Complaint Review: NCO Financial Systems - METAIRIE Louisiana

After research, I will admit I was wrong on chargeoffs being credit reported for 6 years from date of chargeoff OR last payment. It is 7 years. So that is even WORSE news for consumers when determining whether to pay a collections account. Repayment and reaging however goes into the FICO score, for the worst. Three digit FICO score and income ARE what lenders determine because your FICO score is a formula derived from available credit on the maximum amounts available, the amounts charged, recency of debt,etc. Reaging DOES ding your score when paying! Any expert on various sites like bankrate,msn money will say that! TIME (inactivity) is the only way to cure a chargeoff. Not paying and reaging. That DELAYS TIME! One thing that hasn't been mentioned with ALWAYS requesting validation from ALL 3rd party agencies and law firms within 30 days of initial dunning letter is that MANY are too lazy to bother honoring a validation request from a consumer. They simply return the account to the creditor. Secondly, they have improper paperwork that isn't authentic due to the changing of creditors over time. A validation request doesn't need to be complicated to honor. Generally, it's the name and address of the creditor, the account #, and an itemized breakdown of the alleged balance.Don't make ridiculous validation demands like sites like creditwrench encourage.The time to ambush the creditor is in discovery after you are served, not at validation stage. Simply say "I dispute your alleged claim concerning ABC credit for x amount of dollars and demand validation of the alleged claim in accordance to the FDCPA." Problem with the itemized breakdowns is that they are VERY OFTEN INACCURATE. Very often when the original creditor is out of the picture, junk debt buyers only get a spreadsheet and original authentic paperwork gets lost because MANY 3rd party agencies are LAZY in dilligence with having the proper paperwork that is authentic.Hence, the creditors "chain of custody" is broken. If and when you are served, always demand discovery and production of documents along with requests for admissions. Look up your jurisdictions Rules of Civil Procedure to go about that. Many creditors that sue in the junk buying stage DO NOT HAVE authentic paperwork that they are sworn to claim in their suit. Also, you can remove their sworn affidavit by typing a sworn denial letter.It forces a live witness and they can't rely on their piece of paper/affidavit. It needs to be typed and notorized by the clerk before filing and sending in addition to other paperwork including discovery motions to the creditor/plaintiff certified mail return receipt requested. Sworn denial is a graduated denial that states "I deny this is my debt and if it is my debt, I deny that it is a valid debt and if it is a valid debt, I deny the amount of the claim is the correct amount." After many years of high 700's FICO like many fell on a tough patch and all those years of great FICO were ruined after ONE missed payment. To make it worse as I stated, the 3 credit reporting agencies DO NOT reward debtors properly for repaying chargeoffs. 30 points higher for each chargeoff payment in full doesn't seem like an unreasonable request Equifax,Experian and Transunion.May find more debtors willing to pay if you change your ways. One time in the 90's when I moved, I left behind a utility bill when I moved to a different utility provider. Four years later a law firm sent me a letter to pay $280 or risk suit. At that time I didn't know that much about credit reporting or FDCPA. I promptly paid only to find out it wasn't on my CBR at that time despite what the firm told me over the phone. A couple months later it appeared as "paid collections" on my CBR and my score dropped from the high to mid 700s. That was my "reward" for paying. Hundreds of thousands of consumers have been down this road too. That is why I make it as hard as possible for these agencies. I have NEVER lost a suit (pro se as well) and have made plaintiffs suing me dismiss their suit due to my discovery demands (I make plaintiffs spend thousands in fees on paperwork and flying in live witnesses). Not to mention I have gotten numerous out of court settlements shaking down compliance managers of agencies that violate the FDCPA pro se. If this is too much of a hassle consumers, you can always file bankruptcy. Make sure you speak to and get a certificate of completion form from a state approved CCCS company within 6 months of filing with an attorney. For chapter 7,you need your most recent tax return (I believe it's 4 years for chapter 13). For consumers with no tangible assets (real or auto), chapter 7 is a good way to go if you are bogged down by chargeoffs. Make sure your income is below your states "means test" when considering chapter 7.Do not make any credit purchases or apply for credit within 6 months of filing either. Although it stays on your CBR for 7-10 years (chargeoffs are 7 anyhow), you are relieved from unsecured debt and your ability to recover is MUCH FASTER from a CBR standpoint. Usually within two years after filing, you can get auto and mortgage loans at reasonable rates assuming you are current on what credit you have opened post bankruptcy in addition to reasonable level of income/employment.

