ARTICLE: Estates Information Services: Another Debt Collection Scam Agency: Beware of Being Contacted by This Debt Collector

(Originally published at Yahoo.voices formerly Associated Content~1/8/2009)

ABSTRACT: Never be intimidated by a debt collection agency that is trying to collect an old debt of a deceased relative.

CONTENT: I thank my lucky stars that I have my own computer and when need be, all I have to do is a search for just about anything and everything, and this would include finding out if a debt collection agency is one of those scam operations that one should be wary about.

Just today, in the mail, I received a letter addressed "To The Estate Of...(my mother's name)" from this debt collection agency named Estates Information Services. The letter was in relation to an old debt my mother had owed to Beneficial to the tune of slightly over $7,000.00. When my mother died on August 27, 2006, I collected together all letters and correspondences that had been addressed to her. My mother was in debt for quite a bit of money, over $25,000.00 from past-due credit cards, loans and other financial institutions. I wrote letters to all concerned, and mailed off a copy of my mother's death certificate, and indicated that with her death, her financial obligation to pay had also ceased. When Beneficial itself wasn't able to collect on the debt she owed them, they had turned it over to a debt collection agency, which was later to be turned over to yet another collection agency. Thanks to my newly discovered savvy of how debt collectors in general operate, this is a very common practice, that is, where old debts are bounced around from one debt collector to another, and I would say 99-percent of them are scam operations.

First, one has to know one's rights and obligations about any debt that is owed anywhere. If it is you in question, and particularly for a credit card debt, then yes, unfortunately you owe that money to the credit card company. One also has to be aware of the so-called Statue of Limitations and each state in the United States has it's own listing of how long a debt is collectable. This means the length of time a debt can still be collected. One can find out just which debts are collectable and for how long from the Credit InfocenterWebstie. Credit card debts are perhaps the only debt that is considered an "open" debt, and no matter how much time has passed since you accumulated that debt, you still will owe that money.

When it comes to old debts of a deceased person, however, the rules change drastically. Many people are under the impression that all debts belonging to a deceased family member must be paid up. Not so! Unless that debt was a co-signed agreement between any financial institution, such as a credit card company, loan company and so forth, the living family members of the deceased are in no way obligated to pay that debt. Now when my mother passed away, as I mentioned I sent letters and copies of her death certificate to all concerned. Therefore, I actually found it amusing that more than two years have passed and I'm still being in a sense harassed by yet another debt collection agency for an old debt of my mother's. Upon looking up information on this one particular debt collector, that is Estates Information Services, once again I found out that this is but again another scam deal here.

On the Ripoff Report Website, I came across a person who was also being harassed by this very same company. In his case, his entire family were receiving hostile phone calls from Estates Information Services in regard to an old debt that the person's brother had owed for an old credit card debt. This person indicates that he too, as in my case, did not co-sign for this debt and therefore were not responsible for it. He also indicated in this Ripoff Report that he wrote a letter to Estates Information Services demanding that they should cease any further communication to him or his family as to do so was in violation of the Fair Debt Collection Practices Act, and also, should this debt collection agency continue its harassing tactics that he would get in contact with his Attorney General.

So I too, have written a letter to this Estates Information Services to cease any communication to me about this old debt of my mother's, as I too, like the person in his report, was under no obligation to pay off this old debt of my mother's, and I too pointed out that to continue to communicate with me on this matter would also be a violation of the Fair Debt Collection Practices Act, and not only did I write a letter to them, but I included a copy of my original letter to the former debt collection agency (Hudson & Keyse, LLC), that I had written over two years ago, and yes, I have copies of everything, plus I also included a print up of the Ripoff Report made by the person who also complained about Estates Information Services. In other words, I was letting this company know they were scam artist. I also indicated in my letter, that I had found other information that they have been sued by other people who have also been harassed by them. The one thing I didn't do, was sign my letter, as I figured that with having my signature on "file" so to say, they could somehow use it against me.

