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
If they got a default court judgement without notifying you with a summons, you may be able to get the judgement thrown out and the garnishments returned.
Contact an attorney. You can find a consumer attorney in your state through www.naca.net
Can I borrow some money? I got a 450 credit score, but it seems like you belive no one owes anybody money. I'm sure if you looked at my credit report, you would see numerous unpaid bills from credit cards to hospital bills. Even Jefferson capital. I mean, I never opened an account with Jefferson capital or resurgent. How could I owe them money????????? Right ?
The FICO scoring system rates debt collectors as low as they can, since they practically never pay their bills.
You guys are all idiots. do some research or Atleast know what your talking about before ragging us collectors.
Never click links in e mails if not arranged with other person first would be even getting a link.
These so called "debt portfolios" are bought and sold in the form of computer database or spreadsheet files, supposedly extracted from the seller's accounting systems, but there are many ways they can be corrupted with erroneous "accounts". For eample, the original creditor's records may still have errors due to misbilling, with corrections in the notes but incorrectly coded. They may have failed to terminate an account when requested, generating bogus monthly billings for cancelled and unused "service" that could go on for months. There could be mixups in contract terms, failing to set up an account to deliver terms promised in an offer, etc, It could be some fraudulently opened "account", based on identity theft, or even a synthetic identity. And those are just some of the errors the original telecom creditor can make.
This is particularly true of collection agencies collecting on old telecom debt. Even if the original creditor sold off a batch of bad debts, it is common for errors to occur, including sale of fraudulent accounts, sale of 0 balance accounts where the telecom fixed billing errors but sold it with a balance anyway, etc. And that's assuming the "account" is even yours.
Collection agencies take all this junk information, and attempt to match it to someone they can get money from. If they are honest, they comply with the law, but there are many shady collection agencies that cut corners, in order to maximize their profits. It doesn't matter to them whether anyone they demand money from owes anything, only that there is no risk in demanding it from them. This is where attempts to direct, misdirect, and deceive consumers come into play.
RPM in particular has long shown a very high rate of consumer complaints reporting attempts to collect unowed debt, already paid accounts, or accounts with telecom companies consumers claim they have not done business with. Their complaint pattern includes reports of attempts to convince consumers to pay anyway, evading validation with excuses for why consumers can't dispute, abusive and harasssing employees, etc.
FDCPA allows consumers to dispute alleged debts.
Debt collectors often don't want consumers to know this, but they are required by law to notify consumers of this right, and to obtain validation when requested. They are also prohibited from engaging in abusive, harassing, or deceptive collection. You can sue them for violations of FDCPA, based on their actions and entirely separate from whether you even owe the alleged debt, and because the law allows courts to award damages AND your attorney fees if you win, there are attorneys who take these cases on contingency.
Send RPM a letter, mailed certified, disputing the alleged debt and requesting proof from the original creditor that you owe it. Meanwhile, print out copies of your last few ATT statements to document that you owe nothing.
If RPM continues to attempt to collect unowed money from you, file fraud complaints with your state Attorney General and the Washington Attorney General, then get an attorney and sue them. They are counting on and profiting from most consumers not knowing what to do when they cross the line, so don't be one of their suckers You can find a consumer attorney in your state through www.naca.net
I'm scared that they have some other shady [***] they can do, like garnish my wages or something if I don't pay them. Im just going to withdraw all my money. [***] these people.
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