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MEDCLR claims to be an OC so FDCPA doesn't apply!


k12503
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I am planning to sue Medclr for an unpaid medical collection that they have not validated. I honestly can't remember this debt and have asked for proof on the alleged debt. In trying to contact Medclr however, I am directed to NCO who claim to be the servicer of the account. All NCO does is send their compter printouts of fees which are not validation. MEDCLR claims that it is not a debt collection agency , that they purchased the debt and so the FDCPA does not apply to them as they are now the OC. More than 4 months have passed since I first contacted NCO about this debt. IF MEDCLR purchased the debt the FDCPA should apply shouldn't it? THis CO in collusion with NCO has had their BBB membership revoked and have a bad rep with the BBB.

All my correspondence has been with NCO however and though the account appears as MEDCLR on my credit report, the address belongs to NCO. It is virtually impossible to speak to anyone at MEDCLR who are supposedly in FLorida, where I am, all the office in FL handles is sales and marketing!!. All disputes are directed to NCO who claim that they only service the account on behalf of MEDCLR. I have spent a lot of $$ on DV letters addressed to NCO and I am wondering if I have to go thru it all again with MEDCLR.

When I disputed th account with NCO a notation of 2 times 90 days late has appeared on the account!! The alleged debt was incurred over two years ago!

Wht is going on with this company? I think they are tying to circumvent the FDCPA.

Additionally, the account is listed under Credit Account information ( not under the collections section of the report)so it is seen as revolving credit- seriously affecting my score.

HELP!! I am about to scream!

[Edit by k12503 on Friday, 29, 2002 @ 01:38 PM]

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<blockquote>Originally posted by k12503

MEDCLR claims that it is not a debt collection agency , that they purchased the debt and so the FDCPA does not apply to them as they are now the OC. </blockquote>

i'm new to this, but they are wrong.. if a collection agency purchases your debt, that does NOT make them the original creditor.. they are still a debt collector and have to adhere to FDLPGAICUP laws..

i read that somewhere on the main site, i'll see if i can find a reference..

ok, i found the reference.. its in here a little ways down the page..

http://www.creditinfocenter.com/rebuild/debt_validation.shtml

sorry i cant help with the other issues, but maybe since they are govenred by the FCPGAURAQT and didnt know it, they violated ome laws? did they not validate?

- eddie -

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Leave him alone you big luggs :D

You knew exactly what he meant :p

He's being helpful.. aren't you SLOOOOOOOW EDDDDDIIIEEEE :p He's fast enough to send a helping answer.

We love it! and we love you

Thanks for the help All are welcome. All are welcome. :cool:

[Edit by vonniegirl on Saturday, 30, 2002 @ 11:24 AM]

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one more time on the ex-nemisis MEDCLR...

Put together the following proof:

The address the CRA gives for MEDCLR (which we all know is NCOs)

The PA law that states that a company must register to do business in PA

The PA States Corporations Office (Secy of State) that shows MEDCLR is NOT registered to do business.

SAME site, get NCOs information

Show NCO address = MEDCLR address

-------

1. Complain to CRA about MEDCLR collecting illegally and in violation of PA law. (This got it deleted from DHs)

2. Sue both for violations. NCO is violating the FDCPA for collecting using a name not their own.

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Been there done that......

I had the same identical situation w/ MEDCLR and NCO was shielding them just like yours. I sent an intent to sue to Tracy Wild in the compliance dept.. Got a letter today for a promise for deletion for both accounts.

Lemme know if you need help w/ this.

[Edit by demoncasterouter on Monday, December 2, 2002 @ 03:30 PM]

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  • 1 month later...

<blockquote>Originally posted by lazerus1974

Actually, once a debt is purchased, even if delinquent, it becomes first party debt, and is not accountable to the FDCPA, it is however, accountable to Fair Business Trade Act, I think is what it is called.

Regards

Lazerus

</blockquote>

Nope.

There are FTC Opinion letters and court cases regarding this. If the debt is delinquent at the time of sale, the CA is still subject to the FDCPA.

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<blockquote>Originally posted by lazerus1974

Actually, once a debt is purchased, even if delinquent, it becomes first party debt, and is not accountable to the FDCPA, it is however, accountable to Fair Business Trade Act, I think is what it is called.

</blockquote>

No that incorrect. If an account is in default at the time of transfer, the new owner/assignee is most certainly bound by the FDCPA. Can you post a link to the Fair Business Trade Act. I am not familiar with it and can't find it in any searches I did.

Wadlington v. Credit Acceptance Corp -Sixth Circuit

"The legislative history of section 1692a(6) indicates conclusively that a debt collector does not include the consumer's creditors . . . or an assignee of a debt, as long as the debt was not in default at the time it was assigned. See S.Rep. No. 95-382, 95th Cong., 1st Sess. 3, reprinted in 1977 U.S. Code Cong. & Ad. News 1695, 1698. See also Kizer v. Finance America Credit Corp., 454 F.Supp. 937, 939 (N.D. Miss. 1978)."

FTC Opinion Letter

This responds to your letter dated December 2, 1993, inquiring whether Midland Credit Management, Inc. ("MCM") is a debt collector under the Fair Debt Collection Practices Act ("FDCPA" or "Act"). You report that MCM "purchases portfolios of delinquent accounts receivable for the purpose of profitable recovery, resale and cure. blah blah blahh blah.....

In sum, it is our view that a party that obtains consumer obligations in default for the purpose of collection is a "debt collector" under the FDCPA, even if that party actually purchases the accounts from the original creditor

FAIR DEBT COLLECTION PRACTICES ACT UPDATE 1999

(Scroll down to PURCHASERS OF LOAN PORTFOLIOS INCLUDING DEFAULTED DEBTS to read more about purchasing delinquent debts.)

A company which acquires a block of receivables is a "debt collector" with respect to those receivables in default at the time of acquisition. The leading case is Kimber v. Federal Financial Corp., where the purchaser of credit card receivables from W.T. Grant, which had gone bankrupt, was held to be a "debt collector" with respect to those receivables which were delinquent at the time they were acquired.

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