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Dealing with a horrible collection agency

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Anonymous
Not applicable

Dealing with a horrible collection agency

Hello everyone,

 

This is my first post, so bare with me. My husband and I are both working diligently to raise out credit scores so that we can buy a house. We have been following much of the advice in this forum and it is appreciated. This place is a gold mine. I started out around 580 and my credit is now 670, my husband started at 630 and his is now 720. So, thank you for that.

 

We've hit a single snag. Both of us have a collection for IQ Data International/RentCollect Global on our credit. We had to move suddenly because I was promoted about a year and a half ago. We spoke to the apartment before we left, cleaned the place top to bottom, etc etc. We simply did not have enought to both move and cover the penalities they were charging us. It was something in the $3000 range and we managed to come up with all of it but $1180.60.

 

The apartments immediately sent it to a collection agency, in this case IQ Data International but we had no idea this had happened as we never received any sort of letter from the apartments or the agency. Fast forward to nearly a year later when we decided we wanted to buy a home instead of rent and found that collection, cheerfully collecting interest, on both of our credit reports.

 

We called the apartments first and they said we had to deal with IQ Data. Sigh. Okay. So we called them. Wow. They were not only rude, but threatening and horrible on the phone. Yes, we are aware that their threats violate the FDCPA but as we have no proof of what they said, there is no point dwelling on it. We attempted to offer them payments (which, I might add, had they accepted would have paid the debt off in full by now) but they declined. They, literally, screamed at us on the phone telling us that we must make the full payment on that day or they would ...blah blah blah, lots of threats. We hung up in mid-scream as they were not prepared to work with us in any way, shape or form.

 

Now, fast forward another couple of months. We really, really do want to take care of this and at least have it shown as paid in full. We have no delusions that they will accept a PFD at this point for any amount. We moved suddenly, we own the debt, we are aware. So, I sent them a check for $315.68 with the promise that another of the same amount would follow the next month for a total of $631.35 which is 54% of what we owe them. The $1180.60, not the illegally collected interest (as we've checked our lease and there was no signed agreement for that).

 

They sent the check back to us and again, stated they were collecting interest (which they can't legally do) and that we were to pay $1281.00. Which we still can't afford. We're saving up, and have every intention of sending the $1180.60 (as we are not paying them a penny of interest) but we have a very strong feeling that they won't accept that either and we're not sure what to do.

 

We have spoken to several mortgage companies and it appears we can get a mortgage (as my husband is a disabled veteran) anyway but I'd like our credit to be as high as possible to get the best rates.

 

Should we just continue to save, send them the $1180.60 and call it good since they don't seem to want to work with us in any way, or should we try to contact them again? I asbolutely refuse to speak to them on the phone but will happily write them another letter. I'm thinking this is just going to have to sit on our credit for 7 years but I was hoping maybe someone out there would have some advice.

 

For the record, I do believe this is still within the SOL to sue us, but I honestly don't believe they will since they haven't as of today and we have honestly been attempting to set up some sort of payment arrangement with them (and if they sue, wouldn't the judge do that for us?).

 

 

Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Dealing with a horrible collection agency

I don't have a lot of experience with collections agencies, but from what you described it might be in your interest to seek out legal advice. I'd see what lawyers in  your area charge for help with something like this - it might be enough to send a letter with an attorney's signature on it to let them know you're not someone to be bullied. In time, the legal fees would likely be offset by the better rate you'll get on your new mortgage.... good luck!

Message 2 of 7
bass_playr
Established Contributor

Re: Dealing with a horrible collection agency

OK....first, if I may ask, what state is the apartment place in and what state do you live in now?  Laws are different state by state.

 

Also, depending on what state you live in, you may be allowed by law to record phone calls without even telling them.  I do it all the time and it's paid off more than once for me.  

 

There may be an issue with you sending them a check and them returning it.  If they refuse payment, some places have laws where refusing payment means they are barred from pursuing the debt altogether.  Especially since you're not dealing with an issue where there was a payment plan and you were not making a full monthly payment at that time---when that happens, they can often refuse the partial payment.  

 

You were smart to keep your copy of the rental agreement---by doing that, you can prove that they cannot apply interest to the balance unless specifically called for in the agreement.  If you have not done so already, make sure to check all the fine print just to be sure.  

 

At this point, honestly, if I were in your shoes, I would consult a consumer attorney.  Many of them offer free initial consultations.  It costs nothing to see if they believe you have a case worth pursuing.  Here's the thing---some of the behavior you mentioned violates the FDCPA, a federal law.  If you can show that they broke that law, the statutory damages are up to $1000, plus any actual damages, plus costs. 

