Credit Basics > Other Interesting Stuff

The List you WANT to be on!!!!

(1/23) > >>

Flyingifr:
FDCPA suits are beginning to be annoying enough to Collectors that one enterprising company is offering Collectors a list of people who file the suits!!!!! Why? So the Collector can "scrub" their files and remove these people from the dun lists! I kid you not - the best defense IS a good offense.

Here's the Link: http://www.fdcpacases.org/page/page/4544578.htm

Here's the text:

--- Quote ---FDCPA Case Listing Service LLC
Your National Debtor FDCPA Litigation Tracking Resource

                    "Scrub Your Inventory For Known FDCPA Plaintiffs Today"

In 2006, the Federal Trade Commission reported 69,204 FDCPA related complaints by consumers.  In the first four months of 2007, 449 consumers sued collection agencies for alleged violations of the FDCPA. The state of Pennsylvania led that statistic with 66 cases. Now, the average "debtor" has more than 4 charged off accounts by the time they are assigned to an agency. The average agency today handles hundreds of thousands of accounts.  How many of these debtors are in your files that you don't know about? Now, you will have the ability to find out.

FDCPA Case Listing Service was founded for that sole purpose. In the past, each agency would handle FDCPA cases individually, without industry collaboration, litigating some, but generally settling out of court.  Ultimately, these accounts would be closed and returned to the credit issuer or debt buyer and hopefully coded as a "legal account" never to enter the agency stream again (and ultimately leaving other agencies unaware that this consumer ever filed suit).  In each case, the agency ends up spending an average of $3500 settling with the debtor's counsel because it was cheaper than fighting, less than their E&O deductible (and there was little recourse to recoup those funds if they won). Because of this, our industry has a new class of "professional debtor" and attorneys that represent them. They are encouraged to record conversations, they're being trained to coerce third party disclosure, and to coax violations from the collectors we've trained to be compliant, maintain professionalism, and exercise self control on these calls.  The news media (Boston Globe, Buffalo News) and consumer groups are adding to this by painting collectors and agencies in a negative light further raising consumer awareness.  Finally, the Foti decision even has the agencies second guessing the messages they leave.

What we have done is put together a seasoned industry team to research and compile all FDCPA cases filed nationally and in Puerto Rico on a monthly basis against collection agencies, debt buyers, and credit issuers. Our team researches all FDCPA cases that are filed in 91 separate District Courts. We provide our Subscribers a detailed list of those cases, the consumers who have filed them, their attorney(s) and the agency/debt buyer/credit issuer that is being sued each month.  The list is designed to be used as a "scrub" against the accounts in your inventory to identify any of those debtors that may have an account that has been placed with you and has sued another agency in the past.  Simply put, these accounts need to be isolated from your general collection floor as they will have a higher propensity for litigation. 

               "Balancing the Field for Collection Agencies and Debt Buyers"
--- End quote ---

Another page on their site:


--- Quote ---How it Works

Once your membership subscription has been processed, you will initially receive a sortable excel spreadsheet(see sample below) with FDCPA cases that have already been filed in calendar year 2007 through the previous month end( based on your subscription date).  This spreadsheet will contain the specific District Court, case number, filing date, debtor name (plaintiff), agency name (defendant), and the debtor's attorney of record. on about the 10th of each month going forward, you will receive a monthly update with the cases that have been filed nationally for the previous month.  Your IT professional will be able to load this information into your proprietary collection software and use it for scrubbing purposes similar to your current scrubbing processes for bankruptcy, deceased, and duplicate accounts (emphasis mine).  By the third quarter of this year, you will have the option to continue to receive this information in spreadsheet format or be able to download it from FDCPA Case Listing Service's secure FTP site.

As an added benefit to Membership in FDCPA Case Listing Service, our customer service team will be contacting the Compliance Division of the agencies that have had cases filed against them. We would like to be able to provide debtor addresses to our member agencies for additional verification purposes.
--- End quote ---

You got it - file a couple of suits and get your name on the "Do Not Dun" List.

Thanks, InsideARM, I would have never found this without your help.

nls:
I'm not too sure how I feel about this, especially this last line.

-Simply put, these accounts need to be isolated from your general collection floor as they will have a higher propensity for litigation. -

Isolated? As in moved to a floor where the collectors are better trained, follow the FDCPA to the letter, document everything and file against the debtor as soon as possible?

fcdpacases.org is also run by a 'former' collection agency president.  I wonder if or how he is still involved in the collection business. 

Rottweiler:
In most cases, no...a "scrubbed" account is simply not "worked".  This is not to say that they won't return the account to the creditor and/or sell these accounts to the unsupecting CA/JDB who will have to "scrub-a-dub" all over again!  Since most sales contracts are "non-recourse agreements", this means they lose money on the account automatically, since resale values are lower.

Now, if we are talking about an Asset Acceptance, for example, yes, this well could result in sending the "scrubbed" litigious debtor's account to the "experts" and/or to immediate litigation.  Immediate lawsuit was always a risk in collections anyway; the likelihood that the JDB's "expert" collectors are any better trained than anyone else is small in all but the biggest and most aggressive agencies, and maybe not even then.

In other words, it may well become a case, if they DO try to collect, of who sues who first.  ;)

nls:
Either way you look at it Rott, it is really a case of the squeaky wheel gets the grease. Now weather that is lawsuit grease or scrub out grease I guess you won't know until the CA gets it and will vary between CA's too.

 Me being pretty green to this whole credit repair thing would prefer to just fly under the radar for a while or even ever.  I seriously doubt I will make that list anytime soon if ever but it is another thing to just be aware of.

Flyingifr:

--- Quote from: nls on June 12, 2007   03:12:02 AM ---I'm not too sure how I feel about this, especially this last line.

-Simply put, these accounts need to be isolated from your general collection floor as they will have a higher propensity for litigation. -

Isolated? As in moved to a floor where the collectors are better trained, follow the FDCPA to the letter, document everything and file against the debtor as soon as possible?

fcdpacases.org is also run by a 'former' collection agency president.  I wonder if or how he is still involved in the collection business. 

--- End quote ---

I gave your point a lot of thought before I came to the conclusion that a CA or JDB would be crazy to scrub FDCPA filers for immediate suit. They would be buying this service to reduce their expenses and maximize their profits - and by scubbing the litigious debtors into a "sue immediately" queue would only encourage them to put together a portfolio of accounts that are almost guaranteed to cost them a lot more than they would ever hope to collect. Look at the bolded part of the second web page in my original post - the business sense behind this service is to isolate the litigious accounts and treat them as if they had died or filed BK.

No, rather than doing as you fear, I suspect this is the beginning of the Flyingifr method becoming a "Get Out of Debt Free" card.

Navigation

[0] Message Index

[#] Next page

Go to full version