I have been contacted about a collection agency that stated that an old prescription charge was unpaid. The total was like $1500. When I asked for proof, I received a piece of paper that had three numbers on it that added up to $1500. Nothing more. Literally.
When a consumer asks for proof, they should at the very least receive a fully itemized listing of what it is is being collecting upon. (e.g. a detailed statement of account, or the un-paid invoice(s).) Additionally, consumers should receive documentation as to why they are legally responsible. (E.g. an agreement that they signed.)
I realize that for businesses that traffic in unpaid consumer debt this is going to be a huge burden as this information has long been lost. Too bad.
At the very least, this should be the standard for any debts incurred after a certain date.
I have a collection story about my 90 year old mother in law. One day she receives a notice from a collection agency. My mother in law is listed in the phone book, and her name is similar to the supposed debtor although they live in different parts of the state.
They send a collection notice. We respond that they have the wrong person and sent it certified.
They receive our response, but do not respond.
She continues to get notices and an occasional phone call.
While you might say, just disregard them, this is incredibly stressful to my 90 year old mother in law.
I would like to propose my own solution to the problem and it is self-funding.
1. The consumer disputes with the collection agency via certified mail.
2. If the collection agency doesn't formally cease collections and write a letter acknowledging this within a period of time, the consumer can pay a filing fee ($50-75) and appeal to the CPFB.
3. If the collection agency is found at fault, they $50-$75 fee is refunded to the consumer and the fee plus a penalty will be assessed the collection agency. Failure to pay the fines will result in the collection agency losing their license.
Bottom line: there's need to be some "teeth" in any rules.
I have been called by a bill collector and asked for somebody who I had no knowledge of, we'll say "Joe Smith". I say "Joe Smith doesn't live here. In fact, I have never heard of Joe Smith". The caller states: "Well, do you have Joe's current phone number?" I say "I repeat, I don't know a Joe Smith".
The collection agency caller states "I'm sorry I am not allowed to remove this number from our database unless a new number replaces it."
Oh, come on now, seriously?
I agree that of course an ideal situation would be for consumers not to pay. But let's not let the perfect be the enemy of the good. I was proposing some viable method that would result in an ability of a consumer to have a hearing. Hearings cost money and ultimately the collector would be assessed.
TaxGuy
1
I have been contacted about a collection agency that stated that an old prescription charge was unpaid. The total was like $1500. When I asked for proof, I received a piece of paper that had three numbers on it that added up to $1500. Nothing more. Literally. When a consumer asks for proof, they should at the very least receive a fully itemized listing of what it is is being collecting upon. (e.g. a detailed statement of account, or the un-paid invoice(s).) Additionally, consumers should receive documentation as to why they are legally responsible. (E.g. an agreement that they signed.) I realize that for businesses that traffic in unpaid consumer debt this is going to be a huge burden as this information has long been lost. Too bad. At the very least, this should be the standard for any debts incurred after a certain date.
View this comment in the discussion thread
TaxGuy
2
I have a collection story about my 90 year old mother in law. One day she receives a notice from a collection agency. My mother in law is listed in the phone book, and her name is similar to the supposed debtor although they live in different parts of the state. They send a collection notice. We respond that they have the wrong person and sent it certified. They receive our response, but do not respond. She continues to get notices and an occasional phone call. While you might say, just disregard them, this is incredibly stressful to my 90 year old mother in law. I would like to propose my own solution to the problem and it is self-funding. 1. The consumer disputes with the collection agency via certified mail. 2. If the collection agency doesn't formally cease collections and write a letter acknowledging this within a period of time, the consumer can pay a filing fee ($50-75) and appeal to the CPFB. 3. If the collection agency is found at fault, they $50-$75 fee is refunded to the consumer and the fee plus a penalty will be assessed the collection agency. Failure to pay the fines will result in the collection agency losing their license. Bottom line: there's need to be some "teeth" in any rules.
View this comment in the discussion thread
TaxGuy
3
I have been called by a bill collector and asked for somebody who I had no knowledge of, we'll say "Joe Smith". I say "Joe Smith doesn't live here. In fact, I have never heard of Joe Smith". The caller states: "Well, do you have Joe's current phone number?" I say "I repeat, I don't know a Joe Smith". The collection agency caller states "I'm sorry I am not allowed to remove this number from our database unless a new number replaces it." Oh, come on now, seriously?
View this comment in the discussion thread
TaxGuy
4
I agree that of course an ideal situation would be for consumers not to pay. But let's not let the perfect be the enemy of the good. I was proposing some viable method that would result in an ability of a consumer to have a hearing. Hearings cost money and ultimately the collector would be assessed.
View this comment in the discussion thread