Harassment
Complaint
Debra M. Persiano
Country: United States
I got a call today at home from a man stating he was a process server for Collin County DA's Office and he is with the Sheriff's office and needed to come serve a warrant on me. I was shocked and asked why? He stated do you live ....are you still at this address are you now at this address and I stated who are you? He again, stated he was from the county going to serve court papers on me today. He gave me a toll free number for what he stated was the county's office which is 1 866.872.6116 gave me a case no. which he called a Cause No. 008307-TX. I called the number was transferred to a Mr. Fisher's office who stated that law suite in the amount of $6,214.24 was filed in Collin Co., Tx and that warrant was out for me. He then after back and forth said let me get more information from my secretary and state this was for an outstanding debt in from Capital One a credit card that I obtained several years back and had disputes over interest charges etc. He stated that if I did not want to go to court or jail that I could pay $1,951.00 in full by end of business today and this matter could be cleared up. I explained that I recently lost my job etc. Anyway, he stated that I needed to call him back by EOB today or they will serve the papers. Ok, so that was a heads up for me. I called the DA's office nothing is filed on me as of today, after searching PMG it is clear that they do not practice best practices for collections and have been in trouble for this before back in 2004. I need someone to give me advise. I want to pay off my debt, I don't want this type of collections to continue this upset me, made my blood pressure raise, this type of collections are not the right thing to do. Had they called and ask to make arrangements or give me an opportunity to clear the matter, rather then threaten me by taken legal action, or harassment stating they are sending a sheriff over today. This is wrong, bad business, and should not continue this company is bad news.
Comments
It looks like another mail drop used by several businesses, including an attorney, an accountant, and a court reporter. Haven't found a link to a UPS Store or similar, but it may be a secretarial/mail service.
They get mail at that address [I've actually talked to the mail man ;-)] but they also have given victims this drop box address:
17602 17TH STREET SUITE 102-110 TUSTIN CA (Postal Annex in a strip mall)
I've paid for and received their filings from the CA SOS and put together this list of names:
Julie Chi - director of operations
Keith Hua - Signed CA papers as manager
Kevin Wessell - organizer
Mike Key, AA - who knows what AA means but he signed some of their California incorp papers
Bobby Joe Lambert - organizer, director and all around LLC incoporator extraordinaire
For example, see here. (not sure if this is the same person)
http://www.talkgold.com/forum/r76642-.html
A few of their connections:
http://www.corporationwiki.com/California/Newhall/kevin-wessell-P2727371.aspx
http://www.corporationwiki.com/Nevada/Sparks/bobby-joe-lambert/27062820.aspx
Still worth talking to them. It will probably tell you if others have been asking questions.
Other reported physical locations include:
Rincon Management, (home to "John Cook")
As reported by an applicant responding to a job offer on Craigslist, a number of fronts operate out of this site.
http://www.ripoffreport.com/collection-agency-s/rincon-management-se/rincon-management-services-joh-53e2f.htm
Rincon Management Services
495 E Rincon St. Suite 201
Corona California 92879
Prime West Management Recovery LLC
(one of many connected to Jason Begley)
109 North Maple Suite C, Corona, CA 92880
Portfolio MG (also dba HGG)
(connected to a "Wayne Swanson" in BBB reports, prob. an alias)
From Corona business license info:
140 N Maple 107
Corona, CA 92880
They probably need city business licenses for any physical location, and for any name used to open a bank account or become a CRA client. For example, PMG is licensed in Corona, and complaints showed up within weeks of their initial license date. Within 2 months, PMG had registerd "HGG" as a DBA with Riverside County, and started using it also.
They don't have to pull credit reports under all their phone names. Consumer complaints report getting calls under one name, and finding inquiries under one or two others. This suggests that the information is being pulled and passed out, possibly through some centralized core operation to minimize risk by using only a few trusted people.
This is probably the most legally risky part of the operation, as illegally pulling credit reports to use in a fraudulent scheme could invoke both state and federal criminal penalties, not just the FDCPA civil violations for "excessive" collection tactics.
Some consumers have reported paying off one front, then getting a call from another. The second caller was not surprised to hear the first "debt collector" had been paid, just said it must have been an error in their computer system, and hung up. This isn't separate "collection agencies" selling paid accounts, as they typically still try to coerce payment, since they bought the account. This is a coordinated team, aware of each other, even if they don't know the full details.
