If you are in Texas, this should be step ONE

[ashlia]

See post below: First one was weird somehow...

Edited May 19, 2011 by ashlia

[ashlia]

If you are in Texas, this should be the new first step, IMO. I have been checking, and now realize I have paid four collection agencies that didn't have Texas CHARTERS, and had no legal standing to do any business AT ALL in this state. As you can bet, I'm pissed. Writing all four to let them know I will file suit for violations of TFC, TDTPA and the Texas Tax Code. I want my damn money back.

 

Below is the website, and this is the deal. If they have no charter(i.e. "business name not found"), they can't do business, much less collect, in Texas.

 

If they have a charter that shows "not in good standing" they can't do business in Texas.

 

And if the charter comes back as "withdrawn/dissolved"...guess what...they can't do business in Texas.

 

Don't get burned as I have, check this website. If you have questions CALL them. The reps will tell you when the charter was forfeited/withdrawn and they are wonderful!

 

https://ourcpa.cpa.s.../coa/Index.html

 

In case you don't know the ramifications of having a forfeited charter and attempting to do business read this from the Texas Tax Code:

 

Sec. 171.2515. FORFEITURE OF RIGHT OF TAXABLE ENTITY TO TRANSACT BUSINESS IN THIS STATE. (a) The comptroller may, for the same reasons and using the same procedures the comptroller uses in relation to the forfeiture of the corporate privileges of a corporation, forfeit the right of a taxable entity to transact business in this state.

 

( The provisions of this subchapter, including Section 171.255, that apply to the forfeiture of corporate privileges apply to the forfeiture of a taxable entity's right to transact business in this state.

 

Sec. 171.252. EFFECTS OF FORFEITURE. If the corporate privileges of a corporation are forfeited under this subchapter:

 

(1) the corporation shall be denied the right to sue or defend in a court of this state; and

 

(2) each director or officer of the corporation is liable for a debt of the corporation as provided by Section 171.255 of this code.

 

Again, I am ticked right now. Would have saved myself about $2,500 bucks if I had known this. But that was pre CB. Updates to come, I am pondering my future actions. It has been less than a year since I paid this stuff...and I want by $ back. Will let you know what I decide to do...but they have certainly violated several codes here...

Edited May 19, 2011 by ashlia

[Maestro888]

This is interesting that you brought this up. I actually live in Texas and had the same issue with a towing company when my car got towed at my friends apartment complex. The towing company was not in good standing with the comptroller. I thought this would be enough to get my towing/ storage fees refunded. So what I did was contact the comptrollers legal counsel, tax attorney, CPA, and civil attorney to shed some light.

 

Although the charter might not be in good standing, the company can still do business in the state of Texas (so long that their license/ bond is in good standing). There actually has been ruling in regards to the issue, which ended in the judge dismissing the case and giving the company X amount of time to file with the comp. From what I've been told, its really easy for the company to file and the "not in good standing" is a common wide issue. Just because the company is not in good standing with the comp, does not mean they can't do business. I wish that was the case.

[ashlia]

You are talking about a Texas business...I'm talking about out of state (foreign, as the Comptroller's Office calls them) companies. I should have clarified that more. See my thread "Funny CA Story." I think the rules are a bit more stringent for an foreign entity. I know the comptroller's office has led me to believe this is a very serious issue, and one that results in them not being able to defend themselves in court.

 

I'd love some more discussion here...

 

This is interesting that you brought this up. I actually live in Texas and had the same issue with a towing company when my car got towed at my friends apartment complex. The towing company was not in good standing with the comptroller. I thought this would be enough to get my towing/ storage fees refunded. So what I did was contact the comptrollers legal counsel, tax attorney, CPA, and civil attorney to shed some light.

 

Although the charter might not be in good standing, the company can still do business in the state of Texas (so long that their license/ bond is in good standing). There actually has been ruling in regards to the issue, which ended in the judge dismissing the case and giving the company X amount of time to file with the comp. From what I've been told, its really easy for the company to file and the "not in good standing" is a common wide issue. Just because the company is not in good standing with the comp, does not mean they can't do business. I wish that was the case.

Edited May 19, 2011 by ashlia

[Texastarz]

Unfortunately, all the CA's that I am battling are also law-abiding.

