help I think the collection agency is trying to scam my mom?

Question

My mother had me to call this place that had Capital one logo on it but when they answered the phone it said NCO. She had me to do this because she got this letter in the mail that said the OC is willing to take 70% of the balance that is in charge-off status. The guy on the phone told me that if I give him my(really my moms) checking account number today it would not accrue and more interest charges. To be honest this guy sort of scared me even though it was my mother's account. I tried despartly to get off the phone and he kept hounding me for the checking account number. Please help me what should I do?

She is not denying the account with Capital one but she said the last statement she received was for a different amount, much less than NCO said

Answer 1

It's very common for creditors to sell debts if they think it is unlikely that they'll ever see that money. They have pretty much decided by now that your mom's never going to pay them; they get zero if they just sit and wait for her to pay or file bankruptcy. So they sell the right to collect the debt to another company (NCO in this case) for a lot less than the debt--- sometimes as little as 10% or even less--- because 10% is better than 0%.

The collections agency can negotiate whatever deal they want to with your mom. They are very aggressive because they are used to dealing with people that do not want to pay; they're not always nice and they usually want the money immediately, before you get the chance to change your mind. So don't take their hard selling personally, although they really should not be asking you for the checking account of someone else (did you fib a bit and tell them you were your mom?).

You can call them back and take advantage of the discounted settlement any time in the next couple of weeks. Their price will go up as time goes on because the more times they have to call or write you, the more expensive it gets for them to get some money out of you. So don't wait forever. But these guys are not going to go away so you should pay them something. If you still do not feel comfortable with paying them, call Capital One for confirmation that this is who owns the debt now; they may not confirm the actual company but they should be able to tell you for sure that it's been sold.

Answer 2

I am not an attorney. My opinion from much experience is as follows:

First ,it is not unusual for a collection agency to settle on behalf of the client. However, you want the settlement agreement in writing. Make sure not only is the amount stated in percentage terms,but also in whole dollar amounts. In short get the exact amount they will accept and the stated terms IE; (no more interest to accrue). Get this in writing. Make sure that they report as settled in full to credit bureaus.

Do not discuss the checking account number. The collector probably is trying to get account information to verify funds. That can be used against your moms best interest. Even if it is just to do a legitimate pay by phone transaction, it is best to keep that information away from the collection agency.

Rather than use your mom's checking account use a money order or teller check. This way the collection agency only has information your willing for them to have.

The collection agency should not be discussing the matter with you! Unless you are also a party on the account that is being collected, or your mom has given the collection agency permission to discuss the debt with you. The Fair Debt Collection Practices Act may consider that third party disclosure which is strictly forbidden.

If your mom wants you to be her agent, she needs to put that in writing.

Just because the collection agency is legitimate does not mean their agent is acting lawfuly.

Check out the Federal Trade Commission's web site

Answer 3

I just did a search on NCO COLLECTIONS and they do handle collections for Capital One. They can get scary with their phone tactics apparently.

Answer 4

NCO IS WHAT IS COMMONLY KNOW AS A "JUNK COLLECTOR".
HOWEVER, THEY ARE SOMEWHAT REPUTABLE AND WILL ONLY DEBIT THE CORRECT AMOUNT FROM YOUR MOTHERS ACCOUNT THAT WAS AUTHORIZED. CAPITAL ONE PROBABLY ADDED FEES AND A DEFAULT INTEREST RATE AND MADE THE BALANCE GO WAY UP. IF SEE CAN PAY TE AMOUNT THEY ARE OFFERING I WOULD DO IT.

Answer 5

Can you ask them to send it to you in the mail and you will handle it from there. Try to talk to their supervisor and don't get angry or scared. Just try to resolve it.