They also don't need bank accounts under all their front names to get payment. There are many reported variations on front names, any of which would probably slip through as a charge or deposit unnoticed. However, there have been several consumer complaints reporting reversing postal money orders by filing fraud complaints due to name discrepancies.
Maybe they were busy dealing with the east coast hitman recently caught living in Santa Barbara with his girlfriend.
Although FBI and FTC don't generally admit to any investigation until they strike, there are consumer reports that FTC had contacted a telecom company used by the Corona Scam to get information on 800 numbers (an efficient way to scope out the whole operation), that they had conducted a follow up interview after a consumer had made a complaint, and that other consumers were reporting an investigation was in progress.
FTC's normal response to consumer complaints is a standard form letter that they do not get involved in individual cases, but that the information would be put in the Consumer Sentinal database accessible by law enforcement. The form letter typically summarizes consumer rights and suggests contacting an attorney.
Another consumer reported that on contacting their state AG, they were told the information was being forwarded to the FBI.
That, and your own experience, is about all you have to work with if an agency decides to hold their cards close to their vest.
One thing about fraud prosecution is that it tends to be competitive. No one is interested if no one else is interested. Whistleblowers, inside disclosures, investigative reporters (Dateline, etc.) exemployee lawsuits upset that balance. Once someone starts taking action, they all pile on, FTC, AGs, and anyone else who was waiting on the sideline. If there is a $10 Million judgement out there, the dynamics just shifted, and the first to sieze assets wins of nobody else acts. (The investment phrase is "devil take the hindmost". You snooze, you lose.)
Try contacting FTC and see what response you get.
http://sacramento.cbslocal.com/2011/06/27/call-kurtis-debt-collection-scam/
The fraudulent boiler room operations, and the legitimate payment processing and telecom resource companies they depend on, have a lot in common, but there is a fundamental difference between getting money through deceptive "offers" made by calling gullible people, compared to getting money through making deceptive illegal threats.
Both are basically fraudulent telemarketing operations, having to hide in some fashion from legal action or prosecution, but the threat based "marketing" has the benefit of scaring people away from contacting law enforcement, resulting in low complaint rates among actual victims compared to much higher rates among those not fooled.
The result is that the fraud loss estimates on which decisions to investigate or prosecute are made, are probably underestimated with debt collection scams far more than with fraudulent telemarketing. This is especially the case if they can convince the victim that the "debt" is actually owed, in which case there would be NO fraud report.
What then shows up is mostly attempted fraud reports, giving the false impression that the scam is not successful. This perception can be reinforced if the scam hides its size, by such tactics as use of multiple aliases to diffuse complaints, or various tactics to convince victims they are legitimate. Complaint diffusion tactics show up in other fraudulent telemarketing operations, notably phone cramming scams that "manage" their targetting to reduce complaint rates with one phone company by shifting "sales" to customers of another.
The overhead estimates, though, should suggest that the scam must be covering at least that amount for rent, phones, and staff, plus enough to make it worth the trouble. With no "inventory" cost for buying actual debt, they should have a higher profit margin than the average debt collector. If the scam is actually expanding, then the profit margin must be high enough to justify that expansion. Just basic "business accounting", valid for any business, legal or not.
Both types of telemarketing use phones, and there are plenty of phone companies that will sell to any call center. Both use payment processors, and there are payment processors that will look the other way in exchange for higher fees. Both could buy sucker lists, from a variety of sources who will sell to all comers.
The key difference, however, is that only fake "debt collection" benefits from access to credit reports. Supposedly, the CRAs check out their clients, to ensure they are only selling for a "permissible purpose", yet repeatedly they claim it isn't their responsibility, that all they do is check that the client "certifies" their permissible purpose.
This leaves consumer identity and account information wide open for exploitation for fraud, despite the illegallity. "Legitimate" debt collectors have been caught using credit information in thinly veiled scams mixed in with their normal business, and more notorious ones like CAMCO have been documented using access to credit report data to make deceptive and veiled threats.
Given that the use of credit data for "debt collection" fraud (separate from id theft) has already been shown to be effective, it should be no surprise that we see "businesses" established for no other purpose than to exploit this opportunity.
