Checks in collection

[Reinermom]

What is the name of your state? CA

After closing a bank account last year, I had 3 checks that were returned to the people I wrote the checks to. These were turned over to collections agency/lawyers office. I have copies of payment for those returned checks from 2 of 3 creditors, so no problem there. However, one of the creditors was paid with money order to the CA/Lawyer. They claim they don't have payment on any, and have send the copies twice. They are threatening to serve papers to sue me, threatening felony etc. Will not listen and just insist I have not paid the debts. They are trying to collection triple damages on the checks even though they have been paid, and for quite some time to boot. The last creditor is allowing me to pay them directly (yes, again) just to clear up the mess. Also, the CA has not validated the debts nor has sent me anything. Don't they still have to validate etc when requested? How can the CA demand triple damages, I thought, if I read it right, only the court can do this. They have already reported to CRA with triple damages as the amount owed as well, which has been disputed. Aren't the lawyers acting as collection agencies bound by the Fair Credit Reporting and Collection acts? I am not really too worried as they are already paid and I can prove it; however, I don't want to go to court to prove them wrong unless, I could prove they are in violation of the Fair Credit act...any input is appreciated.

 

[Ladynred]

As debt collectors they ARE bound by the FDCPA - Fair Debt Collections Practices Act and YES, they still must validate if you demand it.

I seriously doubt your bounced check would be a felony, that's likely a lot of CA trash talk.

Civil CA law says:
"California. Amount due, damages of treble the amount so owing, but in no case less than $100 or more than $500"

There is a criminal piece, but I think they'd have to prove fraudulent intent to actually call it criminal:

"California. Where amount is less than $200 an is first offense, up to one year in country jail."

'Country jail' ?? LOL.. gee.. a nice jail out in the country ...

 

[Ladynred]

Reinermom - I tried to answer your e-mail - it bounced back as 'undeliverable' Do you have a new email addy ??

 

[empowerment]

Getting a copy of the money order should not be that hard. It usually takes about 30 - 60 days but the wait can be worth the win. If you have "valid" proof that the money order was cashed then of course that shouldn't be too hard to dispute. The question still stands as when exactly did you pay the money order? Before the fact or after the fact. If you pay after the fact then of course it seems that they could come after you for the check along with court fees and the amount that is allow in your state to either double the amout or three times the amount. If the payment was made at the time the collection agency contacted you regarding the past due debt and they received your payment before they proceeded with other course of actions then you have a good dispute. You could possibly sue for damages. Falsely reporting wrong information to cause injury to your creditworthness.

See below:

§ 617. Civil liability for negligent noncompliance [15 U.S.C. § 1681o]

(a) In general. Any person who is negligent in failing to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of

(1) any actual damages sustained by the consumer as a result of the failure;

(2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.

(b) Attorney's fees. On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorney's fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper.

§ 618. Jurisdiction of courts; limitation of actions [15 U.S.C. § 1681p]

An action to enforce any liability created under this title may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within two years from the date on which the liability arises, except that where a defendant has materially and willfully misrepresented any information required under this title to be disclosed to an individual and the information so misrepresented is material to the establishment of the defendant's liability to that individual under this title, the action may be brought at any time within two years after discovery by the individual of the misrepresentation.

 

[djohnson]

Just to clarify you said you had proof that 2 of the 3 were paid. Is the one they are still trying to collect the one you don't have proof for or one that you do? If you paid with a money order it should not be that hard to show them and get it cleared up.