Jump to content

I want to sue a JDB here is my case tell me if I can


Recommended Posts

I have a perfect credit rating up in the 750's, never had a late payment, I use less than 20% on my credit cards and I'm paying off a mortgage and a car loan.

 

I checked my credit score the other day and it dropped 100 points. I found a collection agency in Flordia put a CA account on all 3 reports for a $110 TMobile bill from 4 years ago. I didn't get a notice that they were attempting to collect on a debt. So I started looking them up and I can see that they don't have a businessess license in WI. I'm assuming this is why I never got a letter. So I called them and recorded the telphone call, they were aware of it being recorded.

 

The man on the phone informed me that it was for a T Mobile cancellation fee on a prepaid account. I asked him if he had my address and he read it off to me, then I asked him if they ever sent a notice or called me to let me know they were attempting to collect on a debt. He apologizes and says that for some reason no letter was sent on this account. I told him I was upset that I wasn't afford the opportunity to dispute the debt or pay it before it made to my credit report.

 

He then puts me on with his supervisor who I explain the situation and tell her I want to validate the debt. She tells me it can take a long time and that they don't have to remove any info from my CC report during this time. I then tell her I have a recording of him expaling that they never sent out a letter of notification. She told me they would take a pay for delete if I give them my credit card number.

 

I told them to stop reporting it, that I will offically request valdiation via mail and that I consider this damaging.

 

Now,  I don't think they are allowed to practice in my state of WI. Can I sue them in small claims? Are they allowed to report it to the big 3 without giving me a proper validation period. Do I actually have violations.

 

As a side note, I do not owe this debt. I worked it out with T Mobile 4 years ago, I had paid my contract in full but ported my number early. They waived the fee over the phone and I never got a bill, just this on my CR 4 years later.  I doubt I can find the letter since I've moved twice in that time period.

 

 

Link to comment
Share on other sites

@selfprodigy

 

I know of no state that requires a collection agency to be licensed in order to report to the credit reporting agencies (CRAs).  

 

Also, if this is a junk debt buyer, they may not be required to be licensed to collect.

 

 

WI 218.04

 

(1)  Definitions. The following terms, as used in this section, shall have the meaning stated, unless the context requires a different meaning:

 

(a) "Collection agency" means any person engaging in the business of collecting or receiving for payment for others of any account, bill, or other indebtedness. "Collection agency" does not include attorneys at law authorized to practice in this state and resident herein, banks, express companies, health care billing companies, state savings banks, state savings and loan associations, insurers and their agents, trust companies, district attorneys acting under s. 971.41, persons contracting with district attorneys under s. 971.41 (5), real estate brokers, and real estate salespersons.

 

A JDB doesn't collect "for others".  

 

Is this company located in your state?  If not, WI doesn't require out-of-state agencies to be licensed.

 

(2) Licenses required.

(
b) A nonresident of this state is not required to obtain a collection agency license if that person conducts collection business with state residents solely by means of interstate telecommunications or interstate mail.

 

 

Can I sue them in small claims? Are they allowed to report it to the big 3 without giving me a proper validation period.

 

 

They do not have to contact you before reporting.   You need to dispute the account with the CRAs.   If it comes back verified, then dispute it in writing with the JDB, and request proof of what they're reporting.  You want to see what they have.

 

If the JDB has proof of a debt, it would be your word against theirs that there's no debt unless you can get something from T-Mobile.

Link to comment
Share on other sites

The best advice I can give you it to never speak with these people on the phone. Any communications should be written and anything you mail should be sent CMRR through the USPS. I know its not fair you have to spend 6.00 on a 10.00 alleged debt, but you need to keep everything documented. 

 

"They waived the fee over the phone and I never got a bill" This really enforces what I said above. Agreements on the phone are worthless if you can't trust who you are talking with. 

 

Are you sure this is a JDB and not a CA? I guess it happens, but its crazy that a JDB would purchase an account with a face value of 10.00. If it is a JDB they probably paid a quarter for it. Even if its a CA working on behalf of T-Mobile its still crazy they would work this account for a 3.00 commission. 

Link to comment
Share on other sites

The amount he owed was $110.00.

 

Thanks! I missed that extra "1".

 

That changes the amount paid to 2.50 if a JDB, or the amount a CA would get to 35.00+. That is enough money for some of these to spend time on. That being said make them earn their money. Your biggest problem is the telephone agreement with the OC will be your word against theirs. 

