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
You really should learn to spell and use correct punctuation so you appear educated.
There are several debt collectors who appear to be "enhancing" their collections by using sloppy billing combined with evading validation and deceptive statements to coerce unowed payments. Although they have a steady stream of complaints indicating they are billing the wrong people "in error", they generally attempt to divert consumers from sending timely validation requests.
One ploy often reported is to claim their "errors" are "identity theft", for which they can then try to make the consumer jump through a bunch of hoops (police report, sending all sorts of identification, digging out old rental agreements, etc.) trying to disprove some "debt" even as they withold all information on it. The goal is typically to block any dispute, and wear down the consumer through credit damage until they pay anyway.
This deceptive tactic evades the FDCPA prohibition against collection that starts when consumers send a timely validation request within 30 days, deceptively attempting to transfer the "burden of proof" to the consumer, in violation of FDCPA.
You can see evidence of training in this method in a number of responses from RPM in this thread, claiming that if you don't dispute in 30 days, you somehow now "owe" a debt you never agreed to, even though federal and state law, including case law, say otherwise. These people actually appear to believe this, which indicates that is probably what they were trained to believe.
Such statements to consumers are, however, false, misleading, and deceptive, and you can sue both RPM and the individual debt collector for attempting to con you, as it is illegal under FDCPA to use deception to collect a debt.
Send a letter disputing the debt and requesing that they obtain and send proof from the original creditor. Mail it certified return receipt requested. Do so immediately, as your FDCPA protections are strongest if you mail it within 30 days of receiving their first letter, but regardless, you want proof of sending your dispute, and that they received it.
If they have put damaging information on your credit report, dispute it through the credit reporting agency.
Beware of "verification" consisting just of some printout they may have created themselves. Only documents from the original creditor have any reliability, and if you actually get some such document indicating id theft, then go down the id theft path, filing a police complaint and getting a copy of the police report, which you can use to get fraudulent accounts removed from credit reports.
If they continue to attempt to collect, or refuse to remove errors from your credit report, while providing no proof you owe anything, file complaints with FTC, your state Attorney General, and the Washington Attorney General, and find an attorney with experience in FDCPA and FCRA litigation. Both allow courts to award both damages and attorney fees if you win, so you may be able to find an attorney to take such cases on contingency.
You might try www.naca.net
Abuse and harassment are often associated with the collection of suspect questionable "debts", and should also be viewed as a deceptive tactic aimed at coercing consumers to pay unowed "debts" without checking out their validity.
Such tactics often show up when the debts are not valid, they are old and validation is not obtainable, or accompanied by high rates of complaints indicating they are billing the wrong persons. It is an indicator that the debt collector knows the "debt" is questionable but is trying to get money anyway.
Deception, abuse, and harassment imply attempted fraud.
1) I agreed that I owed the amount they are trying to collect on. (I had a home that did not sell and got terribly behind on payments; doing my best now to catch up and still keep my head above water; had near perfect credit prior to the home not selling).
2) I agreed to make monthly payments ranging from $100-$200 per month until the debt is paid in full.
3) I voluntarily call RPM the first week to set up each monthly payment and have been since April 2010.
4) RPM continues to call 6-10 times daily and gets more abusive with every call, despite timely and agreed upon payments and my history of making consistent and timely payments for 7 months now.
I have given it my best effort to be curteous to every RPM Rep that calls and am still treated like a criminal or uneducated person or a person who is neglecting their obligations. Yes, I incurred the debt due to unfortunate circumstances, but I am giving it my all to do something about it NOW. Most of my interractions with these folks have ended in tears (mine) and the stress of this is becoming too much to bear. I have filed multiple complaints with the FTC & BBB. After a particularly abrasive conversation with RPM today, I actually filed a police report for harrassment (and by the way, my last payment was called in as scheduled on October 1st).
I intend to pay off every last cent I owe everyone at this point and have purposely not pursued bankruptcy because I want to honor my commitments, but the level of harrassment I am now receiving even when paying RPM is seriously making me reconsider that. I understand that RPM deals with thousands of consumers daily who refuse to take care of obligations and often lie to them. But could you do an honest and paying girl a favor and not continue to treat me like a criminal? I'm working with you; do me the same courtesy. PLEASE.
