My Diversified Thread

[ashlia]

I've posted about this in the "My Success so far" thread. But these guys are making me crazy, so I am starting a thread for them specifically. I am going to give you the backstory:

 

I Dv'd this company in February. It goes from there...Diversified was holding medical debt collection(five accounts reporting), some were paid, some I am making payments on, all through the OC. Sent a DV to them in February...got some pretty complete validations...but had about four violations of Texas Finance Code 392. Then, on the 13th(yesterday) the CA began reporting several of these accounts in duplicate. They are reporting paid accounts as "unpaid," AND reporting them twice!

 

Diversified Credit Systems is reporting three accounts from Good Shepherd Medical Center-Marshall in duplicate on my credit report. On March 9^th, 2011 Diversified Credit Systems dropped the last digit on each of the three account numbers in order to achieve this deceptive act, a violation of Texas Finance Code392.304(19). They are reporting incorrect balances, refuse to update balances to reflect monthly payments, and have failed to update paid accounts from the unpaid designation, despite being notified of the payments by GSMC-Marshall prior to February 22, 2011. I have notified Diversified Credit System numerous times of the inaccuracies, yet the company refuses to admit to the inaccuracies, and refuses to delete them pursuant Texas Finance Code392.202(d). In fact, just this week, they have verified to Experian Credit Reporting Agency two accounts that are reporting erroneously.

 

 

 

I have attempted to resolve this situation with Diversified Credit Systems on the following occasions:

 

February 8^th, 2011: Certified letter # XXXXX Demand for Validation

 

March 14^th, 2011: Certified Letter # XXXX Notification of Inaccurate Reporting

 

April 7^th, Email to CEO MM, informing him of inaccurate reporting, Intent to Sue

 

April 8^th, Email to VP of Operations TR,, informing him of inaccurate reporting, Intent to Sue

 

April 8^th, Complaint filed with the Better Business Bureau(business must respond by April 25^th)

 

April 11^th, Certified Letter XXXX, Intent to Sue and Draft of Complaint to be Filed

 

April 20^th, Certified Letter XXX, Complaint to Texas Attorney General Greg Abbott

 

April 20^th, Certified Letter XXX, Complaint to County District Attorney,

 

April 20th, Certified letter to the OC CEO (a hospital) with ITS for violation of TFC392.306, draft complaint to be filed in court.

 

Given the violations of the Texas Finance Code committed by Diversified Credit Systems, and their refusal to accurately update this account, the only acceptable remedy is the deletion of each and every one of the accounts reported by same, pursuant to TFC392.202(d).

 

I think I have them on the run...they are slowly but surely deleting...yesterday they deleted ONE of the duplicate accounts was removed from my EX credit report. They still failed to change the "un-paid" designation to paid, and didn't update the past due amount. They also updated one account after a payment was made to the OC(Well over a month ago), but they didn't change the amount on the duplicate for the same account, or um, delete the duplicate!

 

Today they deleted one account from TransUnion report today. I'm hoping these slow deletions means I have them on the run. Lord knows I have been ON THEM! I sent a complaint to the OC's(hospital)CEO yesterday, along with ITS for violation of TFC392.306, sent a complaint to the TX AG(me and CA in TX) and also a complaint to the District Attorney in my county per TFC392.402. I will get a letter back from him agreeing to investigate, my BF is the Asssitant DA. Also, I filed a BBB complaint and they have until the 25th to repsond...

 

I should also mention that they updated another account, it says the original balance is $521, current balance is $547, I make payments on this account(through OC) every month, niether number is correct.

 

I'm hoping this latest round of complaints will convince them to delete. If not, I file on May 16th. But hopefully, I've got the nails in the coffin already.

 

 

 

 

[dmdusn]

Why are you giving them so much time? You sent an ITS on the 11th of April. I would say that 10 days from receipt of the letter is more than enough time for them to either delete, or go to court. I think you are being too lenient.

[ashlia]

I'm in Texas, to tie in the TDTPA, and a trebling of damages as determined by a jury, I am required by statute to give them 60 days notice "right-to-cure." There time is up on May 16th. Beleive me, if it wasn't for that, I'd have filed a long time ago! But the trebling is what really keeps CA's from wanting to go to court in Texas.

