FHA "tracer"

[jhayess]

I'm in Colorado, property is in Colorado -- other party is in Texas

I've been receiving phone calls from a FHA "tracer" in Texas who claims I owe her $560. I received a letter from her and several other tracers before I processed my FHA refund myself, for free. I did not sign a contract with this person, yet she is claiming that I did and says she\'s going to send this to a collection agency. Can she do this? Do I need to formally tell her to cease her efforts? How can I stop this person from damaging my credit? Can she even damage my credit if she doesn't have my social security #?

 

[quincy]

Were you aware that you had an FHA refund due you prior to being contacted by these tracers (or, in particular, this one tracer)? Or was it her, or their, contact with you that led to your processing the forms necessary to get the refund?

When the tracers contacted you, did you respond - in particular, did you respond to this woman in Texas - for further information on the refund?

If you responded to her, and communicated with her, those communications could potentially be considered an implied contract depending on what was said - she will provide you with the FHA information, for instance, in exchange for a percentage of the proceeds.

Without more information, it is really really hard to give you a more specific answer.

Edit to Add: Refund Tracing is not illegal although, as you discovered, you can get your refund for free from HUD. A tracer can be guilty of fraud if the tracer claimed to you that you must pay to get a refund or if the tracer claimed he/she is part of, or is working for, the Federal Government. HUD itself has no refund tracer program.
If you feel you are being unfairly harassed by this tracer (in other words, you did not agree to pay her a percentage of your refund, and she did not misrepresent herself in any way), you can contact the U.S. Department of Housing and Urban Development at 451 7th Street S.W., Washington D.C., 20410 or at (202) 708-1112.

 

[jhayess]

Additional details

So, I received letters in the mail from 10 or more "tracers", one of which was probably this lady. I called one of the tracers asking for more information on their "service" -- I'm really not sure, this may have been the lady. Whoever that person was that I called, I simply asked why I should pay them a 25% fee versus submitting the form myself for free. The response was something to the extent of, "When contracted, I'd follow through with the FHA and make sure you get paid in a timely manner." I said that would be something I'd be willing to pay $50 for, but certainly not 25% of the refund amount. Definitely did not say anything that could have been interpreted as an oral contract initiation.

I've done more research on the topic -- since this is $560 we're talking about, it would be a small claims court issue, and apparently she'd need to file in my local jurisdiction. So, I really doubt this is going to go anywhere. Based on the letter she sent me, I'm also guessing that she hasn't filed her paperwork to do business in her homestate of Texas, and I'm going to call the Texas Secretary of State to confirm. She lists her name on the paperwork she sent me as "<firstname lastname>, DBA". I don't know in what context she means "DBA", but this is typically a legal term meaning "doing business as" and you're supposed to state the other business name. The whole thing just sounds fishy -- I think she's in business to take advantage of ignorant people, which I am not.

 

[quincy]

Exactly what paperwork did this woman from Texas send you?

It sort of sounds to me like you agreed, in a way, to pay her $50 for getting you your refund "in a timely manner", even if you did not agree to pay her 25% of the refund amount. You inititated the call to her for more information and asked about fees. What sort of information about you did you provide her? She didn't record the call by any chance, did she?

I am not so sure these tracers are in business to take advantage of ignorant people as much as they are people having been taken in themselves by promises of "good money earned while working at home" enticements. I am hoping these tracers did not get conned by someone else into buying lists of those owed money, as these, like the filing for a refund, are free through HUD.

Contacting the Secretary of State in Texas is a good idea, and also contact HUD.