BMG bill from 2006?!
Complaint
Kym
Country: United States
I saw a $27 collection on my credit report for some 'Bureau of Collections Recovery(BCR)' stating I opened a BMG account in 2005, bought some kind of latin CD, and BMG turned it over to collections in 2006. I know NOTHING about this, what are the steps I need to take? it's 2013! WTF?! A latin CD?! No offense, but I don't, and never have, listened to this genre of music...
Would love some advice, thanks!
Would love some advice, thanks!
Comments
It's a shakedown scam, hiding behind "collection" of these really cheaply bought "accounts" as a prop.
The same collection agencies, such as NCS, NRA Group, Thakhar, etc, got caught pulling the same scam "collections" with "delinquent accounts" from old bankrupt Hollywood Video, which resulted in a 50 state settlement over this bogus collections.
The old music club accounts were originally set up as "negative option" selling, where if you didn't return some response, they would ship some "standard" order that you had allegedly "agreed" to take. They also often marketed to young naive adults, but did little to actually verify identity or check credit. Many underage minors also signed up easily for the teaser offers ("4 CDs for just pennies, if you agree to buy 10", or similar), or they may even have been used for harassing neighbors, since all it took was sending in a card from a magazine to sign someone up.
There is also a history of complaints of "order cramming", with sellers calling to suggest additional purchases, and even sending them when the consumer declined. Some complaints report receiving unordered shipments without ever signing up in the first place, followed by bills, which is technically mail fraud.
Overall, a bunch of fraud going on at various levels. They deserved to have their "industry" decimated by iTunes.
The result is these old "accounts" commonly include a lot of fraud of various sorts, and the music clubs took advantage of this by adding trumped up "termination fees" if the customer "didn't meet their buying committment". that made the "accounts" more saleable to third party collection agencies that were aware of how to exploit collections on these shady "accounts". As indicated above, a whole cluster of agencies built their business on exploiting this situation, often by coming along years later using this credit damage collection tactic, that often damaged the credit of random consumers.
You can see this pattern in the complaints against BMG on consumeraffairs.com
In this case, they have posted damaging collections information against your credit, on an "account" that isn't even yours, that supposedly went delinquent in 2006. FCRA only allows negative information to remain for at most 7.5 years, so this is barely reportable, even if it was accurate, but they rely on credit damage as part of the shakedown, and since this is "recently reported", even though supposedly real old news, it will probably drop your scores substantially.
They are trying to use credit damage to extort payment for this small amount, as a muisance bill, fully aware that in many cases the person whose credit they damage did not ever order the alleged products. Even if they were ordered, they may actually have been paid for, since Columbia House has a history of complaints of payment crediting errors, including failing to credit purchases toward the "commitment".
Complaints report some of these collection agencies will even tell callers no information can be sent, or they will just send their own letter saying it's owed, but the negative credit line will be removed when paid, which is entirely contrary to normal credit reporting practice.
It's a shakedown racket, hiding behind the "plausible deniability" that if the name is similar, it "might be an innocent mistake". It's too systematic to be a mistake.
Get paper copies of your credit reports from the 3 CRAs to to document the "error". Dispute the "error" through the credit reporting agencies that are showing it. If they "verify" in error, you can sue them, which gives you the leverage to force them to want to remove it. They are counting on most people just paying them off, or maybe on getting a free shot at your money before they have to blink and back off. It is clear from consumer complaints that this is their game, and even the "customer service" people you reach on the phone know it.
There are consumer attorneys familiar with this scam, some of whom have sued for thousands of dollars (one for $20K) for this "accidental" credit damage over piddling bogus "accounts".
If you want to prove damages, dispute it through the CRAs, and if they "verify", then apply for credit. You will likely be turned down, in which case ask the lender to send an Adverse Action Notice indicating which credit agency they obtained your information through to use in their decision, That can get you a free credit report from that CRA, futher documenting the error on your report at the time of the decision. Or try to "prequalify" for a home loan or refi, to show larger losses.
Or contact an attorney and see how he wants to play it. It's a game to them.
You can find a consumer attorney in your state through www.naca.net
http://www.bureauofcollection.com/contact.html
"...
Bureau of Collection Recovery Inc.
7575 Corporate Way,
Eden Prairie, Minnesota 55344
..."
BBB rates them "B+", so apparently they respond to BBB complaints, or maybe they "got religion" after their run-in with the state of Minnesota.
http://www.bbb.org/minnesota/business-reviews ... rie-mn-15001718
BBB also reports a consent agreement, regarding hiring and collections compliance practices.
The practices noted are consistent with a pattern of abusive, deceptive, and harassing collection, which often accompanies fraudulent collection of shady accounts. Your business model depends on shaking down consumers. igoring compliance, and have no intention of proving "debt" is even owed, hire a bunch of abusive, lying felons.
A $150K fine is LARGE, for a state action. Looks like their license was in jeopardy.
"...
The Minnesota Department of Commerce entered into a consent order with the Bureau of Collection Recovery LLC. The Eden Prairie - based Bureau of Collection Recovery LLC has been charged with 1) directing employees to change the dates of scheduled payments; 2) changing the dates of deposit for postdated payments; 3) failing to establish adequate screening procedures when hiring collector applicants; 4) failing to properly screen numerous debt collector registrations before submitting license renewal requests to the Commissioner; 5) employing collectors with felony criminal backgrounds; and 6) failing to notify the Commissioner of employee terminations for using profanity, third party disclosure violations, and harassing debtors.
In response to these charges, Bureau of Collection Recovery LLC has taken corrective action, including: 1) establishing new procedures to strengthen their screening process; 2) submitting that screening process to the Commissioner for review; 3) subjecting all current debt collectors to that screening process; 4) auditing employee records of terminated employees for the last five years; and 5) establishing auditing procedures and agency policies to ensure that criminal convictions of its debt collectors are promptly reviewed and acted upon.
Bureau of Collection Recovery LLC has also been ordered to pay a civil penalty of $150,000. More information can be viewed online at www.commerce.state.mn.us.
..."
By the way, the Minnesota AG is pretty consumer responsive, showing up takine action in a number of cases involving deception or defrauding of consumers by businesses. If you start getting the runaround, you might contact the Minnesota AG, particular given this company's consent agreement.
Note the high incidence of bogus "accounts", with credit damage over old miscule amounts.
http://www.consumeraffairs.com/entertainment/bmg.htm