 

I gave them notice of 60 days, along with a non-monetary settlement offer on March 14th. They ignored it, so ITS went out April 11th, and non-monetary offer was taken off the table, but I still have to give them until May 16th for TDTPA

Why are you giving them so much time? You sent an ITS on the 11th of April. I would say that 10 days from receipt of the letter is more than enough time for them to either delete, or go to court. I think you are being too lenient.

Edited April 21, 2011 by ashlia

[dmdusn]

I'm in Texas, to tie in the TDTPA, and a trebling of damages as determined by a jury, I am required by statute to give them 60 days notice "right-to-cure." There time is up on May 16th. Beleive me, if it wasn't for that, I'd have filed a long time ago! But the trebling is what really keeps CA's from wanting to go to court in Texas.

 

I gave them notice of 60 days, along with a non-monetary settlement offer on March 14th. They ignored it, so ITS went out April 11th, and non-monetary offer was taken off the table, but I still have to give them until May 16th for TDTPA

Why are you giving them so much time? You sent an ITS on the 11th of April. I would say that 10 days from receipt of the letter is more than enough time for them to either delete, or go to court. I think you are being too lenient.

Ok. I figured it had something to do with Texas stuff, which I have no clue. It sounds like you have your bases covered. Go get them.

[ashlia]

They hit me with a hard inquiry yesterday. I hate them.

[ashlia]

Update...they deleted all duplicates from my credit report, and are obvioulsy TRYING to correctly update the tradelines, though they have not done a very good job of it.

 

They also responded to the BBB complaint, and said "We have reviewed Ms. Ashlia's account and have corrected any errors." I have already sent my response to that, b/c they have not!

 

I sent a letter to the OC telling them of my intent to sue them on violation of TFC392.306, sent a complaint to the AG, and a complaint to the District Attorney in my county(see above posts), all went out on Wednesday so I expect to get some action on them this week. Also, I received a letter from the investigator from their bond agency, he is going to flip when he gets the THICK, THICK package of materials I sent him.

 

I also spoke with my boyfrien(our county's Assistant District Attorney), who tells me to move forward with the lawsuit, as I was denied credit last month, and the damage has already been done by these fruitcakes. May 16th baby, first case I will ever file.

 

I feel like we are engaged in a game of chess, I constantly have to be ahead of these losers, and figure out what the next move will be. So far, I am really enjoying it, which is probably a little wrong.

Edited April 24, 2011 by ashlia

[cprems]

Get the OC to pull back the debt from the CA - They are now aware of the CA's violations, which makes them liable under the TFC392. This would be the absolute minimum I would accept for their violations.

 

Make sure the inquiry IS removed as part of the settlement negotiations. OR, you could add it to your complaint. They never validated right? No validation = NO reporting. So where is the permissible purpose? You can frame the argument that if they cannot validate, they cannot review your credit.

 

Hammer them and hammer them hard!

 

They hit me with a hard inquiry yesterday. I hate them.

[LKH]

At this point, I would stop sending them letters. You've sent enough and threatened enough. Let them hang themselves and on the 16th go file your lawsuit. Even if they correct everything and remove the inquiry, you still have damages as you were denied credit. I agree 100% with your boyfriend, Mr. DA.

[ashlia]

Cprems-They validated, but incorrectly. They included paid accounts in the validation, and claimed they were unpaid. But they committed mulitple other violations of TFC also, and the day after validating, put every single account on my report again, so they were in duplicate. Also, they NEVER updated paid accounts from the unpaid designation, and never changed any balances, even after being notified by the OC. The financial supervisor at the OC REFUSED to pull back the debt, but the CEO was just made aware of this on Thursday.

 

LKH- Thank you. That is exactly my plan.

 

At this point, I would stop sending them letters. You've sent enough and threatened enough. Let them hang themselves and on the 16th go file your lawsuit. Even if they correct everything and remove the inquiry, you still have damages as you were denied credit. I agree 100% with your boyfriend, Mr. DA.

