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
I realize you want to believe that the auto dialer only allows one call per day, but that is untrue. Thanks to our new telephone provider we have proof of them calling 4 times per day on one of our business phones and 4 times per day on another business phone daily.
Even after they acknowledged this company owes them no money or any other company money!
I am in the process of sending them a certified letter return receipt requested and turning this over to our corporation's attorney.
To expand on what Shai posted, by law when you send a letter demanding validation of the alleged debt, the collection agency must cease all collection activity until they provide such validation.
If a Cease Communications demand is sent, the collection agency must cease all communications except to inform you in writing they will cease communications, and/or inform you what action they intend to take with the account.
"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?"
Yes the penalty is $1000, for EACH violation of the FDCPA. If you've sent a cease comm or validation demand, each time they call you they are in violation of the law. If they call you every day in violation of the law, those piddling 1000 fines add up, yes?
"I received a call today from RPM about an account I suppposedly have with Sprint. I have never had an account with Sprint. After telling them this, the guy hung up on me. I called the number back, spoke with someone else and they said there is an account. I'm not sure what to do. This is the first time anything like this has happened to me. Any advice would be very helpful."
As stated, send them a demand for validation of the account via ceritfied mail.
Why ask for validation? Easy. These people call you and say you owe them money. How do you know this other than they say you do? Never, NEVER give them bank info over the phone or make any agreement to pay them until they
've validated the debt. Once (if) the debt is satisfactorily validated, pay the bill.
NEVER believe what a collection agent "tells" you on the phone. If you don't get it in writing, consider it a lie until you get it in writing.
Contrary to their claims that they will report your payment to all three reporting agencies, a collection agency simply cannot remove a derogatory item from your credit reports.
Your next step(s) with the new agency is to send that demand for validation via certifed mail. When a debt changes hands not all of the backing paperwork changes hands alongs with it. The vast majority of the time, the piece of paper you signed agreeing to pay is not one of the documents included.
Yes, that means the vast majority of the time they cannot properly validate the debt.
On the other hand if you DID get it in writing and they did not live up to their end of the agreement, report them to the FTC and the Attorney General in the state in which they do business. (Forget the BBB)
File complaints with your state AG, their state AG, and FTC against both RPM and the new CA, outlining the details of their offer and their breach and deception.
Send a dispute and validation request to the new CA, disputing it as settled in full with RPM, and include a copy of your complaints filed against them.