Perverted Credit

I saw a blog on the website www.creditandcollectionnews.com and would normally think I cannot believe what I am reading. But considering I know the collection agency business I can believe what I read. I read an article that nationwide credit posted and although quite disturbing because of there lies I am by no means surprized. Here is what Joel wrote in response to an article:

Dear Forbes and Mr. Hawkins, I am a very busy person and have never responded to a published article, but I feel compelled to comment on “How To Outsmart Your Debt Collector.” The attitude of, “What can I get away with, or out of because of a meaningless technicality?” is exactly what our society does not need. As the owner of an 18-year-old collection agency, we are swamped with hyper-technical lawsuits from “ambulance chasing” attorneys and debtors who are searching for a way to get out of paying a legitimately owed debt. The number of these suits has increased dramatically over the past few years, and the merit of these suits are typically laughable with absolutely no damage suffered by the debtor. The primary reason for this is that attorneys have become aware of the fact that a third-party debt collector cannot win when sued. It is simply a matter of how bad you are going to lose. Even if you win in court, you have lost big-time in that it will likely cost you tens of thousands of dollars to prove your case. Let’s see, settle for $4,000 even though you did nothing wrong and the charges against you were completely unreasonable or fabricated, or roll the dice to prove your innocence and spend $30,000 in the process. That is, $30,000 if you win, and by the way, you will have no meaningful chance of recovering any of your costs. The Fair Debt Collection Practices Act (FDCPA) is over 30 years old and largely regulates communication pertaining to debt collecting. Keep in mind, when FDCPA was crafted over 30 years ago, answering machines were not even used, let alone faxing, e-mailing, texting, etc. … The FDCPA is in desperate need of being updated, and many attorneys take advantage of this fact. It is filled with vague language and gray areas that are ripe for misinterpretation, which is just wonderful for low-level plaintiff’s attorneys who are looking to make a quick buck at the expense of those performing an honest and needed service. Most third-party collectors go to great lengths and expense in an effort to comply with the FDCPA. Third-party collectors, at least the vast, vast majority of us, are simply attempting to get someone, the debtor, to make good on his/her legitimate obligation. What’s not good and noble about that? It seems that your article actually encourages bad behavior and “making out” on a trivial technicality. Just because you can get away with something does not make it right. And I doubt you would be so keen on technicalities if someone in your family was the victim of a violent crime and it was found that an arresting officer of the accused perpetrator mishandled two trivial words in reading Miranda rights to the accused. Maybe that headline could read, “How to Outsmart Your Arresting Officer After Committing a Violent Crime.” I give you the benefit of the doubt in that most people do not see things from our perspective; however, your article is disturbing, and it is never “smart” to devoid yourself of your rightful responsibilities. It is simply immoral! Thank you, Joel Lackey
President www.nationalcreditsystems.com

Needless to say I had to respond and here is what I responded with:

Joel,
I also feel very compelled to respond to your blog because you could not be further from the truth. However I am not surprized by your comments as I am very much aware of the training you give your collectors of how to violate consumers rights. I know this because I also used to work for your company. I am the one person that was a collector turned consumer advocate because I know that your tactics are wrong and illegal.

You know very well that your agency does in fact fabricate debt. You also know that your company is infamous for holding “paid” debt” for a few years then contacting the debtor again to get them to repay the same debt. If the awful collection industry was regulated and the attorney generals actually did their job there would be fewer collection agencies arising nationwide.

I do agree however that the FDCPA needs to be written for today’s standards. But prior to this doing any good we have to make the governing agencies do their job. I am in no way saying that people should get out of paying their debt for the most part but I am saying that their needs to be some “ethics” put into this rapacious industry. Debt collectors have rules they are to follow but they in no way do not.

I would like to give you the benefit of the doubt Joel but I cannot. I know what you and your comapny is about and how you work. I know first hand how you knowingly violate consumers rights and collect debt that is in no way legit. What you do and how you train your employees is the immoral part. So if you feel compelled to start making changes then please start by changing the way you run your business!!

Thank you,
Joey www.pervertedcredit.com

Amazing how these rapacious collection think. Let’s break the law and violate consumers rights then blame it on the consumers themselves

My name is Joey and I am a credit specialist. I have been in the credit industry for fifteen plus years. I was a first and third party debt collector turned consumer advocate. I am currently applying for law school because of this rapacious industry, finishing a book on consumer rights and have fought and fighting the Colorado attorney general for not (I will repeat NOT) doing their job.

