Junk Debt Buyers: Be Wary of These Collection Agencies
If you are currently in debt or have ever been in debt, you could be the target of a new assault by these type of bill collectors, also known as zombie debt collectors. These outfits are working for themselves due to the fact that they now "own" the debt. They most likely purchased the old expired debt for pennies on the dollar. In most cases, they are simply counting on filing a lawsuit against you in hopes that you won't fight it so they can obtain a default judgment against you and then easily garnish your wages, etc. DO NOT LET THEM DO THIS! Contingency collection agencies work as agents for another company to collect a debt. A junk debt buyer may also be in the contingency collection business or they may contract with a contingency agency. Junk debt buyers are a multi-billion dollar industry and are responsible for an alarmingly large number of debt collection and credit reporting violations of law. They operate on the barely legal side of the law and
have been investigated by the Congressional House Committee on Financial Services.
Typical Junk Debt Buyer ViolationsFair Credit Reporting Act(FCRA) , Fair and Accurate Credit Transactions Act(FACTA) and the Fair Debt Collections Practices Act(FDCPA) violations typically practiced by junk debt buyers include the following:-Re-aging Accounts: Junk debt buyers attempt to force settlement on "time barred" or "Expired Statute of Limitations " accounts. The actual date that the debt becomes delinquent is supposed to be reported to credit reporting agencies under FCRA/FACTA within 90 days of the delinquency. Debt reporting re-aging is the practice of reporting a bad debt account as more recent than it really is. Re-aging causes the FICO score to drop dramatically since the scoring model interprets the re-age as a more recent default. Junk Debt Buyers press for payment of some amount to bring the debt back under the statute of limitations after which they can sue you and have a chance of winning. It is important to note that State statute of limitations (SoL) for collections are different from FCRA/FACTA statutes of limitations for reporting the alleged debt on your credit report. -Misreporting the legal status (e.g., an open charge-off that was actually discharged in bankruptcy) and also misreporting the "open date" and "date of last activity" on an account are two favorite "illegal tactics"! Junk debt buyers purchase debts that are outside the statute of limitations for lawsuit (legal enforcement of the debt) but not outside the statute of limitations for reporting the alleged debt on your credit report. They like to report this debt as a revolving account, which is illegal. -Various Code Violations: (e.g. consumers not being notified that their calls are being monitored or recorded) are also likely violations in almost all fifty states. -Multiple Listings of the Same Debt: Junk debt buyers are often responsible for multiple reporting of the same debt as these change hands among buyers and sellers. Usually, these same debts are reported by the original creditor as well. Thus you could have the same debt reported multiple times! Increase your credit score by disputing your credit reports and cleaning them up. -Collectors Pretending to be Lawyers. It does not improve a credit score to settle an old debt unless the item is completely deleted (not just reported as "paid in full"). Settling a debt with a junk debt buyer makes your credit score worse because the delinquency or charge-off will now be reported as more recent! If Contacted by a Bill Collector:-Never assume you are wrong - assume instead that your rights are being violated. Make the junk debt buyer prove the debt is yours and you are legally obligated to pay it. -Retain and file all letters, account statements, and court records concerning any communication from junk debt buyers (even from 15 years ago). -Never provide the collection agency or junk debt buyer with updated personal or contact information. Never provide banking information (such as sending a check with your checking account number on it) to these junk debt buyers as they will freely dip into your bank account in the future with garnishments, etc. -Never acknowledge a debt with a collector or agree to any payment until the collection agency proves and validates the debt as belonging to you (past billing statements are not considered proof). -Know the statute of limitations and date of last activity for the alleged debt. Never agree to pay on an out-of-statute debt as that will do more damage to your credit than good. -Never accept credit card "offers" that come with an offer to settle a debt or that request payment in any other way. They will simply tack on an old out-of-statute debt onto a "new" credit card account and start the clock all over for the old debt. Beware of these "credit card" offers that promise to rebuild your credit by allowing you to pay off obsolete debt. -These "Junk Debt Buyers," sometimes called "zombie debt collectors," are barely operating within the law in many cases and are the bottom-feeders of the entire credit and collection industry. Do not be intimidated by them and know your rights when contacted by them. These obnoxious collectors are usually rude to you if you call them to inquire about the alleged debt. They usually answer their calls with something like "Accounting" or "Billing" rather than identify themselves or their company name. They will try to get you to verify your social security number (or the last four digits). They usually cannot provide any specific information about what the alleged debt is for, when it was opened, etc. If you ask such information, most likely they'll say "hold" and stick you on hold and not return to the call. I once listened to an endless loop of Linda Ronstadt's "You're No Good" after being placed on hold for 45 minutes before hearing the collector finally pick up, say "Hello?" and hang up before I could speak. Expect this kind of behavior from these scumbags. Many people fight them in court and actually WIN. Do not give in to their intimidating threats without exercising all of your consumer rights. Junk Debt Buyer Collection AgenciesHere is a list of top junk debt buyers and questionable collection agencies. These collection companies employ some of the most obnoxious and reprehensible bill collectors in the entire credit industry. There are many others, but be especially cautious if you are contacted by any representative of the collection agencies listed below. Some of these companies may be owned in part by others.
