Need Advice (Lexington law Member)

[TXSoleProp]

Good Afternoon,

I am quite frustrated today due to a debt collector who contacted me demanding payment TODAY. Allow me to explain - I was an independent distributor with a marketing company called Momentis that dealt with energy services, and I purchased (was paying monthly), for use at my own home, a set of boxes that are supposed to help decrease the ions/electronic field in your home that supposedly zap your energy and cause health issues. Nevertheless, I was with the company about 3 months, and paid several payments on my subscription for my EMS system (the boxes). At some point, I allowed my payment to lapse. This was in 2012. In March of 2015, I received a call from Paul Anthony the CFO of the Law Offices of John F. Blevins. Basically, he informed me that I HAD to pay the remaining payments and legal fees on the EMS meter and that I was NOT protected under the Fair Debt Collection Practices Act because it was a business transaction - not a personal transaction - even though the EMS meter that I have is the one I personally use (it was still in the box after all those years.) Nevertheless, he said that with the payments owed and atty fees it totaled $1360.10. I agreed to pay that over 6 payments. Well, I paid 3 payments, and then got sick and asked them to allow me to pay the remaining amount through the next 2 payments. I paid the next 2 payments, but forgot to add the additional amount. Yes, that is my fault. Nevertheless, I hadn't thought about it anymore as I didn't have it carried over on my budget form after August 2015 which is when I made the last payment. This brings us to today. Paul Anthony contacted me this morning saying that I owed $548.10 AND that it had to be paid TODAY or else, he would advise their "client" to place this on my credit and pursue further legal action. After looking at the payments that I already made totaling $1,111.95 which would mean that I ONLY owe $248.10. I asked him to send me an itemization of where this additional $300 came from, and he said that he didn't have to send me anything, and it's my fault that the additional amount is on there because it's additional attorney fees for having to "track me down." He didn't have to track me down - my number and email address are both the same from when we were in contact before. All I know is that he has stressed me out today, and I should not have to pay $300 for a phone call - $300 that I did not initially agree to pay. I am in need of legal advice ASAP as he is saying that they can still add 3 or 4 times that amount to the balance if it is not paid today. I need to know what my legal rights are, and if this is outside the range of the Fair Debt Collection Practices and laws protecting consumers from such threats due to an outstanding debt. I am in Texas. I actually spoke with someone in the original company's billing department, and found out that the debt collector has not informed them that I have made any payments, so their billing person was very bothered by that. Please help!

[texasrocker]

Major harassment and keeping payments to themselves...  Sounds like a FDCPA violation to me.

@BV80, are you lurking around here somewhere?

[TXSoleProp]

Yep! Thanks for the reply. Probably trying to keep the original creditor from knowing that I have made payments to try to get them to "escalate" the collection process and use their services more. He doesn't know, at least not when he called Monday, that I now know that my payments were not reported to the original creditor. He scared me into action as I was caught off guard last year regarding it, but I have my fists up now. He tried to say that the FDCPA did not apply to me in this situation because I purchased the item as part of the business I was doing at that time. I was doing the business at the time, but only found out about the product because of that. However, I purchased the product for my personal use with my personal money. The person is an accountant/CFO - not the attorney, so something is keeping him from understanding that.

[kraftykrab]

This is not covered under FDCPA if it was a business related debt.  Just because this specific box was intended to be used in the OP's home, that does not automatically make it a personal debt.  Was this purchase required as part of the business venture in any way?  If so, then this will not fall under FDCPA.  You need to find a way to differentiate between this purchase and being an independent distributor for the company.  If you can, then you might have yourself a good case.  However, there are some things to note.

1--the $300 in extra expenses is possibly legit.  Check the agreement for the purchase of the boxes, there is likely a clause that allows them to add collection costs to the mix.  It does not matter that the only thing the attorney's office did was call you.  If they were hired to try to collect, and the original agreement allows adding on collection costs, then you are on the hook for that amount.

2--it is also not a violation that they demanded payment today.  That would only violate if you were still in the initial 30 day period, because it would overshadow your right to validation within that 30 days.

3--depending on how he specifically worded it, it might not be a violation to tell you that they can still add 3 or 4 times that extra amount to the debt if it is not paid today.  They violate if they threaten to take action that is not legal or possible.  It's very plausible that interest(where allowed) and collection/attorney's fees can make that amount go up.

As far as them collecting payments from you, I would make darn sure that I could document every penny you already paid this law office.  If you have anything from them in writing that discusses payment arrangements, I would keep that in a safe place too, because it will be needed.  Then, I would get something in writing from the creditor if possible that states they have no knowledge of you making those payments.  This could be an interesting case.

