Debt Recovery Solutions, is it a scam?

[Darla F]

Hey Dave,

I was editing my post when you responded. Wow, these people are slimy.

I was thinking of sending the invoices from 2003 that the debt collector just sent me to the credit agencies. That would be some justice at least, that Debt Recovery Solutions gave me what I needed to show that they're beyond the statute of limitations.

CAN they? Sure. Would it be correct and legal? No.

 

[JBaywatch]

I am getting letters from them too

Hi, not trying to hijack this thread but I was hoping someone here may be able to provide advice for me too.

I received a letter from this same company today, "Debt Recovery Solutions, LLC".

The letter states that they acquired my "account" from Verizon.
The letter is very vague and there is just something "off" about it.

Anyway, I have only had a Verizon account for 2 months (currently in my 3rd month of service) and I am current and have never been late on a payment. I contacted verizon to verify that they hadn't mistakenly sold my account to this place, whicih they affirmed they did not.

The letter has a line that states, "This initial letter is the beginning of our collection process designed to impress upon you the importance of resolving this long - standing debt. This delinquency is an issue you should review very carefully since planning for the future can often be affected by your past activities."

Note the use of "long - standing debt", never done any previous business with Verizon until FIOS came to my neighborhood 3 months ago.

I haven't checked my credit report yet, but if they have marked it I am going to be pretty irate.

What is the most effective response to clear this matter up in the shortest amount of time. Obviously, I am not sending them a single penny.

Thank you!

 

[justalayman]

first, do check your credit report. If the debt is listed, send a notice of dispute to the credit reporting agency(ies) that are reporting the errant debt.

then, send a letter of denial of the debt and to demand verification to the collection agency. You need to do so within 30 days of receiving the first dunning letter.

Additionally, if you simply tell them you are not going to pay the debt, they must stop all contact, until/unless they sue you. It serves the same purpose as a cease and desist, which you could also send rather than the refusal letter.

Personally, I tend to suggest not sending a cease and desist or the refusal simply because getting a letter from them is not a big issue and it allows you to continue to be sent notifications of their actions. I like to know what they are doing, or intending on doing rather than living in ignorant bliss.

I failed to follow up with Darla here and I see a question or two I did not answer.

She asked about a renewed 7 1/2 year period to report the debt to the CRA's (credit reporting agencies). That cannot happen (legally). The debt can only be reported for 7 1/2 years from first delinquency, period. After that time, it must be removed from your credit report.

and understand; a statute of limitations regarding a creditors right to collect a debt only involves how long they can utilize the assistance of the courts to seek repayment. It doesn't apply to you since your claimed debt is not valid anyway but just wanted to follow up on Darla's situation and toss this out there. A creditor can sue you, even after the statute of limitations has expired. The affirmative defense of the expiration of the statute of limitations must be offered in a response to a summons/complaint. If one fails to present the defense, the plaintiff can still obtain a judgment and you cannot go back and argue SOL after that point. You either use it or lose it as a defense when sued.

 

[Darla F]

and understand; a statute of limitations regarding a creditors right to collect a debt only involves how long they can utilize the assistance of the courts to seek repayment. It doesn't apply to you since your claimed debt is not valid anyway but just wanted to follow up on Darla's situation and toss this out there.

Hi justalayman,

Can you clarify what you mean by "your claimed debt is not valid anyway?"

Here's an UPDATE to my situation:

I did some Internet research and it said that if I wrote a cease and desist letter, the company would just resell my debt to another company. I've been holding off on writing a cease and desist because they were only contacting once a year and they can't pursue me in the courts.

I also checked my credit report in December on 2011 and there was no mention of this debt on it.

RECENTLY, Debt Recovery Solutions obtained my private phone number and has been calling CONSTANTLY. I have not picked up the phone (I can see them on my caller ID) and they have not left any messages. I don't have selective call blocking.

At this point I AM going to write a cease and desist letter (specifically stating no phone calls).

Here are my questions:

Should I include that Sprint was originally in error and I don't owe this debt?

Should I say anything about the SOL and that the invoices that they sent me are from 2003? (I understand they can't sue me in the courts so it might be irrelevant to add this if I understand correctly)

Should I say that I have no intention of paying this debt because of Sprint's clerical error?

I would really like some specific answers on this. Thanks. I want make sure I include the right things in my letter.

 

[tranquility]

Someone who is and usually sides with debt collectors already gave you the answer:

Send them a cease and desist letter. Keep it simple. Send it certified.

They may very well sell the "debt" and the new collector start anew. Unless you want to sue them to argue over the whole matter, there is nothing much to do but rinse and repeat.

 

[ecmst12]

Expired SOL does not mean they can't sue, it means you can assert that defense in court. But I wouldn't suggest you even go there since this is not your debt - if you are sued, THAT is the defense you should use.

 

[tranquility]

Expired SOL does not mean they can't sue, it means you can assert that defense in court

While technically true, there are a few cases out there where firms that sue on debts where the SOL has run, are getting hammered by the court.

It's still an affirmative defense. But, if the other side knows it has run, they will have a TON of 'splainin to do to the judge.

 

[Darla F]

Thanks for all your help.

About how long does it take for a debt company to process a cease and desist letter?

In other words, when should the calls stop?

 

[Artemis_ofthe_Hunt]

Thanks for all your help.

About how long does it take for a debt company to process a cease and desist letter?

In other words, when should the calls stop?

I would personally give it 30 days from the date the letter was received. The auto dialers that many collection agencies use have updates done on a weekly basis, on top of which the letter has to be filtered to the correct person.