How do I know if a "Debt Collection Agency" is legitimate or not?

Question

First of all, I was not aware of the debt. Also, I believe my credit is in good standing. However, all of a sudden, I received a letter from First National Collection Bureau, Inc. that I owe a $952.00 debt. I called and they told me to call NCO Financial Systems. NCO asked for my social security and told me that the debt was with American Appliance from 1997 which was about 10 years ago. This doesn't make any sense to me. They told me that they've been trying to contact me by mail at my previous address. How come it took them 10 years to discover my current address? Also, what is a statute of limitations (SOL) and how does that apply to me in Pennsylvania?

So I called First National Collection Bureau during their "office hours" and I got a message saying "We are unable to transfer your phone call. Please call again at a later time." In that case, I looked up their name and phone number on www.mybbb.org and no matches showed up. I also called NCO and asked if they had any associatio with First National Collection Bureau, but I have the feeling the operator could not understand me. Finally, I looked up the number given to me by First National Collection Bureau online and it does not match for NCO.

Answer 1

Joe Cool wins today's "Studly's Moronic Answer" award....

I'm gonna give Rich A an honorable mention. Why is it that when you become a collection agent you automatically assume every debt is legitimate and the debtor has to pay it? Did you not see the part in the question where he said he was not aware of this debt? Just contact the collection agency and make payment arrangements! BULL!

You also need to re-read the Fair Debt Collections Act. When you tell a collection agent to not contact you, that means forever! Not 90 days! And the fine isn't $10,000....it's only $1000. (Wish it were higher). Did you ever read the FDCA???

OK, so let me once again attempt to clean up these bad responses.....

1) This debt is from 1997. The SOL for most debts is from 4-6 years. But in this case, you claim it's for an appliance. Very good chance this was a written contract, and the SOL on those can be longer. But very rarely more the 10 years. In Pennsylvania, both written and open contracts have a SOL of 4 years. You are safe.

2) Identity theft is a big problem. You are most likely a victim. Your message leads me to believe you have never looked at your credit report. I suggest that you look at link #2 and study it about Identity theft. Get a copy TODAY of your credit reports at http://www.annualcreditreport.com there is no charge for this.

3) Send a letter to the collection agent demanding that the validate the debt. See the third link for a good sample template letter. Include wording that this debt is past the Statute of Limitations, and that they are to "cease and desist" further contact with you. This will stop their calls and letter. Once they realize that you are aware of your rights, and you know the SOL has expired, they will stop pestering you.

The only thing they should send to you is a copy of the proof this is your debt. That means a copy of the signed contracts, bills, receipts, and everything used to calculate what they claim you owe. I'm guessing they don't have it after this long.

Regarding this nonsense about calling the Better Business Bureau....people need to stop referring these jokers. The BBB is made up of business people. They claim to "self police" their members. They have no legal authority. They do not help you with legal matters. The very best you can get from them is a list of complaints against the company, so you can decide if you want to do business with them. Why on earth would you want to do business with a collection agency? This advice always makes me giggle....

Contact me if you still have concerns.

Answer 2

1

Answer 3

NCO Financial Systems is legitimate. I had a friend work for them in Buffalo, NY. I know they have offices nationwide. First of all, NEVER give out your social security number over the mail! If they want you verify it, give them the last 4 digits of your SSN. That's how identity theft can happen. I don't know who you spoke to, but next time get their names. That's one thing they should never do. I am very familiar with the Federal Debt Collections Practices Act. Here are your rights:

1. If you have doubts about a debt, write a letter (immediately) to the Collection Agency and tell them that you dispute the debt, you want any proof of the debt such as a statement or even any invoice with your signature on it, also tell them you do not want any calls until this is proven. They should put your account on a 90-day freeze. If they call you within that time, get the collector's name. Take notes of all contacts. If necessary, get an attorney. You can sue the company and offending collector up to $10,000 per offense. ALL OF THIS IS FEDERAL LAW. Your credit reports should show that the account is "In Dispute".

