Debt Collectors Sneaking Robocall Exemptions Into Budget Bill

TCPALaw writes: Hate robocalls? In July, the FCC tightened the rules regarding robocalls to cell phones, especially debt collection calls (in particular limiting calls to wrong numbers or to anyone who is not the debtor). Now the debt collection industry is getting their revenge by sneaking in a massive exemption (see section 301 on page 10 to the PDF) to the the FCC's rules that would expressly permit debt collection robocalls to cell phones (and even collect calls!) for student loans, mortgages, taxes, and any other debt owed or guaranteed by the government. Time to make a few phone calls myself to some senators. The Senate switchboard is (202) 224-3121 or go to senate.gov to find the number for your senators. This may come up for a vote in 24 hours or less.

Comments

Don't answer your phone

[kheldan]

Just don't answer your phone for any number that you don't recognize; if it's really important they'll leave a voicemail message. Debt collectors and scumbags don't leave messages, typically; there, problem solved.

Re:Don't answer your phone

[Skater]

Yes, they do. We get a message at least weekly for the former residents of our house, trying to collect various debts. Note, I've lived there over 9 years and we still get those calls. It's basically harassment, but there isn't much I can do because it's a bunch of different debt collectors, rather than just one company.

Re:Don't answer your phone

[Anonymous Coward]

Yes you can do something. Just start invoicing them for your time. If they pay, fine. If they don't, sell the debt to another debt collector.

Re:Don't answer your phone

[__aaclcg7560]

Someone did that to a local bank. Won a default judgment, called the sheriff department and news media, and shut down the branch office for a day. Under the law, he was entitled to the cash in the drawers and anything else he could carried out to satisfy the debt. The bank quickly settled as the one day closure and bad publicity cost them too much..

Re:Don't answer your phone

[dj245]

Yes, they do. We get a message at least weekly for the former residents of our house, trying to collect various debts. Note, I've lived there over 9 years and we still get those calls. It's basically harassment, but there isn't much I can do because it's a bunch of different debt collectors, rather than just one company.

You can prepare a standard form letter and send it to every debt collector which calls. You can use this one-

I am writing in response to your letter or phone call dated (DATE). I do not believe that I owe this debt or what you say I owe.

Pursuant to the Fair Debt Collection Practices Act, Section 809(b), Validating Debts:
“If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.”

I respectfully request that you provide me with the following:
1. The amount of the debt;
2. The name of the creditor to whom the debt is owed;
3. Verification or copy of any judgment (if applicable);
4. Proof that you are licensed to collect debts in the state of [STATE] 5. Proof of the last payment made on the account.

I am asserting my rights under the federal and state Fair Debt Collection Practices Acts and the Fair Credit Reporting Act, including these rights:
Because I have disputed this debt in writing within 30 days of receipt of your initial notice, you must obtain verification of the debt or a copy of the judgment against me and mail these items to me at your expense.
You cannot add interest or fees except those allowed by the original contract or state law.
Any attempt to collect this debt without validating it violates the FDCPA.

Also be advised that I am keeping accurate records of all correspondence from you and your company, including recording all phone calls, and I will not hesitate to report violations of the law to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.

I have disputed this debt. Therefore, until it is validated, your information concerning this debt is assumed to be inaccurate. Accordingly, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB), then you must immediately inform them of my dispute with this debt. Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act 1681s-2. Should you pursue a judgment without validating this debt, I will inform the judge and request that the case be dismissed based on your failure to comply with the FDCPA.

Finally, if you do not own this debt, I demand that you immediately send a copy of this dispute letter to the original creditor so they are also aware that I dispute the debt.

Sincerely,
[Your Name]

If they contact you again after receiving such a letter, even once, you can sue them. Up to $1000 per incident. Plus they would have to pay big fines $50-100k to the government as well. It's enough of a deterrent that I have never been contacted again after sending such a letter.

Re:GOOD!

[Xenx]

This isn't about debt collector calls as a whole, but robocalls. Robocalls are terrible. Debt collector calls might be annoying, but that's the cost of not paying on time.

Re:GOOD!

[interval1066]

People running away from their debt, this is why the country goes to shit.

No. I don't think that's a leading factor. Debt collectors not following the rules, that's not a reason for the country "going to shit either", but it doesn't help.

Debt collectors don't like robo calls either...

[__aaclcg7560]

After I was out of work for two years (2009-2010), and preparing to file for Chapter 7 bankruptcy in 2011, a debt collector got nasty by ignoring my letter not to call and kept calling me. So I decided to play hardball. I kept hitting redial to tie up his phone line until he agreed to talk to me. After ten hang ups in five minutes, he finally gave in and stopped calling me.

