Dealing with a scavenger debt collection agency

[BostonTeaParty]

I opened up a company bank account with my partner and a couple of days later a debt collection agency with a poor reputation was calling the residence where my partner lives looking for me.

 

The debt I could not pay back is over eight years old and my addresses are in states where one has a statute of limitation of four years on credit card debts and the other six years on credit card debts.

 

Please direct me to a cease and desist letter that works so I can stop them from ever bothering me again. Do you have a thread on this forum where I can find this letter. Also, could you give me any extra tips?

 

Thanks, Boston T. Party

[greywolf]

You have a few options:

send a Debt validation, which will scare off most JDBs

Send a FOAD (Fall off and die) letter

 

Is the JDB reporting on any CRA's? if they are, you should send a DV and then a dispute to the CRA.

 

Also, you can send a limited cease and desist so they stop contacting you and anyone else regarding this over the phone. US Mail only.

 

Personally, I would send a DV. Usually it will scare them off, but there have been cases were people have been sued past SOL. Make sure you start keeping a good paper trail as well. Who knows, if this JDB screws up, they might end up owing you money.

Edited November 17, 2009 by greywolf

[greywolf]

There are some good letters in the sample letter section of the forum, but make sure you modify the letter you choose, so it suits your case.

[soonerbill1]

Keep in mind business accounts are not governed by the Fair Debt Collection Practices Act. Collectors don't respond well to Cease and Desist letters on commercial accounts. However; if you write a letter advising them the Statute of Limitations have tolled, the account will be zeroed out and closed. I owned a debt buying operation for several years and have experienced vultures that try and collect outside of the statute of limitations. The key is an account can be collected on after the statute of limations but when you advise the creditor the Statute of Limitations have tolled, legally they have to close the account. In your letter you might cc the Attorney General of your state, this typically will make the company go away.

[greywolf]

Keep in mind business accounts are not governed by the Fair Debt Collection Practices Act. Collectors don't respond well to Cease and Desist letters on commercial accounts. However; if you write a letter advising them the Statute of Limitations have tolled, the account will be zeroed out and closed. I owned a debt buying operation for several years and have experienced vultures that try and collect outside of the statute of limitations. The key is an account can be collected on after the statute of limations but when you advise the creditor the Statute of Limitations have tolled, legally they have to close the account. In your letter you might cc the Attorney General of your state, this typically will make the company go away.

You are partially correct about the SOL. In most states it just provided you a defense incase the creditor/CA/JDB decides to sue. It does not extinguish the debt (unless you live in a select few states, ME is one I believe).

 

Sending a DV will allow the OP to see what cards the JDB is holding, and possibly how serious they are in collecting. A limited C&D might not work, but it may work, and relieve the OP and his associates from further harassment by the JDB.

 

By sending a DV, you can gain further information about the account, that may help you down the road if this JDB sells the debt to someone else.

[BostonTeaParty]

First of all when the company account was just opened the other day my name was released into the computer system of all banks and it came up somehow on the screen of this scavenger debt collector. The account this scavenger debt collector is trying to collect on was written off by the original credit card company many years ago. It was a personal credit card account and not a business one. This scavenger debt collector bought the debt for pennies on the dollar and NOW my applying for that company bank account only freshly released my name into the banking computer system which caused the scavenger debt collector to call the telephone number which was also released into the banking system records by the newly opened business account which is the first business account in the U.S. I have ever signed on.

 

Boston T. Party

 

P.S. Reading a thread about the bad reputation of this scavenger debt collection company tells of them trying to collect debt from people that is over 30 years old. They have even tried to go after people who never had any debt. That is how bad they are. I am not worried about them really. Just need a cease and desist letter.

Edited November 17, 2009 by BostonTeaParty