Stop Collection Agency Harassment

“The Law Office of Derrick E McGavic is attorney firm specializing in collections, creditor’s rights, bankruptcy, foreclosures and replevins. The firm is based in Eugene, OR and represents some of the largest and well respected clients in the industry.”

Even though this article is from 2008, it still depicts the corruption of this firm.  Beware.

If you are a consumer that has been contacted by this collection agency, contact us for an analysis immediately.

NEXT LEVEL CREDIT

“Taking Your Credit to the Next Level”

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When a consumer writes to the collection agency with a VOD (validation of debt) letter and the CA replies and sends older credit card statements to the consumer what would be the next step. #1 How long does it take the CA to reply and send the documentation to the consumer? #2 How old (dated) are the statements? #3 Are the statements authentic business records? #4 What is the relationship with the original creditor?

Ordinarily, if a consumer receives the statements from the collection agency, the consumer might assume that they need to start paying the debt collector. However, we believe otherwise. We keep challenging the CA and the relationship with the original creditor. Even when the CA sends documentation it should be questioned by the consumer. Push back. There are 2 things that may happen. When the consumer questions the documents, the debt collector will back off or they will sue.

What constitutes debt validation?

The FDCPA does not define what constitutes proper debt validation, and the issue has not been fully resolved by the courts. In the leading case of Chaudhry v. Gallerizzo, the Fourth Circuit Court of Appeals adopted a relatively low standard: “Verification of a debt involves nothing more than the debt collector confirming in writing that the amount being demanded is what the creditor is claiming is owed; the debt collector is not required to keep detailed files of the alleged debt.” The Court further stated that a request for validation of the debt is primarily intended to eliminate such problems as collectors contacting the wrong person or attempting to collect debts which have already been paid. In 2006, the Ninth Circuit Court of Appeals followed and adopted what they described as the “reasonable standard” articulated in Chaudhry.

Consumer advocates have criticized the Chaudhry and Clark cases as setting too low a legal standard for validation and allowing debt collectors to justify providing little information in response to a dispute. In addition, some courts (such as the Court of Appeals of Indiana) have taken a stricter stance on debt validation than the Chuadhry Court, though the precedential value of such cases is uncertain.

Thus, what exactly constitutes proper validation of a debt is not a settled issue and is likely to depend on the specific nature of the dispute. At a minimum, the debt collector is required to confirm with the creditor the amount being claimed is correct and that the person from whom they are attempting to collect the debt is the person who owes it.

NEXT LEVEL CREDIT

“Taking Your Credit to the Next Level”

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Lori Swanson, Minnesota AG does it again. She is on the warpath in our humble opinion. This article is regarding collections and lawsuits from junk debt buyers.

Legislation set to be introduced in Minnesota later this month would ban the practice known as “re-aging” delinquent accounts, making it more difficult for debt buyers to collect debts – particularly in cases where the amounts owed cannot be verified.

The bill would require debt buyers filing collection lawsuits to produce documents that prove the borrowers being sued actually owe the debts. That paperwork includes a copy of the contract or written evidence of the original debt, an affidavit stating the date and amount of last payment and written proof that the collection company does, indeed, own the account.

Failure to do so could result in fines reaching $2,500 per violation – and consumers would have the right to sue for damages. The Minneapolis Star Tribune published a story about the proposed legislation in Tuesday’s edition. Read more here: ARTICLE

Highest debt buyers 2007 rankings according to revenues (in thousands)…

1 Sherman Financial Group $1,250,000
2 Unifund 375,000
3 Asset Acceptance Capital Corp. 344,100
4 FirstCity Financial Corp. 310,000
5 Encore Capital Group Inc. 255,140
6 Aktiv Kapital Group1 240,684
7 NCO Portfolio Management 186,963
8 Portfolio Recovery Associates Inc. 163,357
9 1st Credit Ltd.2 107,546
10 ASTA Funding Inc.3 101,979
11 Intrum Justitia Group 59,000
12 Lowell Group 56,000
13 New Century Financial Services Inc. 47,000
14 Professional Recovery Systems LLC 35,000
15 RJM Acquisitions LLC 32,000
16 Resurgence Financial LLC 23,000
17 The Sagres Company 12,500
18 Streamline Capital Partners LLC 1,850

NEXT LEVEL CREDIT

“Taking Your Credit to the Next Level”

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