Letter from Collection Agency. Please advise!

[Fnix]

I got a quote on car insurance a few months back. I just gave them my address and name. Never gave them my checking info or anything related to money. I never even did anything but get a quote in the mail.

Now I'm getting letters in the mail from a collection agency saying I owe the Insurance company $46. I dont know what for. What should I do? Is it for real or is it phoney?

[Bill Keegan]

Originally Posted by Fnix

I got a quote on car insurance a few months back. I just gave them my address and name. Never gave them my checking info or anything related to money. I never even did anything but get a quote in the mail.

Now I'm getting letters in the mail from a collection agency saying I owe the Insurance company $46. I dont know what for. What should I do? Is it for real or is it phoney?

Well that's a whole different issue. You didn't do anything to incur a debt? Demand every bit of info from this agency. Who are they, where'd they get your name, what's the debt for, why was it sent to collection without ever being requested through conventional methods, etc. And don't pay a dime of it.

[judithexit]

Originally Posted by Fnix

I got a quote on car insurance a few months back. I just gave them my address and name. Never gave them my checking info or anything related to money. I never even did anything but get a quote in the mail.

Now I'm getting letters in the mail from a collection agency saying I owe the Insurance company $46. I dont know what for. What should I do? Is it for real or is it phoney?

pull your credit report and check it see what is on it , if nothing call the dept of insurance and ask them to check it out .

[CreditWitch]

Many judges are siding against contracts that provide for some finance charges based on an unconscionable consideration and usary. I am a credit manager and can bore you with contract law but bottom line, was the contract reasonable to a reasonable person. Most likely you would get a judgement for principle balance owed. I have not done any case research but if you can find a court case with a ruling for the buyer then your court case could be awarded based on Stare Decis.


Settling with a Collection Agency????

BEFORE you make the settlement payment, get it in writing!!!! This is the biggest way to get ripped off. You could be dealing with a collector with out the authority to make a settlement. As soon as the agency gets your payment the account's clock starts ticking new on your credit report. If you are being ripped off file a complaint with the FCC.

[Ralph60606060]

Here is the bottom line. I have been in the collection industry for 40 years. How long ago was the debt incurred. It is possible that the statute of limitataions has run. The statutes vary from state to state. What exactly was this for, and when was the last time you made a payment.

[carrot juice]

Originally Posted by Philip T

Sure. You can just ignore the typical condesending jackassery on the topic. They usually fall away when an intelligent discussion of the topic arises.

First is understanding what has happened. When your account was placed in "collections," it is often sold off at some rate of 50 cents or below per dollar claimed against you on the account. So depending on the scumminess of the first operation, they probably tried to run the total with late fees, higher "default" interest, and whatever else they dreamed up.

Following that the typical collection operation will try to collect all that claimed on the account and more of whatever they try to add on -- attempting to more than double their money. If you ignore them, it will typically be turned over to a real scum operation that will pay 10 cents or less for what is claimed and try all over again.

First thing in the real world for you is figure out how long the chain on their dog is. Namely what was the date of the last activity on the account? Last transaction you endorsed -- whether charged to or payment made BY YOU. Typically, that date plus some time -- often six months -- is the basis for the limitations of how long they have to bring a civil suit for collections against you. So what was that date? And what state are you in? (varies by state law).

Be very careful on any spoken or written conversation with any collector. In some states even promising to pay ANYTHING is taken as grounds for re-setting the date of the limitations. Do NOT offer to pay anything [until after] you have gotten your act together.

Philip,

Once again, excellent advice. I always learn from your posts.

I personally never deal with the scumbag collection agencies. Most of them are nothing but low-life out to intimidate and harass and go to whatever means possible (legal and illegal) to get people to pay-up.

I send them a "Cease and Desist" letter and try and work things out with the original debtor. And I agree, never pay a cent until you've worked out an agreement in writing, otherwise, the clock starts ticking again.

Cheers,

C.J.

[luroni]

I send them a "Cease and Desist" letter and try and work things out with the original debtor.

What if the original debtor has charged-off the debt? Will they still be willing to work with me?
Last payment was made July of last year.

Luroni

[mmckenzie322]

I think I can help you.. I spent 17 years in the collection industry and now consult consumers in regards to their debt.

