Bogus Penncro Credit Inquiry

[billmenever]

Hi everyone.

Bill Me Later referred my bill to Penncro & Associates several months ago, unbeknownst to me. Since then, I have had trouble getting credit and a decent interest rate. I just got the first call from Penncro on Friday. The "debt" was bogus because they didn't properly credit my account. I had recognized the mistake several times before and Bill Me Later's reps said that they had corrected it and closed out the account. But lo and behold, the late charges and interest kept piling up (on a purchase that had been returned for a full refund). This happened twice, but I finally thought that a supervisor had fixed the error. I moved on.

Then I got the call from Penncro on Friday, who asked me for full payment in a matter-of-fact way. I almost laughed, because I explained that I had positive documentation that I owed nothing. Penncro told me to contact Bill Me Later to figure this out. The merchant involved (OfficeMax, a truly outstanding company) immediately provided me with evidence that I was correct and offered to vouch on my behalf.

Bill Me Later was useless when I called their reps. They refused to discuss a charged-off account. The rep actually admitted that they made a mistake and supervisor concurred. But they refused to do anything to stop the collection. They would not refer me to a higher supervisor, leaving me with nowhere to solve this problem. So I left a voicemail with some of their execs. I let them know that it is fraud to continue to knowingly collect on a debt they admit is bogus. One of their top VPs called me today on Sunday and apologized for my trouble on a voicemail. He provided his cell number, so I think they must understand the implications of what is going on...

I talked to one of my banks and they informed me that I had been denied a loan based on the inquiry from Penncro. At the time, I was only told that the denial was due to too many inquiries. I assumed that this was due to me shopping for loans. Now I know that the loan I've gotten may have a higher interest rate due to the Penncro inquiry.

What can I do to get this straightened out? Am I due any compensation for all that I have had to do or the higher interest rate that Penncro might have caused through their hard inquiry? Neither Penncro nor Bill Me Later has seemed too rushed to fix my credit record.

Let me reiterate that Bill Me Later was 100% content to allow Penncro to keep collecting on their behalf even AFTER admitting they were in the wrong. I cannot imagine anything less ethical. I have nothing against companies using collectors to get debts from people who stiff them. But they knew that I owed them nothing and tried to extract over $120 for nothing.

The Attorneys General (yes, that's the term for plural AGs) of Massachusetts (my state), Maryland (Bill Me Later HQ), Nebraska (Bill Me Later mail center), and Pennsylvania (Penncro HQ) have gotten complaints from me.

[2001Badyear]

Hi everyone.

Bill Me Later referred my bill to Penncro & Associates several months ago, unbeknownst to me. Since then, I have had trouble getting credit and a decent interest rate. I just got the first call from Penncro on Friday. The "debt" was bogus because they didn't properly credit my account. I had recognized the mistake several times before and Bill Me Later's reps said that they had corrected it and closed out the account. But lo and behold, the late charges and interest kept piling up (on a purchase that had been returned for a full refund). This happened twice, but I finally thought that a supervisor had fixed the error. I moved on.

Then I got the call from Penncro on Friday, who asked me for full payment in a matter-of-fact way. I almost laughed, because I explained that I had positive documentation that I owed nothing. Penncro told me to contact Bill Me Later to figure this out. The merchant involved (OfficeMax, a truly outstanding company) immediately provided me with evidence that I was correct and offered to vouch on my behalf.

Bill Me Later was useless when I called their reps. They refused to discuss a charged-off account. The rep actually admitted that they made a mistake and supervisor concurred. But they refused to do anything to stop the collection. They would not refer me to a higher supervisor, leaving me with nowhere to solve this problem. So I left a voicemail with some of their execs. I let them know that it is fraud to continue to knowingly collect on a debt they admit is bogus. One of their top VPs called me today on Sunday and apologized for my trouble on a voicemail. He provided his cell number, so I think they must understand the implications of what is going on...

I talked to one of my banks and they informed me that I had been denied a loan based on the inquiry from Penncro. At the time, I was only told that the denial was due to too many inquiries. I assumed that this was due to me shopping for loans. Now I know that the loan I've gotten may have a higher interest rate due to the Penncro inquiry.

What can I do to get this straightened out? Am I due any compensation for all that I have had to do or the higher interest rate that Penncro might have caused through their hard inquiry? Neither Penncro nor Bill Me Later has seemed too rushed to fix my credit record.

Let me reiterate that Bill Me Later was 100% content to allow Penncro to keep collecting on their behalf even AFTER admitting they were in the wrong. I cannot imagine anything less ethical. I have nothing against companies using collectors to get debts from people who stiff them. But they knew that I owed them nothing and tried to extract over $120 for nothing.

The Attorneys General (yes, that's the term for plural AGs) of Massachusetts (my state), Maryland (Bill Me Later HQ), Nebraska (Bill Me Later mail center), and Pennsylvania (Penncro HQ) have gotten complaints from me.

I think contacting the Attorney's General in all the states is a good step and the BBB as well. I fear that all the phone calls can not be used as it's a he said, she said situation. This is one of the many situations where a long paper trail would be a good thing to have. I would think you would have a series of violations on them for false reporting under the FCRA, but the money you can get back is very little unless you have verifiable violations to prove it.

Might want to push this to the Lawyers forum for advise, but does sound like you got screwed.

Perhaps a Mod might move this for you???

[VeVe]

I'm assuming it's on your credit reports (based on your mention of not being able to obtain credit), so did you ever actually dispute throught the CRA's? That would probably be the easiest and best step, since they would have to verify to keep it on your reports, or delete if they can't verify.

If they do verify, and you have documentation to the contrary, then you have something to go on.

Disputing it is the first and most basic step. It doesn't seem as though you've done this, but rather you just jumped several steps ahead.

[Debt Guy]

Seems to me there are a few thorns in this story.

First, the culprit in this mess is the OC. They admit the error.

Second, the CA made a hard inquiry. No violation as the debt was placed with the CA and the CA had permissible purpose.

Third, I don't know that the CA can delete a hard inquiry. The CA would have to speak with the CRA. The problem is that the inquiry was real and was accurate. Regardless, the damage has already been done.

Fourth, if you dispute the inquiry to the CRA, what is the basis for the dispute? I'm not sure there is one.

You ask if you are entitled to compensation. I think the answer is yes. You have suffered a financial harm through the action of another party. That is the exact same basis for a creditor to sue a debtor in default.

The question is how to get compensated. In my opinion, your first effort should be to make a calm and logical appeal to the exec you have been speaking to at the OC. I would discuss it briefly with the exec and then follow up with a thorough letter (certified mail yada yada). You are building a paper trail as well as making a support for your claim for damages.

You need to somehow document and support the fact that the one single inquiry caused your interest rate to be higher. And then you need to compute and support the amount of additional interest you will have to pay.

Personally, I would keep the tone civil and reasonable as I believe you would more likely get what you want.

Ask for a written response to your request.

If you have done your job right, the OC will work out something mutually agreeable. If not, you have 99% of what you need to go file a lawsuit in small claims court (the only thing you would be missing is written acknowledgment from the OC that they caused the error -- that may be hard to get).

Does this make sense?