out of state collection agency

[willbugs]

What is the name of your state?Arizona
I need some help here folks... I live in AZ. which requires a collection agency to be licensed and bonded. I have been contacted and have made payment arrangements to a CA in Pennsylvania. I did my homework and found that they are not licensed or bonded in Arizona or PA. In PA I found that in that state licensing and bonding are not a requirement. I have been viewing another site very similar to this one and have been reading like a madman. According to what I am seeing there, and responses to questions I have asked, I should send the CA a letter stating that due to the fact that they are not licensed and bonded that they have no right to collect from me and that they need to stop collection activity (summarized).
This almost sounds to good to be true and too easy.
For the heck of it I called an attorney here in AZ. who was actually willing to give me free info over the phone for free. She said that they deal with many out of state CAs and that I should not trust what I have been reading on the bulletin boards.
I don't want to issue a letter like this to a CA and find myself down the road in more trouble than I am already in (judgements, court appearances, etc.).
Anyone knowledgable have any suggestions? Is this a risky proposition?
Thanks in advance for any help.
Bill

[olgethorpe]

Well, first question, have you been through the debt validation process with this CA?

Second, does this lawyer you talked with represent consumers or collectors? Its not unusual for a CA who isn't licensed in a particular state to retain a lawyer that is. Maybe her response was "free" because she makes her money representing the CAs.

[willbugs]

Arizona.
In response, no I have not sent a DV to them as of yet. It got turned over to the CA in end of January. I printed a copy of a sample letter from other web site I was viewing and it looks like a combo DV letter and also saying that they have no right to collect since they are not licensed.
As far as the attorney, they are a local attorney that does bankruptcy, divorce, family law. I do not know if they are affiliated with any CA's.
My mistake, I allowed them to pull $150 a month out of my checking. The debt is $8100.
The debt is mine, what burned me up about the whole thing is this. I was working with the OCC and they were pulling $105 a month out of my checking.I was supposed to go on their "hardship" plan. At this time back in July 04, My balance was about $7100. The hardship plan was supposed to reduce my interest rate, stop late fees, etc. I was supposed to hear back from someone and never did. I called them 2 times in the next couple of months and I was told that they were in the process of changing ownership and that everything was a mess. I was told to be patient that someone would contact me. Unfortunately I have no documentation as to who I talked to and when, I didn't think I would need it.
I waited it out. They were still pulling $105 out of my checking. This went on for about 6 months.
Out of the blue, I get a call from CA tellig me the account was turned over to them. I could not believe I was turned over. I had no paperwork on any hardship plan, because one was not done. I contacted OCC and explained what had happened. They, of course, did not want to talk to me. I was told to deal with the CA. I was paying them and now I owe $1000 more than when this whole ordeal started. That is why I am mad. Not to mention the fact that I now have a Charge off on My CR. I would like to try to refi. my house but with the Charge off I am having difficulty getting anyone to deal with me.
I dropped the ball and have made some mistakes dealing with this and am wondering how I should proceed.
Thanks
Bill

[olgethorpe]

Okay, go read the discussion forums at [url]www.creditinfocenter.com[/url] for details, but here's the short version.

1. Just because you had a debt with someone DOES NOT mean this CA has the right person, the right amount, or the right to collect it from you. If the OC "charged off" the account then they've already been compensated by the US taxpayer for their "loss" and you don't owe the CA anything.

2. Stop payment on any transactions you may have authorized for these guys. There is no need to pay them automatically...if you decide to pay at all...

3. NEVER talk with a CA on the phone. Only deal with them in writing. On the phone they make their money by lying and intimidating you into doing things you don't have to. And, if you decide to pay...get all the details in writing. You see what happens when you trust them to do the right thing...your balance gets bigger.

Go look at the other forum for more advice...

[Ladynred]

I suggest you call whatever State agency handles the licensing/bonding of CA's in AZ and see what THEY have to say about that issue.

[foolsmission]

Another testimonial as to why one should NEVER pay a CA or Junk Debt Buyer.
They have no soul.