I wasn't going to go into my own source of knowledge but, why not...I have a Chapter 7 Bankruptcy from 1997 and this outfit seems to think that I filed simply to see the inside of a courtroom...since 2006 (the timing on this implies another cluster of outlaw debt collectors who are no longer in business) I've gotten challenge after challenge and, really, all it takes is me reading off the text of my discharge. They typically hang up after about three of four words. What makes it hard for me is that to file a law suit against them - violation of the US Bankruptcy Code is more expensive than violations of the FDCPA - you need to know exactly who these slime balls are and where they can be served. You can't just file in small claims or civil courts to sue 'Barney Fife from Legal Division.' (Yes, I've gotten one of those, along with Horatio Cane from FSI.)
I did get one judgement against an outfit in Buffalo NY and when I attempted to collect on the judgement, they skipped town, Western Union drop account, garage space with phone lines, and all. FYI: if this happens to you, do what I did - sell the judgement (I got 95% of the value of the judgement) to another collection agency. But, in order to do this, get a judgement, you have to have an address and a name...this, the initial information gathering, is the tough part.
I don't advocate skipping out on your debts. But, I do think that 3rd Party Collections should be outlawed for two reasons: 1. This particular cottage industry attracts people looking for a fast buck at any cost, mostly criminals. Note the two that I mentioned above - a larcenist and an alleged bomb threat maker. I still can't get over how, if a bank can't hire a criminal to work for them, other 'financial institutions' can. 2. Getting rid of the original creditors' 'nuclear option' (writing the debt off, receiving some insurance for it, and selling it for varying exchange rates depending upon the age of the debt to a third party collector) will force them (the original creditors) to try a little harder to work out something with their customers who are financially strapped.
Another FYI: you might feel, after awhile, that filing all of those complaints with the FTC, the Secret Service (Yes, whenever one of these frontal cortex challenged imps mentions wiring money, it becomes the SS's problem too) and your local AG goes nowhere. But I can tell you from experience that eventually, the complaints get lodged someplace permanent with someone's name on them and that someone (Douglas Burgess, Jason Begley, etc.) will have that to contend with.
They USUALLY first call a skip-traced relative. Although they might have linked you by a joint account, since they routinely pull a credit reoprt, they could also have linked you if you ever had a common address.
It's all part of the act, pretending to be a "process server" calling to locate and "serve papers", implying there is some "lawsuit".
"I made a payment of 400$"
You were conned, extorted, and defrauded.
"canceled my debit card for the final payment "
Good. Block ALL access to your money through any account information they may have.
"After calling HSBC..they sent me a letter saying I didn't owe money. I looked at my credit report and these CM people just took info off of it to prey on me."
You actually caught them collecting on what you can show was a fake, unowed "debt", using your credit report in the fabrication. Contact FTC.
"I'm not sure what to say to them yet"
Why say anything? They know what they are doing, and talking to them won't change anything. Don't believe their BS and threats, as they can't do anything but fool you. Only people you should be talking to are your bank, FTC, law enforcement, and an attorney if you want to sue them.
"I don't know how to get my previous payment back "
Contact your bank immediately and dispute the charge due to fraud. Your bank can reverse disputed charges if you dispute within 60 days of the statement date of the statement showing the disputed charge, under FRB Reg. E (for debit card charges or other EFT). You have already blocked the card number. Follow up with a fraud affidavit sent to your bank's dispute address. Then file a fraud and theft complaint with your local police, and send a copy as a follow up to your bank to back up your fraud dispute.
Send copies of all the above fraud documentation to FTC. Reportedly, they are currently investigating this scam.
Also, contact a consumer attorney to review your options for suing under FDCPA and FCRA. One of the CRAs might also have liability for allowing access to your credit reports to these frauds. You might try www.naca.net
Supposedly sells real cheap, but only someone sleazy enough to use abuse and deception would be in a position to try to profit from it, since it is legally unowed.
The are NOT licensed to do business in the other 49 states. Each state requires licensing and Insurance Bonds for Collection Agencies. EFA has failed/refused to be licensed in 49 states. Therefore EFA has NO LEGAL AUTHORITY to collect any debts in those 49 states. In California and the other 49 states they are required to show an ASSIGNMENT OF DEBT, to you before they can talk to you about any debt. No Judge will grant any motions against you the debtor, without seeing an ASSIGNMENT of DEBT. EFA
is involved in UNLICENSED ACTIVITY IN 49 States. They need to be reported to the Federal Trade Commission and the Attorney General in your state if they call you.