1-866-857-3916 Academy Collections Account Management Services Account Solutions Group AFNI Anderson Financial Network, Inc. AGRM, LLC AIS Services, LLC Alegis Group, LP/Sherman Financial Group All American Financial Associates All Debt Traders, LLC Allen, Lewis & Associates, Inc Alliance One, Inc Allied Interstate, Inc. Allstate Financial Services dba Allstate Adjustment Bureau Alyon Technologies Aman Collection Service American Acceptance American Coradius, Inc. American Credit Collections, LLC, American Debt Services American Legal Recovery Ameriquest Recovery Services AM Mortgage Brokers AMO Recoveries Anchor Receivables Management Ariel Financial Services Arrow Financial Services Ascent Card Services, LLC Asta Funding Astrum Financial, LLC
Asset Acceptance Corp.
Aurora, Gold & Associates, LLC Autus, LLC Baker, Lawrence, Attorney Barnes, Curtis, O. Con-America Bamford, Thomas K./Elder, Timothy L. Bass and Associates Baumann Law Firm Bay Area Credit Services Bennett & DeLoney, PC. Blatt, Hasenmiller, Leibsker & Moore Booth and Associates Booska, Steven A. Bronson & Migliaccio, LLP Buffaloe & Associates, Lawyers Burgess, Douglas R. Burak, Donald S. Attorney The Bureaus, Inc. Burke, Edward T. & Assoc, P.C. Brachfeld & Associates, P.C. Brumbaugh & Quandahl CACV aka CACH, LLC C. Barry & Associates, LLC Caferella, Jason J., Attorney California Financial Credit Association Cambece, James A. aka/Tough Tony Capital Management Services Capital Recovery Services Group Cavalry Portfolio Services, LLC CFB Financial, III LLC Check and Merchant Services Civil Claims Asset Investigative Services Claims & Warrants Clear Credit Client Services, Inc. Cohen & Slamowitz, LLP CMC Recovery Services, Inc. Collect America, CACV aka CACH, LLC Collect Corp Inc Collectech Systems, Inc. Collins Law Office Colonial Credit Corporation Commonwealth Financial Systems Consumer Credit Association Consumer Recovery Associates Continental Credit Convergys Corbett Law Office - Patrick Michael Costal Asset Management Group CPS Investigations Credit Collection Service Credit One, LLC Credit Services, FAIC Credit Systems International Credit Recovery, dba as Boivin, Lawrence R., Lawyer Creditors Financial Group Creditors Interchange Rcvble Mgmt, LLC CRS Capital Recovery Services CSGA. LLC C. Water Recoveries Daniels & Norelli, P.C. DeJana, Richard Delta Group aka Joseph, Ortiz & Epstein, LLC DeLoney Law Group, PLLC Dendy, Michael D. DMG Consulting Ebbets Partners Elder, Timothy L./Barnford, Thomas K Elite Recovery Services, Inc. Ellis Crosby and Associates Empire Recovery Group Encore Capital Group Encore Receivable Management Endeavor Financial Partners, LLC Enterprise Recovery Systems, Inc. ER Solutions Eskanos & Adler, PC Estate Recoveries Evans Law Offices Financial Credit Services FBCS Federal Bond & Collection Service First Credit of America Federal Credit Recovery/FCR Offices First American Investment Corporation First Revenue Assurance FNBM, LLC Forster & Garbus Law Office Genesis Financial Corp. Go-More Financial, Inc. GC Services Gemini Recoveries, Inc. Giove Law Office, P.C. Global Acceptance Credit Company (GACC) Global Vantedge Goggins & Lavintman, PA Guardian Financial Corp. Gulf State Credit Great Seneca Financial Corp. Greenberg & Associates Greenman and Donahue, Inc. Gurstel, Staloch & Cargo Hanna, Frederick J. & Assoc. Harker, John W. CACV Harris & Dial, PC Harrison Ross Byck, Esq. Healthcare Funding Solutions, LLC Hosto and Buchan Houston Funding Corp. Hudson & Keyse, LLC Hull & Associates, P.C. Integrity Resolution Group, LLC Javitch, Block & Rathbone LLP Jefferson Capital Systems Joseph, Ortiz & Epstein, LLC aka Delta Group Kay, Mitchell N., P.C. Kretschman, Brenda Lee The Law Center Lang, Richert & Patch LDG Financial ServicesII, LLC