So, the bottom line for anyone being harassed by any debt collection agency, particularly about an old debt belonging to a deceased family member, I can't emphasize enough...KNOW YOUR RIGHTS. Don't get into a panic thinking you are obligated in anyway to pay off this old debt, particularly, and I can't emphasize this enough, if it's an old debt that was NOT co-signed by any other family member. Also, become familiar with the Fair Debt Collection Practices Act that protects consumers from fraudulent or harassing collection tactics. At the Expert Law Website I found one statement that particularly holds true for what I'm emphasizing here, under their listing for restrictions that are imposed on Collection Agencies by the Fair Debt Collection Practices Act (FDCPA) and I quote:

Contacting a third party who does not owe the debt, such as a relative, neighbor, or your employer. Co-signers to the debt, however, may be contacted by the debt collector

The Expert Law Website gives a whole listing of vital information for anyone who wishes to know their rights about debt collection policies and practices, and what is specifically prohibited and therefore illegal on part of the debt collection agency. Last, another emphasis is to do research via a search on the web about the debt collection agency involved, and I guarantee you, it will probably turn out to be a scam operation. One can file a formal complaint about a debt collector directly on the Federal Trade Commission website for any debt collector who is violating your rights in any form whatsoever.

Fair Debt Collection Practices Act Information

Federal Trade Commission

Expert Law Website

ARTICLE: How to Handle Debt Collection Agencies: How to Know Your Rights when Owing Debts

(Originally published at Yahoo.voices formerly Associated Content~11/14/2008)

ABSTRACT: Sometimes the only way to know if you truly owe a debt is if you are hounded by a debt collection agency is to get one's credit report.

CONTENT: This article is mainly aimed at people who are on tight fixed incomes, such as SSI, Social Security, or unemployment benefits, but may also be of help to anyone being harassed by debt collectors whether one's own debt problems, or a debt belonging to a recently deceased family member. I'm by no means an absolute authority on this issue, but I give examples of how I handled my own debt problems while being a recipient of SSI Disability benefits, and also how I dealt with the debt my deceased mother had owed.

Unless you are 100 percent financially secure and have no problem in paying off bills, including credit cards or loans, sooner or later everyone of us will get hit by one of those annoying debt collection agencies. Some of these debts that one may owe might actually be quite small, but while small, would prove a hardship to pay off especially if you're on a fixed income, and of course worse if the total debts one may owe are substantially large.

While my mother was still alive I had no problem paying off my four credit cards even though I was receiving SSI benefits. Yes, I had four, and the maximum credit for each one started out at only $300.00 so it wasn't as if I had credit cards with thousands and thousands in maximum credit. I by no means used my cards for extravagances, but only to stretch the low total household income that both my mother received with her Social Security and Pension, plus my own benefits; in other words I was using the cards primarily for food or medications and other necessity items. Later on, since I proved to the credit card company in which I had those four credit that I was reliable in paying them off in time, they raised the maximum amount to $500.00. Believe me when I say they really weren't doing me a favor.

At first, when one owes a debt to any company, credit card or loan, the company itself will at first only send letter reminders that you owe them, however, if the company gets no satisfaction from you in honoring your debt to them, that is when they will turn the outstanding debt over to a collection agency, and some of these agencies are relentless in pursuing you, often by constant letters and or making numerous and rather annoying phone calls. The first thing, however, is that one shouldn't panic.

Once hit by debt collection agencies people will perhaps think in terms if there is an easy way out, such as declaring bankruptcty. This strategy however, only works for really large overall debt. Most lawyers or agencies that handle bankruptcy won't even consider handling cases unless the overall debt is at least $5,000. And, when you think of it, this makes for common sense. What I mean by this, say your total debt is about $2,000. Now if you're on a fixed income and can't pay that debt off, how in the world can one expect to pay a bankruptcy lawyer or agency the usual standard starter fee of about $1,000, even on some kind of installment plan? Therefore, as you can see declaring bankruptcy is definitely not the answer in this case. If it turns out your overall debt is relatively small, really try to work out some plan with the company itself, or if possible maybe you can get the advice of one of those debt consolidation companies.

It was different of course with my mother, who in 1987, did have to declare bankruptcy as her total debt between credit card and loans amounted to $45,000.00. While she wasn't on a fixed income then and was earning a fairly decent salary, there was no way that she could pay off her debts, thus she turned to BUCCS (Budget & Credit Counseling). One important thing however, if one does declare bankruptcy, your bankruptcy status will be listed on your credit report for at least seven years, and could be a negative factor against you and lower your credit score, which in turn will make any future attempts in getting a loan or mortgage.

Now here is where it is important to know your credit report, and I urge anyone who is being attacked by debt collection agencies to get it. It may very well turn out that believe it or not, you may not even owe the debt, in which the debt collection agencies are hounding you. First, one must understand the statute of limitations of how long a debt lasts and one can find out just how long a debt that one owes last and if it is indeed collectable by going to the Credit Infocenter Website. Unfortunately, as far as credit cards and major loans, these are most often considered open debts and yes you will still owe them regardless of how many years have passed. However, that is only true with credit card accounts specifically in your name only and not for a deceased member.

