cancel
Showing results for 
Search instead for 
Did you mean: 

Need Help Dispute Denied

tag
Anonymous
Not applicable

Need Help Dispute Denied

Just got the results of my dispute it says this:

ERC; Collection Reported 08/2016; Assigned 09/2015; Creditor Class − Cable/Cellular; Client − Time Warner Cable; Amount − $151 ; Status as of 08/2016 − Unpaid; Date of 1st Delinquency 05/2011; Balance as of 08/2016 − $495.

Amount I owe the original creditor is $151 but the CA is charging about $350 in fees which I don't feel is fair but the debt I put no knowledge of it but came back as valid.

Company is Enhanced Recovery Corp which I thought had lost all Collection Authority due to shady tactics like raising accounts by hundreds of dollars from their original amounts owed.

Basing that on this thread where multiple people said they disputed and it was deleted because they lost authority.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Enhanced-Recovery-Company-LLC-Collection-Agen...

What can/should I do??
6 REPLIES 6
Anonymous
Not applicable

Re: Need Help Dispute Denied


@Anonymous wrote:
Just got the results of my dispute it says this:

ERC; Collection Reported 08/2016; Assigned 09/2015; Creditor Class − Cable/Cellular; Client − Time Warner Cable; Amount − $151 ; Status as of 08/2016 − Unpaid; Date of 1st Delinquency 05/2011; Balance as of 08/2016 − $495.

Amount I owe the original creditor is $151 but the CA is charging about $350 in fees which I don't feel is fair but the debt I put no knowledge of it but came back as valid.

Company is Enhanced Recovery Corp which I thought had lost all Collection Authority due to shady tactics like raising accounts by hundreds of dollars from their original amounts owed.

Basing that on this thread where multiple people said they disputed and it was deleted because they lost authority.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Enhanced-Recovery-Company-LLC-Collection-Agency/td-p/2000885

What can/should I do??

Well the first problem is you disputed "no knowledge."  All anyone has to do to end the dispute is show that it is your account, which you admit it is.  It will be tough to dispute with the CRA again so soon, but "incorrect amount" would have been a better choice.  A dispute for a valid debt is unlikely to make it go away, but it should be reporting accurately.  I would send a validation letter to ERC asking for a full itemization of the amount they are reporting.  Look on here for some good examples, or other credit boards. ERC may delete on their own if your letter makes them think you know your stuff.  How old is the account?  Are you out of SOL?

Message 2 of 7
Anonymous
Not applicable

Re: Need Help Dispute Denied

I just followed what the people in this thread did and they said no knowledge. Check if you can.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/UPDATE-How-to-handle-Enhanced-Recovery-Compan...

Also, I've read ERC doesn't respond to validation requests you'd have to send it certified mail then wait for them to fail to respond then file a Federal Complaint against them then an investigation and all that.

The account is from 2011 and yes it is out of the SOL in my state.

It says I'm entitled to see the procedure they used for verifying this account and any people (If any) at the collections agency they spoke to in their dispute process. It only took then 2 days for their investigation seems pretty short to me.

Do you know how to request a copy of the procedure they used and all the information?

I live in California so it's required by law that they furnish it upon request. I just can't find how to request it Smiley Sad

Also, I just filed a complaint with the Federal Consumer Protection Bureau for violating CA state law by increasing the amount owed by that much (there's an interest cap at or below 7% APR) and violating the Federal Fair Debt Collections Practices Act. So we'll see how that pans out.
Message 3 of 7
pmarti8
Valued Member

Re: Need Help Dispute Denied

Pay the $150 to the utility/telecom company its owed to. Wait thirty days and dispute the debt as inaccurate. (I've had luck with selecting paid before sent to collections) the utility company should have recalled the debt by then. Most debt collectors won't bother validating if they won't collect especially for such a small amount. It's worth a try. 


Starting Score: 07/2010 TU 541 EQ 593 Exp 529
Current Score:TU 654 EQ 644 EX 594 br>Goal Score:ALL 660 850

Take the FICO Fitness Challenge
Message 4 of 7
Anonymous
Not applicable

Re: Need Help Dispute Denied

I called they no longer have a record of it with the original company because it's been 5+ years. Of course I spoke to some guy in India who didn't really want to be helpful but that's what he said.