Leading Edge Recovery Solutions Leasecomm Corporation Legal Recovery Services, Inc. Legal Servicing, LLC Lenahan Law Offices Linebarger, Goggan, Blair & Sampson, LLP Litigation Consulting Service, LLC Love, Beal & Nixon, P.C. Lowery, Scott P., P.C. aka CACH, LLC LTD Financial Services, L.P. LVNV Funding, LLC Magnus Services, Inc. Malen & Associates, P.C. Mann-Bracken, LLC Marauder Corporation Marshall & Ziolkowski McKelvey Law Office Meadows Law Office - Sheree Meadows Mel S. Harris & Associates Mercantile Adjustment Bureau Merchant's Credit Guide Co. Meridian Management Solutions Messerli & Kramer Midland Credit Management, Inc. Minority Legal Network Mims, Jerry M., Lawyer Moore, Gerald E. & Associates MRS Associates, Inc. MyPerfectCredit Myers & Porter, Attorneys National Action Financial Services, Inc. National Acceptance National Asset Management National Asset Services Co National Attorney's Network National Credit Adjusters National Enterprise Systems National Financial Systems National Revenue Corporation Nationwide Capital Recovery Nationwide Credit, Inc. NCO Financial Systems Neuheisel Law Firm, PC New Horizon Credit, Inc. New Vision Financial North American Asset Investigation Bureau, LLC (NAAIB) North American Asset Recovery North Shore Agency North Star Capital Acquisitions, LLC Northeast Credit & Collections Northern Group Nu Island Partners, LLC Omnia Credit Services O'Neill Management, Inc. Investigators Orsa, LLC OSI/Outsourcing Solutions Ozark Capital Corporation P. Scott Lowery Law Offices Pacific Coast Collections (Alliance One) Palisades Collections, LLC Peak Financial Services, LLC Pennisi, Daniels & Norelli Performance Capital Management Phillips & Burns, LLC Phillips & Cohen Associates, Ltd. Pinnacle Asset & Capital Management Grp, LLC Pinnacle Financial Group Plaza Associates Portfolio Exchange Portfolio Management of Amherst, LLC. Portfolio Recovery Associates, LLC Preferred Platinum Plan Prime Asset Recovery, Inc. Pro Collect, Inc. Quadrant Group LLC Ranieri, Christopher, Law Office of RCS Centre Corp Redline Recovery Services, LLC. Regent & Associates, P.C. Rannefeld, Blue W. Attorney Resurgence Financial, LLC Resurgent Capital Services/Sherman Reynolds & Jacobson Riddle & Associates RJM Acquisitions, LLC Roach, Larry, Law Offices of Rosenthal & Colby, Inc. Sagres Company, (the) SC Associates Scherr, Harold E. , Attorney Scott, Michael J., PC Shekinah, Inc Sherman Financial Group/Alegis (SDB) Southern Tier Agency, Inc. Specified Credit Association Streeter, Sam W., Lawyer Superior Asset Management Taylor, Jay A. P.C. Attorney Telcollect, Inc. Titan Recovery Group, LLC Touboul, Stephane Trak America Enterprises, LLC Trauner, Cohen & Thomas Triadvantage Credit Services TrueLogic Financial Corp. Unifund Group Corp. United Abstract Group, Inc. United Collection Bureau, Inc. United Legal Corporation United Recovery Systems US Audit Control Valesco Data Services, LLC Van Ru Credit Corp Varde Vasques, Louis, Law Office of VRM Collections - Vigden Receivables Management Weinberg, Stanley & Associates Weltman, Weinberg & Reis. West Asset Management Inc. Westmoreland Agency/Capital One Bank Winn and Sims, P.C Wolpoff & Abramson Worldwide Asset Purchasing, LLC Worldzen Collections and Recovery LLC Zenith Acquisition Corp. Zwicker & Associates, P.C. If you are contacted by a bill collector any of the above named collection agencies, be very cautious before agreeing to send them money. More than likely you are no longer legally responsible for the debt due to it being out of the statute of limitations. Thoroughly research any alleged debt these junk debt buyer collection agencies claim you owe them. Statute of Limitations from Junk Debt Buyers
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