| Alfalfa 2010-11-11 19:03:01 Unknown |
The modus operandi of PRA and the other junk debt buyers is all about ambushing vulnerable, unsophisticated and unsuspecting consumers over time-barred debts in which they have paid pennies on the dollars for. Anything they collect over and above this is pure profit, and they don't particulary care how they do it. The end justifies the means, and the key to stopping them in their tracks is to stay OFF the phone and disputing everything IN writing. Get yourself a file folder and keep copies of everything---right down to phone logs. I am not an attorney, but am posting the following information based on my own experience in dealing with them. If you don't feel comfortable handling them on your own, by all means consult with a reputable consumer law attorney, which can be found through your local Bar Association or through the National Association of Consumer Advocates http://www.naca.net/
As Lamet has already posted, the sale and resale of time-barred debts needs to be outlawed. Period:
A firm aims to collect at least twice what it paid for the debt to cover costs," points out the Star-Tribune. "Anything beyond that is profit." Successful debt-buying firms enjoy very impressive profit margins. Portfolio Recovery Associates, a Virginia debt buyer, reported a 16 percent net margin last year; for Encore Capital Group of San Diego, last year brought a 10 percent net profit. By way of contrast, Wal-Mart's profit margin last year was 3.5 percent.
The "distressed receivables" market is immense, and bundled debts are constantly repackaged and re-sold. It's quite common for people to be contacted by multiple collection agencies demanding payment on the same long-forgotten debt, which may have been sold and repackaged several times after being written off by the original creditor.
http://freedominourtime.blogspot.com/2010/06/ ... ors-prison.html
SIXTEEN PERCENT NET PROFIT??
Is it any wonder then, why PRA (and other junk debt buyers financed by the Wall Street banksters) are so ruthless and relentless in their pursuit of time-barred debts?
If PRA or another junk debt buyer calls you and demands payment on a time-barred debt, politely tell them that you do NOT discuss legal matters over the phone and hang up. Do NOT admit to owing them ANYTHING, whether you do or not. STAY OFF THE PHONE! And, don't argue with them. YOU control the caller (not the other way around). And, if they become verbally abusive or make illegal threats of incarceration, threatening to send the sheriff out by XX time if you don't pay up, threatening to "ruin" your credit (and other such B.S.), report them to the Federal Trade Commission and your State's Attorney General's office or Consumer Protection Agency. Also, if they threaten physical violence, report them to your local law enforcement.
What did I just say?: Stay OFF the phone.
Again: Stay OFF the phone!!
Why? Because their goal is to get unsuspecting and unsophisticated consumers to admit ON record that they owe the alleged debt (whether they do or not), and extract a token payment which automatically reages it. Don't let this happen. STAY OFF THE PHONE!
It bears repeating: STAY OFF THE PHONE! This CANNOT be emphasized enough! These junk debt buyers depend on the ignorance of consumers to make their millions...legitimately or not. The debt collection industry has become the "Wild, Wild West", and until (or IF) our government stops kissing the backsides of the ARM industry and Wall Street banksters who bankroll millions to lobby against any kind of meaningful debt collection reform, it is up to US to protect ourselves. We HAVE to be proactive and use what existing consumer protection laws that are on the books (as outdated as they are) to our
benefit, in order to protect ourselves. Simply complaining and relying on others to do it for us has not, does not and will NOT work anymore. There is a wealth of information on the internet about the Fair Debt Collection Practices Act. Read about it and use it to your advantage. The LACK of knowledge regarding consumer protection laws is what PRA and other debt collectors bet on, when they call someone demanding money...."or else". Don't even let them get to first base with that crapola. And, for the trolls who come in here spewing drivel about how we should "pay our bills"---get off this website and mind your OWN business. This is NOT a discussion about whether or not we should "pay our bills". This is ALL about consumer's rights under the current laws...and the collection of time-barred debts are NOT enforceable in a court of law.
The BEST way to deal with PRA and the other junk debt buyers is IN writing. If you get a phone call or letter from them, do NOT ignore it. That is the WORST thing you can do! Otherwise they will *assume* that you owe the alleged debt, sue and get a judgment against you. Then, check the statute of limitations for the enforcement of collection of debts in your State:
http://www.fair-debt-collection.com/statue-limitations.html
Then, send them this letter VIA certified mail with return receipt requested. It is IMPERATIVE that you respond immediately to their letter or phone call. If you wait longer than 30 days, you may find yourself face-to-face with a process server. Keep copies of everything, including any correspondence you may have had with the FTC, your State's AG's office or Office of Consumer Affairs:
Today's Date
Your Name
Your Address
Collector's Name
Collector's Address
VIA CERTIFIED MAIL
RE: [insert account number or name of account or name of debt]:
Dear [insert collector's name or company name],
This letter is in response to your [letter dated xx-xx-2005] (copy enclosed) or [phone call on xx-xx-2005], concerning the collection of the above referenced [account or date].
I do not believe I owe what you say I owe therefore I dispute this debt. I am well aware of my rights under the Fair Debt Collection Practices Act (FDCPA) and my state laws so I hope to save both of us a great deal of time by letting you know that not only do I dispute the validity of this debt, I have also checked with my State Attorney General and verified that the Statute of Limitations for enforcing this type of debt through the courts in (insert your state or the state in which the contract was signed) has expired. Therefore, should you decide to pursue this matter in court I intend to inform the court of my dispute of this debt and that the "statute of limitations" has expired.
This letter is your formal notification that I consider this matter closed and demand that you, or anyone affiliated with your company, stop contacting me regarding this or any other matter except to advise me that your debt collection efforts are being terminated or that you or the creditor are taking specific actions allowed by the FDCPA or my state laws.
Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself. Be advised that I tape record all phone calls and violations of the FDCPA can result in you or your company being personally fined up to $1,000 per incident.
(Sign above name)
Printed Name
http://www.fair-debt-collection.com/Disputing ... ute-letter.html
Though this may stop them from calliing or sending you any more letters, it will not stop them from attempting to collect the alleged debt through the IRS, which they are using as their "surrogate" collectors. They are utilizing the 1099-C for this purpose, claiming it as a "forgiven" debt. Don't be surprised if you receive this form at tax time. **IF YOU RECEIVE A 1099-C ON A TIME-BARRED DEBT YOU HAVE ALREADY DISPUTED WITH PRA OR ANOTHER JDB, DISPUTE IT WITH THE IRS IMMEDIATELY!** If you don't, you will wind up possibly paying taxes on it you do NOT owe! The IRS does, can AND will investigate your dispute of a 1099-C on a charged-off debt. Once they begin their investigation, they will send you a letter acknowledging receipt of your dispute paperwork. They will then demand documentation from the JDB to support their charge-off claim. *IF THE IRS DOES NOT RECEIVE THIS DOCUMENTATION WITHIN THE REQUIRED TIME FRAME, THE JDB DEFAULTS AND YOU WIN.*
For more on your consumer rights under the FDCPA, go to:
http://www.fair-debt-collection.com/
| Tonja Neal 2010-08-06 13:53:15 Debt Collector |
I have written and spoken to numerous people from this company, explaining that I do not have nor have I had a credit card that is or is going into collections and they insist on continually calling me. They call from 757-864-0020, 205-423-4020, 561-241-8073, 620-662-8870, and 731-515-8010. This is ridiculous and they will not stop, though I fought to have them removed from my credit report because the debt was an error!