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Credit Card offer that is really dunning letter


KentWA
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I could swear I have seen this before, but have been unable to find anything. The other day I received a credit card offer in the mail, typical crap and tossed it on the pile to shred. My GF went to shred the things we had received and happened to notice the mini Miranda on the back right before putting it in the shredder. They are trying to collect for Asset Acceptance which could not validate over 2 years ago and went away. This is first contact with this CA.

I have sent a DV to them, however I am wondering if there is a violation here in and of itself due to deceptive practices. The entire front of the letter looks like a standard offer for a credit card, it is only when you carefully read the entire letter front and back that you realize what it is. My thinking is that since there are so many credit card offers every day in the mail, that it is deceptive to disguise the intent of a first contact letter in this manner.

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Actually it is Genesis Financial Solutions, Inc collecting for Asset Acceptance on a debt that Asset never answered my DV on and was with a company that I had never had a CC with. An interesting twist in reading the fine print is that if you send the paperwork back to them it constitues an agreement to transfer the account to a new account, effectively restarting the SOL.

It was certainly nice of them though to provide a postage paid envelope to stuff full of other junk mail I have around the house. I just have to get it 1/4 inch thick so that it costs them $1.37 in postage!

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In July 2006 Vital Recovery Services sent me a dunning letter on an SOL account. I DV'd them and got no response. In August 2006 I got a dunning letter from Resurgent Capital for the same debt -- I DV'd them twice and got no response.

This spring I got a similar letter as yours from Resurgent Capital offering me a credit card to transfer the same debt that I had DV'd them about. I DV'd again, no response.

Last month I got another 'credit card offer' dunning letter from Resurgent Capital on the same debt. I sent them a C&D letter and copied FTC and my State (CA) AG.

I doubt this will help to change anything -- but it is really, really sneaky of these JDB's to send these letters. Most of us just round-file credit card offers without opening them.

Just an FYI -- Asset Acceptance, Vital Recovery, Resurgent and many other companies are part of the "Sherman Companies'; a big JDB who buys the debt under the name of one of it's companies and then collects through another of its companies -- then moves the 'ownership' of the debt around and continues sending dunning letters as a new 'Owner'.

I think this 'credit card offer' dunning letter is just the newest trick they are using to try to fool people into paying on these old debts.

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I ALMOST fell for that offer. I decided to check it out on the internet and after digging, that is how I found this site. haha

Read the small print. That is where they get you at. Especially the one that says "Time Barred Debt"

They also have some copying charges and annual fee. What?

I wonder how many people have got suckered in b/c of letters like that?

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We got one from Jefferson Capital. This thing is so far past SOL that it hasn't

even on the CRA's for a long time.

"If your present debt is outside the applicable SOL period, then a lawsuit cannot be filed to collect on this debt." I am wondering since they already know this debt is out of SOL, how many unsuspecting people are going to fall for this "credit repair" scheme.

I also like the part on the back that says that they won't file suit even if the debt is within the reporting period. (they don't bother to define what the reporting period is, because they probably figure most people think it is 7 years) Meaning of course..you take their offer, then default later that the supposed bank who issues the card will take legal action. .

This wording is a bit tricky. I hope people aren't falling for these things.

z

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They do this on Out of Statute debts so that by accepting the new Credit Card (whose credit line just happens to be the amount owed so that it is immediately maxed out) you are making a brand new, in-Statute debt that they can sue you for if you can't keep up the payments.

Anyone who falls for this should immediately check themselves into your State Home for the Mentally Deficient. You really have to be an idiot to accept this.

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DH got one the other day for his providian that was charged off in 1998. :? DH thought he should do it. :? Has he not heard what I have been telling him for the pat 2 years? :roll: Unfortunately, more people then you think do fall for stuff like this. :? They don't know any better. Like some of us before we came to this board.

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I have done quite a bit of research in the last few days and the Texas and Indiana AG's have a bit to say about it and how deceptive it is. I also found a court case that supports it (CARBAJAL v. Cap. One), although it was settled CAP One Et. Al attempted a dismissal and in a well reasoned denial of that motion the court made it clear that it was in fact a vialation.

History first:

-I never did business with the OC

-I DVed Asset repeatedly with no answer (still have copies and green cards)

-Fell off report 2 years ago

-This is first Communication

Possible violations on this that I have come up with so far:

-Failure of Asset to communicate that the debt was disputed when assigning to Genises Financial.

-Failure of Genisis to communicate to WebBank (the issuer) the disputed status.

-Mischariterizing the nature and status of the debt by not communicating that it is a time barred debt and acceptance would revive the debt.

-Deceptive First Contact mail (more on this below)

The decptive nature of this first letter is that it is not clearly from a JDB. Most people are going to throw it away without looking much at it. This means they are likely to miss the 30 day window to dispute and tie the hands of the JDB. Those who are less sophisticated are likely to be lured in and revive a debt that is uncollectable. All the TILA requirements bury the mini miranda language. In CARBAJAL the court said that TILA requirements do not dimiss the CAs duties under FDCPA "Plaintiffs have a viable claim that the validation notice was obscured in a way that violated the FDCPA."

There is also a very strong public indication that WebBank and Genesis have caluded to create a scheme to defraud through this arrangement. I found the press release announcing this program. Genesis gets WebBank to issue the card and charge the balance due to that card. Then Genesis buys the receivables on it (yes they own a new debt at almost no cost) and continues to collect on it.

I have just about decided I am going to go after all 3 of them in court based only on principle. I have yet to decided if I want to hit them with a DV and play around just a bit first.

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Actually it is Genesis Financial Solutions, Inc collecting for Asset Acceptance on a debt that Asset never answered my DV on and was with a company that I had never had a CC with. An interesting twist in reading the fine print is that if you send the paperwork back to them it constitues an agreement to transfer the account to a new account, effectively restarting the SOL.

It was certainly nice of them though to provide a postage paid envelope to stuff full of other junk mail I have around the house. I just have to get it 1/4 inch thick so that it costs them $1.37 in postage!

Just fill it with blank printer paper till it's an inch think then tape the top, ROFL.

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