I've addressed your misinformation before, and it's time to do it again before someone gets into a bind because of your misinformation. ""As I said on other posts, whenever you pay a 3rd party agency, it gets credit reported as a 'paid charged off collections account' for an ADDITIONAL 6 years!"" INCORRECT. Generally, the FCRA allows it to be reported for 7 years. I don't know where you get your information. ""That LOWERS your credit score and REAGES the debt for an extra 6 years as a derrogatory remark on your CBR."" What happens is that the "date of last activity" is changed to the date of the last payment made. This new date makes the debt look "newer" to lenders. Also, depending on the debtor's STATE, the SOL may or may not be extended based on the payment date. In some states, making a payment resets the SOL, in other states the SOL is NOT RESET UNLESS the delinquent account is brought to CURRENT status (delinquent payments are caught up) and then goes delinquent again. ""If you dispute within the initial 30 days governed by the FDCPA, NCO and other agencies CANNOT credit report the account."" Absolutely INCORRECT! I suggest you read the Fair Credit Reporting Act. ANY valid DISPUTE reported by the consumer MUST be indicated as disputed on ANY SUBSEQUENT credit reports about that consumer-it doesn't matter WHEN the consumer initiates the dispute. ""It will show as a DISPUTE which doesn't lower your score."" INCORRECT. A credit line that is reported "disputed" does indeed raise a red flag to lenders. It doesn't lower you score any MORE than a "delinquent" trade line, but it certainly lowers your score more than if the trade line WASN'T listed at all. ""Consumers have NO INCENTIVE to pay a collections account."" As a general statement, this is INCORRECT. The first consideration is whether the debt is beyond the statute of limitations. If the SOL is expired, then I agree with you-no reason to pay it whatsoever. HOWEVER, if it is NOT BEYOND the statute of limitations then the consumer has to decide whether it's worth being sued and having a money judgment issued. If the debt is still held by the original creditor the debtor has a real risk of having a money judgment issued which opens the door for enforcement orders if the judgment is not paid in a reasonable amount of time (normally 30 days.) Also, in NY State, the SOL for a money judgment is 20 years and this money judgment can be reported on credit reports about the debtor for 20 years (per the FCRA.) Example: You owe me $1000 for services rendered. I hire a collection agency to collect it for me. You tell the collection agency to shove it and the agency informs me that they cannot collect from you. I sue you in small claims court and win a money judgment for $1000 plus court costs, filing fee, service fee. I can now report this money judgment to the CRAs. I can also request an enforcement order from the court that can include any/all of the following: garnishment of wages, levy against bank accounts, levy against NY State Income Tax refunds, levy against NY State Lottery winnings, lien against any real property, lien against any property of value; car, truck, RV, Boat, etc. ""The debt is reaged for an additional 6 years on your CBR as a derrogatory paid collections account."" I don't know why you keep stating 6 years. The FCRA generally allows for 7 years. Money judgments can be reported for as long as the SOL for money judgments in the State that granted the judgment-in New York State that is 20 years. Other types of debts can be reported for 10 years. ""EquifaxAgain, lenders only care about your credit score (FICO) and income. Not 'morals."" INCORRECT. Lenders also consider your repayment (or lack of repayment) history. ""Chargeoffs fall off after 6 years of chargeoff date OR last payment."" It's SEVEN YEARS (7) per the FCRA. ""If it's a small debt well under $1000, it will hardly ever see the inside of a court room."" HUH? RUBBISH! Small claims court. ""Just keep requesting validation from agency to agency to keep it reported as 'in dispute' on CBR within that initial 30 day window governed by the FDCPA upon receipt of first dunning letter."" More rubbish. Are you aware that the FCRA addresses just this circumstance? Once a CRA correctly determines that the consumer is "disputing" the same valid debt over and over, the CRA no longer has to change the status of the debt to "disputed." READ the FCRA! This is BAD ADVICE from you! ""If they report it without validating upon receipt of your letter within 30 days, they are in violation of the Fair Credit Reporting Act."" NOT AS YOU WRITE IT! There is NO provision that prohibits them from reporting it IF the information they report is current and correct. If the information they report is determined to be inaccurate THEN you may successfully go after them for "knowingly or should have known" that the information they reported was incorrect or in dispute.

