RPM trying to collect a fake debt
Complaint
JP
Country: United States
On 4 Apr 08 I got a call from Receivables Performance Management (RPM) claiming that I owe $85 on a Verizon account from 2000. I know that I’ve never had a Verizon account, and that my phone account from 2000 (I forget which company) was paid properly. So I told the RPM rep that they were full of s**t, and that I wanted written proof that this debt is actually mine. They had the last 4 of my SSN and tried to pass that off as “proof” that their info was legitimate. I still didn’t fall for it and asked for everything in writing.
Fortunately I have records that go back that far. I also called Verizon to confirm that they don’t have any account information with my name on it. Surprisingly they have no record of me ever having an account with them. I then went online to find out if RPM is some sort of scam. They are a “legitimate” company, yet seem to be practicing what I would describe as predatory debt collection, or legal extortion. Unfortunately, there is not much information on the internet yet about RPM. However, there is a lot of information about AFNI, who seem to be doing the same thing.
So, after I found this web page, and read all of the information about AFNI, I downloaded the FDCPA and FCRA and read them. I’m sending RPM a letter in accordance with the FDCPA. I’m also sending the letter to my state’s AG and the WA state AG. (RPM is located in Bothell WA.) I also checked all of my credit reports to make sure that nothing has been placed on them. I’ll continue to monitor my credit reports very closely for the next few months. As this develops I’ll update this comment.
I’m considering contacting a lawyer to see if what RPM is doing is in any way actually extortion. It’s a crime that the max penalty under FDCPA and FCRA is only $1000 or actual damages. Obviously that small amount isn’t enough of an incentive to keep these companies from violating the law. I’m also going to contact my Congressmen about this. Maybe if enough of us complain the law can get changed?
Oh, and a huge thanks to the poster on this site TJ! His information and advice was invaluable!!
Fortunately I have records that go back that far. I also called Verizon to confirm that they don’t have any account information with my name on it. Surprisingly they have no record of me ever having an account with them. I then went online to find out if RPM is some sort of scam. They are a “legitimate” company, yet seem to be practicing what I would describe as predatory debt collection, or legal extortion. Unfortunately, there is not much information on the internet yet about RPM. However, there is a lot of information about AFNI, who seem to be doing the same thing.
So, after I found this web page, and read all of the information about AFNI, I downloaded the FDCPA and FCRA and read them. I’m sending RPM a letter in accordance with the FDCPA. I’m also sending the letter to my state’s AG and the WA state AG. (RPM is located in Bothell WA.) I also checked all of my credit reports to make sure that nothing has been placed on them. I’ll continue to monitor my credit reports very closely for the next few months. As this develops I’ll update this comment.
I’m considering contacting a lawyer to see if what RPM is doing is in any way actually extortion. It’s a crime that the max penalty under FDCPA and FCRA is only $1000 or actual damages. Obviously that small amount isn’t enough of an incentive to keep these companies from violating the law. I’m also going to contact my Congressmen about this. Maybe if enough of us complain the law can get changed?
Oh, and a huge thanks to the poster on this site TJ! His information and advice was invaluable!!
Comments
http://phx.corporate-ir.net/phoenix.zhtml?c=190031&p=irol-irhome
MCI is a division of Verizon, formed when Verizon bought Worldcom (post-bankruptcy) in 2006.
http://en.wikipedia.org/wiki/MCI_Inc.
If Qwest was bought by Verizon, you would have heard about it, since there would be some major antitrust issues.
Just make up anything you might believe, and throw it at you. Bunch of liars.
I do not have bad credit, I do pay all of my bills and am not a Dead Beat as you called most of the people on here.. so get your facts straight and recognize that you and the company you work for are nothing but liars.
Since most consumers don't know how to handle these "mistakes", there is little chance they will be held responsible for the damage they cause, and a good chance they will be "accidentally" paid as well. How were they to know you were the wrong "John Smith"?
The level of complaints of "mistaken" collection against a small number of debt collectors is so high it defies credibility.
Send them a letter, mailed certified return receipt requested, disputing the alleged debt, and demanding that they obtain proof you owe it from the original creditor and send it to you. If sent within 30 days of receiving their first letter, under FDCPA they are required to cease all collection activity until they obtain and send proof.
