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Zachary
Zachary, Attorney
Category: Legal
Satisfied Customers: 3818
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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I closed an account that a payday loan was deposited into.

Customer Question

I closed an account that a payday loan was deposited into. I tried to contact the company but could not reach them. The original loan just appeared in my account as a result of online PDL applications I had filled out. I have never heard from the original company regarding their returned bi-weekly interest payments but recently have recieved threatening calls form a company who will only give me the name "United"; no address, location,etc. They are claiming unless I make automated financial arrangements to pay the $410 as they bought the debt from the original PDL they will file with Douglas County and see me in court. They won't supply me with anything in writing, etc. Is this legal?
Submitted: 1 year ago.
Category: Legal
Expert:  Zachary replied 1 year ago.
Hi,

No that is not legal. Under the Fair Debt Collection Practices Act, a debt collector is required to identify themselves and to provide you with the following information in writing:

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

Since they have failed to do this, you can sue them for violation of the act. Since they won't identify themselves, you can counter sue them for this if they actually attempt to sue you on the PDL.

You said that the weekly interest payments were returned? Do you mean that you attempted to make payments but that the payments were returned to you?

Customer: replied 1 year ago.

The returned items I am referring to were the automatic debits from my checking account taken out by the original PDL company of $90. When the account was closed those attempts to take money would have been returned to the PDL company. I did try and contact them to make payment arrangements as well as notify them of my account closing. I was unable to get any further than an automated messaging machine. Do I need to worry that they will harrass my employer? I don't get the impression they know how.

Expert:  Zachary replied 1 year ago.
They may harass your employer simply because they don't know what they are doing.

However, if the PDL company sold the debt to a debt collector, you still owe the money. They can't harass you in violation of the Fair Debt Collection Practices Act, but you will still have to pay them back. The fact that your bank account was closed most likely does in fact violate the terms of your loan. When the terms of the loan are violated, it automatically accelerates the repayment due and makes it so that you have to pay the entire amount back immediately.

That is why the debt collector is saying they are going to sue you for the entire amount of the loan. If they do sue you, you can counter-sue for violations of the Fair Debt Collection Practices Act. However, it's best to try and work out a deal with them and get back on a payment plan with them to finish the payments on the loan.

-ZDN
Zachary, Attorney
Category: Legal
Satisfied Customers: 3818
Experience: Lead trial/International commercial attorney licensed 11 yrs
Zachary and 22 other Legal Specialists are ready to help you
Customer: replied 1 year ago.

Thanks again for your help. My concern is that the original PDL was done via internet and I have never been able to speak with them directly, nor have I seen any documents from them, or even know where they are located. The collection company contacting is almost the same scenerio with the exception that I do actually speak with a person but they provide me know detailed information other than re-iterating all of my personal info. How do I know if I pay them that they won't turn around and start harrassing me again in a couple of months? How do I get them to send me paper work via US postal service? The only communication I have had with them is over the phone (no emails, letters, etc.).

Expert:  Zachary replied 1 year ago.
You bring up some very good points. They could be some sort of scam artist for all you know if they will not identify themselves or prove they have a right to payment for the debt.

Next time you talk to them on the phone, tell them you have consulted with an attorney and that you know that the Fair Debt Collection Practices Act requires that they send you written documentation which establishes that they have a right to collect the debt and identifies them. Tell them that they are in violation and that they need to send this information to you.

After you get the information, you can dispute that they have the right to the account unless they show you documentation that they have the right to it. Then you have their address and can send them the letter I suggested above.

if they don't do that, then you need to report this to the Federal Trade Commission.

-ZDN
Customer: replied 1 year ago.

I am not sure if this is related to the last question but I received the email below today and am concerned with it's validity. Can you review and advise?


From: ACS Inc [mailto:XXXXX@XXXXXX.XXX]
Sent: Thursday, January 10, 2013 9:49 AM
To: ACS Inc
Subject: ACCOUNT NUMBER - 3098-245; SUBJECT- LAWSUIT


 


CASE FILE : 50132


LOAN INFORMATION


DUE AMOUNT :: $ 846.47


 


LOAN COMPANY- ACS Incorp.