[petmommy]

[SIZE=3]Anyone have problems with Collection Agencies calling? There are laws to protect Consumers from these jerks. #1, they technically do not have any authority. They usually purchase charged off bills, from other creditors for pennies on the dollar. #2, because the bill is with an original creditor, and not the Collection Agency, you are NOT obligated to these jerks. They will try to convince you that you are. #3 the only way you become obligated to these agencies, is 1) if a new contract/agreement is done in writing, and you sign - but you are NOT obligated to; and 2) is if you make payment arrangements with them; thereby creating a contract/agreement, where none exist, when they first contact you!!![/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]The "Law of Novation" states that when a new owner of an account or an alleged debt, a New Contract must be written and signed by All parties, for a Contract/Agreement to be in place, with a different Creditor. Collection Agencies are known for violating Federal Consumer Protection Laws; and they are allowed to, because those uneducated in those laws, keep allowing them to.[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]If the American people, became educated in these Consumer Protection Laws, Collection Agencies would have to close their doors, due not not receiving any money, when customers are sent bills, or collection demand letters. [/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]However, you technically do need to respond to them, if they are sent Certified mail, otherwise, they don't know, if you actually received them or not. A Cease or Desist or Cease Communication letter, similar to: [/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]To: Name[/SIZE]
[SIZE=3]address[/SIZE]
[SIZE=3]city, state[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]date[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]RE: [/SIZE]
[SIZE=3]Original Creditor Account: 689259820[/SIZE]
[SIZE=3]Amount in Dispute: $ [/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Dear (Collection Agency).:[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]I am in receipt of your demand for payment. However, this Notice is to confirm that I do not wish to be contacted again by you, and that you are hereby put on Notice to Cease Communication pursuant to 15 USC Section 1692c(c). Failure to comply with said Notice, shall result in a complaint filed and submitted, to the Federal Trade Commission, and possible legal remedies, in an appropriate United States District Court.[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]In addition, PLEASE TAKE NOTICE THAT, I am not waiving my right to dispute, the alleged debt asserted herein, but at this time I am under no obligation, to respond as a result of ________’s default. [/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Sincerely,[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Name[/SIZE]
[SIZE=3]Address[/SIZE]
[SIZE=3]City, state[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Regular Mail[/SIZE]
[SIZE=3]Certified Mail#: XXXX XXXX XXXX XXXX XXXX[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]If you answer the phone, simply say:"I do not discuss financial matters by phone - send me a statement in writing and I will respond to it." Then Hang up!!! Otherwise, they will have you completely shaken!!! The longer they keep you on the line, the more chance they have, to get money from you including payment arrangements – or payment agreement/contract!!! You are NOT legally obligated to talk to them!!![/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Collection agencies are ruthless jerks!!! They will tell you they are the original creditor when they are not - even though it is illegal, for them to do it, per Federal Consumer Protection Laws. You can legally sue them for $1,000.00 per violation.[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]When you do get a statement - google "FAIR DEBT COLLECTION PRACTICES ACT" One or more online Attorney websites will be shown. These websites will have valuable information, including a Cease & Desist sample letter; or a Cease Communication letter. Once received, it is a violation of the Federal Fair Debt Collection Practices Act, to contact you further.[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]You can also educate yourself by reading Consumer Protection Laws at www.ftc.gov; a lot of valuable information. Don’t have time, download and read later. You will be glad you did!!![/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]I am not an Attorney - just an Educated Consumer, in Consumer Protection Laws. I have spent hours studying these laws and becoming familiar with them. They have helped us and friends/family as well; and hopefully it will help someone, who reads this.[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]And for those self-righteous criticizers, who say, just pay your bills on time; things happen to people with Credit Card debt, medical bills etc., often beyond their control such as job loss, divorce, death, illness etc. and you find your self in a bind. We've been there, we know. You do not plan to pay late, or not make payments; but if the income quits - there's not a whole lot one can do! You then are forced to prioritize, Mortgage, Utilities, Car payment then food, if you can! Other things have to be let go! [/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]I hope this information will be helpful to somebody who reads it!!! [/SIZE]

[petmommy]

A couple of you are missing the point. The original Creditor is NOT who's billing the person, but a bottom feeder collection agency. The "agreement" was NOT with the collection agency but an Original Creditor. Paying what you owe is one thing, but paying what you don't actually owe, is another. And this situation is another.

If you want to pay the original creditor, then you can contact them and hopefully they will help you take care of it. However, the collection agency needs to butt out!

I have a letter I send to all Collection Agencies, and if you're interested, email me at tlcpetmommy@gmail.com.

I’m not an Attorney, I’ve not had any formal Legal training. Everything I say/do is what I have learned through my own experiences, of fighting 2 lawsuits against us, on my own; and through research and extensive studying, of the Consumer Protection laws. I cannot legally advise you, but I can tell you what I’ve done, and/or what I would do if it were me in a given situation.