Unlicensed Collection Agency??

Slowlyrebuilding · ‎06-23-2021

Hello, I have an old debt that I wanted to track down and after much research found it was bought by Persolve llc aka account resolution associates. I called their office and had to leave a message. Someone did call me back and left a voicemail. I thought it was strange because usually debt people say the line "this is an attempt to collect a debt" they just said the business name and said it was important I call them back. When I called them this morning I told them I have never received any calls or correspondence from them and would like them to email me everything about the account. So far I haven't received anything. They also acted strange on the phone, like they were eager to get off the phone and didn't ask me about paying or ability to pay as much collectors do. So anyway I went on to my states licensing authority and discovered it is very likely they are not licensed in my state. Which would explain the no communication from them in the year since they bought the debt. At this point do I have leverage to get a very low settlement? The amount they say I owe is $2300. The original debt was $1500. I'm also wondering if they are allowed to hold onto it, inflate the balance with interest/fees and then sell it to someone else? Sorry for the long drawn out question, I just couldn't find anything on this anywhere

SOGGIE · ‎06-23-2021

I would suggest to file a complaint with the BBB and your State Attorney General's Office - Consumer Affairs Division.

EDIT: This recommendation is only if the agency is claiming to own or is assigned to collect the debt and is reporting the account to a CRA.

Life was a lot simpler when what we honored was father and mother, rather than all major credit cards. ~Robert Orben

blindambition · ‎06-23-2021

Whether a unlicensed collector may collect or not is state specific. That is something you may find on SAG website, or by calling their office.

dragontears · ‎06-23-2021

@Slowlyrebuilding wrote:
Hello, I have an old debt that I wanted to track down and after much research found it was bought by Persolve llc aka account resolution associates. I called their office and had to leave a message. Someone did call me back and left a voicemail. I thought it was strange because usually debt people say the line "this is an attempt to collect a debt" they just said the business name and said it was important I call them back. When I called them this morning I told them I have never received any calls or correspondence from them and would like them to email me everything about the account. So far I haven't received anything. They also acted strange on the phone, like they were eager to get off the phone and didn't ask me about paying or ability to pay as much collectors do. So anyway I went on to my states licensing authority and discovered it is very likely they are not licensed in my state. Which would explain the no communication from them in the year since they bought the debt. At this point do I have leverage to get a very low settlement? The amount they say I owe is $2300. The original debt was $1500. I'm also wondering if they are allowed to hold onto it, inflate the balance with interest/fees and then sell it to someone else? Sorry for the long drawn out question, I just couldn't find anything on this anywhere

I am not sure why people are recommending that you contact the AG for your state since your description doesn't sound like they are directly attempting to collect on the debt (you contacted them and they responded to your voice mail).

Yes, they can keep adding fees and interest in accordance with the TOS/agreement of the origin of the debt.

Yes, they can sell the account at any point in the future

They can also hire a collection agency that is licensed in your state to attempt to collect on the debt.

RobertEG · ‎06-23-2021

A very plausable reason why they have not initiated communications that are clearly attempting to collect on the debt is that, unless and until they do so, they have no obligation to send dunning notice, and until such time, the consumer right to request debt validation is not triggered.

See FDCPA 809. Calls to them are not initiation of collection by the debt collector.

As for them being unlicensed, you need to establish that as fact, as well as whether the state statute/regs then also prevent reporting to a CRA. CFPB, AG , or BBB comlaints appear a bit premature.

blindambition · ‎06-24-2021

@dragontears wrote:
@Slowlyrebuilding wrote:
Hello, I have an old debt that I wanted to track down and after much research found it was bought by Persolve llc aka account resolution associates. I called their office and had to leave a message. Someone did call me back and left a voicemail. I thought it was strange because usually debt people say the line "this is an attempt to collect a debt" they just said the business name and said it was important I call them back. When I called them this morning I told them I have never received any calls or correspondence from them and would like them to email me everything about the account. So far I haven't received anything. They also acted strange on the phone, like they were eager to get off the phone and didn't ask me about paying or ability to pay as much collectors do. So anyway I went on to my states licensing authority and discovered it is very likely they are not licensed in my state. Which would explain the no communication from them in the year since they bought the debt. At this point do I have leverage to get a very low settlement? The amount they say I owe is $2300. The original debt was $1500. I'm also wondering if they are allowed to hold onto it, inflate the balance with interest/fees and then sell it to someone else? Sorry for the long drawn out question, I just couldn't find anything on this anywhere
I am not sure why people are recommending that you contact the AG for your state since your description doesn't sound like they are directly attempting to collect on the debt (you contacted them and they responded to your voice mail).

Yes, they can keep adding fees and interest in accordance with the TOS/agreement of the origin of the debt.

Yes, they can sell the account at any point in the future

They can also hire a collection agency that is licensed in your state to attempt to collect on the debt.

My comment was in regards to the unlicensed aspect. SAG can confirm whether or not an unlicensed CA may collect in OP state. Since some states allow.

Slowlyrebuilding · ‎06-24-2021

They are not on my credit report nor is the original creditor (which is why it took me a bit to track down the debt).

Slowlyrebuilding · ‎06-24-2021

They are required to be licensed in my state.

Slowlyrebuilding · ‎06-24-2021

Yes, I have no intention of contacting my AG's office because I don't believe they have done anything wrong (yet). What I'm really trying to find out is:

1) since the only way they can get any money is to sell the debt to someone else or hire a collection agency in my state, would that make them more agreeable to accepting a lowball settlement offer? Meaning I offer them $300 to settle and be done.
2) if they were to sell the debt to someone else do I have any recourse for them not communicating with me for a year? Specifically I do dispute the validity of the debt being $2200. That would mean they added about $600 in fees to a $1500 balance. Which I think is unreasonable for a debt they have taken no action to collect. If down the road I can show I was trying to resolve this debt now but couldn't because they wouldn't provide me anything in writing about the balance or even that the debt was owned by them. I don't want to just send them money with nothing in writing that they even own the debt.

Anonymous · ‎06-24-2021

I would send a debt validation letter via CMRR and request their state license. I'd not pay them a sent if they are not license to collect in your state.