Predatory Collections

[Artemis Windsong]

My GrS1 is the victim of predatory collectors.  A 16 year old late video caused his checking account to be stripped of the complete balance of $1400 from accrued interest.  Absolutely no notice.  The video place was in the next county (probably closed now) so the collectors did not check until destroying him.  He had his rent check also going through the account.  He lost his apartment and all of his money. 

Fortunately his mom and dad helped out.  He's living in a camper at a friends farm so he's not totally homeless.

My question:  Is there any recourse to a credit collector to stop them from destroying someone's life?  Then after the fact?

I checked the attorney's general website but did not see anything that could help other than to file a complaint.

 

[susana1954]

Something is off here.  He should have been contacted by the lender at some point.  There had to be a judgment against him, which requires a legal proceeding.  Then there's the statue of limitations.  Plus, has he had the same checking account all these years?  There are laws surrounding collections, but the question also comes up concerning your grandson's role.  Did he just ignore them?

I would start with the bank because I would like to see the paperwork that allowed this.  

[Artemis Windsong]

Thank you for the info. I will ask him those questions.

[Deleted]

It’s always been my understanding that a creditor had to take you to court and win before they can mess with your bank accounts if you haven’t given them access and permission to debit your account for whatever they say you owe them. But idk if that’s really true.

I also thought that back in the days of renting videos, if you didn’t return it, they charged you for the cost of the video, which was much more back then than videos cost these days, but still less than $100. I don’t see how not returning a video 16 years ago can cost you $1400. 

My advice is to make sure the facts of what happened are actually true before trying to figure out how to file a complaint or getting upset that they did someone dirty.

[CCL]

I wonder if it could have been some sort of scammer who got his hands on your grandson's info?

[Artemis Windsong]

I might never find out exactly what happened. I will continue to try to sort it out. If it was a scam, nothing can be done.

Edit;  I'm so grateful for your comments.

[Deleted]

I haven't been on Creditboards.com in ages but I see they're still there. If you get more of the details and are convinced that it was a creditor or collection agency (not a scammer) they may be able to help. My understanding is that collection agencies DO buy old debt for pennies on the dollar from the original creditor and then use all kinds of sleazy tactics to try and collect.

Good luck.

[TheOtherMe]

I had an account sent to collections after receiving a paid in full statement.

I was not contacted by telephone or letter before the account went to collections.  I was told after they garnished a $10 payment from my bank account that the calls were made and letters sent.  I had lived at the same address from the time I took out the loan.  

No letters were made, no messages left, etc.  It took a while, but I did get it removed from my credit report.  

I did involved the Colorado Attorney General's office and they were of great assistance.

[debthaven]

Maybe I read too much Reddit but it sounds like he has been scammed, which means he gave them access to his account. The typical thing that seems to happen with kids that age is that they're asked for photos, they send them, and then they get blackmailed. 

If that's the case, he shouldn't pay the blackmailer, he should go to the police.

A lot of kids don't understand that, so they try to raise the money to pay the blackmailer.

I'm very sorry if this happened to him. IF that is the case, he needs to be honest and talk to his parents (or grandparents, or aunt or uncle, ie someone who can help him navigate this situation).

[Artemis Windsong]

athena53, I copied your comments to him in messenger.

[Artemis Windsong]

Apr 9, 2022 20:31:24 GMT -5 debthaven said:

Maybe I read too much Reddit but it sounds like he has been scammed, which means he gave them access to his account. The other thing that seems to happen with kids that age is that they're asked for photos, they send them, and then they get blackmailed. 

If that's the case, he shouldn't pay the blackmailer, he should go to the police.

A lot of kids don't understand that, so they try to raise the money to pay the blackmailer.

I'm very sorry if this happened to him. 

16 years ago, he was 21 years old.  Now he is 37.

I'm sending the info here.

[debthaven]

Sorry, I had missed that. Then I don't know. But you mentioned a video ... that's why I assumed he had been scammed. 

