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Can collection agency file a claim with attorney general.


rmuse00
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Can a collection agency file a claim with the attorney general for monies owed? My sister has her own business and just received a call from a credit card company saying that they were going to go to the secretary of state to get her finanical assets and that they were going to file a claim with the attorney general if she did not call. She owes 4500 and she tried to make arrangements to pay 75.00 a month and they said no. By the way all this info was on her voicemail. Can she send DV to collection agency even though she is self-employed? caler kept saying "I am the Vice President of the legal deparment!

thanks!

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Ummm. NO. They can't. A debt collector suggesting that they can file criminal actions against a consumer is a violation of the FDCPA (if it applies...more below). Also, it doesn't matter if he is a VP of a legal department or not. If he is not a bar-registered lawyer, he cannot suggest that he is an lawyer. Many legal dept VPs are not lawyers, just business managers.

Now as for the debt. If this debt was incurred as personally guaranteed business expenses, then the FDCPA does not apply. They can harass her until pigs evolve wings. If this is her personal credit card then it is consumer debt as defined under the act.

Lastly, was this a third party debt collector or the original creditor? Original creditors are exempt from the FDCPA unless (1) they use a name that suggests that a third party debt collector is being used or (2) they let a third party debt collector use their name. If either of those conditions exist, then the original creditor becomes a debt collector under the FDCPA's definition.

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I agree with Methuss on this.

But, even if this is a business debt, it is still a civil matter, not criminal. To become criminal, they would have to prove Fraud, which would be hard since I'm sure paperwork exists to prove the business failed for reasons other than criminal. Therefore, if it did go to court, I would make use of the false threats to intimidate the consumer as a way to convince the court to step in and settle balances due and receive payments directly until debt is paid so as to protect the consumer from future threats. Yes, the courts will sometimes do this if it is demonstrated to the court the collector relies on lies, false threats, and intimidation in attempts to collect a debt.

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In agreement as well. This CA is stupid. Unless it is a business debt, that she gave her personal guarantee on, then they can take a hike. Heck, I'd hope they contacted the atty gen, because they would be awash in violations such as contacting a third party about a debt.

The atty gen has nothing to do with a businesses financial assets, either. They just report if the corp is in good standing or not.

The legal department bit might be considered overshadowing.

I'd check up on the rules for self employed such as garnishment and such, but I don't think self employed folks can have their wages garnished.

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Just submitted my post when I found the current response. If this CC is her personal, with no business affiliation, then most definitely keep the recordings and send the DV with a limited C&D.

I also have a thought that she not DV simply to prove the debt is valid as it appears she has already admitted liability due to your comment as to monthly payments. Therefore, I would word the DV as to their right to collect for the OC, the amounts claimed, and other pertinent info. Then, include as to how the threats made on your voicemail are illegal, you have retained the recordings, and that you are going to file complaints with you AG, their AG, the FTC, and any other governing agency. In closing, they have the opportunity to make an offer of settlement for a lesser amount or be sued for the violations. With the amount you said she owed, this could help her get an offer of maybe half. No matter why the debt became delinquent, she does not deserve to have her rights violated by anyone, for any reason.

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Please retmar can you give a little sample of how you would word this letter? she is right now very upset and scared she is going to be taken away in handcuffs. I told her to register on this site but at her work she is not able to be online (customer service work). I would like to help her out as much as I can i will even send the letter to these creeps myself but need help in the wording.

Thanks!

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I would wait a few days. A collector has 5 days from the date of first contact (the phone call) to send a written collection notice.

Beware on this though. Many credit card companies will have their internal collectors use words like "client services." It really toes the legal line. If they said "client services for Orchard bank" or otherwise identified themselves more fully they would protect themselves better. As it stands, it is unclear if this is a third party collector or the original creditor. If it was me, I would have someone else call the number and ask "what is your true business name?" Even OC's have to answer this truthfully or they get in trouble for consumer fraud.

Once you have determined if it is a collector or not, I would take the recording along with all documentation to the law offices of Edelman, Combs, Latturner, and Goodwin. They are in downtown Chicago and they deal with collector violations like this all the time. They'll review it for free. If you are not close to Chicago, you can fax it to them for review.

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