Jump to content

ca not licensed in my state


coralfang
 Share

Recommended Posts

My husband had a hospital account sent to a collection law firm. The collection law firm sent a notice to my mother in law's address which is in a different state that we live in. I have looked up the collection law firm and they are not licensed to collect in my mother-in-law's state or ours. I was reading in a sticky that I should send a letter CRRR right way? What does that mean?

Link to comment
Share on other sites

If your state requires licensing/bonding - and that collection agency is not licensed, you can consider that violation #1. However since your letters and accusations, and even telling them "you are breaking the law" will do you absolutely no good - just chalk it up and file it away.

The CA knows they are breaking the law - they are banking on that you won't sue them for it. This is because in 95% of cases - it costs them nothing because the consumer doesn't do anything about it - and they end up making more money by violating the law.

It probably costs them an hour and $50 or so to get licensed in your state. Not doing so might cost them thousands if you follow through.

Does your state have an authority dealing with such licensing? A letter to them will get them licensed most likely - but that doesn't help you at all does it?

You need to get a member of the authority to tell you that such and such company is not licensed. A screenshot or a computer file showing the same is probably not as effective as a letter from the state.

This may all be moot - lots of states have laws that say to the effect of: Lawyers or law firms whose primary business is not debt collection, are not required to be licensed as debt collectors. Some states require everyone who collects debts to be licensed.

My whole point - its not a huge deal.

CMRRR indicates "Certified Mail Return Receipt Requested"

Its the only method of communications you should be using with the law firm.

You have now discovered the debt. You can initiate communications and establish that this is the initial communication with that law firm. It's shaky at best. (have they been sending letters for months? If so they could argue that your mother in laws is the best address they had and that initial communications occured months ago - if they push the point its conceivable that they don't need to stop collection attempts) The concept here is to establish that you now have 30 days to dispute the validity of that debt, and they must stop collection attempts until they provide validation.

If they continue collection attempts during that time prior to validation - they violate the FDCPA. Now you have 2 violations or more of the FDCPA. These violations may be actionable for your actual damages, or $1000 each.

Chances are once they are called out and must perform validation - they sell the debt somewhere else and yank the reporting.

Link to comment
Share on other sites

coralfang: Yes, you should send them a letter CMRR right away. You will want to ask them for Debt Validation/Proof the debt is yours.

I'd also like to add a little..

If your state requires licensing/bonding - and that collection agency is not licensed, you can consider that violation #1. However since your letters and accusations, and even telling them "you are breaking the law" will do you absolutely no good - just chalk it up and file it away.

If you do find that you have a case against a CA for breaking the law, it is easier to show the court it is a "willful" violation if you have evidence to the effect that you tried to show them the light. They continue on the path they are on, then it's willful.

The CA knows they are breaking the law - they are banking on that you won't sue them for it. This is because in 95% of cases - it costs them nothing because the consumer doesn't do anything about it - and they end up making more money by violating the law.

Very correct. Most CA's assume a consumer will do nothing. They have paid collectors to harass and break you down through the telephone if you step without being prepared.

Also, Did you know there are business's that collect court information, and sell lists of "consumer litigators" to CA's so they can scrub their lists? Doing so lets them avoid most of those willing to balk at their efforts.

It probably costs them an hour and $50 or so to get licensed in your state. Not doing so might cost them thousands if you follow through.

Wrong, licensing and bonding can cost quite of time and money depending on the state and their requirements. If it were that easy they'd be licensed.

Does your state have an authority dealing with such licensing? A letter to them will get them licensed most likely - but that doesn't help you at all does it?

If it were easy, and the CA smart, then - sure, I'd agree. In your shoes, I'd prefer being able to show them as Willful Violators to a court of law as opposed to doing nothing at all.

You need to get a member of the authority to tell you that such and such company is not licensed. A screenshot or a computer file showing the same is probably not as effective as a letter from the state.

I disagree. In my state, the attorney I retained used a "computer print out" showing the Collections Law Firm I sued was not licensed/bonded. They settled out of court.

This may all be moot - lots of states have laws that say to the effect of: Lawyers or law firms whose primary business is not debt collection, are not required to be licensed as debt collectors. Some states require everyone who collects debts to be licensed.

Good point - it is always good to look up your local laws regarding licensing. Remember though, Licensing normally falls on State consumer protection laws in collections cases.

My whole point - its not a huge deal.

I disagree. The licensing was a big deal in the suit I filed and won. Collect as much information you can. Document all communication and read up on the laws. If you feel your rights have been violated, you may have a cause of action.

CMRRR indicates "Certified Mail Return Receipt Requested"

Its the only method of communications you should be using with the law firm.

Fax's work as well.

You have now discovered the debt. You can initiate communications and establish that this is the initial communication with that law firm. It's shaky at best. (have they been sending letters for months? If so they could argue that your mother in laws is the best address they had and that initial communications occured months ago - if they push the point its conceivable that they don't need to stop collection attempts) The concept here is to establish that you now have 30 days to dispute the validity of that debt, and they must stop collection attempts until they provide validation.

Maybe, maybe not - document all communication or lack there of. If you pursue litigation, anything to show a lack of initial communication will add more weight to it.

If they continue collection attempts during that time prior to validation - they violate the FDCPA. Now you have 2 violations or more of the FDCPA. These violations may be actionable for your actual damages, or $1000 each.

First of all - FDCPA violations are only worth up $1,000 per aciton, NOT per violation. An action can be defined as a lawsuit over multiple violations. Licensing is another issue.

For example, in the state of WA, actual damages are trippled if the offender is not licensed. If you'd like to make them pay for their mistakes, you will have to use State law along with Federal. Does your state have good consumer protection laws? It would be a good time to look them up.

This is just my .02's worth. If I've spoken out of place, I'm sure someone will step up and elaborate or correct me!

Thanks and good luck with your situation.

StressPot :)++

Link to comment
Share on other sites

A CA not being licensed and attempting to collect in WA has gave me leverage on 2 CA's so far. I filed an AG complaint and they agreed to never report, sell or assign the debt again and delete from credit file. Im in WA, so we have that good ole "treble damages".

One thing to remember about licensing.... Dates mean everything. If you do decide to do anything with this make sure you have written proof of what date they attempted to collect. Print of the query form from your states DOL for date proof that they werent licensed. It may become usefull.Your dunning letter will have a date on it that they attempted to collect. Even if they go and get licensed now, they still broke the law before.

example..... if i was 15 and got caught driving a car w/o a license...just because i turned 16 a month later and got a license didnt mean I never broke the law before. Hope that made sense.

The problem I foresee here is that this is an attorney representing the OC in this case. They may be a whole different can of worms.......

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.