After seeing the story this morning I have to let as many people know what the truth is. Yes – every single consumer has rights under misc. credit laws. This one particular is the Fair Debt Collection Practices Act. However the FTC does not regulate collection agencies and this is where this industry has gone wrong. Each state has an attorney general with a uniform credit code department. This is who is supposed to regulate collection agencies but they do not. I have personally gone rounds with the Colorado attorney general to do their job but they refuse. They claim because they do not have the money but this could not be further from the truth.

I have spent the prior seven years doing what I can so these collector violations stop. I would also love to meet the attorney representing this case as many attorneys turn away from cases as this – so the absolute best of luck to you. This is an absolutely awful industry with no regulation whatsoever. I have personally been threatened even by laura udis and paul chessin from the attorney general to stop helping consumers. The sad part of this is they stopped me because collection agencies were complaining about me. I was making too much of a disturbance for both collection agencies and the Colorado attorney general.

Here is what every consumer should know for starters…   when a collection agency violates your rights you CAN and SHOULD sue them. The Fair Debt Collection Practices Act states clearly that the collection agencies should be charged one thousand dollars per violation. In other words -if you get five calls in one single day (as we know this is common for collectors to do) that is a five thousand dollar fine you can get them to pay. You can also use that against them; call them on it if you will, and have them put that fine against the debt you owe. This is what I did when I was a consumer advocate which is why they (collection agencies) started complaining about me being a nauseous. The collection agencies were losing money. Not because of me but rather because of their violations. But since collection agencies are so tight with most states attorney general (such as the Colorado attorney general) the attorney general came after me. However; I have not given up for consumers and I will not. I know what the collection industry is about and how they work. I know that no one ever wants to go after collection agencies because of the threats that come in – believe me, I live it daily. I hope this case brings precedence to new laws that need to be made. These are not the only consumers that live it daily.

Today is the day that our economy is bad. And because of this we will see more collection agencies arise as this is the most unregulated money maker in our country. I will do whatever I can in my power to make changes and fight the states but I need your help. If you are interested in lending your voice please post to this thread.

I feel the need to recap who I am and why I feel passionate about consumers being violated in the credit industry. It is necessary because depending on who you ask about me I am either good or bad. And this strikes me as funny because there is absolutely no “in the middle” of what people think of me.

            If you ask a consumer who was once my client the majority of them will tell you that they trust me and knew that I was on their side. The reason I say “majority” instead of “al” the clients is because of course the Colorado attorney general told me not to complete the work on the rest of my client’s files; even the ones that paid for the services. I tried getting the Colorado attorney general to allow me to at least complete the files but they absolutely refused to let me. I cannot imagine that these particular clients would think I was on their side; even though I not only was but still am.

            However if you ask any credit company ranging from Citibank, Bank of America, collection agencies or any of the three credit reporting companies they will absolutely say how badly they hate me and give a story; like the Colorado attorney general ken Salazar, laura udis and paul chessin did to make me look as though I was a criminal. But there was one thing the Colorado attorney general either forgot about or did not think I would piece together and that is the DORA report. The DORA report is like a bogus agency that reviews certain government agencies to see of they are doing their job. DORA stands for the Department of Regulatory Agency. The report dated October 15, 2007 states that during the year 2000 to 2001 the Colorado attorney general failed to investigate many of the complaints that were filed because of a “personnel” problem. That personal problem is easy to assume was me. I filed complaints to the Colorado attorney general’s office every time I saw a violation by a collection agency to that client. I must have sent on average of one hundred complaints per month. Only to have laura udis and paul chessin tell me they were not going to investigate. Nothing better than having the Colorado attorney general tell consumers where to go when the agencies they are to regulate break the laws to consumers.

            Nonetheless; the whole lawsuit took a toll on me hard and although I knew I did nothing wrong it was hard for me to accept. I later found the judge that granted the lawsuit in um; shall we say in bed with cheesin and udis. I never had my chance to be heard but that is ok. Just when the Colorado attorney general thought they would be getting rid of a thorn in their side I AM BACK. I am stronger and smarter and I will fight for consumers rights. Today’s credit industry is absolutely awful and I cannot sit back and continue watching consumers be told to bend over. Ken Salazar – you never should have made senate. You are truly one awful politician who runs an illegal office. People will learn about you because I will tell them. Colorado will in fact find out about your ties with the collection agency industry and you will have a lot to answer. The truth always comes out in the end.