In October AAA Collection Agency contacted me. Claiming they represented a lawyer, regarding a supposed debt, all the while trying to immediately intimidate me into submission. It took most of an hour for me to obtain the actual, useful, information, that they were referring to a medical bill that was paid and settled in an car accident case, from March. This practice is known as Zombie Debt collection. Google it and you will find articles about this little known practice on CNN Money and MSN Money.
This supposed debt was paid and handled (per our written agreement) by my accident attorney, when he settled my lawsuit. He took the payment from my settlement. It was paid to the orthopedic doctor he worked with in his injury cases. I never heard from the Attorney or the Doctor again, in spite of the fact, that during those 5 years I kept the same phone number and had provided a current address to this same attorney, in fact I referred him other clients.
Out of the Blue, comes a demand for over $4K, even though the original amount was $2500. After further discussion with AAA Credit representatives they bought the Doctor's accounts receivables, pennies on the dollar, checked who was likely to have good credit and started demanding whatever they thought they could get away with.in spite of my letter denying the bill and explaining my state and federal rights they attacked my credit report, in an effort to extort payment, if I wanted to keep my good credit score. My credit score dropped by 100 pts on all 3 bureaus and has created some hardships for me in obtaining a new job and being able purchase a car or house on credit.
Luckily for me and others like me, we have some laws on our side. First, every state has a statue of limitations, on how long you have to collect on a debt.in CA, it is 4 years for a written contract and 2 years for a verbal contract. Secondly, it is illegal for a collection agency to claim to be an attorney and threaten you with legal action. Third, it is illegal to add unreasonable fees and charges on to a supposed debt, in attempting to collect said debt. Also, it is punishable by a minimum of a $1,000 per incident, plus attorneys fees, to incorrectly report such information to the credit bureaus. These laws are available under the FCRA, initiated by congress, to protect consumers from these collection predators. Save All communication, I do mean keep a record and save it. Finally, the same attorneys who protect consumers under lemon laws, can assist you, for free, in putting these guys in their place. I urge each and every person suffering from these leaches to find a reputable lawyer and teach them a lesson.
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