Some more info for you.  You were either contacted by a debt collector claiming to be the CFO of that law office, or you were contacted by the CFO using a false last name.  Have a look:

https://www.linkedin.com/in/paul-pesce-45aab354?authType=name&authToken=6tAF&trk=prof-sb-browse_map-name

This law firm seems to be in the Baltimore, MD area, though I also find some references to Columbia, SC, specifically with John Blevins himself, as well as his CFO linked above.

This guy is not only an attorney.  He also owns(or owned) a debt collection firm.

[BV80]

22 minutes ago, TXSoleProp said:

. I was doing the business at the time, but only found out about the product because of that. However, I purchased the product for my personal use with my personal money.

If you were not required to purchase the product, it's very possible the FDCPA would apply.

Since you're in TX, contact attorney Jerry Jarzombek to see if he can answer some questions for you.

[TXSoleProp]

Awesome! Thank you.

[Credithis]

I worked in electronics for around 21 years before moving into IT work. These ionizers are a scam. You bought something worth about $30.00 at the max in parts. Tell them to pound sand and let them know you will have a certified electrical worker examine it and make the results public if they want to go that route...

http://www.scam.com/showthread.php?219182-Momentis-amp-EnergyMizer-%28EMS%29-Scam-BEWARE!  

 

[TXSoleProp]

Lord Have Mercy!! I wish I had read that before I purchased the doggone thing! Thank you for the advice. I have gotten so much better about doing my research and due diligence now than I did back then - Thank God.

[Credithis]

File a formal complaint with the CFPB http://www.consumerfinance.gov/complaint/

 

Then file a complaint with the Attorney General and cc it to the bastards who contacted you. Make it known (also send it certified mail return receipt requested) that you will be going public with it.

[texasrocker]

3 hours ago, Credithis said:

I worked in electronics for around 21 years before moving into IT work. These ionizers are a scam. You bought something worth about $30.00 at the max in parts. Tell them to pound sand and let them know you will have a certified electrical worker examine it and make the results public if they want to go that route...

http://www.scam.com/showthread.php?219182-Momentis-amp-EnergyMizer-%28EMS%29-Scam-BEWARE!  

 

Eureka moment!

[TXSoleProp]

21 hours ago, kraftykrab said:

This is not covered under FDCPA if it was a business related debt.  Just because this specific box was intended to be used in the OP's home, that does not automatically make it a personal debt.  Was this purchase required as part of the business venture in any way?  If so, then this will not fall under FDCPA.  You need to find a way to differentiate between this purchase and being an independent distributor for the company.  If you can, then you might have yourself a good case.  However, there are some things to note.

1--the $300 in extra expenses is possibly legit.  Check the agreement for the purchase of the boxes, there is likely a clause that allows them to add collection costs to the mix.  It does not matter that the only thing the attorney's office did was call you.  If they were hired to try to collect, and the original agreement allows adding on collection costs, then you are on the hook for that amount.

2--it is also not a violation that they demanded payment today.  That would only violate if you were still in the initial 30 day period, because it would overshadow your right to validation within that 30 days.

3--depending on how he specifically worded it, it might not be a violation to tell you that they can still add 3 or 4 times that extra amount to the debt if it is not paid today.  They violate if they threaten to take action that is not legal or possible.  It's very plausible that interest(where allowed) and collection/attorney's fees can make that amount go up.

As far as them collecting payments from you, I would make darn sure that I could document every penny you already paid this law office.  If you have anything from them in writing that discusses payment arrangements, I would keep that in a safe place too, because it will be needed.  Then, I would get something in writing from the creditor if possible that states they have no knowledge of you making those payments.  This could be an interesting case.

Some more info for you.  You were either contacted by a debt collector claiming to be the CFO of that law office, or you were contacted by the CFO using a false last name.  Have a look:

https://www.linkedin.com/in/paul-pesce-45aab354?authType=name&authToken=6tAF&trk=prof-sb-browse_map-name

This law firm seems to be in the Baltimore, MD area, though I also find some references to Columbia, SC, specifically with John Blevins himself, as well as his CFO linked above.

This guy is not only an attorney.  He also owns(or owned) a debt collection firm.

Thank you for your reply. I have seen that LinkedIn profile as well. Paul Anthony says that he is the CFO of the law firm. Based on the educational attainments posted and after having spoken to him, he clearly is not an attorney. Nevertheless, the original creditor was not even aware that I had made the $1111.95 in payments that I made already. I only owed them $360.00, so obviously the debt collector was taking $1000. 

[Credithis]

You could totally have Great Fun with this! Course, I hate scammers and people who abuse others. I’d run their names through the muck internet wise always being careful to stick to the truth (to avoid claims of libel/slander). Post horrible reviews stating the facts on places like Yelp, etc. Call the local News outlets.... Get the point?

[fisthardcheese]

TX has good consumer laws too, so I would suggest talking to a couple different consumer attorneys to go over all of this.  You may have multiple violations of both state and federal laws concerning first, the scam of the product to begin with and second, the collection efforts being used (including the non-application of funds paid to the OC account).