 

The ones that werent, were easy deletes.

 

And as always, Thanks for the Good Info, Ashlia!

[Maestro888]

You are talking about a Texas business...I'm talking about out of state (foreign, as the Comptroller's Office calls them) companies. I should have clarified that more. See my thread "Funny CA Story." I think the rules are a bit more stringent for an foreign entity. I know the comptroller's office has led me to believe this is a very serious issue, and one that results in them not being able to defend themselves in court.

 

I'd love some more discussion here...

 

This is interesting that you brought this up. I actually live in Texas and had the same issue with a towing company when my car got towed at my friends apartment complex. The towing company was not in good standing with the comptroller. I thought this would be enough to get my towing/ storage fees refunded. So what I did was contact the comptrollers legal counsel, tax attorney, CPA, and civil attorney to shed some light.

 

Although the charter might not be in good standing, the company can still do business in the state of Texas (so long that their license/ bond is in good standing). There actually has been ruling in regards to the issue, which ended in the judge dismissing the case and giving the company X amount of time to file with the comp. From what I've been told, its really easy for the company to file and the "not in good standing" is a common wide issue. Just because the company is not in good standing with the comp, does not mean they can't do business. I wish that was the case.

 

Interesting. I'll have to make some calls and see what kind of responses I get. I'll post them here when I do.

[ashlia]

Planning on doing the same. It will be interesting to see what we come up with.

 

You are talking about a Texas business...I'm talking about out of state (foreign, as the Comptroller's Office calls them) companies. I should have clarified that more. See my thread "Funny CA Story." I think the rules are a bit more stringent for an foreign entity. I know the comptroller's office has led me to believe this is a very serious issue, and one that results in them not being able to defend themselves in court.

 

I'd love some more discussion here...

 

This is interesting that you brought this up. I actually live in Texas and had the same issue with a towing company when my car got towed at my friends apartment complex. The towing company was not in good standing with the comptroller. I thought this would be enough to get my towing/ storage fees refunded. So what I did was contact the comptrollers legal counsel, tax attorney, CPA, and civil attorney to shed some light.

 

Although the charter might not be in good standing, the company can still do business in the state of Texas (so long that their license/ bond is in good standing). There actually has been ruling in regards to the issue, which ended in the judge dismissing the case and giving the company X amount of time to file with the comp. From what I've been told, its really easy for the company to file and the "not in good standing" is a common wide issue. Just because the company is not in good standing with the comp, does not mean they can't do business. I wish that was the case.

 

Interesting. I'll have to make some calls and see what kind of responses I get. I'll post them here when I do.

 

 

 

[ashlia]

I'm not sure I can argue with that...good stuff. Especially at about 2 am after a night of drinks...aw, the college days.

 

See post below: First one was weird somehow...

 

nope the 1st step is to eat @ taco cabana!

[cprems]

Is wondering where Ashlia got all these pearls o wisdom.... :P :P

 

Subbing to see if thinking "outside" the box really works!

 

Texas ROCKS in consumer protection laws

[Justin_Otherguy]

Howdy ya'll fellow Texans !

 

Subbing... Good stuff Ashlia once again.

[ashlia]

Many of you have been following my thread "Funny CA Story." In that thread I am chronicling the fight with an out-of-state CA that has not paid franchise tax, and also has problems with their returns according to Comptroller. I'm not going to rehash that thread, if you haven't read it, and want to you can access it. With that said, I am now dealing with their attorney on this. So anything I learn from that battle, that will shed light on this subject will be posted here too. I'll try not to post identical information in both threads.

 

I want to expand on a few things from yesterday:

 

The above mentioned website: All fields are searchable.

 

Now, the comptroller's franchise tax reps(1-800-252-1381) will give you the date of forfeiture/withdrawl, and the tax ID number for the Entity. I think it would be essential to have this information, and to print a copy of the "certificate of status".

Follow me here: I'm brainstorming...

If the company has no charter, for whatever reason, and is not legally able to do business in Texas but they are actively attempting to collect, which in Texas, we know includes reporting to the CRA's(continued collection activity), they are automatically violating at least TFC Sec. 392.304. FRAUDULENT, DECEPTIVE, OR MISLEADING REPRESENTATIONS.(19) using any other false representation or deceptive means to collect a debt or obtain information concerning a consumer.