 

I would stop talking with them on the phone. Study up on the FDCPA and if they commit any violations use this as leverage to get the debt cancelled. Who is the JDB/CA you are dealing with? I'm guessing this is probably a second or third tier JDB, so they may be more sloppy than the usual suspects. 

Link to comment
Share on other sites

Is this Enhanced Recovery by any chance?  They are KNOWN for doing this on accounts with that kind of status.  They are not a JDB but are a CA.

 

If it is them let me know because I had a similar problem with them and got it off within 3 days.  I can tell you how to deal with them if it is.

Link to comment
Share on other sites

Is this Enhanced Recovery by any chance?  They are KNOWN for doing this on accounts with that kind of status.  They are not a JDB but are a CA.

 

If it is them let me know because I had a similar problem with them and got it off within 3 days.  I can tell you how to deal with them if it is.

 

Yup, any insight would be helpful.

Link to comment
Share on other sites

In answer to the thread title: There are two areas where you might be able to sue, assuming it happens, is if they continue to report without validation.

 

You called them, that's first contact. They now have 5 days to send you the dunning letter, and then you have 30 days to send them a written DV.

 

They don't ever have to respond to the DV. They DO have to cease collection efforts (which includes reporting) until they provide the validation.

 

Start by waiting to see if you get the dunning letter.

 

But, and this is an important principal to keep in mind: you CAN sue them if you want to. Whether or not you actually have a case will be decided in court. JDBs sue people all the time, and say things in their lawsuits that are illegal and untrue. And, unless the alleged debtor fights back, they'll win.

 

What you can do, and what you can succeed at doing, depends on the other side's ability to fight back.

  • Like 1
Link to comment
Share on other sites

Ah, good old ERS.  Their modus operandi is to simply place the debt on your credit report. They DO NOT send letters.  They did the exact same thing to me.


 


The next advice is for anyone, you do NOT have to be a FL resident to use it.  The Florida Office of Financial Regulation would LOVE to shut these guys down.  They are bottom feeders.  You can file a complaint on line here:  http://www.flofr.com/StaticPages/FileAComplaint.htm


 


It takes them a day or two and they WILL call you.  They go over the facts then contact ERS.  I had all the letters from when my HOA demanded the dish removal within 72 hours of installation but DirecTV could not send a rep to get everything for two weeks. I was not supposed to be charged ANYTHING and they kept sending it to different CAs.  The others would send a letter first and I would send my copies along with an "I don't owe this" letter.  Until ERS who simply put it on my CR and tanked my score 100 points.  


 


When I spoke to the OFR lady I explained that had they simply sent a collection letter I would have responded but my only notice was the outright damage to my credit score.  She understood and the next call I got was they were deleting the TL and they did. 


 


If you don't want to go that route this NACA attorney from FL peruses the OFR complaints and sent me a letter offering to sue them.  He appears to be very experienced and well respected.  You can phone him at 904-372-4109 or email at max@collinsstorylaw.com.  His name is Max Story.


 


Good luck.  They fold easily but it does piss you off that you have to deal with it.


Link to comment
Share on other sites

They DO have to cease collection efforts (which includes reporting) until they provide the validation.

 

Actually the courts are divided on whether reporting to the consumer reporting agencies is collection activity and until it gets challenged to SCOTUS and the court issues a ruling there is NO guarantee that a suit with that as a basis of collection activity would be successful.

Link to comment
Share on other sites

@Wins the Battle

 

You called them, that's first contact.

 

 

The few courts that have ruled on the issue have stated that an initial communication must be initiated by the debt collector.

 

The phrase "initial communication with a consumer," followed by the requirements imposed on the debt collector for such an initial communication, suggests that the statute properly understood refers to and requires a communication that is initiated by the debt collector, not a communication initiated by the consumer. Blair v. Bank of America, Dist. Court, D. Oregon 2012.

The clear language of § 1692g(a), however, is that an initial communication is sent by the debt collector, not by the debtor. Campbell v. Credit Bureau Sys., Inc., 655 F.Supp.2d 732, 741-43 (E.D.Ky.2009).

However, "[c]ourts in this circuit have held that the `FDCPA's protections are not triggered by communications initiated by someone other than the debt collector.'" Derisme v. Hunt Leibert Jacobson P.C., 880 F.Supp.2d 311, 329, 2012 WL 3000386, at *18 (D.Conn. July 23, 2012) (quoting Boyd v. J.E. Robert Co., 2010 WL 5772892, at *13 (E.D.N.Y. Mar. 31, 2010)).

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 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.