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
Your lucky your bills are not in my office were we really sue people. You should be glad rpm is fulla [***] when it comes to implying any form of involuntary action,. You would rather have a home lean? Or wages garnished? Or bank garned?
You guyses complaints just show that your all a bunch of winy peace of [***] debtors.
If the client owns the account, they have the right to pull it from the debt collector. If they pull it from the debt collector, and knowing that it has been pulled, the debt collector still proceeds to attempt to collect, then they are collecting on an account that they no longer have the right to collect on.
If the debt collector has some problem with this, take it up with your client. It is not the debtor's job to mediate between client and debt collector when they are not a party to any contract between the original creditor and the debt collector. That is absurd.
When consumers dispute, validate the debt. Anything else leads to deception and fraud.
The false statement was probably deliberate deception aimed at putting the appearance of a barrier in the way of obtaining any proof of the debt, to deceive the consumer into believing they did not have the right to obtain validation, and to trick and force the consumer into paying without first obtaining any proof.
The claim that the "validation" was somehow sent to an old address, when only a "settlement offer" was sent by email, was also probably deceptive, again aimed at obtaining payment without sending validation. Although the consumer had provided an email address to expedite resoving this matter, the debt collector had as yet had no time to even obtain validation, and was apparently trying to pass off this "settlement offer" as a substitute, along with the "excuse" that some "validation" existed, but the consumer couldn't actually get it.
The deception was revealed when the consumer contacted the original creditor and found that the account was actually still owned by them, contrary to false statements by by the debt collector.
There is no indication from communications with the original creditor that they received any request for validation, and in fact, they pulled the account.
If the debt collector had been acting in good faith, they would have had the validation they claimed to have when they said they had it, and could have easily sent it to the consumer's email address, or to a current mailing address, to resolve the matter quickly and get paid. They did neither, which suggests that they did NOT have validation and were avoiding obtaining it.
The original creditor had good cause to pull the account, given the apparent violations by the debt collector for which the client might now become liable if they had not dealt with the matter.
No law, FDCPA included, MAKES anyone do the right thing. FDCPA does give you certain remedies when it is violated, so use the leverage it gives you.
Apparently they would rather pay through a lawsuit to fix their "problems".
Instead of working for free, trying nicely to get them to stop harassing you, pass this off to an attorney.
They are more likely to stop harassing you and settle quickly when contacted by your attorney, since they know they might have to pay you statutory damages AND your attorney fees if you win an FDCPA lawsuit.
You might try www.naca.net to find an attorney in your state.
How does a prepaid cell go to collections?
AFNI is both outsourced "customer service" for Verizon, as well as debt collector on assigned Verizon delinquent accounts. They also purchase old Verizon debts, many of which have resulted in "erroneous" debt collection by AFNI.
If you ask on the phone for anything from AFNI, they will ignore you as if it never happened. They may even offer "excuses" or suggestions for why some unlikely "debt" is owed, in effect trying to BS you into paying them without any proof of the debt. A federal judge even found one of their routine letters sent as a brush-off response to validation requests was "deceptive".
Your complaint implies that you have received NOTHING in writing from either Verizon or AFNI about any alleged delinquent account. They are required to send you an FDCPA "g" letter within 5 days of their first contact, notifying you of this alleged debt and that you can dispute it and obtain verification of it. You called them, that was their first contact, so if you don't get a letter soon, that is violation 1.
Regardless of whether you get any letter, to preserve your FDCPA rights, send a letter to AFNI disputing the debt and demanding validation. That is what triggers the FDCPA prohibition against continued collection until they obtain and send validation from the original creditor (presumably Verizon). Mail your letter certified so you have proof of mailing, and proof from the USPS website of when it was delivered to them.
Even though Verizon transferred you to AFNI, you cannot trust what AFNI tells you. It appears that since this is a prepaid cell account, there is no way for it to generate a delinquent collection account, yet you can expect AFNI to stonewall you or make up BS excuses (without checking anything) trying to convince you to pay.