[ashlia]

One of the duplicates is back. The account balance is given correctly in one spot, but is given as the original balance in another...

 

They are such salamanders.

[ashlia]

One of the duplicates is back...such salamanders.

[ashlia]

I have discontinued the complaint with the BBB. I don't expect an amicable resolution with this CA prior to filing a lawsuit against them(May 16th). The BBB wanted me to send information that would have basically given Diversified a blue print of everything I have, and I am not ready for that. It would be like giving them all my discovery items prior to filing. Boyfriend agreed, and said to discontinue, rather than show my hand right now.

[cprems]

The BBB is good at getting some complaints fixed.

 

Tipping your hand prior to litigation can essentially derail your case.

 

Why give them the "goods" outside of Court.

 

You chose wisely.

 

You could tell the BBB that you are seeking "other" remedies and please close the dispute out.

 

 

I have discontinued the complaint with the BBB. I don't expect an amicable resolution with this CA prior to filing a lawsuit against them(May 16th). The BBB wanted me to send information that would have basically given Diversified a blue print of everything I have, and I am not ready for that. It would be like giving them all my discovery items prior to filing. Boyfriend agreed, and said to discontinue, rather than show my hand right now.

[ashlia]

Exactly what I did!

 

The BBB is good at getting some complaints fixed.

 

Tipping your hand prior to litigation can essentially derail your case.

 

Why give them the "goods" outside of Court.

 

You chose wisely.

 

You could tell the BBB that you are seeking "other" remedies and please close the dispute out.

 

 

I have discontinued the complaint with the BBB. I don't expect an amicable resolution with this CA prior to filing a lawsuit against them(May 16th). The BBB wanted me to send information that would have basically given Diversified a blue print of everything I have, and I am not ready for that. It would be like giving them all my discovery items prior to filing. Boyfriend agreed, and said to discontinue, rather than show my hand right now.

[ashlia]

Oh man! I just got a response letter from the OC(hospital).

 

The CEO basically says no violations have been committed by the CA or them(They have).

 

That corrections have been made to all credit reports(they haven't, one duplicate remains AND I had to notify them 7 times plus file a BBB complaint before they started correcting/deleting).

 

that this *itch I have been dealing with in the OC business office offered me 60% off, over a three-year period with no interest. That is a good deal. I was never offered that. He says she sent me a letter. I have one letter from her...it has an offer of 50% off in a lump sum payment.

 

He offers to meet with me.

 

Boyfriend and I will compose a letter to the CEO tonight. I will post it tomorrow for suggestions. I will in no way waive my rights to prosecute the CA. They have committed violations of TFC, and they are going down.

 

Let me add...this hospital is local to our small town, and I do ALL of their advertisments and free promotions on my radio show, and I think the hospital is bending. They have deleted all the paid accounts, but the damage is done, and the CA was given chance after chance.

 

Suggestions anyone? LKH?? Cprems??

Edited April 28, 2011 by ashlia

[txbaycpa]

I just love reading your posts. It's like my daily dose of Law & Order or something. I say sit quiet (make them think you went away) until May 16th and then gut punch them with the lawsuit.

Can't wait to see what the next episode has in store!

[ashlia]

I actually think i need to respond to him. I know he and the Buisness Manager who supposedly offered me the settlement offer on aquaintance level, and I wouldn't put it past her to have forged a letter. I gave the date of the letter in my stuff to him, but not the amounts. In his response he says "I found the letter you received from XXX..." only that isn't the letter I received(and I have the letter in my files, I keep EVERYTHING). And of course they don't use CMRRR. I think he needs to know exactly what is going on. His hospital has to deal with me for promotion every day.

 

About Law and Order...I am thinking of law school. My boyfriend hasn't helped me with credit repair that much, he has told me where to look(or CB has) and I have gone and found it. He has reveiwed a few letters, but other than that, its been me. He is encouraging me, thinks I might be good at it. Of course, we already pay school loans for one attorney...EEK!

 

quote name='txbaycpa' timestamp='1304023698' post='4453759']

I just love reading your posts. It's like my daily dose of Law & Order or something. I say sit quiet (make them think you went away) until May 16th and then gut punch them with the lawsuit.

