Creditor/Collections Scam?

[Gurm]

So I get home today and there's a letter from a collection agency. Not unusual, we were a bit naughty in our younger days. Fine. Let's see who wants money now.

"Philadelphia Pennsylvania, First Energy / Med-Co. Amount of $606.50, or settlement for $375."

I say "hmm, did we forget to pay the last month's electric when we left PA?" and call them up.

I get a very helpful lady who takes the file number and asks what my intentions are.

Me: "Well, ma'am... I'd like to know who wants the money. $600 isn't a trivial sum after all."

Her: "Of course, sir. One moment... it looks like it's a medical bill."

(pause)

Me: "Really? Interesting. We've always had insurance. What sort of medical bill is this?"

(Things are running through my head, you see. Did we forget to pay someone for something related to Logan's birth? We were switching insurance carriers. Did something go wrong? Uh-oh...)

Her: (She sounds put out here...) "Well this is an old debt. I'm not sure what information I can get."

Me: "Well I need more information than that. I can't pay $600 if I don't know who it's owed to and for what!"

Her: *SIGH* "Ok sir hold on..." (long pause) "Ok, it seems the debt is for an ambulance ride, and it's for July 20, 2000."

(pregnant pause)

Me: "Neither my wife, nor myself have ever ridden in an ambulance."

Her: "Well that's what the debt is for."

Me: "Right, I heard you. I've never been in an ambulance."

Her: "Well you'll have to take that up with the original creditor. I just collect the debts."

Me: "Fine, how do I contact them for more information. I'll need confirmation after all."

Her: "It's not my job to research this for you. This is an old debt. If you want more information you have to research it!"

(Why doesn't she want me to know who the original creditor is? The sheet I got in the mail shows this creditor, the creditor THEY bought it from, and the creditor THEY bought it from...)

Me: "Ma'am, I appreciate your situation, but this letter CLEARLY states that I can dispute by phone or in writing within 30 days and that you will then provide WRITTEN PROOF that the debt is valid. Presumably such proof would include the date and time of the incident, the company involved, where the ambulance took me, whether I was insured or not. These are normal things that are involved in this sort of debt. I just want to know who to call to figure it out. I'm certainly not paying $600 for any ambulance ride that I never took!"

Her: (losing her temper) "We don't have to provide anything!"

Me: "Funny, the letter says you have to provide documentation. Are you going to provide it?"

Her: (Yelling) "I CAN'T TALK TO YOU ANY MORE! I'M GOING TO GET MY MANAGER ON THE PHONE NOW!"

(Pause...)

(Hold Music...)

(Silence...)

(*CLICK*)

Yeah, she hung up on me when I demanded proof of the debt.

----------------

Now, the kicker? I'm thinking I ought to call my lawyer and see about some kind of appropriate certified letter to these idiots.

Now, let's say she was wrong. Let's say that it's some stupid code, and that it's NOT an ambulance ride. If it IS a forgotten electric bill... well, I'll pay it. I'm not a shirker, or a deadbeat. But c'mon - fair is fair. Ambulance rides are covered by the HMO. And we had only been in PA for days at that point. On the 20th, I drove back to Boston and Julie drove to New Jersey to work. There's no way either one of us rode an ambulance for any reason in Philadelphia (which is an hour from where we were anyway, something I didn't mention to this lady).

Thoughts? Ideas? I'm a little concerned that these people can put some kind of mark on my credit, or sue me in some Philly small-claims court. I'd really hate to have to drive 6 hours to Philly to defend myself!

[Jammrock]

Sounds like a scam to me. Report it to the FCC, and file a complaint for harrassment. If it's legit you can take them to small claims court for fruad and harrassment and end up with a couple of grand and all you have to pay is some very minor court costs. If it's not legit, well, then the justice department may get to try out their new battering ram.

Jammrock

[Technoid]

It seems weird that it can pop up now over 6 years later out of thin air.
Or how long is an unanounced debt valid before it expires?

[schmosef]

What you should be doing, especially since you were naughty in the past, is to get a copy of your current credit report.

In the US, there's a way to get a free copy once a year. I don't know how but they talk about the process on Consumerist.com quite often (go there and search for it). Otherwise, you can get one online with Equifax pretty easily but you have to pay for it.

If this appears on your credit report, you can dispute it. Equifax has a process for this.

Once you dispute it, it becomes the responsibility of the agency that put the record on your file to corroborate it, usually they have to do this within 30 days. Otherwise it comes off your report.

Identity theft is such a big and growing problem in the US that everyone should really be checking their credit report several times a year.

[Gurm]

What you should be doing, especially since you were naughty in the past, is to get a copy of your current credit report.

In the US, there's a way to get a free copy once a year. I don't know how but they talk about the process on Consumerist.com quite often (go there and search for it). Otherwise, you can get one online with Equifax pretty easily but you have to pay for it.

If this appears on your credit report, you can dispute it. Equifax has a process for this.

Once you dispute it, it becomes the responsibility of the agency that put the record on your file to corroborate it, usually they have to do this within 30 days. Otherwise it comes off your report.

Identity theft is such a big and growing problem in the US that everyone should really be checking their credit report several times a year.

Yup. There's no ambulance ride on my credit report. I should double-check it, though, to make sure that there isn't a "Med-CA" or "First Energy" on there. *sigh*

Credit reports are, if not free, then cheap. You can pay $6 or $10 or something to get a year-long subscription at Equifax.

[Gurm]

It seems weird that it can pop up now over 6 years later out of thin air.
Or how long is an unanounced debt valid before it expires?

That's the thing - debts DO fall off your credit report, but companies are purchasing up old debts here and re-opening them. It's a big scam. They pay a few bucks to buy a $1000 debt and then chase it around making the consumer's life miserable.

[az]

Are you obliged to pay them in those cases? Here, I think after one year without notice, uncollected debts can't be collected anymore.

[schmosef]

Are you obliged to pay them in those cases? Here, I think after one year without notice, uncollected debts can't be collected anymore.

In Canada it's two years.

[rylan]

Here is the debit collector time limitations by state

http://www.creditlibrary.net/statute_of_limitations.htm

MA and PA are 6 years for open accounts (credit cards etc) and contracts (car loan etc)
Either case, its beyond the statue for them being able to collect, and is also beyond the 7 year limit for (legally) dinging your credit report. If they hit your credit report, you can go after them for damages, along with the credit reporting agencies if they don't clean it up very quickly.