DV Not Answered by Alegis/Sherman; Still Calling--What Next?

[sailonsilvergirl]

Alegis has been contacting me for months now to collect on a Capital One debt that was from a business account for which I was an authorized signer. The account was discharged by the business' Ch 7 BK. Although this happened years ago, we're still within the SOL. I don't know if this is relevant, but this Capital One account has never showed up on my CR when the account was active, or since the bankruptcy filing. I am disputing this debt, obviously, as well as the amount of it.

The amount they are requesting is double what the final balance was on the bankruptcy filing. Although, they are offering a settlement of half the new balance, which is really the full amount of the original balance. Capital One never tried to collect from me directly (and doesn't THAT say something???), so I have no idea what would be Capital One's balance and what fees Alegis tacked on to inflate the balance. I DV'd Alegis through registered mail to both the Alegis addresses that have contacted me to request documentation that verifies I would be personally responsible for this business debt that was dicharged in bankruptcy, why the amount they're now asking is double the balance, and also to send all communications in writing because I will not be communicating via phone. If they will communicate in writing, I'll respond in kind. I included info about the bankruptcy case # and the documentation that showed this Capital One account was included in the filing, as well as the balance at the time of the filing. Both mailings to Alegis were signed for.

Of course, since then, I've still received phone calls and recently received another collection letter. I only talked to Alegis once by phone, the first time they called me.

I see Alegis/Sherman mentioned here a lot ... what's my next step? Send another DV? I'd rather lie low right now because we're relocating. I just want these guys off my back for a debt that belonged to a business and that was discharged in bankrupcty. What is my recourse at this point? Does anyone know of specific sections of the FDCPA that might help me? I realize the FDCPA "applies to personal, family, and household debts" as the explanation is written on the FTC's website, and this is a business debt. But if Alegis is trying to say this is actually a personal debt, then am I indeed covered by the FDCPA? This seems to be a gray area to me, and I hope I'm not falling between the cracks. Thanks for any insight you have!!

[DocPC]

Seems pretty cut and dried. 1, it wasn't your debt and 2 it was discharged in a BK. Hell if it was me, I'd sue them. They are also continuing collections before validation and calling after a limited C&D.

Pretty good case as I see it.

[DocPC]

Stupid computer.... Double post.

[willingtocope]

The only "legal" reason these people could have for coming after you is if you personally guaranteed the debt. The company's liability would have been discharged in the company's BK, but if you personally guranteed the debt, you're still liable. If you had to sign anything to be an authorized user, your personal guarntee may have been included in the fine print.

Unfortunately I didn't keep track of the court cases, but I've read some conflicting opinions as to whether a personally guaranteed business debt is subject to the FDCPA or not. If its not on your personal CR, chances are they're claimed PG...you might have to get a lawyer to sort it out. You need to force them to try to provide you with a copy of the agreement that says you are responsible for this debt if the business fails.

[DocPC]

Good point.

But the OP states "authorized signer"..... I guess I don't know what that means really. Reminds me of authorized user. Not responsible.