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Debt Collectors Often Collect Bogus Debts |
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November 2, 2006
In West Virginia, one consumer received a notice from Pinnacle Credit Services demanding payment for a debt it was assigned to collect. The consumer denied she owed the money and when the company persisted, she contacted the state attorney general's office. It turned out Pinnacle wasn't licensed to collect debts in West Virginia, so the attorney general sued. As part of the settlement, the company cancelled more than $1 million in debt it was trying to collect in the state. The take-home lesson? "Consumers may receive collection notices for debts in amounts they believe to be inaccurate or for creditors they do not recognize," said West Virginia Attorney General Darrell McGraw. "Consumers should dispute the debt in writing and request documents that verify the debt." Unless that documentation can be provided, consumers should not pay. Old debts are regularly shuffled from the original creditor to multiple collection agencies or sold to debt purchasers. Information regarding these debts is transmitted electronically and may be inaccurate. Moreover, the collection agency or debt purchaser may have added unlawful additional fees to the original debt. Report Your Experience
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