No words need to be spoken to the creditor or NCO. Stay off the phone! Simply send a dispute and request for validation letter regardless of the size or nature of the debt in question.Make sure you say "alleged claim", never admit in your validation request letter. Needs to be mailed WITHIN 30 days of date on initial dunning letter and always send it certified mail return receipt requested. As I said on other posts, whenever you pay a 3rd party agency, it gets credit reported as a "paid charged off collections account" for an ADDITIONAL 6 years!That LOWERS your credit score and REAGES the debt for an extra 6 years as a derrogatory remark on your CBR. If you dispute within the initial 30 days governed by the FDCPA, NCO and other agencies CANNOT credit report the account. It will show as a DISPUTE which doesn't lower your score. Most likely NCO can't or won't bother trying to validate so it will show as a dispute. Consumers have NO INCENTIVE to pay a collections account. #1) The debt is reaged for an additional 6 years on your CBR as a derrogatory paid collections account. #2) When Equifax,Experian and Transunion no longer ding your 3 digit FICO score (roughly 350 to 850) for paying an old debt (reaging) but instead improve consumers scores by paying an old debt, I may change my tune on not paying a collections account. Again, lenders only care about your credit score (FICO) and income. Not "morals." Lastly, bill collectors NEVER tell a consumer/debtor that paying them will add 6 years as "paid collections account" on CBR. They would never get paid if they did! Chargeoffs fall off after 6 years of chargeoff date OR last payment. If it's a small debt well under $1000, it will hardly ever see the inside of a court room. Just keep requesting validation from agency to agency to keep it reported as "in dispute" on CBR within that initial 30 day window governed by the FDCPA upon receipt of first dunning letter. If they report it without validating upon receipt of your letter within 30 days, they are in violation of the Fair Credit Reporting Act. Naturally you can go after them in court for damages at that point. The green card returned to you after they sign off on, you can use as proof they acted in bad faith despite signing off on your validation notice certified mail return receipt requested within the 30 day window.

NCO is one of the worst third party collection agencies DO NO talk to them on the phone!!!! Send them a cease communications letter via certified mail with return receipt requested I have dealt with these bottom feeders trying to collect a debt that was payed by the company I work for - the letter I got back was sorry your file has been closed Get real lawyer man - I have sued a bottom feeder like this and won Do not let them intimidate you Fight back - go to www.budhibbs.com and see how these losers operate Good luck

I mean no disrespect, but, wow, that is really country, there. At any rate, ignoring companies like NCO is never a good idea. I am afraid that people who ignore NCO and these other huge collection companies try to buy a house or a car and they either pay a lot more in interest or can't get the loan at all because some collection company has worn out their credit reports. Do yourself a favor, at least. As you pay your gas bill, check your credit report and make sure they aren't reporting it as unpaid. It is easier to deal with now than to wait years down the road.

Only one party can claim a debt at any given point in time. If NCO is harassing you for this debt, then your utility company may have sold this debt to them...which in this case means that the utility company has no right to take payments. When a debt collector buys a debt, they are entitled to any payments you might make. If this is the case here...even after you pay back your utility company for the entire amount, NCO could come back and try to collect the amount all over again. It would also mean that NCO would place damaging info on your credit report. To be safe, confirm with your utility company if they REALLY have ownership of the debt or if they sold the debt to NCO. Ask them: was this debt charged off and sold to NCO? If so, the utility company needs to refund you the entire amount that you paid...as they are not entitled to accept payments.