Threatened with IRS audit

[pashee]

Hello all,

A few days ago, I got a call that enraged me to the bone. It was from a company called Research Service Investigations. They said they are not a collection agency, but the loser wouldn't tell me what they were exactly. He said they were calling about an old Discover account that has been in collections for about 12yrs now.

I asked him to verify the account number, and date of origination, but he refused. He was so unbelievably rude, as usual. I haven't gotten collection calls in a long time, but this went far beyond what I'd experienced in the past. He said that since I was refusing to pay, that I should expect to be served within the next couple days. He also said that they were going to file a 1099 for the total amount due, and that they would make sure that I would be audited by the IRS!!!!!

When I continued to ask for the origination date, he started screaming about how that isn't relevant because in the agreement that I signed with Discover, it states that there is no statute of limitations.

I told him what he was doing was illegal, and that I would report them to the BBB, and the AG's office. I finally asked to be transferred to someone else so I could get some real information. (I didn't remember even having a Discover card!)

When the next guy answered, I began by asking questions about their company, where they're located, if they had a website (no), and that's about as far I got before he hung up on me. I haven't rec'd ANYTHING in the mail about this, not before the call, not since the call, and they haven't ever called me back.

Have you guys heard of this type of strongarm tactics being used on such an old account? I was wondering if some sort of new legislation has been passed to allow this (not to get all political, but with this administration, I wouldn't put anything past them!) type of action.

This infuriates me. I could not be scared into complying because I know about consumer protection laws, but it makes me very angry at the possibility that someoone more ignorant could be bullied into paying a very old debt, worsening their credit in the meantime, and putting money into these criminals' pockets!!

I would love to hear this forum's thoughts and ideas about this situation. Have you heard of this? What would you do? Can we somehow shut this place down?

Thanks,

Pash

[JustaTexan]

because in the agreement that I signed with Discover, it states that there is no statute of limitations.

WOW!

Being 12 years old this isn't on your credit is it?

I don't know why he would say you would be served and they would send the 1099 to the IRS? I don't know much about 1099, but isn't that what collectors send to the IRS when they deem an account out of SOL and uncollectable?

Would you mind posting the # they called from? I'm just curious. I am also curious to see the other responses on this one. Should be interesting.

[nascar]

Have you guys heard of this type of strongarm tactics being used on such an old account?

Yes, two or three days ago, the local Nashville news aired a bit on a company with a name very similar to the one you have mentioned - Recovery Investigations or something like that. They were making the exact same kind of calls you are describing.

The company is owned by a debt collector out of Georgia - someone help me with this; I can't remember the details - and when confronted about their tactics, they tried to qualify their behavior by admitting that they had a couple of agressive young collectors who needed some addtional training.

In any event, what they're doing is 100% against the law. Don't put up with it for a moment and don't be intimidated by it. Play along with them or do whatever else you have to do to get as much information as you can about them. Then nail 'em.

[Robert Nashville/Savannah]

This could well be a 100% scam (meaning the whole alleged "debt" is made up and they are simply trying to scam money out of unsuspecting people) or one or two steps below a full-blown scam (maybe the debt really did exist and they are trying to collect from anybody they can get on the phone and bully into paying something).

It's also possible that this is a junk debt buyer and that they do own this alleged debt (whether it was ever your debt is another matter - I would assume that if you ever had a Discover card you would remember?).

In any case, if it's a real debt and they own it, they actually must, per IRS rules, issue a 1099 for forgiven debt (and there are several threads here about that procedure).

You've done the right thing so far. However, should they do anything more than try to call you, don't ignore them...be proactive.

There will always be collectors who will do or say anything to get their money whether it's legal or not - in your case, you are in a very consumer-friendly state so should they follow through with their threats; you'll be in a good position to put them in their place.

[Florida_Bronco]

Also remember that they can only issue the 1099C for the original amount, not the amount padded with interest and fees. After 12 years its highly unlikely they have those records so you'd have a viable dispute with the 1099c, which would in turn have the IRS breathing down the collection agencies throat.