Can't wait to see what the next episode has in store!

[cprems]

Ashlia,

 

Here are the options to present to them - COMPLETE DISMISSAL of ALL claims against both the hospital and CA in return for debt extinguishment.

 

This is called a mutual dismissal of all claims. The debt is dead, cannot be sold, transferred or assigned. Never ever to be reported

 

OR

 

you file on both - The OC knows the CA screwed up. They threw you a soft ball with that "offer". There is NO room here for friendship or acquaintance. Point this out to them.

 

I believe you need to gather some case law regarding this issue and present it to him in a format that is easily understood if he does not accept your proposal.

 

 

 

I actually think i need to respond to him. I know he and the Buisness Manager who supposedly offered me the settlement offer on aquaintance level, and I wouldn't put it past her to have forged a letter. I gave the date of the letter in my stuff to him, but not the amounts. In his response he says "I found the letter you received from XXX..." only that isn't the letter I received(and I have the letter in my files, I keep EVERYTHING). And of course they don't use CMRRR. I think he needs to know exactly what is going on. His hospital has to deal with me for promotion every day.

 

About Law and Order...I am thinking of law school. My boyfriend hasn't helped me with credit repair that much, he has told me where to look(or CB has) and I have gone and found it. He has reveiwed a few letters, but other than that, its been me. He is encouraging me, thinks I might be good at it. Of course, we already pay school loans for one attorney...EEK!

 

quote name='txbaycpa' timestamp='1304023698' post='4453759']

I just love reading your posts. It's like my daily dose of Law & Order or something. I say sit quiet (make them think you went away) until May 16th and then gut punch them with the lawsuit.

Can't wait to see what the next episode has in store!

[ashlia]

All the duplicates are gone again. They just can't make up their minds!!

[ashlia]

I drafted my response this morning. I needed 24 hours to think about what I wanted to say. I will have BF proof it tonight, and send it out Monday. We are having a garage sale tomorrow, so I will be pre-occupied. I am going to try to take it easy on credit repair today, I'm not feeling great.

 

OH YEAH! One thing that was in the letter I received yesterday that I forgot to add in my earlier post. The hospital will ensure that each paid account is deleted from the report(and accounts paid off in the future will be deleted), so essentially they offered PDF. Problem is, one of the accounts 25K.

Edited April 29, 2011 by ashlia

[cprems]

Did you have insurance at the time?

 

The reporting needs to stop now, period. - they had their shot and have violated every single time

 

You may have enough TFC392, BCC20 and 17 violations to do serious damage to claims owed. - use this to your advantage.

 

I would offer a lump sum payment to cover ALL debts (minus ALL the violations) - see what they say.

 

The ball is in your Court, so to speak

 

 

 

 

I drafted my response this morning. I needed 24 hours to think about what I wanted to say. I will have BF proof it tonight, and send it out Monday. We are having a garage sale tomorrow, so I will be pre-occupied. I am going to try to take it easy on credit repair today, I'm not feeling great.

 

OH YEAH! One thing that was in the letter I received yesterday that I forgot to add in my earlier post. The hospital will ensure that each paid account is deleted from the report(and accounts paid off in the future will be deleted), so essentially they offered PDF. Problem is, one of the accounts 25K.

[SwaggTX]

Quite a predicament!!!

 

You should definitely nail the CA.

 

 

Looking over the TFC, the Texas COA, etc. It looks like each violation of the TFC is only between $100-$500 and each violation must be listed out. Then the trebling damages from BCC17 which triple the fines. From that point how does one increase the damages even more? Mental Anguish? Anything else?

[ashlia]

Did you have insurance at the time? No. I had just started a new job, and was on a 6 month waiting period.

 

The reporting needs to stop now, period. - they had their shot and have violated every single time. I agree

You may have enough TFC392, BCC20 and 17 violations to do serious damage to claims owed. - use

this to your advantage.

 

I would offer a lump sum payment to cover ALL debts (minus ALL the violations) - see what they say. Interesting...