If a member of your family has died, and they owed debt of any kind, the important thing to remember that unless it was some kind of joint account with not only the name of the recently deceased person, but your name as well, then you don't, repeat don't owe that debt to that company. When my mother died, she was in debt of about $25,000.00. I proceeded to send a copy of her death certificate to each and every company she had debt to, explaining in my letter to each, that any debt she may have owe was negated upon her death. For the most part this worked with all companies involved, save for one that continued to hassle me, or I should actually say my mother. It was as if it weren't getting through to these people that my mother was in fact deceased.

The one company that kept sending letters and/or calling, believe it or not, was the very same hospital that she had died in. The letters sent were always in her name and when I got phone calls, the person always asked for my mother. I kept telling these people either in writing and/or by phone call my mother was deceased. Each and every time I dealt with them, I was told to send another copy of her death certificate, of which I did. Some time would pass and I would get another phone call, from the very same exact person that they hadn't received the death certificate. I was to send a total of three copies of her death certificate to the debt collection agency. Then more time passed, and I get a call from a lawyer representing the hospital debt collection and asked for my mother. I had to explain the whole thing all over again that I've been sending copies of her death certificate to prove she had died. The lawyer asked me to send a copy of the death certificate to the law firm of which I did. So far this has seemed to settle it once and for all, but I couldn't think how lame are these people? This bill was in connection to my deceased mother, yet they kept harassing the issue. Since we're talking about the hospital billing collections itself, couldn't they have simply checked on their computers that my mother was in fact deceased?

But what about those other debts you may have owed? Do you really owe that money? In my own personal case I can answer both yes and no. No that I didn't have the obligation to pay my mother's outstanding debts, but yes when it came to my own credit card debt. When my mother died, I now had the additional hardship of trying to pay off those credit card bills, whereas previously I hadn't. My mother had no life insurance, savings or checking accounts. It did turn out that there were some funds available via her old former place of employment, but it was only enough to cover her funeral costs plus a few other bills. By the time January of 2007 came, I no longer had funds to pay not even the barest minimum for each credit card. While my SSI benefits did increase a bit after my mother had died, it still nonetheless was only enough for basic living expenses.

In the meantime, as I was no longer able to pay off those credit cards, the over the limit and late fees kept piling up and out of control. The ironic thing was that even though I was placed on hardship status with my constant contact with the credit card company, they still kept adding those fees. Now I really was in a bind.

Then a seeming miracle occured. I received a letter from the IRS addressed to my mother around February of 2007, that indicated that she had been due Tax Earned Income Refunds for the tax years 2003 and 2004. And while she was deceased, since I was considered her personal representative being her daughter, I was entitled to claim that money. While it took some months to actually get the money due to all the paperwork involved, once I did get the refunds, you better believe I opted to pay off those credit cards in full.

Now, one may ask, what about those debt collectors that still relentlessly hound a person from old former debts from many years past? Here again is where it is important to number one, find out about the statute of limitations of how long that debt is valid. Number two, this is where it's important to find out one's credit report and what is specifically listed on it. And three, most important is to find out if that debt collection agency is actually a legitimate one, or one of the many scam ones that are out there.

If a debt collection agency is truly legitimate and you are getting letters and/or phone calls, the debt collection agency itself will most likely be located near where you live, however, if you are receiving endless letters and phone calls from an out of state agency, most likely it's one of those scam debt collection places. Before you make any reply to these places whether by letter or by phone call, do research first! I can't emphasize that enough. In my own case, I've gotten numerous phones calls from a place called Portfolio Recovery which is located in Norfolk, Virginia. My answering machine had picked up their message to me, and I was all set to call them, but first I did a background check on them.

One of the best sources to find out whether you are dealing with scam debt collection agencies is the Rip Off Report.com Website . At this website, they had a whole warning about Portfolio Recovery. This agency often somehow finds old past debts and will relentlessly go after people to collect the money. The site warns that once you make ANY kind of contact with this agency, whether by letter or by phone, they got you, meaning even if a debt has gone beyond the statute of limitations of when it can be collected, once you contact this agency, you have now reopened it and now you will owe on that old debt. You can read the specifics of Portfolio Recovery Here.

