Spot The Collection Agency Violations
Or How One Phone Call Went Horribly Wrong...For the Collector
Last Updated October 24, 2008
It's time to play "Find the Collection Agency Violations". This was posted in our discussion boards. It contains real violations made by a collection agency during a phone call. I would go so far to say that what went on in this conversation is typical. Can you spot the violations? The answers are given below. This will help you to identify collection agency practices and what to look for during a call. It may also help you to get rid of a collection!
I got a call on my wife's phone tonight from CBE or something of that sort. I know she still has some credit issues coming out of the woodwork so I started the tape recorder up and answered the phone.
Mike was the rep's name and he asked for my wife. I told him she wasn't there she was at the store. He asked by her maiden name and then ask if I was Mr. Maiden name. I said "No". He then proceeded to ask when was a good time to get a hold of her. I said I don't know but if you leave your information I'll give it to her. He said "OK". "Well my name is Mike and I'm with CBE and our number is 800-XXX-XXXX" he said. I said "Hey Mike so can I tell her what this is pertaining to?". Mike said "Yeah it's about a XXXXX hosital bill that is now in collections and I need to speak with her about paying it.". I said "Really? Well how much does she owe you?". Mike continued like nothing was wrong "$114.00 and it is from Feb 2008 when she had XXXXXX performed".
I know we had already paid this because we had issues with the insurance and the double coverage she had at the time so I say "You guys have all that information right in front of you......I'm impressed!" and he goes on to say "Yeah they give us everything we need to track these kind of people down. A lot try to hide from us but we can find them." At this point I think it's time to let Mike in on my little secret. So I say "Hey Mikey, Do you know how I know (wifey)?". He says "No...." and I say "Well why haven't your company ever sent her a dunning letter?". Now I think Mikey is getting worried cause he starts to sound really confused. He says "Well we don't have her address." and I say "So you are collecting for XXXXX hospital and I know they have her address, so why didn't they give it to you?". Mikey isn't full of a lot of answers right now so I explain that I have just recorded the whole conversation and then he gets a little mad. I guess he though we were friends. He tells me that I illegally taped the conversation and if I don't destroy it that I'll go to prison. I casually explain how IA(my state) and NE(his state) are both one party consent states and that the recording is perfectly legal and then I explain the damage he has done.
Well after giving Mikey the once over about his illegal practices(citing the FDCPA and IA laws) and how I think people who try to collect and use illegal tactics are scumbags, Mikey starts to bargain with me. Yes he actually starts to ask me what he can do for me. He starts offering to settle for $10.00 as long as I don't tell anyone about this conversation (....still recording Mikey....). He says he can get the account deleted from their system and I won't have to pay a dime. I tell him "No thanks violations are worth a lot more then $114.00". He starts to get this attitude like I should help him out or something. Well I decide to end the fun and I tell him that he should get a different job because I wouldn't be surprised if he was held personally responsible for the law suit. And then I say "Well I'm gonna go now.....Oh and by the way we already paid that bill, maybe you should look into that." He says "Oh" and then I say goodbye. |
So What Violations Were Made By The Collection Agency?
- The Collector Gave Out Information About The Collection to a Third Party. It's fine for a collection agency to call a co-worker, neighbor or family member and ask them for contact information. The collector started out properly, but when prompted, easily gave out private information. This is a violation of The Fair Debt Collection Practices Act:
§ 804. Acquisition of location information [15 USC 1692b]
Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall --
(2) not state that such consumer owes any debt;
- Tried to Collect on a Debt Which was Already Paid. This is definitely a misreprentation of the debt. The violation of the FDCPA:
§ 807. False or misleading representations [15 USC 1962e]
(2) The false representation of --
(A) the character, amount, or legal status of any debt; or
Threatened to Sue if the Consumer Did Not Destroy the Tape. It was perfectly legal for the consumer to tape the conversation, as both the states were one-party states. One party means that a phone conversation can be taped as long as one of the participants gives permission and that can be the person taping and participating in the conversation. All but 12 states in the U.S. are one-party states. So the violation of the Fair Debt Collection was:
§ 807. False or misleading representations [15 USC 1962e]
(5) The threat to take any action that cannot legally be taken or that is not intended to be taken. Tried to Bribe The Consumer. The collector suggested that he would pay $10 if the consumer would not report his illegal actions. I don't know about you, but this sounds like bribery to me. Definitely illegal. This would be a violation of the Fair Debt Collection Practices Act:
§ 807. False or misleading representations [15 USC 1962e]
(2) The false representation of --
(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.
So what actions could be taken against the collector? The consumer could take the collection agency to court and win on violations of the Fair Debt Collection Practices Act. Armed with the taped conversation, it would be a slam-dunk. The best result, though, was that the consumer got rid of the collection agency and ensured that he and his wife would no longer be bothered.
Other articles on collection agencies:
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