Send them notice, in writing mailed certified, that it is inconvenient to contact you by phone at any time.
Investigation of use of perjured "robo-signed" documents in foreclosures:
http://www.ag.ny.gov/media_center/2010/oct/oct12b_10.html
http://www.ag.ny.gov/media_center/2010/sep/sep27a_10.html
"ATTORNEY GENERAL CUOMO ANNOUNCES FELONY CHARGES AGAINST OWNER OF DEBT COLLECTION COMPANY THAT TARGETED MILITARY PERSONNEL
Cuomo also files civil suit to shut down company
..."
This guy, apparently, had a court order barring him from running a debt collection agency while he was in prison.
http://www.ag.ny.gov/media_center/2010/aug/aug25a_10.html
"ATTORNEY GENERAL CUOMO BRINGS CHARGES AGAINST WNY MAN WHO ALLEGEDLY RAN DEBT COLLECTION BUSINESS FROM PRISON
Lamont Cooper’s employees posed as law enforcement, threatened to throw consumers in jail if they didn’t pay debts
..."
These guys made Dateline.
http://www.ag.ny.gov/media_center/2010/july/july27a_10.html
"ATTORNEY GENERAL CUOMO SETTLES WITH BUFFALO DEBT COLLECTION COMPANY THAT HARASSED AND INTIMIDATED CONSUMERS
LHR violated state and federal debt collection laws; must reform practices, pay $125k in penalties/costs
..."
http://www.ag.ny.gov/media_center/2010/june/june1a_10.html
"ATTORNEY GENERAL CUOMO SUES WNY DEBT COLLECTION COMPANIES THAT HARASSED AND THREATENED CONSUMERS NATIONWIDE
BUFFALO, N.Y. (June 1, 2010) - Attorney General Andrew M. Cuomo today announced a lawsuit against several Western New York debt collection companies that violated the law by harassing consumers through repeated threatening and obscene phone calls as well as making illegal calls to the consumers’ employers and families.
Attorney General Cuomo’s lawsuit claims Frank Santiago, of South Creek Road in Hamburg, who is the owner and operator of Northern Asset Management, LLC and Eastern Asset Management, LLC, had employees use abusive measures and lies in the debt collection operation. The suit seeks to shut down the companies, bar Santiago from the collection business and require him to pay significant penalties, costs and fees to the state.
..."
http://www.ag.ny.gov/media_center/2010/may/may6a_10.html
"ATTORNEY GENERAL CUOMO SUES WNY LAWYER FOR UNLAWFUL DEBT COLLECTION PRACTICES
Suit claims attorney sold use of his name to debt collectors so they could threaten and intimidate consumers
BUFFALO, NY (May 6, 2010) - Attorney General Andrew M. Cuomo today announced his office has sued a Western New York lawyer who sold debt collectors the use of his name, which the debt collectors then used to intimidate consumers by threatening bogus legal action. The action is the latest in Attorney General Cuomo’s ongoing probe into unlawful debt collection practices.
Cuomo’s office sued Williamsville-based attorney John P. Nicolia after an investigation determined that he collected $141,000 in fees in return for allowing debt collectors to threaten consumers across the country by using his name and his law firm’s name. In reality, Nicolia never provided any actual legal services for the debt collection company, Eastern Asset Management.
..."
http://www.ag.ny.gov/media_center/2010/apr/apr7b_10.html
"CUOMO SHUTS DOWN WNY PROCESS SERVER COMPANY FOR LYING ON AFFIDAVITS OF SERVICE
"We Serve it For You” servers claimed to be in two or more places at same time, claimed to serve documents before receiving them
~
Company and operators must pay $10,000 to state, cooperate with ongoing investigations, and cease process serving
BUFFALO, NY (April 7, 2010) - Attorney General Andrew M. Cuomo today announced that his office has shut down a Brockport-based process server company that repeatedly claimed in legal affidavits that its employees had made proper service of legal documents to thousands of consumers when in fact it had not. We Serve It For You served summonses, complaints and other legal documents on individuals on behalf of law firms.
..."
