As a college grad since 1979 and a first-time homebuyer, I have found widespread violations of the FDCPA among the creditors and their outsourced private collections agencies. I've also found and been a victim of deception in the debt collection practice observing poor record keeping on the part of all parties. We must first examine debt collection from a derivative and forensic viewpoint; corporate finance, federally/state funded institutions and their debt obligations. GAAP allows for the write-off of old debts. Yet and still the creditors outsource collection agencies to collect debts the creditor has written off of their balance sheet. So what happens when the debt has been written off and the collection agency has established a payment file from the debtor? The debtor is always subject to the debt because the collection agency takes a percentage (who knows what?) of that payment for their collection fee (commission). Then comes the finance charge (interest) and late payment charges. In essence, the original debt remains the same because the debtor is only paying commission, interest and late charges. I attended a Texas private college (state funded) that lost its accreditation for mismanagement of funds. My financial aid consisted of the BEOG, NDSL, Stafford Loan and the Merit Scholarship. The school policy was to clear the balance of my bill before my grades were released. Each grade period, whatever the balance was, my Mom used the funds she had left from our Social Security Income (father deceased 1972) after paying monthly expenses to send to me for my grades to be released. After my marriage, the Dept of Ed (Higher Ed) offset two years of joint tax returns, private collection agencies constantly called. When I was employed, I voluntarily paid $50/mo. for two years on this debt of which the principle was $4,650. Even after over 30 yrs., the debt was recorded as a Federal Abstract of Judgement at the county registrar (filed by private attorneys) as if I still owe the debt. I wasn't properly served. The process server (whomever it was) left a large manila envelope. Now the debt has been turned over to the Dept. of Justice in the State of Michigan. My point is that there is a widespread conflict of interest among the creditor and those outsourced by the creditor for debt collection. Most, if not all of these organizations are operated by taxpayer funding. The taxpayers are the ultimate creditors.
Technology does not allow debtors or alleged debtors to distinguish land lines from cellphones of debt collectors; whether private or federal. There appears to be a double standard between the debtor and collector. I have received calls after business hours and sometimes even on a Sunday from a mortgage servicer, whom I will not disclose. This particular servicer has even left an anonymous type of flyer (one that can be hung on a doorknob) with instructions to call the specific servicer's customer service phone number; without disclosing the name of the servicer, although I was already familiar with the phone number. I would classify this as mail fraud because it bypassed the mail system. The same scenario with the service of process regarding my old school loan. The service of process bypassed the mail system These are both issues that should be resolved collectively by and among the FCC, FTC and DOJ (not all inclusive). A debt collector can call the debtor from a phone number outside of the collector's company so it won't be included in the company's phone log. If the debtor attempts to return the phone call, the number is either inoperable or not able to receive incoming calls. Collectors may even call a debtor in order to attempt them to give personal information about lowering the interest rate on their credit card (even if the debtor doesn't have a credit card). It is obvious or apparent that there may be a credit card floating around in the debtor's name unknowingly. These are all scenarios I have experienced. We haven't gotten to the subject of sharing a debtor's information among the debtor's financial institution and the financial institution's correspondent institutions and investment advisor affiliates and other business combinations of the debtor (public utilities companies, mortgage servicers, insurance companies, pension fund mgrs, etc...)
Consumers normally are unaware that their debt has been sold to a collection agency. They, one day, get a call about the debt from someone unbeknownst to them. The collection agency wants the consumer to remit the payment to them, when actually, principal on the debt never decreases because the collection agency gets their cut (commission) off the top. The debt is there essentially, forever with added late charges, interest and other penalties. I submit to the CFPB to finalize the "Know Before You Owe" rule and to outlay the debt validation rules so that consumers can make an informed choice before wasting their money on a debt they may not owe.