[flacorps]

If it's not Georgia, then you likely have a case of the Buffalos.

If you can get enough info about who and where they are to demand validation, that may forestall any potential 1099-c form.

[pashee]

their phone number was 678.916.5966, which is an atlanta number, so it sounds like the same place! i'd love to be able to pursue this to the end, and shut them down.

i've made a deal with myself that if they have the audacity to call me again, that'll be my trigger. i'm a mortgage broker, and i really have my hands full right now just trying to survive with my sanity, so the idea of taking this on is not very appealing, but at the same time, it really kills me to know that they are doing this to who knows how many people! i was so angry when i got of the phone that i was shaking. they shouldn't be able to mess with someone's peace of mind so recklessly.

what local station aired this story? are they under investigation now? maybe should call the local AG's office anyway.

i appreciate your responses. it's good to know this isn't related to new legislation giving them power to do this.

i'm so glad i found this site!

pash

[JustaTexan]

http://800notes.com/awl/nb/r.ashx?ue=Qb0hmL5JXZ292YlJ3Xj12YvMXZnFGcy9GdjVGbs92Y0JWZk9SbvNmLzJmYphGZ1J2LvoDc0RHa

Check it out. Bad bad folks. There's actually a link to the news broadcast there too. I'd contact Bud, he answers email.

http://800notes.com/Phone.aspx/1-678-916-5965 Read all the posts, especially the very last one on pg. 1-interesting!

[AISLE4]

When speaking on the phone with a person who is unwilling to clearly tell you who he represents and unwilling to give you needed details to help you verify the information, it's always a good idea to simply end the call.

[flacorps]

When speaking on the phone with a person who is unwilling to clearly tell you who he represents and unwilling to give you needed details to help you verify the information, it's always a good idea to simply end the call.

Or tape 'em while pretending to be none too swift so they have to explain everything in copious detail. The more lies and distortions and threats the better...

[pashee]

wow deanna, i just read thru those sites!

i don't understand how they can still be operating if SO many people have filed so many complaints against them! especially when i read that they're making about $250k a MONTH!!!

now i have to figure out how to record a call on my phone, and HOPE they call me again. then it's on like donkey kong. i like the idea of acting dumb, but i think i already blew my cover the last time they called.

thanks for the info!

pash

[LeslieR]

This is an absolutely awful story! As are all of the ones on the Bud Hibbs website. I am really shocked. Wow.

[AISLE4]

Or tape 'em while pretending to be none too swift so they have to explain everything in copious detail. The more lies and distortions and threats the better...

Right. Hmm, I'm usually quick to suggest recording and suing the bastards. I must be getting soft.

[JustaTexan]

wow deanna, i just read thru those sites!

i don't understand how they can still be operating if SO many people have filed so many complaints against them! especially when i read that they're making about $250k a MONTH!!!

now i have to figure out how to record a call on my phone, and HOPE they call me again. then it's on like donkey kong. i like the idea of acting dumb, but i think i already blew my cover the last time they called.

thanks for the info!

pash

You're very welcome! Is your phone a landline or cell phone? I don't know how to record calls on a cell phone, yet , but there are many ways to do it on a landline. There is a thread about it here actually. http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=284017&highlight=recorder There are many different suggestions is this thread.

Good luck!

[NASCAR_Devil]

Can't believe that I missed this one. My good buddies Claims America. Theirs was the call that started me on the credit repair process. They will attempt to convince you that you have committed fraud. If you DV them, you will never hear from them again.

[Fizzle1979]

Pashee - You live in TX. We have some debtor friendly laws here. I encourage you read the links in my signature if you haven't already. File complaints with ANY agency you can think of. TX AG, GA AG, BBB, FTC, ACA, etc.

But make sure your complaints are well written and give a time line. on XX date they called me. On XX date they called me again. On XX date I wrote a letter. On XX date they signed for the letter. On XX date they called me again after being told not to contact me, etc.