These people also made Dateline, and several of their debt collectors were prosecuted for larceny.
http://www.ag.ny.gov/media_center/2010/feb/feb09a_10.html
"ATTORNEY GENERAL CUOMO SECURES $275K IN RESTITUTION FOR VICTIMS OF A NEW YORK DEBT COLLECTION OPERATION THAT USED ILLEGAL SCARE TACTICS TO THREATEN CONSUMERS
Company Principals Barred from Debt Collection Business
~
Employees Posed as Law Enforcement Officials and Threatened to Throw Consumers in Jail if They Didn't Immediately Pay Debts
BUFFALO, N.Y. (February 9, 2010) - Attorney General Andrew M. Cuomo today announced that his office has obtained court orders barring the three principals of a Western New York debt collection operation from being involved in the debt collection business. Cuomo has also secured $275,000 in restitution for those who were victimized by the company’s scare tactics.
The court orders represent the latest action in Attorney General Cuomo’s ongoing investigation of unlawful debt collection practices. The three individuals who were barred from the debt collection industry, Tobias Boyland, Kayla Pritchett, and Dorian Wills, were principals of at least nine debt collection companies based in Western New York where employees used scare tactics - including impersonating law enforcement - to threaten and intimidate consumers into paying debts that, in many instances, were not even owed. In 2009, Cuomo successfully shut down the operation.
..."
This outfit's "sewer service", when uncovered, resulted in the reversal of around 100,000 default judgements.
http://www.ag.ny.gov/media_center/2010/jan/jan15a_10.html
"CUOMO ANNOUNCES GUILTY PLEA OF PROCESS SERVER COMPANY OWNER WHO DENIED THOUSANDS OF NEW YORKERS THEIR DAY IN COURT
William Singler's American Legal Process failed to legally notify individuals that they faced lawsuits, resulting in default judgments against them without the chance to defend themselves
ALBANY, N.Y. (January 15, 2010) - Attorney General Andrew M. Cuomo today announced that William Singler, owner of Long Island based American Legal Process (ALP), has pled guilty to scheme to defraud for failing to provide proper legal notification to thousands of New Yorkers facing primarily debt related lawsuits.
The fraud caused many to default and have costly judgments entered against them without the chance to respond or defend themselves in court.
Singler pleaded guilty today in Nassau County Supreme Court to one count of Scheme to Defraud in the First Degree (class E felony). He is expected to be sentenced on March 24 by the Hon. Alan L. Honorof. A lawsuit filed by Cuomo against ALP and Singler earlier this year seeking damages, penalties and injunctive relief remains pending.
..."
"WHY SHOULD IT BE A COLLECTORS RESPONSIBLITY TO PROVE TO YOU "
Because the law says it is? Or are you above the law?
The debt collection industry is really low on credibility right now. You are infested with sociopathic con artists guessing who to call, then conning money out of people even when you guess wrong. That is just fraud.
"COLLECTOR:"
Good luck on your GED studies. Perhaps you and the rest of the degenerates @ RPM will get the James Pough Award upon graduation?
Thank you TJ for educating people on their rights. Too many people buckle and pay because they are scared and hand over information they should not. I remember the first ever call I got from a collection agency over a supposedly not returned cable box (which by todays standards would be nothing more than a paper weight)I person I spoke to was rude and trying to collect on a debt well out of the statue. Her excuse? The previous agency had not been able to contact us. Oh really? We did move from the location were the cable was but kept the same phone number and they couldn't contact us? Yea right! After doing some research (I was new to the collection thing) sent them a validation letter and never heard from them again, nice try but no cigar! This was all over a whole $90!
People don't be pushed into a corner by a debt collector, I realize they have a job to do but when they start the conversation with an unpleasant tone guess what you're going to get in return? I'm all for paying debt I OWE, but if you can't prove I OWE YOU, then guess what, it's not going to happen. I have dealt with some very nice collection individuals and after proving to me that I did indeed owe the money I made payment arrangements to take care of it. You know the old saying you get more flies with honey than vinegar.
First of all, learn the proper usage of "your" versus "you're" BEFORE you decide to call someone else an idiot.
Secondly, only uneducated dolts type in all caps. Stop shouting, no one wants to "hear" it.
Thirdly, it is not my job to anticipate what bill collector is going to accuse me of owing something in the future. Besides, if a collections agency is going to accuse me of owing, the burden of proof lies with the agency, not the accused. Therefore, the agency should do it's due dilligence and ensure that they find the CORRECT person before just billing anyone that happens to pop up in their database, after employing dubious skip tracing practices.(Yes, poor skip tracing is fact: I've had to deal with a CA accusing me of owing for a car accident in a vehicle that I have never owned - and don't ever plan on owning.)