I'm guessing they sold it to a Junk Debt Buyer.

So should I send a DV? It shows it was added to my CR last December but I didn't start checking my CR until about a week ago.
Message 5 of 7
RobertEG
Legendary Contributor

Re: Need Help Dispute Denied

The debt is over five years old, and its legitimacy is not contested.

ERC is apparently assigned collection authority.  Any prior findings of lack of collection authority in other cases does not apply generally to all instances of collection authority.  The assertion that ERC has no collection authority based on some unspecified prior action involvng other consumers is unsupported.

What finding is being relied upon to support the conclusion that ERC can no longer have collection authority in any collection?

 

The FDCPA permits charging of amounts by debt collectors if they are either authorized in the agreement that created the debt or otherwise permitted by law.

What is the specific provision of CA law that caps all debt collectors at a specific amount?

 

As for now requesting debt validation, any request that is sent later than 3 days after dunning notice imposes no requirment on the debt collector.

When was dunning notice sent?

The new California Debt Buyers Protection Act does include provisions requiring enhanced DV support, but only applies to debt collectors who have purchased the debt, not to those who only have assigned collection authority.  The post indicates that they only have assigned collection authority.

 

More info is needed to support the assertions made in the post.

Can you provide additional info to support your position?

 

If a dispute has been filed and resolved, you can bring civl action it you still contest their ability to collect on the debt.

That would apparently be your next step.

Facts supporting your assertions of lack of collection authority would be necessary to support any civil action.

 

 

 

Message 6 of 7
Anonymous
Not applicable

Re: Need Help Dispute Denied

I'm unsure as to if they purchased the debt or if they were assigned it. I moved out of the address I had when I had the service 5 years ago and to about 4 different addresses since then.

I have never received any notice likely because they sent it to an old address. As such the requirement for the Dunning notice on their end (still don't know what a dunning notice is) has not been met. They may assume that I received it but the fact is that I have not received it. I only noticed it a few days ago looking at my Credit Report.

As for the interest caps,

"Legal Maximum Rate of InterestLoan/forbearance of any money, goods, or things in action, or accounts after demand-7% or contract rate (Const. XV §1) contract rate shall not exceed 12% (Civil Code §1916-1)
Penalty for Usury (Unlawful Interest Rate)Contract or agreement for greater than 12% shall be null and void as to any agreement to pay interest (Civil Code §1916-2); debtor may recover treble amount paid; willful violation-guilty of loan-sharking, a felony and punishable by imprisonment in state prison for not more than 5 yrs. or county jail for not more than 1 yr. (Civil Code §1916-3)
Interest Rates on JudgmentsSet by legislature at not over 10% rate; in absence of setting of such rate, rate of interest is 7% (Const. Art. XV §1)
ExceptionsIncorporated insurer (Ins. §1100.1); licensed broker-deals (Corp. §25211.5); indebtedness issued pursuant to corporate securities law (Corp. §25116); licensed business and industrial development corporation (Fin. §31410); state and national banks acting as trustees (Fin. §1504); foreign banks (Fin. §1716); bank holding companies (Fin. §3707); state and federal savings and loans (Fin. §7675)"

http://statelaws.findlaw.com/california-law/california-interest-rates-laws.html

This is in regards to an old utility bill so I'd assume it's included in this right? (Help is appreciated).

Also when you Google Enhanced Recovery Corp it comes up as permanently closed which is one factor that contributed to my belief that authority is revoked in addition to that post.

Despite the debt being from 2011 they either bought it or were assigned it in 2015 according to my CR.

The only was I can get valid information about this is via a DV right? Also, I would like to know how I can request to see what exact steps EQ took to verify this information as well as who they contacted at ERC to verify. And I am entitled to this right per CA state law and was given notice of this right on the letter from EQ where it stated the information was verified.

Would appreciate any help thanks RobertEG and Community!
Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.