Good luck 

[Artemis Windsong]

I need to find out what the time line is on this. He had a medical problem on New Years Eve.

As usual, there is a lot going on with other family members this weekend. I'll wait until morning to continue pursuing information.

[dannylion]

Apr 9, 2022 20:31:24 GMT -5 debthaven said:

Maybe I read too much Reddit but it sounds like he has been scammed, which means he gave them access to his account. The typical thing that seems to happen with kids that age is that they're asked for photos, they send them, and then they get blackmailed. 

If that's the case, he shouldn't pay the blackmailer, he should go to the police.

A lot of kids don't understand that, so they try to raise the money to pay the blackmailer.

I'm very sorry if this happened to him. IF that is the case, he needs to be honest and talk to his parents (or grandparents, or aunt or uncle, ie someone who can help him navigate this situation).

I interpreted the original message to mean that he rented a movie (video), probably from somewhere like Blockbuster, but returned it late (or maybe forgot to return it), which incurred a fine, which has apparently been accruing for 16 years.  I don't see any mention of blackmail.  It's just a sleazy debt collection scam.  

[Opti]

Apr 10, 2022 10:00:51 GMT -5 dannylion said:

Apr 9, 2022 20:31:24 GMT -5 debthaven said:

Maybe I read too much Reddit but it sounds like he has been scammed, which means he gave them access to his account. The typical thing that seems to happen with kids that age is that they're asked for photos, they send them, and then they get blackmailed. 

If that's the case, he shouldn't pay the blackmailer, he should go to the police.

A lot of kids don't understand that, so they try to raise the money to pay the blackmailer.

I'm very sorry if this happened to him. IF that is the case, he needs to be honest and talk to his parents (or grandparents, or aunt or uncle, ie someone who can help him navigate this situation).

I interpreted the original message to mean that he rented a movie (video), probably from somewhere like Blockbuster, but returned it late (or maybe forgot to return it), which incurred a fine, which has apparently been accruing for 16 years.  I don't see any mention of blackmail.  It's just a sleazy debt collection scam.  

Unless he gave them access or restarted the debt clock, it doesn't make much sense to me. 

[Deleted]

Apr 10, 2022 10:00:51 GMT -5 dannylion said:

I interpreted the original message to mean that he rented a movie (video), probably from somewhere like Blockbuster, but returned it late (or maybe forgot to return it), which incurred a fine, which has apparently been accruing for 16 years.  I don't see any mention of blackmail.  It's just a sleazy debt collection scam.  

I know the OP needs to get more facts but here's a possibility: they called and DGS said or did something that re-started the clock without knowing it. They said, "We'd hate to have to garnish your wages or take you to court so if you just give us your bank information so we can take out a payment we'll close the file".

I understand companies wanting to collect what's owed them but have no respect for the bottom-feeder companies that buy up old debts that were probably written off years ago by the original creditors.

[Cheesy FL-Vol]

Oh, the zombie debt is always fun. I had a debt with my ex that we settled with the creditor. I had the letter from the creditor that the debt was settled. The debt still got sold around and I had fun sending cease and desist letters to various debt collectors along with copies of the settlement letter. In addition, I sent copies of the cease and desist from previous debt collectors, until the fifth and final debt collector was sent a stuffed envelope with all my proof. This was 25 years ago, and I still have all that paperwork in case for some ungodly reason it gets resurrected.

[Artemis Windsong]

I didn't get much more information. A garnishment of wage hadn't occurred to me but would be in line for an unpaid debt like late video rental.

I talked to my DD, his DM and she had less information than I did. We agreed that our banks would have given notification of unusual activity or before cleaning the account out. Unless, it was an IRS debt. Even so, IRS does give notice.

She said that Altru medical has a nasty habit of getting people coming out of surgery anesthesia to sign their house away.

Bottom line, I told him to get his paperwork together then file a complaint with the attorney general.

Thank you everyone for your input.