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 don't tell them to send you a dispute and validation request letter?
If not, then you have just deceived them into thinking that they can only dispute the alleged debt due to fraud, or only if they file a police report. That is deceptive collection, and a violation of FDCPA.
As you know, "contacting the client" does NOTHING to invoke their FDCPA dispute rights with YOU, and cleverly avoids the FDCPA provision prohibiting collection until you provide validation. You may also know that many of your creditor clients ignore attempts by consumers to contact them about suspect debts, as they have no legal obligation to respond short of being sued.
Other complaints, as well as statements by other RPM employees, indicate that you are apparently trained to find excuses for why consumers can't dispute, which may be resulting in fraudulent collection activity. That may explain your rapidly rising rate of federal FDCPA lawsuits.
No information the original creditor has already sent you is any substitute for passing on a dispute from the alleged debtor back to the creditor, and passing back verification. To claim that checking your own electronic records is "verification" is deceptive, as is implying that is all consumers have a right to request.
Your pattern of complaints is showing high rates of misidentification, which indicates that in many cases where consumers are disputing alleged debts, it IS your responsibility, and has nothing to do with "fraud".
It has become an increasingly common pattern of fraudulent debt collection for debt collectors to claim that misidentification by a debt collector is "id theft".
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.”
..."
If you catch them on an FDCPA violation, sue them, and prevail, they can pay you actual and statutory damages, and pay your attorney too. FDCPA allows courts to award attorney fees, so you should be able to find one to take such cases on contingency. That tips their incentives toward settling and cleaning up their mess.
You might try www.naca.net to find an attorney in your state.
With the many complaints of outright fraud, and with coverage by Dateline of a number of abusive and fraudulent operations, I now believe that high turn-over and poor training is actually a deliberate tactic. Not only does it minimize costs but it provides cover for "accidentally" extorting money from erroneously harassed consumers.
You find insider reports from ex-employees, and even those who say they would never use deception or abusive threats, they know it is common, and they don't really have a clear idea from what they were told to say, that it is already deceptive.