How to deal with bogus business debt collection?

[polobum]

Hi everyone - sorry if this is the wrong sub forum for this I'm brand new here but was told this was an amazing place with some great people to ask for advice on a topic like this.

 

I own and run a business that is just myself pretty much (no other full time employees but hire full time contractors from time to time). It's an S-corp registered in NV and I also live in NV.

 

About 3 months ago I started getting calls from a collection agency. I never answered but on the VM it was a message saying to call them back pretty much. Ignored it.

 

A week or so after that they sent me a letter about this debt. It was an invoice for ~$2,000 from some company in the Netherlands that I've never heard of. The only thing the invoice really has is an amount I owe and my company name. I don't know what the company does or what they supposedly provided me. Could not find them on Google anywhere.

 

Based on a small amount of Googling I sent them a letter that said, "I dispute this debt, please validate. Do not contact me by phone anymore and only through writing."

 

The collection company didn't really call again for a month or so after that.

 

Starting about 2-3 weeks they call me now anywhere from 1-8 times daily. It's always the same number so I know not to pick up.

 

My friend told me that I can sue them for this and should ask for advice here.

 

So what does everyone suggest I do?

 

Thanks

[polobum]

Hi everyone - sorry if this is the wrong sub forum for this I'm brand new here but was told this was an amazing place with some great people to ask for advice on a topic like this.

 

I own and run a business that is just myself pretty much (no other full time employees but hire full time contractors from time to time). It's an S-corp registered in NV and I also live in NV.

 

About 3 months ago I started getting calls from a collection agency. I never answered but on the VM it was a message saying to call them back pretty much. Ignored it.

 

A week or so after that they sent me a letter about this debt. It was an invoice for ~$2,000 from some company in the Netherlands that I've never heard of. The only thing the invoice really has is an amount I owe and my company name. I don't know what the company does or what they supposedly provided me. Could not find them on Google anywhere.

 

Based on a small amount of Googling I sent them a letter that said, "I dispute this debt, please validate. Do not contact me by phone anymore and only through writing."

 

The collection company didn't really call again for a month or so after that.

 

Starting about 2-3 weeks they call me now anywhere from 1-8 times daily. It's always the same number so I know not to pick up.

 

My friend told me that I can sue them for this and should ask for advice here.

 

So what does everyone suggest I do?

 

Thanks

[breeze]

Sounds like a scam.

[IndyPoolPlayer]

Common invoice scam against small businesses. They send you an invoice for something like paper or ink & toner and just expect some payables clerk to process it for payment. CNBC had a story on a couple years ago about this and stressed the importance of all businesses large and small to have a purchase order system set up and routinely investigate any invoices that do not include a PO number, and don't accept invoices or merchandise with a PO of "Verbal".

[IndyPoolPlayer]

I hear an echo in here.......

[Sandscrit]

What state? Could be related to ID theft.

[breeze]

Duplicate?

[breeze]

I merged them, but it looks like I can't delete the second post. Carry on.

[cashnocredit]

Why not just answer the phone and tell them your company has never done business with these people.

 

Best way to deal with scams is straight up. It wasn't made by you and you'd be happy to see them in court and expect they will pay your costs.

[Sandscrit]

Duplicate?

What duplicate?

[breeze]

[polobum]

Thanks for fixing the double post mods.

 

The original company my business supposedly owes money to never even sent me the bogus invoice. The first I saw it was when this collection company sent me it.

 

Do you guys think it's a valid debt collection company that got sold a bogus debt or just a company that invented the debt as it trying to collect on it?

 

I did send them back letter stating it's not something my company owes and to please validate but they didn't send anything and started calling again.

 

I could call the company collection company as well but if they don't respond to the written messages I didn't figure that would help.

[goturtlego]

Have you checked your credit reports?

[Sandscrit]

What is the name of the CA? What state? Does the CA have a local business license to collect if in in state ? If not in state does the CA have a license to collect on Nevada? Does the CA have a managers license?

[breeze]

JMO, it's a bogus debt, caused by a bogus invoice, never sent to your or any company, being collected by a bogus collector who is also the company that generated the bogus invoice to start with.

 

This is a known scam. Save all of it, make copies, send copies to the postal inspector and send copies of the copies of the complaint to the PUSPS to the faux debt collector. That should send them scattering if they are in the US.

 

I agree with the previous advice also when it comes to your credit report and protecting yourself - check it, paper copies; check biz license, and check SOS in your state to see if the collector has any standing (probably doesn't really exist anywhere).

[polobum]

Thanks for the replies.

 

I've kept an eye on both my personal and business credit and everything is just fine on that front.

 

The company calling/contacting me is supposedly Atradius Collections - from looking at the website it looks like it could be a real company but I'll check if it's licensed in my state.

 

Could it also be a bogus/fake debt generated by a scam company that then has tricked a "legit" collections company to buy the debt from them or either attempt to collect it?

 

The thing that doesn't seem very legitment about Atradius Collections is I already sent them a letter that I disputed to the debt and to no longer contact me by phone. They ignored it and never sent anything but still call me plenty. But then I'm sure even real debt collection companies do that kind of stuff as well.

[JunkBuyersWorstNightmare]

JMO, it's a bogus debt, caused by a bogus invoice, never sent to your or any company, being collected by a bogus collector who is also the company that generated the bogus invoice to start with.

 

This is a known scam. Save all of it, make copies, send copies to the postal inspector and send copies of the copies of the complaint to the PUSPS to the faux debt collector. That should send them scattering if they are in the US.

 

I agree with the previous advice also when it comes to your credit report and protecting yourself - check it, paper copies; check biz license, and check SOS in your state to see if the collector has any standing (probably doesn't really exist anywhere).

 

 

[breeze]

Business collections are not controlled by the consumer protection laws. No point in using them. Play hard ball. That's what they will do legit or not.

[breeze]

I'd send a certified letter saying I do not have a P.O. on record for that purchase. If they do, show it to you or they will be showing it to a judge, And mean it.

[IndyPoolPlayer]

Little off topic - small businesses around here got hit with a utility scam over the past year. Someone spoofed the local power company's telephone number on caller ID and called claiming power would be immediately shut off unless they paid via purchasing a greendot card. Several mom-and-pop restaurants around here got hit with the scam. Most stood up to the scammer, a couple fell for the scam and lost a lot of money.

 

https://www.iplpower.com/Our_Company/Newsroom/2014/IPL_cautions_customers_about_bill_payment_scams/

[polobum]

Business collections are not controlled by the consumer protection laws. No point in using them. Play hard ball. That's what they will do legit or not.

 

Basically what I want to do is figure out how to stop them from calling me 3-5 times a day on my personal cell phone. I'm on the do not call list and have sent them certified mail stating it's not a valid debt but they ignored it and never replied and just keep calling.

 

Are there any laws I can sue them under for this for calling my personal cell phone repetitively even when told to stop?

 

Edit: I do use this number for business purposes if that makes a difference but it is not a "business phone" as I do not deduct any of the phone bill at all on my taxes.

Edited November 26, 2014 by polobum

[breeze]

TCPA - however, they may not even be in this country. And it's a flat $1k statutory penalty. I'd go for wire fraud and press charges. No money for you, but if they are in the US, they'd likely get found and prosecuted - eventually. You can't be the only one.

 

If they are in another country, change your phone number and go on your way. You can sue anyone for anything, but it's not always worth the filing fees.