Complaint Review: Jefferson Capital Systems

Look at it this way: Jefferson capital knows tehd ebt was either discharged in bankruptcy or is Out of Statute, or both.

Fair Debt Collection Practices Act (FDCPA - Federal Law) provides that if you demand Validation of the debt within 30 days of "initial communication" from the collector, the collector must cease collection activity until it is provided. Baxcically, a timely VOD request tells the collector to "prove it or drop it".

Since Jefferson Credit is what we call a "Junk Debt Buyer" they probably paid less than 3 cents on the dollar for the debt and have no records other than your name, address, social securitry number and amount "owed", so Validation is probably not possible. Since they can't Validate, they tend to "drop it". Silence will be your response.

I suggest you monitor your credit files with the 3 major credit bureaus. Junk Debt Buyers have been known to re-age debts, which is the process of changing the status date to make an old debt appear new, which would tank your credit score. Re-aging is a violation of the Federal Fair Credit Reporting Act, and you would have the right to sue the JDB that re-ages.

There are several web boards that can help you with details. Among them are (all start with www and end with .com) ArtofCredit, Creditinsiders, Creditnet and Creditinfocenter.

The text below is a sample "Cease and desist" letter that I send to a collection agency over dispute balance transfer fees. It got them to stop and I successfully sued the creditor in small claims court. Send the letter via certified mail or fax:

Dear Ms. _____:
Subject: Notice of Disputed Debt

I am writing in response to your undated letter received today because I do not believe that I owe what you say I owe. I have disputed this debt the Fleet Credit Card Services (FLEET) verbally and in writing. FLEET is charging me interest on a balance transfer check that was never cashed and returned to FLEET.

This is the first I've heard from you in writing, or any other company on this matter therefore, in accordance with Section 809 - Validating Debts of the Fair Debt Collection Practices Act, I respectfully request that you provide me, in writing, the following:

What the money you say I owe is for;
Explain and show me how you calculated what you say I owe;
Provide me with copies of any papers that show I agreed to pay what you say I owe;
Identify the original creditor;
Provide a verification or copy of any judgment (if applicable);
Show me that you are licensed in my state, and provide me with your license numbers (if applicable).

Be advised that I am fully aware of my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. For instance, I know that:

You cannot add interest or fees accept those allowed by the original contract and state law.

You do not have to respond to this dispute except to tell me that you either intend to cease your collection efforts or to pursue other legal means of collecting this debt.

Should you pursue a judgment without validating this debt, I will inform the judge and your case will be dismissed based on your failure to follow the FDCPA.

Any attempt to collect this debt without validating it, violates the FDCPA.

Be advised that I intend to record all phone calls, keep all correspondence and will not hesitate to report violations to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.

I have disputed this debt; therefore, until validated you know your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them this debt is in dispute. Reporting information that you know to be inaccurate or failing to report information correctly violates the FCRA 1681s-2.

If you do NOT own the rights to collect this debt, I demand that you immediately send a copy of this dispute letter to the original creditor that you say I owe money to so they are also aware of my dispute with this debt.

I would have preferred to avoid litigation, but I will be filing a lawsuit against FLEET Credit Card Service tomorrow in response to your letter. You may inform FLEET that I will waive my claim for money damages if they void the debt and issue a correction to fix any negative information that has been reported on my credit history.

Finally, in accordance with section 805(c) - Ceasing Collections, of the Fair Debt Collection Act, do not contact me about this or any other matter, except by official mail and then only to advise me that your debt collection efforts are being terminated or that you are taking specific actions allowed by law.

Sincerely,

Hello everyone. It's happening again. I did what I was suppose to do and sent a validation letter to Jefferson capital systems w/in 30 days via certified mail. They didn't respond w/in 30 days to my request for validation so I thought I was in the clear. Then, about 2 weeks ago, I received almost the same format letter saying almost exactly the same thing! (pay-off old debt w/ their Majestic Visa card). I am so Teed-off! Do I send a second notice validation letter or what? These people at least have the responsibility to respond! Please advise! Is there any other recourse except for another validation request letter?

Mary

hi gang: my name is tom. I have been a collector for 16 long and sometimes painfull years. I am thankfully now a Mortgage Broker and part time consumer advocate.

This all time intelligence insulting balony about trying to collect stat and or banko discharged debt has me truely reaching for the bottle.

Chalk it up to AMERICAN BUSINESS ......

Lets all go buy stat and banko paper from creditors for at the most one cent on the dollar since the creditor obviously doesnt want it anymore.

Then go blast all the unsuspecting consumers who have long forgotten or thought it was dead.
Hell, lets add in some 'phantom' debt cause we only got a print out from the client -not actual proof they owe it. Its so old the creditor has misplaced or misdocumented the original form.