So my thought is you can shut them down in one punch...write an ITS informing them they have no legal ability to do business of any kind in Texas, and by attempting to illegally collect they have violated Texas Tax Code, TDTPA, and TFC. Be sure to put them on 60 day notice. I'm not sure if this should be done in a DV, or if a DV is even necessary if they have no charter. I would include forfeiture date and tax number. I would not include the certificate of account status. I am certainly open to discussion on the afore mentioned details...

 

Another thought I've been kicking around is this...Mail Fraud.

If they violate any part of TFC, that is a criminal offense according to TFC392.402. And if they send you letters....well, I'll let you decide for yourself. See below:

Mail fraud is an offense under United States federal law, which includes any scheme that attempts to unlawfully obtain money or valuables in which the postal system is used at any point in the commission of a criminal offense.

 

Anyway, again...this is me brainstorming. My Chron's is acting up, and I'm on steroids for a while...this is the result of an active mind having roid's induced insomnia...

 

 

Edited May 20, 2011 by ashlia

[ashlia]

As I continue to think(again...these are ideas, brainstorm) I'm wanting to remind people that if the CA has no Under Writer, it is my belief that is also a violation of TFC392.304(shown in the above post).

 

Taking the mail fraud one step further...if the company is not bonded, they can't legally collect in Texas, so if they send you a letter, IMO they are skating very close to the mail fraud line. Again because of the TFC violation being a criminal act pursuant TFC392.402.

 

I'm hoping some will weigh in on this. Maybe my thinking is way out there...but this is making sense to me.

[cprems]

The hardest part is proving the claims with admissible evidence.

 

The DA would have to prosecute the case to make it criminal. We all know they are not going to do this, they are too busy.

 

However, mail fraud is a Federal offense best left to the postal inspectors to track down.

 

Also remember, there is a case in Texas where a Judge ruled the bonding issue moot. The Company got a bond in place after they were sued.

 

 

As I continue to think(again...these are ideas, brainstorm) I'm wanting to remind people that if the CA has no Under Writer, it is my belief that is also a violation of TFC392.304(shown in the above post).

 

Taking the mail fraud one step further...if the company is not bonded, they can't legally collect in Texas, so if they send you a letter, IMO they are skating very close to the mail fraud line. Again because of the TFC violation being a criminal act pursuant TFC392.402.

 

I'm hoping some will weigh in on this. Maybe my thinking is way out there...but this is making sense to me.

[ashlia]

Aw, I forgot about that bond ruling. Too bad that can't apply. I did find a complaint form to the US Postal Inspector. Will abandon the bond issue, and continue running with the franchise tax research. Currently searching for Case law on tax issues...

 

The hardest part is proving the claims with admissible evidence.

 

The DA would have to prosecute the case to make it criminal. We all know they are not going to do this, they are too busy.

 

However, mail fraud is a Federal offense best left to the postal inspectors to track down.

 

Also remember, there is a case in Texas where a Judge ruled the bonding issue moot. The Company got a bond in place after they were sued.

 

 

As I continue to think(again...these are ideas, brainstorm) I'm wanting to remind people that if the CA has no Under Writer, it is my belief that is also a violation of TFC392.304(shown in the above post).

 

Taking the mail fraud one step further...if the company is not bonded, they can't legally collect in Texas, so if they send you a letter, IMO they are skating very close to the mail fraud line. Again because of the TFC violation being a criminal act pursuant TFC392.402.

 

I'm hoping some will weigh in on this. Maybe my thinking is way out there...but this is making sense to me.

Edited May 20, 2011 by ashlia

[cprems]

Who say's it cannot apply - it can be used to show a pattern of violations.

 

But I would not be using this an my only violation.

 

Not being bonded opens the company up for all other TFC392 issues.

 

The framing of the complaint would be in such a way as to include the bond issue, but not as the first cause of action.

 

Make sense lol... Clear as mud?

 

 

Aw, I forgot about that bond ruling. Too bad that can't apply. I did find a complaint form to the US Postal Inspector. Will abandon the bond issue, and continue running with the franchise tax research. Currently searching for Case law on tax issues...