Re:Debt collectors don't like robo calls either...

[mlw4428]

You sound like a moron. He filed for bankruptcy. By federal law collection efforts have to stop during the proceedings. Collections companies do not trump the law.

Re:GOOD!

[Anonymous Coward]

Evidently you never had someone make a purchase in your name without you knowing and then ignoring you when you tell them you didn't make it or in my case.....

Someone purchase something online and just happen to give them a random phone number that ends up being yours so you end up telling them 50 times that the person they are looking for doesn't live there, you never met them before, you don't know them and you didn't purchase anything.

"no" once should suffice.

[Thud457]

Then they just randomly call looking for people that aren't you.
And don't accept your word that you aren't them, don't know them, and have no responsibilities for their bad debts.
And keep calling back.

Ah that's where you are wrong

[AF_Cheddar_Head]

For Instance:
- Be in the Military
- Get injured on the job, maybe fall and break four ribs in your back, just supposing here
- Go to a civilian hospital that has agreed to accept the military payment as payment in full, any hospital that accepts Medicare has to
- Go about your life getting stationed overseas
- Return to the States after 5 years and try to buy and house and discover the that Hospital fucked up and marked the bill as unpaid, turned it over to a bill collector and not only can you not get approved to buy the house the damn bill collector starts harassing you and your wife with phone calls day and night.
- Hospital finally admits bill was in error but sorry they sold it to the bill collector so not their problem and the damn bill collector ain't gonna stop calling

Now tell me how paying my bills kept the calls away???

Re:Ah that's where you are wrong

[GLMDesigns]

There are a whole slew of actions. They do require a little effort though.

Write a physical letter to the hospital.
If no response a week later. Call.
If no response from calls and follow ups then
---- Send it certified (you will get a response).

Send response to credit agencies and bill collection agency.
Ask collection agency for a letter of clearance.
If no response send it certified.
If no response it doesn't matter if it's cleared from credit reports.
However if it isn't removed by the collection agencies OR you insist on complete closure and the collection agency doesn't respond the go and file a small claims suit. You WILL get a response. If you are in the right it WILL be dismissed.

Cost: Time and effort and perhaps some money ($4.00 for each certified letter and $20.00 or so for the small claims court filing).

Is it a pain-in-the-a$$? Yes.

Re:Ah that's where you are wrong

[interval1066]

Here's a true story: my girlfriend has bought into one of those worthless LifeLock plans. Feels secure, and has sterling credit (over 800 score). Through some small-time credit transactions finds out that some guy with a Hispanic name has been using her soc number, but with HIS OWN NAME, to get credit cards. LifeLock, now knowing there is an "issue" alerts her every time her number is used to access credit. She tells several jurisdictions about the issue as well. After several go-arounds on the phone with banks, institutions, and precincts the end result is NO ONE CAN DO ANYTHING ABOUT IT. The best she can do is call the issuing institution when she finds out about it and they MAY close the account, etc.

This has been ongoing for the last 5 years. The situation is laughable if not so serious.

Re:Ah that's where you are wrong

[AF_Cheddar_Head]

Trust me we did all that except small claims court.

- The hospital acknowledged the error in writing but said they couldn't take off credit report because the Collection agency had put it on the report and well you know what the CA said, "Show me the money" no percentage in the CA removing it
- Even got the Military Medical people involved AKA TriCare who provided assistance in the form of a letter to the hospital wanting to know why I was charged to begin with.
- The bank wouldn't give me the loan with the bad debt on my report, only bad item on the report by the way.
- Finally a hospital officer "Mr. Friendly" real name and I will never forget it, provided a notarized letter to my lending officer stating the debt was in error and that it should never have been entered against me. So I got the loan.
- Took another two years for it to clear from my credit history so I kept the letter for a damn long time.

In my opinion the only "Bad Actor" in the whole deal was the CA, once informed the debt was in error by the hospital they should have taken action to clear it. But no they wanted the money for the debt they had purchased. Fuck them it's the risk they take for being in that business.

The hospital had made a mistake and acknowledged same. The credit could of taken a verbal but wanted everything in writing, CYA and I get that.

Re:Ah that's where you are wrong

[AF_Cheddar_Head]

And all the steps take some serious time and when you are moving back from overseas and trying to close on a house for you family you don't really have that kind of time.

Re:GOOD!

[Bob the Super Hamste]

If only that was what actually happens. I keep getting robo calls from debt collectors for a student loan that predates my birth. Even after explaining that they have the wrong person they still call for about 2 months and then sell it to someone else who keeps calling.