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Debt Collector Claims Comcast Skipped Out on Paying Them

I thought I’d take an opportunity to poke around and look at some recent debt collection cases and this one just happened to tickle me. Considering that Comcast, the cable people, are often the target of anger and frustration by consumers and debt collectors feel the same wrath from time to time, this case combines the two.

It appears that Lindy’s Collection Service in Minnesota had a deal with Time Warner cable to collect on unpaid accounts. The deal was that Lindy’s would get paid 33 percent of all collection accounts that were paid. That’s a heck of a good deal for Lindy’s. Other folks today are telling me that collection commissions are lower, or much lower.

Lindy’s also was to be paid $5 for equipment recovery/return and $5 for each account the cable company asked for back.

Along the way Time Warner sold out to Comcast and so Lindy’s was dealing with them up till the end.

During July, 2010 Comcast is reported to have notified Lindy’s that they wanted the 62,842 accounts they were collecting on, returned to them. Ouch. That must have hurt Lindy’s to wave good-bye to that many accounts.

So the suit alleges Comcast failed to pay Lindy’s Collection Service $314,210, representing the $5 return fee based on 62,842 accounts. Lindy’s also claims they never received any accounting of how much Comcast collected on the accounts that were assigned to Lindy’s.

Lindsay’s is alleging that the retainer they signed allowed them to “retain accounts until [Defendants have] paid all commissions to which [Lindsay’s] is entitled and any costs or expenses [Lindy’s] has expended on client’s behalf.”

The interesting part of this suit is the copy of the collection company retainer agreement attached. It gives you some insight into the terms and conditions that a collection company agrees to. – Source

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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