How to work with collection agency that doesn't fall under the FDCPA

[lindsaykts]

Ohio

1996, my husband took out a loan and paid it off in 2001 (he is 99% sure at least)

He moved to Tennessee about 3 years ago and just a few days ago, we received a phone call from a debt collection agency called IMR stating that we owe x amount of money and they plan to take us to court. Having no prior knowledge to this debt, we are trying to figure out if this debt is valid or not. So I researched how to figure this out and found that I can send a letter requesting proof of debt.

Well, apparently, because IMR was assigned the debt and didn't purchase it, they do not fall under the FDCPA so they do not have to provide us with the information we requested in order to validate the debt. Where do we go from here?

We are not refusing to pay a debt, if we have one then we will pay it but we are not about to hand over $2,500 to someone that cannot prove that the debt wasn't paid off. PLUS, they say that the OC was Citi Financial when my husband says he has never done any business with them.

We don't know what to do next so any advice would be GREAT.

[tranquility]

Talk or write them with the problem and ask them to explain. If you've been ignoring them for a while, they will file suit. If not, they might find communication cheaper than litigation. But, if not, you'll find out what they're talking about if they file a case. You can pay them then. (If the debt is yours.)

[justalayman]

Well, apparently, because IMR was assigned the debt and didn't purchase it, they do not fall under the FDCPA so they do not have to provide us with the information we requested in order to validate the debt.

I see no reason they would not be covered by the FDCPA, at least for the reason you stated. Did they tell you they were not controlled by the FDCPA?

[commentator]

I see no reason they would not be covered by the FDCPA, at least for the reason you stated. Did they tell you they were not controlled by the FDCPA?

This sounds very similar to a bunch of jerkmonkeys who were harrassing a family member of mine for a while. Incidentally the philosophy of this and similar groups is TAFT (tell them any f...ing thing) They may tell you they're coming to get you today, they may tell you they don't have to abide by the laws, but that's just something they are telling you. Demand to have a written proof of the debt, and then don't respond to any more of their calls until they send it. The more they can get you to get on the phone and chat with them, the more scary and threatening things they'll tell you. But I am willing to bet they are NOT exempt from FDCPA, and that they will NOT sue you if you hold out for a written record about what you owe them.

[bdancer]

Original creditors are not subject to the FDCPA. However, all third party debt collectors are and that includes collection agencies "assigned" the debt. Collectors lie, especially zombie debt collectors.

Send the collection agency a certified, return receipt letter requesting validation of the debt to include copies of contracts or other documentation that proves the debt is yours.

If they cannot provide proof this is your debt, tell them to go pound sand.

[justalayman]

Original creditors are not subject to the FDCPA. However, all third party debt collectors are and that includes collection agencies "assigned" the debt. Collectors lie, especially zombie debt collectors.

Send the collection agency a certified, return receipt letter requesting validation of the debt to include copies of contracts or other documentation that proves the debt is yours.

If they cannot provide proof this is your debt, tell them to go pound sand.

of course you realize that the creditor is not required to provide any such contracts or any other documentation, right? All they are required to do is obtain verification from the original creditor and provide that to the debtor. The items you mention cannot be required until one would face them in court.

[lindsaykts]

The collector, IMR, told me they didn't fall under the FDCPA but also, I found this website that stated what collector's are excluded from the FDCPA and it says assignees. I was confused when they told me they didn't fall under the FDCPA but then this website says that not all collectors have to adhere to those laws.

http://www.bestcredit.com/credit-repair/fair-debt-collection-practices-act.html

This is what the website says:

Collectors Excluded from the Fair Debt Collection Practices Act

The following types of collectors are generally excluded from the FDCPA:4

Creditors who are collecting their own debts
Assignees (i.e., service companies, such as car finance companies, that take on the collection role prior to default on mortgages, student loans, rental agreements, utility bills, medical debts, and other consumer transactions)
Government employees
Business (aka commercial) creditors
Nonprofit credit counselors

[justalayman]

Collectors Excluded from the Fair Debt Collection Practices Act

The following types of collectors are generally excluded from the FDCPA:4

Creditors who are collecting their own debts

this would be defined as first party collections. Since the collection agency is not the entity with which you contracted, it would not be a first party collection

Assignees (i.e., service companies, such as car finance companies, that take on the collection role prior to default on mortgages, student loans, rental agreements, utility bills, medical debts, and other consumer transactions)

note the: before default. If they accept the debt prior to a default, it is treated as if they are the original creditor and as such, fdcpa would not apply. Did these people take on the debt prior to your default? If not, this section would not apply

Government employees

are they?

Business (aka commercial) creditors

not true at all. In fact, that is what the fdcpa specifically was designed to deal with, unless of course you are speaking of the creditor collecting on their own debts which would make a first party collection and as such, the fdcpa would not apply

Nonprofit credit counselors

I believe this would be the situation where a person contracts with a credit counselor (and only if a non-profit agency) the client pays the counseling agency and the agency attempts to collect any debts owed to the client. I have never seen this in action so I am not familiar with it but unless the people calling you are a non-profit counselor, it obviously does not apply. If it does, say so and it can be addressed further.

so, I see no reason they are not covered under the fdcpa, still.

[lindsaykts]

Well, if they are controlled by the fdcpa then that would make me feel better!

Apparently, they've acquired this debt just recently so it wouldn't be before default. Now, since I sent that letter asking for proof of debt (as I have read what I can do if it's within 30 days of being informed by a collection agency), should I expect proof from them that my husband did take this loan out and didn't pay it? Or do we just wait till they take us to court?

Thank you for your help!

[justalayman]

this should have a statute of limitations of 6 years (open ended accounts) so if you are sued, simply respond with the affirmative defense that the action is barred due to the expiration of the statute of limitations.