Debt collectors call and cannot verify that the creditor has merged with another company. The debt may have written off the books of the acquired company. I propose that the CFPB implement a rule pertaining to debts written off by an acquired company and any additional stipulations on a timeframe to which an old debt can be collected only if the consumer has been validly notified that the debt has been sold to a debt collection agency; excluding the initial call from the DCA
sbwaddell
1
As a college grad since 1979 and a first-time homebuyer, I have found widespread violations of the FDCPA among the creditors and their outsourced private collections agencies. I've also found and been a victim of deception in the debt collection practice observing poor record keeping on the part of all parties. We must first examine debt collection from a derivative and forensic viewpoint; corporate finance, federally/state funded institutions and their debt obligations. GAAP allows for the write-off of old debts. Yet and still the creditors outsource collection agencies to collect debts the creditor has written off of their balance sheet. So what happens when the debt has been written off and the collection agency has established a payment file from the debtor? The debtor is always subject to the debt because the collection agency takes a percentage (who knows what?) of that payment for their collection fee (commission). Then comes the finance charge (interest) and late payment charges. In essence, the original debt remains the same because the debtor is only paying commission, interest and late charges. I attended a Texas private college (state funded) that lost its accreditation for mismanagement of funds. My financial aid consisted of the BEOG, NDSL, Stafford Loan and the Merit Scholarship. The school policy was to clear the balance of my bill before my grades were released. Each grade period, whatever the balance was, my Mom used the funds she had left from our Social Security Income (father deceased 1972) after paying monthly expenses to send to me for my grades to be released. After my marriage, the Dept of Ed (Higher Ed) offset two years of joint tax returns, private collection agencies constantly called. When I was employed, I voluntarily paid $50/mo. for two years on this debt of which the principle was $4,650. Even after over 30 yrs., the debt was recorded as a Federal Abstract of Judgement at the county registrar (filed by private attorneys) as if I still owe the debt. I wasn't properly served. The process server (whomever it was) left a large manila envelope. Now the debt has been turned over to the Dept. of Justice in the State of Michigan. My point is that there is a widespread conflict of interest among the creditor and those outsourced by the creditor for debt collection. Most, if not all of these organizations are operated by taxpayer funding. The taxpayers are the ultimate creditors.
View this comment in the discussion thread
sbwaddell
2
Technology does not allow debtors or alleged debtors to distinguish land lines from cellphones of debt collectors; whether private or federal. There appears to be a double standard between the debtor and collector. I have received calls after business hours and sometimes even on a Sunday from a mortgage servicer, whom I will not disclose. This particular servicer has even left an anonymous type of flyer (one that can be hung on a doorknob) with instructions to call the specific servicer's customer service phone number; without disclosing the name of the servicer, although I was already familiar with the phone number. I would classify this as mail fraud because it bypassed the mail system. The same scenario with the service of process regarding my old school loan. The service of process bypassed the mail system These are both issues that should be resolved collectively by and among the FCC, FTC and DOJ (not all inclusive). A debt collector can call the debtor from a phone number outside of the collector's company so it won't be included in the company's phone log. If the debtor attempts to return the phone call, the number is either inoperable or not able to receive incoming calls. Collectors may even call a debtor in order to attempt them to give personal information about lowering the interest rate on their credit card (even if the debtor doesn't have a credit card). It is obvious or apparent that there may be a credit card floating around in the debtor's name unknowingly. These are all scenarios I have experienced. We haven't gotten to the subject of sharing a debtor's information among the debtor's financial institution and the financial institution's correspondent institutions and investment advisor affiliates and other business combinations of the debtor (public utilities companies, mortgage servicers, insurance companies, pension fund mgrs, etc...)
View this comment in the discussion thread
sbwaddell
3
Consumers normally are unaware that their debt has been sold to a collection agency. They, one day, get a call about the debt from someone unbeknownst to them. The collection agency wants the consumer to remit the payment to them, when actually, principal on the debt never decreases because the collection agency gets their cut (commission) off the top. The debt is there essentially, forever with added late charges, interest and other penalties. I submit to the CFPB to finalize the "Know Before You Owe" rule and to outlay the debt validation rules so that consumers can make an informed choice before wasting their money on a debt they may not owe.
View this comment in the discussion thread
sbwaddell
4
Debt collectors call and cannot verify that the creditor has merged with another company. The debt may have written off the books of the acquired company. I propose that the CFPB implement a rule pertaining to debts written off by an acquired company and any additional stipulations on a timeframe to which an old debt can be collected only if the consumer has been validly notified that the debt has been sold to a debt collection agency; excluding the initial call from the DCA
View this comment in the discussion thread