Collection scam or not?

[45Frank]

I just recieved a letter from a collection agency saying I owe money from a checking account I had closed two years ago in enother state.
NCO Financial it states Past due balance ZERO, Princepal Zero, Interest Zero, other charges zero, Colection Costs Due $42.13.
I called with sort of thinking this was a mistake, the women was very rude as I was trying to make light of the notice, I asked why am I being charged for you to collect nothing, Answer thats our basic fee. She wouldn't and didn't understand I owed nothing even though she agreed nothing was owed. She said she only collects what the bank says is due, and she said that's ZERO but they were entitled to their payment and if I didn't forward it they are going to sent a report to the reporting credit agencies.

So I called the bank and they said they forward all there accounts to the collection department if they are past due or not. That was basically it. They said my account was close nearly two years ago and thats all they can do.

Is this a scam or a real collection company and what do I do, would senting them a check for Zero with the notice be out of bounds?

 

[badapple40]

I just recieved a letter from a collection agency saying I owe money from a checking account I had closed two years ago in enother state.
NCO Financial it states Past due balance ZERO, Princepal Zero, Interest Zero, other charges zero, Colection Costs Due $42.13.
I called with sort of thinking this was a mistake, the women was very rude as I was trying to make light of the notice, I asked why am I being charged for you to collect nothing, Answer thats our basic fee. She wouldn't and didn't understand I owed nothing even though she agreed nothing was owed. She said she only collects what the bank says is due, and she said that's ZERO but they were entitled to their payment and if I didn't forward it they are going to sent a report to the reporting credit agencies.

So I called the bank and they said they forward all there accounts to the collection department if they are past due or not. That was basically it. They said my account was close nearly two years ago and thats all they can do.

Is this a scam or a real collection company and what do I do, would senting them a check for Zero with the notice be out of bounds?

Tell them you will not pay, and, if they insist on reporting you, you will sue them for:

1) fraud;
2) libel/slander
3) violations of the FDCPA
4) appropriate injunctive relief requiring them to remove the information
and
5) appropriate attorney fees for their bad faith and malice.


(you'll be able to establish damages based on your improperly reported credit).

I'd also let the bank know that you intend to target them if this CA proceeds.

 

[Ladynred]

Good grief.. a lawsuit over $43 ?? Get real.

First of all NCO can NOT charge you any 'collection fee' UNLESS it was stated in your agreement with the bank. Per the Fair Debt Collection Practices Act (FDCPA);

§ 808. Unfair practices [15 USC 1692f]

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

IS there any such provision in your agreement with the bank ?? If not, then tell NCO to go take a flying leap.

 

[Anisah_H]

Is this a scam or a real collection company and what do I do, would senting them a check for Zero with the notice be out of bounds?

I wouldn't advise it. Collection Agencies have been known to take money from your account if they know the account number and routing number.

 

[45Frank]

This was a closed checking account, it's been closed for two years now. I contacted the bank and they have been researching this since Friday they show nothing owed, account close. It states in the letter Amount due ZERO. Collection cost $42.13.
It also says there is a Judgment and they will collect.
Well I'm writing letters to the bank and NCO with some of the advice suggested.

Good grief.. a lawsuit over $43 ?? Get real.

First of all NCO can NOT charge you any 'collection fee' UNLESS it was stated in your agreement with the bank. Per the Fair Debt Collection Practices Act (FDCPA);



IS there any such provision in your agreement with the bank ?? If not, then tell NCO to go take a flying leap.

 

[Ladynred]

It also says there is a Judgment and they will collect.

A judgment for $43 - I seriously doubt it. I'd be willing to bet that what it says is this:

(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;...

b) 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'm betting that what you're reading is the required 'mini-miranda' per the FDCPA.

They cannot make you pay 'collection costs' UNLESS it was in the terms of the checking account with the bank !

§ 808. Unfair practices [15 USC 1692f]

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

Make these idiots validate this so-called 'debt' ... head to www.creditinfocenter.com and read up on validation and look at the sample letters.