2. They will try to get the payment in full. Tell them you can't pay and request monthly arrangements. You can negotiate, but if it's your debt, pay it down with 24 to 48 months. That way when paid in full and is a legitimate debt, it will show a "0 Bal, Pd in Full" within 90 days on your credit reports.

They have means of tracking you down with your social security number. Once they have that or get it from a creditor, there is no escape unless you live in "no man's land", even after 10 years!

Hope this helps. Oh yeah, if you doubt whether or not an agency is legit, call your local Better Business Bureau.

Answer 4

I've never heard of Regent Asset Management, but it's possible that they bought paid zombie debt and are trying to get you to pay it. You'll have to look through your mailed bank statements if you've received them or you can request them to be mailed if you did electronic statements back then. This will help you get to the bottom of this. You can also request a written validation of this debt. It isn't surprising that they are being rude and threatening, but this is illegal per the Fair Debt Collection Practices Act. The next time they call, refer to this. You can also send a letter to cease communication, which is completely legal. However, if you can get proof that the bill was paid already, send it to the collections agency as well as the company that handled your account in the first place via certified mail with signature return receipt. Demand to both parties that the collections be removed from your credit reports or you will sue. Always speak to a manager when dealing with issues like this. Good luck.

Answer 5

READ STUDLYS ADVISE FIRST, he hit it right on the mark, you have to watch out for some of these folks many of them are CONs. Never give out your social security number out to anyone, expecaily you do not know what this debt is regarding too. NCO is a company that buys old debt for like 2cents on the dollar and trys to collect on it, they can make HUGE profits buy using unethical practices. Most of there debts they buy are past the SOL, but even giving them one dime that reages the debt then now then can come after you. This debt will not appear on your credit report, it has been over 7 years ago. send out those letters studly told you to send and that should shut them up.
Joe cool is an idiot and should not be answering questions in here!
good luck

Answer 6

Both are real collection agencies.

1: you knew 10 years ago you didn't pay that 900.00 bill. Because you forgot about it doesn't mean you don't owe it.
2: if you move and you fail to contact each creditor each time you move, how are they supposed to find you? They don't have a psychic on staff who pops up and says ' hey bobs moving today'
3: except in the state of mn, there is no statute of limitations that absolves you from your debt.
4: Do the honest thing and pay it. You know you owe it.
5: If you're really nice when you call the collection agency, you can ask nicely for a settlement. If its 900.00 and you're willing to pay with a credit card or check by phone, you may be able to get the account closed for as little as 500.00.

Answer 7

First National Collection Bureau

Answer 8

The Better Business Bureau can tell you more, write to the one in your state and tell them what has happened and if ii's legal to bill you for something that was ten years ago. Where I live they can't bill you after ten years.

NEVER EVER give our your social security number unless you know who it is for sure that you are giving it to and there is a lagitamate reason to, not to someone who calls you. Also if you honestly didn't incure the debt, take it to small claim court and make them prove it was you. You shouldn't have told them your social security, because some unethical companies will just change the social security number to your number it it was a different number.

A friend of mine had an ex purchase land in arizona in her name and didn't know about it until she was filling for bankrupcy. Her attorney told her it would be hard to prove it wasn't her, and since hse was claiming bankrupcy, to just add the property to her claim.

Don't let it go though or it will ruin your credit score.

Answer 9

a) Call the Better Business Bureau and ask them how to check the legitimacy of the company.
b) Debt doesn't carry a statute of limitations.
c) Whether they took 8 or 888 years to find your current address is immaterial if you in fact owe the money.

Answer 10

i had something like this happen to me with my provincial health care, luckily, i was covered by the government since i was a student.

however, you should insist upon seeing documentation before any action is taken. give them a fax number or third party address that they can send you docs, and confirm them with the company you allegedly owe. try to setlle the debt without the collection agency involved.

there should also be some kind of corporate watchdog you can call to confirm this is a real collection agency.