Be wary of what "proof" they send, however, because even their own employees admit disputes often don't make any difference. If you have further problems, contact your state Attorney General and the Attorney General of the state of Washington for assistance.
You might also find an attorney with experience in consumer debt law, to sue under FDCPA or FCRA, both of which allow the court to award damages and your attorney fees if you win. You might try www.naca.net
#1 - I was never TOLD about any $12 fee and did not authorize it and it will be disputed.
#2 - I called CenturyLink and informed them that I will pay them directly on 9/15/2010, NOT the bozo collection company they use.
#3 - I can not find ANY information about Pennsylvania charging fees on payments made to collection companies.
Just note that my last bill paid to CenturyLink was the end of May - paid up to date - yet somehow, they send my next bill into collections by July 9th. Here, I tried to work it out and they screwed me. I should have stuck to my gut about these people.
The amount they are adding is unauthorized, so dispute it through your bank. Realize that your card information is now in the hands of a company that will just make up "fees" and take your money.
"#2 - I called CenturyLink and informed them that I will pay them directly on 9/15/2010, NOT the bozo collection company they use."
Why don't you also tell them you want them to return the fraudulent $12 charge stolen by their agent?
"#3 - I can not find ANY information about Pennsylvania charging fees on payments made to collection companies."
There isn't any.
He took your money without any authorization, and he lied about the "reason" why, in order to get you to believe his "fee" was somehow authorized by law, and not just theft. He knew otherwise, yet lied to you, so that indicates it is fraud, not just a "mistake". Report it to your state Attorney General, to the Pennsylvania Attorney General, to the Washington Attorney General, and to FTC.
And if you were already current, why are you paying them ANYTHING?
If it is not due until 9/15, why are they demanding payment before it is due? Who are these "CenturyLink" bozos, falsely claiming an amount is past due?
"He says they need a $25 good-faith payment NOW and the balance on 9/15/2010. "
Some "good faith". He just wanted to get your CC number, and as you can see, once they have it they can use it.
"Good faith" is also a common phrase in cons like the "pidgeon drop". It basically just means "your money is real, mine is fake, so gimme some of yours."
They told me they agree the amount wasn't "past due", but since they had to close my old account and open a new one, they consider the old one to be able to be turned in for collections, even immediately, though it wasn't overdue in any way. It all started because I switched to Vonage. When they turned my phone # into their system, it shut off the CenturyLink one, which also disconnected my internet... next day... I called CenturyLink and they turned on the internet immediately with a different line-in to the house... this supposedly caused the previous account to become "old" and "delinquent" overnight. But they say they can not pull that file from the collections company.
They can do anything they decide to do. They just have to want to decide not to do it to you. As it is, they have both decided it is a fun game to play chicken with your money and your credit, and they see no down side playing that game.
File a complaint with your state Attorney General for sending your account to a collection agency when it was not past due, and having them tack on extra fraudulent "fees" that they falsely claimed were required by the state of Pennsylvania. They basically just took a "$12 tax", that they lied about and claim you owed, that not only did not exist in law, but that they were not even going to forward to the state.
You could also sue RPM, for violating FDCPA, for deceptively both taking your money without authorization, and deceptively claiming it was owed. That violation was not undone even if you get your money back, as FDCPA is a strict liability law.
That is just fraud. It has nothing to do with "paying your bills".
Your industry is infested with people who just can't stop lying if it pays.
Customer service isn't always being "nice" - it also includes being intelligent, truthful and honest. Adding charges isn't honest - it's theft. Telling people you're an attorney, when you're not, isn't honest, it's misrepresentation. I could go on and on. Not ALL collections companies are like RPM. Unfortunately, it seems that many are.
You worms claim only ONE % are unlawfully harassed? HA! In CAMCO v. FTC it was shown EIGHTY % of the $$ collected was not even owed in the first place! CAMCO is out of business. Soon RPM will be. I for one will rejoice when Polus, George, and the rest of the hierarchy of RPM lose their precious homes in Holiday Park and Forest Estates!
When dealing with vipers, never grab the tail. The body can't hurt you, only the head.