While I agree that people should pay their bills, realize that life happens in the middle of living. Sometimes, people have legit reasons for falling behind. Inasmuch as you don't want to be treated like the antichrist for being a debt collector, debtors don't want to be treated like day old puke, either. It may not be customer service anymore, but do you have to let the job title drag you down to its level?
http://www.receivablesperformance.com/index.php
Better Business Bureau Report (WITH COMPANY PHONE NUMBERS!):
http://www.bbb.org/western-washington/busines ... ood-wa-18025132
Washington State Department of Revenue Report:
http://dor.wa.gov/content/doingbusiness/registermybusiness/brd/Default.aspx
Washington State Office of the Attorney General and Complaints:
http://www.atg.wa.gov/FileAComplaint.aspx
Federal Trade Commission and the Fair Debt Collection Practices Act:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
Federal Trade Commission and How to File a Complaint:
https://www.ftccomplaintassistant.gov/
It just cost Allied Interstate $1.75 Million.
http://www.ftc.gov/opa/2010/10/alliedinterstate.shtm
"...
According to the FTC’s complaint, between 2006 and at least 2008, Allied Interstate, Inc. continued collection efforts even after consumers told the company they did not owe the debt, without verifying the accuracy of the disputed information. Allied is a Minnesota corporation that works out of offices in the United States, Canada, India, and the Philippines. The company also allegedly made improper harassing phone calls to consumers, using abusive language or calling many times a day for weeks or months, sometimes hanging up when the calls were answered. In addition, the complaint charges that Allied made repeat calls to third parties seeking to locate a consumer, revealed alleged debts to third parties without the consumers’ consent or court permission, and threatened legal action against consumers it did not intend to take. The complaint alleges that these practices violated the Fair Debt Collection Practices Act and Section 5 of the Federal Trade Commission Act.
..."
http://www.ftc.gov/os/caselist/0823207/101021alliedinterstatecmpt.pdf
Consent Decree:
http://www.ftc.gov/os/caselist/0823207/101021alliedinterstatedecree.pdf
It just cost Allied Interstate $1.75 Million.
http://www.ftc.gov/opa/2010/10/alliedinterstate.shtm
"...
According to the FTC’s complaint, between 2006 and at least 2008, Allied Interstate, Inc. continued collection efforts even after consumers told the company they did not owe the debt, without verifying the accuracy of the disputed information. Allied is a Minnesota corporation that works out of offices in the United States, Canada, India, and the Philippines. The company also allegedly made improper harassing phone calls to consumers, using abusive language or calling many times a day for weeks or months, sometimes hanging up when the calls were answered. In addition, the complaint charges that Allied made repeat calls to third parties seeking to locate a consumer, revealed alleged debts to third parties without the consumers’ consent or court permission, and threatened legal action against consumers it did not intend to take. The complaint alleges that these practices violated the Fair Debt Collection Practices Act and Section 5 of the Federal Trade Commission Act.
..."
Complaint:
http://www.ftc.gov/os/caselist/0823207/101021alliedinterstatecmpt.pdf
Consent Decree:
http://www.ftc.gov/os/caselist/0823207/101021alliedinterstatedecree.pdf
http://www.ftc.gov/opa/2010/10/alliedinterstate.shtm
"...
For Release: 10/21/2010
Debt Collector Will Pay $1.75 Million to Settle FTC Charges
Ignored Consumers’ Disputes Without Checking Its Information for Accuracy
...
“Debt collectors had better make sure their information is accurate, or they could end up paying a big penalty,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “There is no excuse for trying to collect debt from someone if you can’t confirm that they actually owe it.”
..."
http://www.ftc.gov/opa/2010/10/alliedinterstate.shtm
"...
For Release: 10/21/2010
Debt Collector Will Pay $1.75 Million to Settle FTC Charges
Ignored Consumers’ Disputes Without Checking Its Information for Accuracy
...
“Debt collectors had better make sure their information is accurate, or they could end up paying a big penalty,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “There is no excuse for trying to collect debt from someone if you can’t confirm that they actually owe it.”
..."