Debt collectors on the rampage

More consumers are finding themselves the target of aggressive agents who don't always play by the rules. Here's what you need to know.

By Jessica Dickler, CNNMoney.com staff writer

July 7, 2008: 4:24 AM EDT

 

NEW YORK (CNNMoney.com) -- Six months after Rob Hruskoci closed his business, a debt collector called and demanded payment that day for the $5,000 balance on his business credit card.

 

"They want me to wire them $1,900 in 5 hours," Hruskoci said. "It was all about intimidation and harassment."

 

With the economy in a tailspin, more consumers like Hruskoci are falling behind in their loan repayments, and finding themselves the target of aggressive debt collectors.

 

 

Find this article at:

http://money.cnn.com/2008/07/07/pf/debt_collectors/index.htm?cnn=yes 

 

Several years ago I received a hospital bill that was duplicate of one I had already paid. I contacted the accounts payable supervisor at the hospital, and after several go-arounds involving my insurance provider, I thought it was all settled.

 

About a year later, a collection agency contacted me. I tried to give them copies of everything I had from before, showing that I didn't owe the debt. They told me I'd have to work it out with the hospital.

 

I contacted the hospital's accounts payable supervisor, and she said it was out of her hands and I'd have to work it out with the collection agency. No one would give me info regarding a higher-up that I could contact.

 

I made copies of all my information and sent them along with letters to the Better Business Bureaus in Chicago, where the hospital is located, and Merrillville, Indiana, where the collection agency is located.

 

Then, I went to Chicago with copies and a cover letter explaining the situation, got a customer satisfaction survey from the reception desk, filled out a scathing response, put the whole works in an envelope, and stuffed it through the slot in the customer-survey drop box.

 

About two weeks later, I got a letter from the hospital verifying that I didn't owe anything. I got follow-up letters from both BBBs, asking if my complaint had been resolved to my satisfaction, and I responded in the affirmative. Case Closed.

 

I thought.

 

Two years later, the same collection agency again contacted me about the same bill. Different person, same name; they always use fake names. My efforts met the same runaround.

 

This time I followed the procedure that had worked before, adding the letter that verified that I didn't owe the debt. Then, I took it a step farther.

 

I sent copies of all the info along with a cover letter (proof of delivery requested) to the president of the university that owns the hospital, stating that I had involved the BBB and was considering suing for harassment and defamation.

 

Again it took two weeks, but I got written verification that my account is paid up to date, and in the several years since, I've heard nothing more about it. I hope somebody got fired over that.

 

I still keep all the paperwork in a folder at the front of my file drawer, just in case I need it again. I've checked my credit report, and it's clean.

 

The collection agencies always isolate themselves with fake names and mail drops that can't be traced to their physical location. It's much easier to resolve contested debts face to face. One day a guy came to my door and got rude and aggressive about a cable bill he said was overdue. Maybe he had the wrong house, or maybe it was a scam or a shakedown; I've never had cable.

 

Anyway, did you ever see a skinny little old guy make a big, burly young guy run? :whip:

 

I keep a plain ol' hardware-store hatchet beside the door. Nothing fancy. Some folks are more afraid of that than they would be of a gun.

I prefer my Louisville Slugger by the front door.  Nothing says "go away" better than a homeowner who looks like he's going to go Mickey Mantle on them.

 

Some collection agencies make pay day lenders seem like angels of mercy by comparison.

Great post, Noozer.