Another tactic to punish these rat-[***] at RPM is to file a complaint against their attorney with the Washington State Bar Assn. Google their addy. Easy to find, easy to do. First write their attorney, Andrew Sullivan and provide him with a synopsis of the calls you are getting from RPM. Address it to the Legal Dept. at RPM. He works out of Seattle. Unless perhaps he's found a real job.
Don't roll over and play dead with these slugs. FIGHT! They are constantly being sued. As many as EIGHT lawsuits in one month! Make it 10, 20, even 30. File with the WA State AG. Your home State AG. Hell, file a complaint or send warning letter to every State AG in America telling them about this "company."
If the slugs on the phone make any threats? Nail their sorry butts. Some States permit taping conversations (incoming calls only) without telling the caller. If they threaten/intimidate you? Call your local PD. Then your State AG. And if they are clearly in violation of the law, as verified by your local PD? Ask them to contact the FBI! You do NOT have to put up with this vermin at RPM or for that matter, with any of these scoundrels at collection agencies.
TJ - thank you for your advice. I did file complaints with FTC, Washington State Atty Gen and PA State Atty Gen.
RPM has called twice since this incident yesterday, both times not even realizing ANY kind of payment was made on this situation, let alone a fraudulent one.
15USC 1692g requires that you send your first letter within 5 days of first contact, and that it contain the required notifications.
Disputing within 30 days of RECEIPT of your first letter means you must cease collection until obtaining and sending validation. Failing to dispute within 30 days ONLY means you can "assume" the debt is valid. Nothing more.
"(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer."
Since YOU cannot make a debt owed, telling consumers they owe a debt because they did not dispute within 30 days, for ANY reason, is deceptive.
"YOUR LAST KNOW ADDRESS (WHICH IS YOUR OBLIGATION TO REPORT TO YOUR CREDITOR)"
Your statement is entirely irrelevant, and has no bearing on whether consumers owe or can dispute debts. FDCPA makes no mention at all of notifying creditors of address changes.
When you contact the wrong person, or contact someone by mistake who already paid off a debt, both situations where disputing an alleged debt would be expected, common sense says they would have NO reason at all to notify the alleged creditor of ANY address change.
Making statements designed to convince consumers they have no right to dispute, to evade your legal obligation to validate, is deceptive.
Getting paid for unowed debts by making deceptive statements is fraud. If you conduct your business in a manner likely to collect money from people who don't owe you, you should expect to be accused of fraud.
You need to review FDCPA compliance, to ensure you don't defraud people.
For your convenience:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf
http://www.michbar.org/opinions/district/2005/092905/28863.pdf
"...
Thus, a debt collector’s statement violates the FDCPA if the statement misleads a consumer “into believing that if the debt is not disputed within 30 days, federal law, rather than just the debt collector, will assume the debt to be valid and owing.” McCabe v. Crawford & Co., 272 F. Supp. 2d 736, 745 (N.D. Ill. 2003). In short, the validation provision of §1692g(a)(3) “provides only that the debt collector may assume the debt to be valid.”
...
After viewing the factual evidence and drawing all reasonable inferences in favor of the nonmoving party, the court concludes that there is no genuine issue of material fact that the statements of defendant’s collector (Melissa) violated § 1692e(2)(A) and (10). Given the litigious
nature of our society, it would be neither bizarre nor idiosyncratic for the least sophisticated consumer to believe after listening to Melissa (1) that his failure to dispute the debt within thirty days of receiving the debt validation letter made him legally responsible for the debt and (2) that at this late stage only by proving fraudulent activity on the part of the bank could he show his “dispute was valid.”
..."
Your excuses serve no other purpose, as they are only used when people are trying to dispute.
They are designed to deceive and defraud.
Make sure to keep in mind that a settlement doesnt look good on your credit, so I hope your saving a few hundred bucks from it? Hopefully over $300 or its probably not worth it. It's not us being the bad guys, but we have certain guidelines we have to follow, and if it says we cant offer a settlement, then we cant. But make sure to call RPM 30 days after your payment goes through, so you can get your Settlement letter, and have them update your credit report to Settled In Full.