topic Re: Unlicensed Collection Agency?? in Rebuilding Your Credit

Unlicensed Collection Agency??

Slowlyrebuilding — Wed, 23 Jun 2021 16:37:17 GMT

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

Re: Unlicensed Collection Agency??

SOGGIE — Wed, 23 Jun 2021 23:49:14 GMT

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.

Re: Unlicensed Collection Agency??

blindambition — Wed, 23 Jun 2021 18:14:03 GMT

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.

Re: Unlicensed Collection Agency??

dragontears — Wed, 23 Jun 2021 22:43:53 GMT

@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.

Re: Unlicensed Collection Agency??

RobertEG — Thu, 24 Jun 2021 00:25:33 GMT

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.

Re: Unlicensed Collection Agency??

blindambition — Thu, 24 Jun 2021 07:47:56 GMT

@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.

Re: Unlicensed Collection Agency??

Slowlyrebuilding — Thu, 24 Jun 2021 11:15:03 GMT

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).

Re: Unlicensed Collection Agency??

Slowlyrebuilding — Thu, 24 Jun 2021 11:15:29 GMT

They are required to be licensed in my state.

Re: Unlicensed Collection Agency??

Slowlyrebuilding — Thu, 24 Jun 2021 11:25:27 GMT

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.

Re: Unlicensed Collection Agency??

Anonymous — Thu, 24 Jun 2021 14:50:43 GMT

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.

Re: Unlicensed Collection Agency??

dragontears — Thu, 24 Jun 2021 14:53:17 GMT

@Anonymous wrote:
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.

You do realize that until the CA initiates contact and sends a duning notice that they are free to toss a DV request in the trash?

Re: Unlicensed Collection Agency??

dragontears — Thu, 24 Jun 2021 14:58:57 GMT

@Slowlyrebuilding wrote:
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.

To answer your questions:

1. Maybe, it depends on the CA, age of the delinquent account, SOL, dollar amount, etc. There is no standard and you and them are free to negotiate a settlement of any amount that is satisfactory to both parties.

2. No. It is your responsibility to pay your debts, you can't use the excuse "they didn't contact me about a valid debt" to argue that fees and interest shouldn't be continued to be added as long as said fees and interest are in accordance with the original contract.

Re: Unlicensed Collection Agency??

Slowlyrebuilding — Fri, 25 Jun 2021 12:03:20 GMT

@dragontears it's not that I'm trying to ignore them and then want to claim later I shouldn't have to pay. But as a normal consumer sending off payments to a company and not receiving any statements or having any formal way of tracking a balance seems unwise. What if I send them $2200 and in 6 months another collection agency licensed in my state says I still owe the debt and now it's $3000? I should also add that briefly this account was with a different collection agency who I sent payments to. I have no way of knowing if those payments to that collection agency were ever credited to the account so I don't want to send money now to this place and have the same situation down the road.

Re: Unlicensed Collection Agency??

Anonymous — Fri, 25 Jun 2021 13:00:18 GMT

@dragontears wrote:
@Anonymous wrote:
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.

You do realize that until the CA initiates contact and sends a duning notice that they are free to toss a DV request in the trash?

I missed that part, no need for the hostility.

Re: Unlicensed Collection Agency??

bass_playr — Sat, 26 Jun 2021 06:04:30 GMT

There might be another piece to this puzzle that should be considered. Depending on the type of debt and the state you live in, a CA may or may not be able to lawfully add interest or fees to the amount.

Some states have ruled that when the OC charges off the debt and stops charging the interest and fees---so that they no longer have to send periodic statements to the consumer---that it acts as a waiver. In those states, this means that when the OC stops charging interest and fees, usually due to them charging off the debt, that no subsequent creditor or debt collector can restart the adding of that interest or those fees. They basically ruled in those states that the OC waived their right to add interest under the agreement, and as such, any future collector or creditor cannot take on a right that the OC has waived.

Re: Unlicensed Collection Agency??

SOGGIE — Sun, 27 Jun 2021 03:04:36 GMT

@Slowlyrebuilding wrote:
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).

How old is this debt (DOFD)?

Re: Unlicensed Collection Agency??

dragontears — Sun, 27 Jun 2021 23:45:01 GMT

@Anonymous wrote:
@dragontears wrote:
@Anonymous wrote:
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.

You do realize that until the CA initiates contact and sends a duning notice that they are free to toss a DV request in the trash?
I missed that part, no need for the hostility.

@Anonymous my apologies if I came across as hostile. My intention was more a "captain obvious" statement not as an attack.

Re: Unlicensed Collection Agency??

dragontears — Sun, 27 Jun 2021 23:47:45 GMT

@Slowlyrebuilding wrote:
@dragontears it's not that I'm trying to ignore them and then want to claim later I shouldn't have to pay. But as a normal consumer sending off payments to a company and not receiving any statements or having any formal way of tracking a balance seems unwise. What if I send them $2200 and in 6 months another collection agency licensed in my state says I still owe the debt and now it's $3000? I should also add that briefly this account was with a different collection agency who I sent payments to. I have no way of knowing if those payments to that collection agency were ever credited to the account so I don't want to send money now to this place and have the same situation down the road.

@Slowlyrebuilding

I completely understand where you are coming from. I would also like something in writing before I paid if I was you. My statement was intended to strictly answer the questions you asked, not to pass any kind of judgment.

Re: Unlicensed Collection Agency??

Slowlyrebuilding — Mon, 28 Jun 2021 12:12:18 GMT

@SOGGIE I don't know the exact dofd. But it was about 3 years ago.

Re: Unlicensed Collection Agency??

Slowlyrebuilding — Mon, 28 Jun 2021 12:26:56 GMT

So an update: I received via email a letter from "Persolve Legal Group" not Persolve LLC stating I owe $2310 (higher than what they said on the phone) but that they would settle for $2325. Yes, their settlement offer is higher than what they say I even owe! They go on to say there may be tax implications of settling for less...so I am hoping their settlement offer amount was a mistake. They also are saying I have 30 days to resolve.

soooo....

1) has anyone ever heard of a settlement offer being more than what someone owes?

2) I emailed them back questioning the settlement offer and also requested they provide me with an accounting of the balance when they purchased and what has been added on. Do they have to provide that info?

3) when I researched Persolve legal group I read they are not actually a law firm but present themselves that way. There is actually a lawsuit working it's way through the courts about that. Persolve legal group is not a licensed collection agency either. They are licensed as a business. In my state collection agencies are licensed and monitored through the AG's office. They only show a business license through SOS. They are not on the AG's list.

4) I was able to find the terms and conditions of the original card and in it they state that in Colorado they will not charge more than 15% of the unpaid balance for Attorney fees and that they will not charge any other collection costs. Can I hold them to the original card member agreement?