Next get that credit report. On one's report one will find a section called "Debt Collections" that one can click on, it will then open a page listing all the places you may owe debt to by an agency. If none are listed, and you are being hassled by any debt collection agency, then you know whatever seeming debt that agency is trying to collect from you is bogus and you are dealing with a scam operation. This was true in my own case. Here Portfolio Recovery was harassing me for some old debt that was no longer valid and the agency wasn't listed on my credit report. Conclusion: I didn't owe them a cent.

In summary, no matter what debt situation you may personally be dealing with, become informed of your rights. You can read up on your rights as a debtor by going to the Fair Debt Collection Practices Website Yes, if you have credit card debt you will owe the company, but if for some reason you find yourself in a spot where you can no longer pay, try to work things out with first the company itself, and then perhaps look into one of those debt consolidation agencies. Inform yourself and do research to learn if you truly do owe those other debts and inform yourself of the statute of limitations. Also, get your credit report as this may be the only way to find out the legitimacy of any seeming debt you may be hounded by via a debt collection agency. Finally, look up the name of the debt collection agency itself that is hounding you to see if it's one of those scam ones.

http://wiki.answers.com/Q/Who_is_responsible_for_your_credit_card_debt_after_your_death

http://hubpages.com/hub/Unscrupulous-Attorneys-Buy-SOL-Expired-Debt

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml#2

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

ARTICLE: Not All Debt Collection Agencies Are Honest: NCO Financial Systems, Inc. An Example of a Fraudulent Collection Agency

(Originally published at Yahoo.voices formerly Associated Content~Feb. 7, 2008)

ABSTRACT: Debt collection agencies are never a pleasant experience for one to deal with, and while some are legitimate there are a few that are downright scam artists and have numerous complaints against them; one of them is NCO Financial Systems, Inc

CONTENT: I think most of us, somewhere along the line, have had to deal with debt collection agencies, and it's never a pleasant experience, to say the least. Some are honest and legitimate ones, but nonetheless almost all use some form of scare tactics to make a person pay an old, outstanding debt. The scare tactics used can be from receiving repeated and constant letters or almost daily phone calls reminding a person of a old, past-due debt, whether it be from a credit card company, a loan, and so forth and can be for a seemingly small amount to larger debts ranging in the thousands. In a few cases, if a person ignores these debt collection agencies, sooner or later, a person might suddenly find themselves getting a summons to appear at court for some kind of legal settlement.

Both my now deceased mother and I have had a number of run-ins with these debt collection agencies. Prior to my mother's death, she had amassed a total debt over $25,000. Being that she was on a fixed income of only receiving a small monthly pension and Social Security benefit, there was no way my mother could have paid off these debts, neither did she have the funds to declare bankruptcy. She did at one time, consult a financial adviser who took her care of her case and sent out letters to all the debt collection agencies involved in trying to retrieve the old debts. This seemed to help the situation a bit, but not entirely, as my mother was soon hounded again by these debt collector's, and they were never the same agencies. It seems another tactic of debt collectors is to bounce the old debt around, first with one agency, then submit it to another, then yet another again. This went on for years, and each time my mother kept getting letters and/or phone calls from these debt collectors. Each time she received another letter, I wrote letters back to them, explaining the situation and referred them to the financial adviser she had contacted for further reference in the matter, however, they still hounded her.

Then my mother passed away leaving those debts unresolved and unpaid for. Fortunately as I had no legal obligation whatsoever to pay those debts back myself, and truth be told, I couldn't have done so myself anyway as I am a recipient of SSI Disability benefits, I dealt with the matter by simply sending copies of her death certificate to all involved, and with it, a letter telling each debt collection agency that with the passing of my mother, there was no further obligation in the payment of her debts. Most were accommodating and left me alone...but as you can guess some weren't. I kept getting hounded by one debt collection agency time and time again...they just wouldn't let up. When I explained the situation to them via a phone call, I was told to send a copy of my mother's death certificate. Well I had already done that, but sent another one to them anyway. Then a month passed by, and I get another phone call in which I had to explain the whole situation all over again, and mind you to the very same person. I was told they never received the death certificate...could I please send another one. So yes, I sent a third one to them. Another month passes, and I get another phone call, this time from a lawyer representing the agency. Once more I had to explain the whole circumstance all over again, and told the lawyer that I've sent a total of three death certificates to the debt collection agency. The lawyer asked me to send a copy to her, which, yes as you can guess, once again I sent a copy of the certificate and I'm hoping that finally settles the matter as so far I haven't heard from the lawyer again.

