I started receiving calls from Allied Interstate in December. At first I was getting missed calls from a 952 area code (on Sunday mornings) and did not know the origin of the call. I never answered them and I never called back.
On 12/11/08, someone named "Tony" called my place of employment (a private school) and wanted a verification of employment. He did not ask for me personally, but rather asked my director if I worked there.
On 12/12 my director gave me the message that someone had wanted employment verification. I thought this was odd considering I had not applied for employment elsewhere. The called ID showed "Allied Interstate" and listed the number. So, I called "Tony" back, and got his voicemail, and went on to say that I did not know who he was, why he was calling me at work, and if he needed anything to call me strictly on my CELL PHONE and I would be glad to talk with him regarding whatever it was. I googled "Allied Interstate" and got the low-down on these people. They do legitimately collect on accounts and for the federal government. But I ran into websites like this one, and started to feel uneasy about paying these people any money, if that was what they were calling about. I did owe student loans, was unable to pay them at the time, but wasn't going to make excuses about it.
Later that morning on 12/12, someone named Robert Bromley began calling me at work. He spoke to one of the girls in the front office. He asked to speak with me, but I cannot leave my classroom and/or take phone calls as I am in the middle of TEACHING and Robert did not like that answer. His call was then transferred to my director and he was very rude to her as she would not give them any information (a good employer will protect you as they did me). My director hung up on him. This really pissed him off, and he called back threatening legal action (this is against the Fair Debt Collections Practice Act). Finally he spoke to my boss (owner of the school) and she came to get me out of my classroom (and filled in for me while I was out).
So I got on the phone with Robert, and he was more than pleasant with me. He explained that I had some loans in default with Sallie Mae (they had gone into default a few months prior). I knew how much I owed Sallie Mae, and he quoted me an an amount much lower. See the way it works is that Allied Interstate buys your debt for pennies on the dollar of what you owe (they don't tell you this by the way) Then they want you to pay THEM and who knows if it actually goes towards your original creditor. I read so many claims of people who pay Allied and still have the original creditor claiming I owe them money. Robert wanted to put me on a rehab program, pay him $2,600 and then $70 a month for 9 months. At this point I am somewhat interested but he wanted a credit card #/checking acct for ANYONE I could give him. I said im not willing to work on this UNLESS he sends me something in writing. He said I already received a letter in the mail (I did not) but he would fax out something that day. This was on a Friday and it was a time-sensitive matter, and he was only working till 12 pm that day. Blah blah blah. HE DID NOT HAVE MY SOCIAL SECURITY NUMBER, and I refused to give him any information or agree to anything. I gave him the fax # of someone I knew that worked in a law firm, who was able to give me advice regarding this matter. I also told him do not call me at work under any circumstances. Meanwhile, my boss is still covering my classroom, for about 30 minutes. I finished my call, and Robert DID NOT fax anything on the day he promised to do so.
After the weekend passed and Monday came around, Robert started calling the law firm I had referred him to and harassed the secretary. He had finally faxed the info I requested. My friend at the law firm reviewed the information, and no where did it state that the money being paid to them would go towards my student loan. It said that after paying them over $4,000, they would refer my account to be in good standing again. My law firm friend advised me not to pay them anything, and work something out with Sallie Mae. When I called Sallie Mae, they did indeed inform me that Allied Interstate was handling the account, but that I did most likely qualify for Direct Loan Consolidation (even if you are in default, you can qualify, but it does negatively affect your credit). I am still in the process of consolidating.
Robert continued to harass my friend at the law firm on Monday 12/15 and Tuesday 12/16. He then called me again at work (violation) and told me since I didn't pay, he was issuing a wage garnishment. I said "whatever" and hung up. He was supposed to "fax" an order to my employer, but never did. Finally, after reviewing law firms on the internet who specialize in companies who violate the FDCPA, I hired an attorney to take my case. We communicated via email for awhile, and they told me what to do to in order for them to file a lawsuit. I kept a detailed phone log of missed calls, calls to my cell, calls to work (and they even called my grandmother!!!). It is also valuable to record phonecalls and inform them that you are recording. I called Robert (who was unavailable of course when I called HIM) and spoke to some other guy and told him to tell Robert CALL MY ATTORNEY if he needs anything. I did not hear from Allied Interstate anymore.
I filed the lawsuit in Jan and I was informed that I could receive up to $1000 per violation of the FDCPA. Once the lawsuit is filed, the defendant has 2 months to reply. My lawyer informed me that if I win my case, the defendant pays the attorney fees, and then out of whatever I am awarded, I pay the court fees (about $350). I thought that seemed fair, and honestly I didn't care so much if I received money or not. I was humiliated and threatened and now my employer knew some of my personal business. I am not trying to get out paying my loans. I have a college education, but I make $10/hr at the time and honestly it was barely enough to get by. At the time of the lawsuit, I was living in Indiana, but have since moved back to Southern California. I got a job here right away but my employer suddenly closed 4 weeks later. I am now unemployed. I have sent out my resume about 40 times and had 3 interviews, one of which is pending right now.
Today (2/25) I received notice from my attorney that Allied Interstate has offered a settlement. They are paying my lawyer fees ($1,650) AND court costs ($350) AND paying me $500. I am so relieved that this is over. To anyone going through this, please do your research and know the FDCPA. You have rights. My attorney is Larry P Smith and Associates, Ltd., out of Chicago, IL. Look them up on the internet. They do only cover cases in Indiana and Illinois, and maybe a couple other states out of the midwest. If they cannot represent you, they may be able to refer you to someone in your area. PLEASE don't be harassed by this company. Don't agree to anything unless you have something in writing that ASSURES YOUR MONEY WILL GO TO THE ORIGINAL CREDITOR. If they don't have your SS#, don't give it to them. Hire an attorney who specializes in this field. They don't get paid unless you get paid. Most correspondence with attorneys can be done via email.
Sorry for the long report here, but this complaint helped me tremendously in my efforts. I read numerous cases about Allied Interstate to prepare myself. I hope this helps someone out there like me!!!
Tara
Thousand Oaks, California
U.S.A.
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