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Ely, Counselor at Law
Category: Consumer Protection Law
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Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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Last Friday, 3/7/2014 my 66 year old mother received a call

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Last Friday, 3/7/2014 my 66 year old mother received a call from Dynamic Recovery Solutions. They told her they were calling to collect almost $20K in credit card debit that she owed on three credit cards a Montgomery Wards card, a Texaco card and a Visa card. After speaking with my Mom we determined these debts are at least 15 years old.

The DRS collector told my mom she could make one-time payments of $2,000 on the Montgomery Wards account, $853 on a Texaco card and $4,060 on the Visa and clear all the accounts.

My Mom is retired, on social security and living on a fixed income. The collector then scared her by telling her she could use her “Target visa” account to pay $2,000 and she could afford $2,000 because she has that her bank account, or she could use her other Merrick Visa card. Basically this person seemed to know EVERYTHING. She was frightened that he had all that information and thought he could freeze or garnish her bank and credit accounts.

Contributing to this fear, she sold her home (at a loss) last year to move from Texas to CA to live with me. At the time of closing an unpaid debt and lien was discovered on her home. Her husband left her widowed with a ton of debt she didn’t even know about! I was able to get the lien settled for less than full payment, but she received a 1099 for the unpaid portion ($4K). While that 1099 didn’t have a negative impact on her taxes, she was worried a 1099 for $13K would (the approximate amount remaining after settlement payments).

The combination of that fear and the scare tactics employed by the collector from Dynamic Solutions caused my Mom to pay them $2,000 on her credit card last Friday, settling the Montgomery Ward account, however they promised not to send her a 1099. And they convinced her to pay $50 a month via automatic withdrawal from her checking accounting until paid in full. (no longer reduced $1,612/Texaco & $9,040/Visa=$10,652).

These people scared my Mom into agreeing to pay debts that she isn’t even sure is hers, it’s so old! They didn’t give her a chance to call and speak to me like she normally does regarding all financial decisions, especially ones involving so much money. (I was at work). I am really worried that they now have access to her primary checking account and can take money, all of her money at any time. Is there anything we can do to get her out of this?

And they were at least supposed to send her some documentation via email and she hasn’t received anything so now I am worried the whole thing was a scam and they just took her $2,000. ANY help and advice you can offer is so greatly appreciated!
Hello and thank you for requesting me.

Please tell me what address/telephone/email address the contact from this "Dynamic Recovery Solutions" is using. First thing we have to figure out is if this is a real company or a scammer pretending to be a real company.

Due to a built in privacy filter, the site x's out emails and telephone numbers. Therefore, can I ask the following, please:

1) Provide the telephone number, but spell it out as in "three three three, two, two two..." etc.

2) Provide the email, but substitute "AT" for "@," as in nameATdomain.com for [email protected].

This is not an answer, but an Information Request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.
Customer: replied 5 years ago.


The only infomation they gave my Mom is phone number


eight eight eight, two five three, nine zero two one for Martin Adair and eight eight seven, nine six four, nine nine one two for David


 


They didnt provide her with any email addresses to contact them just a website of dynamicrecoverydotcom they said they are in Greenville SC

Thank you.

Am I correct in understanding that your questions are essentially the following:

1) Is this a real collection agency?
2) If so, can they collect on such an old debt?
3) What can I do to stop them from taking out money without authorization, if they should do so?
Customer: replied 5 years ago.

Yes, are they a real collection agency?


Can they collect on this debt without proving it belongs to her? I really feel like they took advantage of an elderly person scaring and pressuring her into paying them. She told them she didnt have the money, couldnt afford it and the credit card the pressured her to use was for her medications and of course they didnt care. They just harrassed her into paying. Made her feel like they had access to her bank accounts with all the info they had about her balances.


 


She paid them $2,000 and I know that is gone. However, can we stop any future payments to them? Especially and at least until they prove this debt ever even belonged to her?

Thank you, Donna.

Hmm. I have to look into this company and do a little research. Would it be permissible if I respond in a few hours once I look into this? I also have to step away for a little bit. Do not worry I will not forget and will type out an essay-type answer that explains everything.

Is this acceptable?
Customer: replied 5 years ago.

Absolutely! Please take your time. I really appreciate the assistance.

Okay, thank you. I do appreciate that. I just did not wish to rush.

I will reply towards the evening. Do not worry, I do not forget.

Until then. (No need to reply to this communique.)

My apologies for the wait.

Is This Company Real?
Yes. It is called Dynamic Recovery Solutions, LLC. You can see information about it below:

DOMESTIC / FOREIGN: Domestic
STATUS: Good Standing
STATE OF INCORPORATION
/ ORGANIZATION: SOUTH CAROLINA
Profit
REGISTERED AGENT INFORMATION
REGISTERED AGENT NAME: NATIONAL REGISTERED AGENTS INC
ADDRESS: 2 OFFICE PARK CT
CITY: COLUMBIA
STATE: SC
ZIP: 29223
SECOND ADDRESS: STE 103
FILE DATE: 05/05/2008
EFFECTIVE DATE: 05/05/2008
DISSOLVED DATE: / /

It is registered with South Carolina. It also has an alternative website at www.gotodrs.com, but dynamicrecovery.com also seems to be legitimate and links back to www.gotodrs.com in terms of its email contacts. So it is legitimate.