You are going to be legally prosecuted in the Court House within couple of days. Your SSN is put on hold by US Government, so before something goes wrong we would like to notify you about this matter.
It seems apparent that you have chosen to ignore all our efforts to contact you in order to resolve your debt with Payday Services. At this point you have made your intentions clear and left no choice for us but to protect our interest in this matter.


UNITED LEGAL INVESTIGATION BUREAU HAS STATED 4 SERIOUS ALLEGATIONS AGAINST YOU AND THEY ARE:


(1) VIOLATION OF FEDERAL BANKING REGULATION
(2) COLLATERAL CHECK FRAUD
(3) THEFT BY DECEPTION
(4) AND THE BIGGEST ONE IS E.F.T. THAT IS ELECTRONIC FUND TRANSFER


Now, this means few things for you. If you are under any state probation or payroll we need to inform your superior or manager what you have done in the past and what would be the consequences once the case has been downloaded and executed in your name.


If we do not hear from you within 48 hours of the date on this letter, we will be compelled to seek legal representation from our in-house attorney. We reserve the right to commence litigation for intent to commit wire fraud under the pretense of refusing to repay a debt committed to, by use of the internet. In addition we reserve the right to seek recovery for the balance due, as well as legal fees and any court cost incurred.
WE HAVE ALL THE RIGHTS RESERVED TO INFORM TO FBI, FTC, YOUR EMPLOYER AND BANK ABOUT FRAUD.

And once you found guilty into the court house than you have to bear the entire cost for this law suit $4271.15 which is excluding loan amount, attorney's fees, and the interest charges. You have the right to hire an attorney. If you don't have one or if you can't afford then one will be appointed to you.

We believe that this was not your intent and that these steps are unnecessary. We merely require you to contact our recovery asset location department at :-


+1 XXX XXX XXXX between 9.30 to 6.30 (EST).


 


IF YOU WANT TO RESOLVE THIS MATTER THAN IMMEDIATELY CONTACT US THRU EMAIL OR CALL US BETWEEN WORKING HOURS ON


+1 XXX XXX XXXX
UNITED STATES OF ATTORNEY
Copyright © 2006 ACS | Privacy | Terms of use
--------------------------------------------------------------------------------
Confidentiality Statement & Notice: This email is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521 and intended only for the use of the individual or entity to which it is addressed. Any review, re transmission, dissemination to unauthorized persons or other use of the original message and any attachments is strictly prohibited. If you received this electronic transmission in error, please reply to the above-referenced sender about the error and permanently delete this message. Thank you for your cooperation

Expert:  Zachary replied 1 year ago.
This letter once against violates the Fair Debt Collection Practices Act.

You haven't paid back the debt and you still owe it. If you don't pay it back, then you may end up getting sued for it. However, all the other stuff about your SSN being on hold and there being allegations of criminal prosecution is not only a lie, but is illegal for them to say.
Customer: replied 1 year ago.

Thank you for your quick reply. The company is not one that I recognize as receiving a payday loan from. I did respond to the email and asked for more specifics regarding the creditor so I could validate if it is truly my debt or not. The amount and name listed ACS Incorp is not anything I readily recognize. I googled on internet and found several fraud claims against name and number listed but want to pay if it is something I owe.

Expert:  Zachary replied 1 year ago.
Thank you for clearing that up. Send a certified letter to the company telling them that their letter (above) violates the Fair Debt Collection Practices Act and request a copy of their documentation showing that they own the loan and are due payment on it.

Send a copy of it to the Nebraska Attorney General at Office of the Attorney General
2115 State Capitol
Lincoln, NE 68509

Also file a complaint with the FTC at : https://www.ftccomplaintassistant.gov/
Customer: replied 1 year ago.

I can file a complaint with the Nebraska Attorney General but I can't send a certified letter to the company as I can't get them to give me a physical address to send it to.

Expert:  Zachary replied 1 year ago.
I see. Then send the letter via email in reply to the email you received above.

At this stage, after sending the letter via email, copying the attorney general and filing the FTC complaint, I would advise not taking any further actions. The debt collector has threatened you falsely and does not have the power to do anything other than sue you.

That being said, you should check your credit report and look to see whether this collector has filed against you. If so, then you should dispute the report with the credit agencies, stating that you do not owe this alleged creditor any money. This will force the creditor to produce documentation of the underlying debt.
Customer: replied 1 year ago.

Thanks!

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