If this company has recently contacted you please be careful as to your interactions with them!
A family member was recently contacted by CAMCO who claimed that a debt was outstanding. As an attorney in the State of California I felt led to do a bit of research on this company and so I am now providing this general information so that you can be better prepared when you interact with this company.
As you may have experienced, CAMCO makes it seem that the debt is legitimate and will pursue further collection activity. The problem is that the debt may not be legitimate and so there is not much they can legally do to pursue it.
Let me explain. CAMCO is what is called a "debt buyer", meaning that the company buys old debts well past the statute of limitations and attempts to collect them. Many of these debts may have been already written off my the original creditors, discharged in bankrupticies, or even paid off. These debts are so old and uneforceable that they are beyond the reporting periods allowed under the Fair Credit Reporting Act (FCRA). Hence, your credit report may not even show the alleged debt. As a result, this company is threading a fine line when they contact consumers and demand payment.
As a matter of fact, CAMCO, its subsidiary, RM Financial Services, Inc. And four pricipals (Reese Waugh, Jerome Kuebler, Scott R. Franson, and Mario Bianchi) were charged on March 24 by the Federal Trade Commission (FTC) that in their attempt to collect these debts, the companies engaged in abusive and deceptive collection practices. Please visit the FTC website at the following link for more information: www.ftc. Gov/opa/03/camco.htm
As a result of the complaint, CAMCO and friends have now entered into a Consent Decree (settlement) under which the FTC will monitor compliance.
What all of this means for you is 1) CAMCO has had questionable practices in the past and so 2) you want to ensure your rights are being protected. As a consumer you have rights. If contacted by CAMCO you have a right, under the Fair Debt Collection Practices Act -FDCPA) to be provided verification of the debt. If you request verification, in writing and within 30 days after being initially contacted, CAMCO must suspend their efforts to collect the debt until they mail you the requested information. You also have the right to write a Cease and Desist letter which prevents CAMCO to stop contacting you about this debt, except to notify you that their efforts are being terminated or to advise you that they or the creditor intends to pursue specific remedies permitted by law (so make sure you find out whether or not the debt is LEGITIMATE).
This is a lot of information but I hope it is useful. Though I am an attorney the information provided here is NOT LEGAL ADVICE but GENERAL LEGAL INFORMATION. Please contact an attorney in your area to advise you on your specific situation. If CAMCO's practices are questionable to your specific situation also feel free to contac the FTC at 1-877-FTC-HELP and/or your state's Attorney General's office (not to mention local consumer advocates -like your local news station.)
Good luck and take care.
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