So this is a real company.

Can they collect on this debt without proving it belongs to her?
Well - the short answer is yes. The way it works is that a creditor sends a collection agency hundreds - perhaps thousands - of files. The collection agency does not know which are old and which are fresh. They try to collect on all of them.

Even if the statute of limitations is past for filing a legal action, this does not mean that they cannot try to collect on it. A statute of limitations only bars them from filing suit. It does not stop them from trying to ask for payment. However, they must still do so within the rules set out by the Fair Debt Collection Practices Act - see here.

So she paid them once they asked.

However, can we stop any future payments to them? Especially and at least until they prove this debt ever even belonged to her?
The statute of limitations is FOUR YEARS under Civ. Proc. §337. So had she not paid, there is little that they could have done.

However, the GOOD NEWS is that under Civ. Proc. §337, the statute of limitations is NOT reset unless she has entered into a new written contract for the debt.

Therefore, unless she has entered into a new WRITTEN contract for the old debt, she cannot be lawfully pursued for that debt. They can call, but they can do little else.

Now, they can TRY to claim that there was a new verbal contract for just the portion she agreed to pay, but I doubt that would fly in Court.

FDCPA provides that she can ask for VERIFICATION (see link) of debt. See here. So she can demand this if it has been 5 days or less since initial communication. If they cannot verify it, they must stop collection.

Good luck.

I hope this helps and clarifies. Gentle Reminder: Use the reply button to keep chatting, or please rate and submit your rating when we are finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of the top three faces and then submit, as this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith.
Customer: replied 5 years ago.
Thank you for such a detailed and thorough response. Just a couple of questions.
1. She wants to know if she can call her Merrick credit card company she used to pay Dynamic Solutions the $2,000 settlement amount for Montgomery Wards and ask Merrick to reverse that charge? And at the same time send written request via fax or email to Dynamic Recovery asking that they provide proof/verification of the three debts.

2. If she is not able to reverse the $2,000 charge for the Montgomery Wards settlement is Dynamic Solutions required to send her a 1099 for the balance they are writing off as unpaid?

3. Dynamic Solutions is supposed to withdrawal $50 from her checking account on 3/19/14. Will a fax or email to them revoking permission for that automatic withdrawal be sufficient to stop that from happening?
I am in received of your follow up but keep getting pulled away! So sorry! I will reply in under an hour, fully. I am very sorry for the delay (again). How embarrassing.
Customer: replied 5 years ago.
It's ok really, it's no problem. Thank you for your time.
Thank you.
Hello,

Understand again that the original debt cannot be pursued. That is out. However:

They may try to claim that they will file a lawsuit. They cannot per per Stat. 360 (I stated 337 earlier, I meant 360. Stat. 337 gives the 4 years of limitations; Stat 360 states that payment does not reset the statute). This does not stop them from trying to claim it.

They CAN try to claim a lawsuit for the payment agreement she made verbally, as a "separate" agreement. Whether or not they can is unclear, and depends partly on whether or not they recorded her agreeing to make the payment. Usually they do record an authorization.


Just a couple of questions.
1. She wants to know if she can call her Merrick credit card company she used to pay Dynamic Solutions the $2,000 settlement amount for Montgomery Wards and ask Merrick to reverse that charge?


No. If she originally approved it, then it is set. The card only reverses unauthorized charges. She authorized it. Now if she claims she did not, then she would be lying. If they did not record her authorization, they may not be able to prove otherwise. But it is never good to lie.

And at the same time send written request via fax or email to Dynamic Recovery asking that they provide proof/verification of the three debts.

If it is within 5 days of initial contact, yes. Also, it must be IN WRITING, not email.

2. If she is not able to reverse the $2,000 charge for the Montgomery Wards settlement is Dynamic Solutions required to send her a 1099 for the balance they are writing off as unpaid?

No.

3. Dynamic Solutions is supposed to withdrawal $50 from her checking account on 3/19/14. Will a fax or email to them revoking permission for that automatic withdrawal be sufficient to stop that from happening?

No. She would literally have to call the bank and ask them for options on how to stop it. If she gave them authorization, it is binding. They likely recorded it.

Please note: I aim to give you genuine information and not necessarily to tell you only what you wish to hear. Please, rate me on the quality of my information and do not punish me for my honesty. I understand that hearing things less than optimal is not easy, and I empathize.

Gentle Reminder: Please use the reply button to keep chatting, or rate and submit your rating when we are finished. You may always ask follow ups at no charge after rating.
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