The ball is in your Court, so to speak

 

 

 

 

I drafted my response this morning. I needed 24 hours to think about what I wanted to say. I will have BF proof it tonight, and send it out Monday. We are having a garage sale tomorrow, so I will be pre-occupied. I am going to try to take it easy on credit repair today, I'm not feeling great.

 

OH YEAH! One thing that was in the letter I received yesterday that I forgot to add in my earlier post. The hospital will ensure that each paid account is deleted from the report(and accounts paid off in the future will be deleted), so essentially they offered PDF. Problem is, one of the accounts 25K.

[cprems]

Remember the first words of a good negotiation are NO - you work from there. You are in a position with leverage. The only way they can get the money is to sue. They cannot counter-sue for the alleged debt if you file your action.

 

They have to file another suit to collect.

 

Your action is based on their violations of collecting the alleged debt.

 

 

Did you have insurance at the time? No. I had just started a new job, and was on a 6 month waiting period.

 

The reporting needs to stop now, period. - they had their shot and have violated every single time. I agree

You may have enough TFC392, BCC20 and 17 violations to do serious damage to claims owed. - use

this to your advantage.

 

I would offer a lump sum payment to cover ALL debts (minus ALL the violations) - see what they say. Interesting...

The ball is in your Court, so to speak

 

 

 

 

I drafted my response this morning. I needed 24 hours to think about what I wanted to say. I will have BF proof it tonight, and send it out Monday. We are having a garage sale tomorrow, so I will be pre-occupied. I am going to try to take it easy on credit repair today, I'm not feeling great.

 

OH YEAH! One thing that was in the letter I received yesterday that I forgot to add in my earlier post. The hospital will ensure that each paid account is deleted from the report(and accounts paid off in the future will be deleted), so essentially they offered PDF. Problem is, one of the accounts 25K.

[ashlia]

My response to the CEO:

 

 

I appreciate very much you replying to my letter personally. The settlement offer you have described is very generous, and one that I will consider carefully. Your letter, however, was the first time this settlement has been offered. While I did receive a settlement offer from Ms. McBitch on February 22, 2011, it was considerably less generous than the offer you describe. Perhaps I did not receive the letter Ms. McBitch sent outlining the offer you have mentioned. I would like a copy of that letter to be sent to me so that I may add it to my records. I have enclosed a copy of the original letter Ms. McBitch sent to me dated February 22, 2011 and postmarked February 28, 2011, for your review.

 

I must respectively disagree with your assertion that Diversified has not violated the Texas Finance Code. Let me remind you, on March 9th, 2011 Diversified dropped the last digit from three accounts they service on behalf of GXXX and reported them both to TransUnion and Experian Credit Reporting Agencies a second time, meaning each of the three accounts was on my credit report in duplicate. In addition, they refused to admit and correct incorrect account balances, and account status. I have hard copies of each credit report proving this to be true. I notified the collection agency immediately via certified mail of the inaccuracies and duplicates, and that notification was received on March 15th, 2011. It took Diversified Credit Systems four subsequent notifications to Mr. McAss and Mr. Realame, and complaints to the Texas Attorney General, GXXX, the Better Business Bureau and XXX County District Attorney XXX before the collection agency corrected any of the inaccuracies or deleted any of the duplicates being reported, thirty seven days after being notified of inaccuracies. In fact, I have documentation that proves they verified as correct these erroneous accounts during that same thirty seven day time period to both Experian and TransUnion. When finally correcting the reports on April 21st, instead of referring to their own records to see what needed to be corrected, Diversified placed a hard inquiry on my TransUnion Credit Report on April 21, 2011. This will affect me negatively for the next two years, and Diversified is aware of that. I am sure a jury will agree these are obvious violations of the Texas Finance Code.

 

 

I do believe the collection agency has willfully and knowingly violated the Texas Finance Code. I do not believe they made any corrections or deletions as a “courtesy.” As you can see above, their actions were anything but courteous. I am in contact with a claim investigator from Diversified bond holder, Travelers, and have every intention of filing suit against Diversified for violations of the Texas Finance Code on May 16, 2011.

 

Again, the settlement you have offered is very generous, since this is the first I have been notified of this offer, I will need several days to consider it carefully.

 

 

Sincerely,

 

AshliA