 

1--Charging interest or other amounts not provided for in the contract---violates 15 USC 1692(g) of FDCPA

2--Abusive or threatening behavior on phone calls---violates 15 USC 1692(e)

3--Reporting any amounts in the balance that they are not permitted to add to the debt--violates FCRA

 

This is just my opinion and I am not an attorney, but so far that is what I see.  Proving these things will require evidence, of course, and of these three, #2 is the one that will be hardest to prove.  If your state allows recording without telling them, you might try recording the call and see how they treat you.  I use a free app on my cell phone, which records the calls, and then I upload them to my computer.  Easy to put on a CD or flash drive.  

 

If they say you owe them around $1,200.00, and you file suit, you might just have enough leverage on them to make them drop the whole matter and disappear from your reports---and your life.  

Message 3 of 7
RobertEG
Legendary Contributor

Re: Dealing with a horrible collection agency

The issue of their harassment would be a violation of FDCPA 806, but is kinda a side issue.

Harassment violations can be reported to the CFPB and/or subject to statutory damages of $1,000 under the FDCPA, but are not basis per se for deletion of their credit reporting of the collection.

Pursuing harassment violations is encouraged, but the result will likely be a slap on the wrist by the CFPB or a bit of $ in your pocket for the violation, and will not mandate deletion of the collection, which appears to be your real concern.

 

Unless, after contacting your local landlord/tenant agency, you determine that they have violated some requirement of law or some regulation in their assessment of the debt, the debt will likely be valid.  It is too late to pursue debt validation under FDCPA 809(b), but if you can find some legal basis for contesting the asserted debt, you can file a dispute under FCRA 611(a), contesting the accuracy of their credit reporting.  That will mandate an investigation by the creditor, and if they verify the accuracy of the asserted reporting, open the door for your ability to then file a civil action under FCRA 623(c), and obtain court review of the accuracy.

That, of course, is predicated upon whether or not you feel that a court would find in your favor regarding the validity of the debt.

It would be prudent to consult with an attorney prior to filing any civil action, particularly if the action would possibly be found by the court to be frivolous.

 

As for the issues of sending the check back, if you did not send the full payment, they are not obligated to accept partial payments.

They were within their right to not accept payment of less than the full asserted debt.

 

As for assessing interest, FDCPA 808(1) permits a debt collector to attempt to collect an amount that is more than the principal amount of the debt, such as legit fees and interest, provided the contract that created the debt specifically authorizes such amounts or is permitted by law.  Unpaid debts are subject to continued accrual of interest under those conditions.  I would suggest that you carefully review your rental agreement for any reference to interest assessment, and then contact your housing authority for any regs pertaining to assessment of interest on delinquent rental amounts.

 

As a final possibility, does the apartment still own the debt, or has it actually been sold to the debt collector?

Message 4 of 7
Anonymous
Not applicable

Re: Dealing with a horrible collection agency

Okay, let me see. First we live in Texas and we lived in Texas before in the other apartment.

We are, at this moment, going over the fine print in our prior rental agreement to make sure there is no stipulation for agreed on interest.

We do not know if the debt was sold or just turned over to them. We did contact the apartment complex, however, and were told we had to deal with IQ Data and that they couldn't help us.

I do know that IQ Data has been successfully sued (they settled out of court from my understanding) due charging illegal interest to other tenants of other residences.

We just want to pay them off but cannot afford the entire amount at this time so I'm saving up what I would have paid them each month instead.

If we do find that there is no stipulation for interest in our lease we will see about contacting an attorney.
Message 5 of 7
RobertEG
Legendary Contributor

Re: Dealing with a horrible collection agency

Being a resident of Texas provides you with one further option.

Texas has an enhanced debt collection practices statute that provides for debt validation requests with no timeliness requirement, and requires that the debt collector respond within 30 days.  As such, you can still send a DV request under the provisions of the Texas Finance Code, section 392.202.

 

The Texas Finance Code does not mandate validation within 30 days, it only requires response within 30 days.

The debt collector can state in their response that they are not yet prepared to provide validation, and that is a valid response.

However, if they state that they are not yet providing validation, they are required to then immediately delete their reporting of the collection with the CRA.  They can reinsert after they send validation, but it will at least remove the collection from your credit report and scoring until validation is sent.

 

I would recommend sending a DV that specifically makes reference to section 392.202 of the Texas Finance Code, and may result in at least temporary removal from your credit report.

 

Message 6 of 7
Anonymous
Not applicable

Re: Dealing with a horrible collection agency

Fantastic. I will start there.
Message 7 of 7
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