agency is CONTROLLED by FedEx.  I don't think controlled was the exact word, but it sounded like they're at least closely in bed with each other like they're FedEx's collection arm.  However, if you have an account number with FedEx then they won't be so lenient.

Of course I requested something in the mail stating that the debt was forgiven and no longer due and she said she would put a statement in the mail for this and that I can ignore the collections letter.

Thank Jesus, crisis averted.

[guiness56]

Congrats, cautiously.

They need to notify NCO there is no longer a debt to pursue.  NCO is notorious for not being good and just a forewarning, could show up on your CR.

As soon as you get that letter, send it NCO.