If you find yourself getting the run around, go through Verizon's executive offices, or file complaints with FTC, and your state AG. (Skip BBB, as AFNI has bought them off to get an "A" rating. They just use them to deflect consumer complaints before they get sent to regulatory agencies.)
Or get an attorney. AFNI has a long history of complaints of deceptive collection of unowed accounts, with several class actions and AG investigations, so consumer attornies are beginning to see them as an opportunity.
You might try www.naca.net
Once the account was pulled, they would know that they would be unable to obtain validation from the account owner/original creditor, and would be blocked from further collection. Deceiving the consumer regarding validation was the only path through which they might still obtain payment on a pulled account. Deceptively evading validation suggests they already knew that the account had been pulled, and to their conscious decision to collect anyway.
What a tangled web we weave...
Your autodialers will do whatever you program them to do. Numerous complaints are reporting you have programmed them to generate many calls per day, and that your employees do not honor requests to cease calling work numbers. When those complaints show up for an extended period of time, it shows what your autodialers have been programmed to do, as there is no other way that that could be happening, and it is also likely that you are making harassing levels of calls to many people who haven't even posted complaints.
You are setting yourselves up. You may find yourselves a target for one of the new TCPA class action lawsuits, just like PRA. How do you think class action attorneys find suckers like you?
The VeriZon statements plus the refund constitute documentation that Verizon regards the account as having no balance due, forming what is known as an "account stated", that any judge would recognize as acknowledgement by Verizon of the zero balance status of the account.
The debt collector's data means nothing.
In fraud investigation, it's known as a "mixed fraud". Mix fraudulent activity in with legitimate business, to provide cover for boosting profit. Quite effective at deflecting FTC or state AG investigations, since you can look mostly legit, and just call them "mistakes" when you get caught. Run well, it can go on for years. Usually collapses when the books are cooked, or an insider gets cheated or squeezed, similar to Ponzi schemes.
CAMCO pushed it too far. FTC claimed their revenue was up to 80% from unowed "debt". Basically a racket resulting in millions in fraud losses by consumers.
Some of you are complete scams. Dateline caught one, and NY AG cracked down on their neighbors in Buffalo and eastern NY, along with the largest "sewer service" racket ever. Other centers of such scams are visible, like Jacksonville FL. Keep watching the news, and you should see a takedown of a large total scam in California in the next several months. FTC's been pulling their phone records through their phone carrier.
You think little lies are invisible, that no one can connect the dots. You might fool each victim one at a time, but it leaves a trail. Enough dots, and you can follow trails.
You live in a house, you have electricity, you have a debt to the electric company for what you haven't paid.
You work for an employer, they owe you for the hours you have worked. Until they pay you, they have a debt to you. You have an asset, in accounting terms, a "wages receivable".
Your debt is my asset, and vice versa. No different for military. Just basic accounting. Double entry bookkeeping has existed since the Renaisance.
The NY AG investigated a number of fraudulent "debt collection" extortion rackets in the last several years. In many cases, the "debts" were entirely phony, or being demanded from people who didn't owe them.
Note the famous "sewer service" case, where over 100k default judgements got thrown out.
http://www.ag.ny.gov/media_center/2010/aug/aug25a_10.html
http://www.ag.ny.gov/media_center/2010/june/june1a_10.html
http://www.ag.ny.gov/media_center/2010/may/may6a_10.html
http://www.ag.ny.gov/media_center/2010/apr/apr7b_10.html
Here is the Boyland racket "debt collectors" charged with felony grand larceny. (Boyland went back to prison for a "felon in possession of a weapon" violation. He had a prior conviction for armed robbery.)
http://www.ag.ny.gov/media_center/2009/sep/sep29b_09.html
Dateline caught them trying to extort a member of the military, pretending to be "Maryland police detectives", and threatening what you implied, on fake "debt". When Dateline finally tracked them to Buffalo, they actually wandered in with a hidden camera, recording the same types of threatening phone scripts they had recorded with the interviewed victim.