The consumer dont need to know all this though.
Lets blast em all -and see how many pay us just to get us off their backs. To hell with the statute - its not us who has to deal with it in our personal lives, its the stupid consumer. I sure would hate it if it happened to me though.

But hey, I know the FDCPA -and the FCRA. They cant touch my bureau after 7 years nor goto court, so who cares? - on the otherhand, the sucker consumer doesnt know all this in all likely hood -so lets soak em down!!!

Lets get the no good pieces of $%^& to 'reaffirm' -or maybe make up some other loophole. We need to make money dont u understand?

To the original author:

DO NOT PAY ANYTHING TO THE AGENCY OR 'NEW CREDITOR' REGARDLESS IF IT WASNT DISCHARGED COSIGNED OR WHAT EVER THE HELL ELSE.

TELL THEM TO 'CEASE AND DESIST' -IN WRITING. IF THEY CALL -TELL THEM TO NEVER CALL YOU AGAIN AND HANG UP.

Jenna (ex collection employee) seems both hostile and confused. California does indeed have a four year statute of limitations ("SOL")for written contracts (two years for oral). Meaning, that unless a lawsuit is filed against you within four years of the breach (usually when you first fail to pay per the terms of the contract), none can be brought against you. This does not mean, however, that collection companies will leave you alone if the SOL has expired. Indeed, as Sherri points out, if you enter into another contract (reaffirmation) with the collection agency, you may restart the SOL clock. Basically, if the SOL has run and you are not willing to pay just to get your FICO up, then you can and should be uncooperative with the collection agent (i.e. cease and desist letter).

You shouldnt be giving all these poeple fasle information!! They need help and you are lying to them.. The California statute of limitations is NOT 4 years!!! You are crazy if you think that. The statute of limitations is so many different things. You haven't the slightest!! Are you even sure of what the definition of the Statute of limitations is???

I'll clue you in: The legally prescribed time limit in which a lawsuit must be filed. Statutes of limitation differ depending on the type of legal claim, and often the state.

For example, many states require that a personal injury lawsuit be filed within one year from the date of injury -- or in some instances, from the date when it should reasonably have been discovered -- but some allow two years.

Similarly, claims based on a written contract must be filed in court within four years from the date the contract was broken in some states and five years in others. Statute of limitations rules apply to cases filed in all courts, including federal court.

You shouldnt be giving all these poeple fasle information!! They need help and you are lying to them.. The California statute of limitations is NOT 4 years!!! You are crazy if you think that. The statute of limitations is so many different things. You haven't the slightest!! Are you even sure of what the definition of the Statute of limitations is???

I'll clue you in: The legally prescribed time limit in which a lawsuit must be filed. Statutes of limitation differ depending on the type of legal claim, and often the state.

For example, many states require that a personal injury lawsuit be filed within one year from the date of injury -- or in some instances, from the date when it should reasonably have been discovered -- but some allow two years.

Similarly, claims based on a written contract must be filed in court within four years from the date the contract was broken in some states and five years in others. Statute of limitations rules apply to cases filed in all courts, including federal court.

You shouldnt be giving all these poeple fasle information!! They need help and you are lying to them.. The California statute of limitations is NOT 4 years!!! You are crazy if you think that. The statute of limitations is so many different things. You haven't the slightest!! Are you even sure of what the definition of the Statute of limitations is???

I'll clue you in: The legally prescribed time limit in which a lawsuit must be filed. Statutes of limitation differ depending on the type of legal claim, and often the state.

For example, many states require that a personal injury lawsuit be filed within one year from the date of injury -- or in some instances, from the date when it should reasonably have been discovered -- but some allow two years.

Similarly, claims based on a written contract must be filed in court within four years from the date the contract was broken in some states and five years in others. Statute of limitations rules apply to cases filed in all courts, including federal court.

You shouldnt be giving all these poeple fasle information!! They need help and you are lying to them.. The California statute of limitations is NOT 4 years!!! You are crazy if you think that. The statute of limitations is so many different things. You haven't the slightest!! Are you even sure of what the definition of the Statute of limitations is???

I'll clue you in: The legally prescribed time limit in which a lawsuit must be filed. Statutes of limitation differ depending on the type of legal claim, and often the state.

For example, many states require that a personal injury lawsuit be filed within one year from the date of injury -- or in some instances, from the date when it should reasonably have been discovered -- but some allow two years.

Similarly, claims based on a written contract must be filed in court within four years from the date the contract was broken in some states and five years in others. Statute of limitations rules apply to cases filed in all courts, including federal court.

What they are trying to do is to get you to "reaffirm" the debt, which gets the SOL clock running again. DO NOT fall for this scam. Send them a cease and desist letter, and cc this to the Bankruptcy Court Trustee, as well as the FTC and California Attorney General.

The junk debt buyers are using this new scheme, as many consumers are getting more and more educated about their rights. Please don't feed the bottomfeeders..