 

The hardest part is proving the claims with admissible evidence.

 

The DA would have to prosecute the case to make it criminal. We all know they are not going to do this, they are too busy.

 

However, mail fraud is a Federal offense best left to the postal inspectors to track down.

 

Also remember, there is a case in Texas where a Judge ruled the bonding issue moot. The Company got a bond in place after they were sued.

 

 

As I continue to think(again...these are ideas, brainstorm) I'm wanting to remind people that if the CA has no Under Writer, it is my belief that is also a violation of TFC392.304(shown in the above post).

 

Taking the mail fraud one step further...if the company is not bonded, they can't legally collect in Texas, so if they send you a letter, IMO they are skating very close to the mail fraud line. Again because of the TFC violation being a criminal act pursuant TFC392.402.

 

I'm hoping some will weigh in on this. Maybe my thinking is way out there...but this is making sense to me.

[ashlia]

I follow you. I am excited about learning more here. I've decided this is the first thing I look for if I ever get sent to collections again(hopefully not, but ya never know).

[ashlia]

On the above mentioned Comptroller's website: When you search an entity and get the results, if they have a "certificate of account status" on file, it will show a button on the left hand side of the page that says "certificate of account," click and print for your records. On the upper right hand area, will be a button that says "Officers and Directors," click and print for your records.

 

Remember the Principal's can be sued right along with the company if no corporate protections are in place. You want to have their info on hand.

[cprems]

Also remember, ANY forms and printouts from the TXSOS or Comptroller's office are self authenticating evidence and admissible in a Court of law.

 

Just to be on the safe side though, I would get them to send you a certified copy to enter as evidence.

 

I am having the same issues except with the Child Support agency. I can use their records as they are self authenticating under Texas rules of evidence.

 

 

On the above mentioned Comptroller's website: When you search an entity and get the results, if they have a "certificate of account status" on file, it will show a button on the left hand side of the page that says "certificate of account," click and print for your records. On the upper right hand area, will be a button that says "Officers and Directors," click and print for your records.

 

Remember the Principal's can be sued right along with the company if no corporate protections are in place. You want to have their info on hand.

[ashlia]

ETA: Oops, hit reply. Didn't mean too.

 

 

Also remember, ANY forms and printouts from the TXSOS or Comptroller's office are self authenticating evidence and admissible in a Court of law.

 

Just to be on the safe side though, I would get them to send you a certified copy to enter as evidence.

 

I am having the same issues except with the Child Support agency. I can use their records as they are self authenticating under Texas rules of evidence.

 

 

On the above mentioned Comptroller's website: When you search an entity and get the results, if they have a "certificate of account status" on file, it will show a button on the left hand side of the page that says "certificate of account," click and print for your records. On the upper right hand area, will be a button that says "Officers and Directors," click and print for your records.

 

Remember the Principal's can be sued right along with the company if no corporate protections are in place. You want to have their info on hand.

Edited May 20, 2011 by ashlia

[Male Nurse]

subbin

[Male Nurse]

So - even collection agencies in Shreveport and Little Rock have to be chartered in TX to collect?

[ashlia]

Yep.

 

So - even collection agencies in Shreveport and Little Rock have to be chartered in TX to collect?

[Male Nurse]

I called today for clarification - If the business is out of state they arent required by law to be chartered. It only protects their employees who do business for them in the state of TX. So no luck for me.

[ashlia]

Who did you talk to? The Comptroller's Office? I'm not sure about this, it is contrary to the statutes, and EVERYTHING I have been told by the Comptroller's office. An out-of-state business is required to pay a Franchise or "privledge" tax to operate in the state. Going to make some calls. Cprems, do you have any info?

 

ETA: Have no idea why the little soccer guy appeared, must have hit something. LOL.

 

I called today for clarification - If the business is out of state they arent required by law to be chartered. It only protects their employees who do business for them in the state of TX. So no luck for me.

Edited May 23, 2011 by ashlia

[ashlia]

Wait, wait, wait. Exactly, no corporate protections due to no charter. So you can sue and they can't defend, and you can sue the principal's.

I called today for clarification - If the business is out of state they arent required by law to be chartered. It only protects their employees who do business for them in the state of TX. So no luck for me.