Isn't This Illegal?

[Aaronsmom]

What is the name of your state?Florida.

I just recently pulled my credit report after having a hard time getting a mortgage. I noticed that there was a medical bill on my report that shows as if it was new debt (they posted it on 03/2005) The last time I saw this dentist was in 2001 and have not seen a bill since then. This has never ever been on my credit until March! I thought it was illegal for collectors to do this?
Also when I called the collector to try to make right on the debt, he ripped me a new one calling me a dead beat and I gipped his client and would not accept $50/month (the bill was only for $237.00 which is the balance AFTER my insurance paid) He also threatened me with additional interest! I am so irritated and humiliated by this guy that I don't want to pay a dime to them! I am pretty tough skinned and he had me in tears after hanging up the phone!
If this is illegal debt collection pratice, who can I report him to?
Thanks
Sarah

 

[Ladynred]

This has never ever been on my credit until March! I thought it was illegal for collectors to do this?

Well, yes and no. Its not illegal for them to report, however, under the new FACT Act, they ARE required to notify you BEFORE they plaster crap on your reports. So, chalk up 1 FCRA violation.

Being abusive and making threats are violations of the Fair Debt Collections Practices Act (FDCPA) and you should file your compliant with the FTC. You can either call or put in your complaint on-line at www.ftc.gov.

I am pretty tough skinned and he had me in tears after hanging up the phone!

That is EXACTLY what they are after - to get you upset so you'll pay them to just go away. Its illegal - but they do it anyway !

Here are the relevent sections of the FCRA which was amended with FACTA in 12/2003:

§ 623. Responsibilities of furnishers of information to consumer reporting agencies
[15 U.S.C. § 1681s-2]
(a) Duty of Furnishers of Information to Provide Accurate Information

(7) Negative Information
(A) Notice to Consumer Required

(i) In general. If any financial institution that extends credit and regularly
and in the ordinary course of business furnishes information to a consumer
reporting agency described in section 603(p) furnishes negative
information to such an agency regarding credit extended to a customer,
the financial institution shall provide a notice of such furnishing of
negative information, in writing, to the customer.

(ii) Notice effective for subsequent submissions. After providing such notice,
the financial institution may submit additional negative information to
a consumer reporting agency described in section 603(p) with respect
to the same transaction, extension of credit, account, or customer
without providing additional notice to the customer.

(B) Time of Notice
(i) In general. The notice required under subparagraph (A) shall be
provided to the customer prior to, or no later than 30 days after,
furnishing the negative information to a consumer reporting agency
described in section 603(p).

(ii) The terms “customer” and “financial institution” have the same meanings as in section 509 Public Law 106-102.

Public Law 106-102 is the Gramm-Leach-Bliley Act which is all about Financial Privacy. Its definition of who/what falls under the above FACTA rules are:

The GLB Act gives authority to eight federal agencies and the states to administer and enforce the Financial Privacy Rule and the Safeguards Rule. These two regulations apply to “financial institutions,” which include not only banks, securities firms, and insurance companies, but also companies providing many other types of financial products and services to consumers. Among these services are lending, brokering or servicing any type of consumer loan, transferring or safeguarding money, preparing individual tax returns, providing financial advice or credit counseling, providing residential real estate settlement services, collecting consumer debts and an array of other activities. Such non-traditional “financial institutions” are regulated by the FTC.

(b) Activities determined by regulation to be permissible--

(iv) Collection agency services. Collecting overdue accounts receivable, either retail or commercial.

(v) Credit bureau services. Maintaining information related to the credit history of consumers and providing the information to a credit grantor who is considering a borrower's application for credit or who has extended credit to the borrower.


(vi) Asset management, servicing, and collection activities. Engaging under contract with a third party in asset management, servicing, and collection \2\ of assets of a type that an insured depository institution may originate and own, if the company does not engage in real property management or real estate brokerage services as part of these services.

(vii) Acquiring debt in default. Acquiring debt that is in default at the time of acquisition, if the company:


(A) Divests shares or assets securing debt in default that are not permissible investments for bank holding companies, within the time period required for divestiture of property acquired in satisfaction of a debt previously contracted under Sec. 225.12(b); \3\

(B) Stands only in the position of a creditor and does not purchase equity of obligors of debt in default (other than equity that may be collateral for such debt); and

(C) Does not acquire debt in default secured by shares of a bank or
bank holding company.