Now I wish to relate my own personal run-ins and story of one debt collection agency in particular, that is NCO Financial Systems, and and agency that is relentless and really doesn't know when to give up. The real interesting thing about this particular collection agency, is that I have since found out is considered one of the biggest scam agencies going. Prior to my mother's death in 2006, I used to have AT&T as my phone company. Within a month after she passed away, I decided to switch phone companies, but I did still have an old outstanding bill with AT&T for only about $100.00. Upon getting notices from AT&T I did try to resolve the issue, directly with them and explained that I just plain wasn't able to pay the debt, not even on some kind of installment plan due to my own low monthly SSI benefits...in plain English, I just couldn't. A few months went by and I heard nothing further from them, but then I started getting letters from NCO Financial Systems, Inc. Yes, a debt collection agency, and for the old AT&T bill. Don't ask how many times I did call them and explained the situation to them...I said I just couldn't pay the bill, and it wasn't as if I owed thousands to be pestered so much by them...they just wouldn't give up, but finally they seemingly did. So almost a full year passed without hearing from them again, that is until just a month ago when I got a letter from them. Then I started to get the phone calls of which quite frankly I've ignored, though I've since written a letter back.

A few evenings ago, with the letter and phone calls in mind, I decided to go to their website at www.ncofinancial.com and perhaps also email them. However, upon going on their website, it asked that I register by submitting the "code" I was given in their letter to me, of which I did. Another page then came up asking me to submit my Social Security number. Little red flags and alarms went off, as I thought this was unusual to be asked one's Social Security number, in other words it just didn't seem right somehow. So then started doing searches on the web for any news about NCO Financial Systems, and I was amazed at what I found, particularly with the website known as RipOff Report (http://www.ripoffreport.com). On this website, are a series of complaints against NCO Financial. It seems that this collection agency not only goes after people who might have legitimate over/past-due bills, but hound people with "made-up" over-due bills, most commonly with America On-line, Inc.(1), but actually with many other companies or organizations as well especially credit card companies, but can also be for for bills that one may have already paid long time ago. In one report against them at the RipOff Report website, a person complained that they were being hounded for a bill they had already paid for in full, and the old bill went back to 1988! (2)

According to the reports in the RipOff Reports, they suggest not getting in contact with NCO and particularly not to disclose any information at their website, as a person will be subject to spyware, which will not only infect one's computer but will validate one's debt to NCO Financial, whether legitimate or not...and all I can say to that, is that I'm glad that red flag and alarms went off inside me and I didn't give out my Social Security number. The RipOff Reports website also suggested that if anyone gets letters and/or phone calls from NCO Financial Systems, to file a complaint with the Federal Trade Commission (FTC), of which I already have done so. It seems that writing letters or making phone calls back to this collection agency doesn't solve the problem...as they will keep after a person time and time again, so the best course of action is to complain to the FTC. Also, at another website that gave information about NCO Financial, it clearly states NOT to send NCO one penny to them as it suggests that the money only goes to them, and not to the original place or origin of the debt itself.(3)

So far I haven't be pestered too much yet by NCO Financial, although I suspect that often when my phone rings and my answering machine goes off, then get "hang-ups" it's them calling but not bothering to leave any messages from them, as I only started getting this on a daily basis soon after that first phone call where they did leave a message. I do, however happen to know a person who has been repeatedly and seriously harassed by them, getting about three letters a week and up to five separate phone calls a day, yes, a day. In such a case, if one is harassed in such a manner, it is suggested that one be made aware of the Fair Debt Collections Act, of which there are numerous websites one can log onto to know one's rights, and again, it is urgent to get in touch with the Federal Trade Commission about the unsavory practices of NCO Financial Systems, Inc. Hopefully, once done, that should be the end of any further harassment by not only this debt collection company, but any company that continually harasses a person relentlessly.

RipOff Reports and Other Websites About NCO Financial Systems, Inc

(1)
http://www.ripoffreport.com/reports/0/279/RipOff0279287.htm

(2)
http://www.ripoffreport.com/searchresults.asp?q5=NCO%20Financial&q1
=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search%21&Search=Search

(3)

http://www.ethannonsequitur.com/nco-financial-systems.html

Fair Debt Collection Act

http://www.fair-debt-collection.com/fair-debt-act.html

http://www.fdic.gov/regulations/laws/rules/6500-1300.html