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Debt Collectors Threaten Me With Legal Action for a Debt I Already Paid. – Mike

Written by Consumer

In July of 2010 I took a payday loan from MyCashNow for $300.00 to tide me over while I switched jobs. I went to work for a bank and started using a bank account that was provided to me. I stopped using the original account I took the loan from. They were unable to get their money since the account was empty.

In December of 2010 I got a collection letter from Smith Haynes & Watson about this account. I immediately called them up and paid them the money to close the collection. Since it was paid I haven’t thought twice about it.

On 04/18/12 I received a call at work from a guy claiming to be from a processor who was looking to get ahold of me to serve a warrant. I asked him what for and he replied and told me that he could not and I would have to call who placed the order. He gave me the number for Capital Solutions.

I called the number that he gave me and spoke to a Jennifer in their legal department. She immediately says that she has to see if I had a court date yet and if I did she couldn’t talk to me. She put me on hold for a couple of minutes. When she came back she said that I didn’t have one yet so she could talk to me.

She told me that I had 3 pending fraud charges against me for this payday loan from MyCashNow, but maybe she could help me avoid it. I told her that this was already taken care of and that I had the proof at home since I was at work. She basically made me feel that I was lying to her.

I repeatedly asked her questions about the account and for any information that might help me clear this up. She said and I qoute” she wasn’t going to do my leg work”. I was completely upset at work and couldn’t work until I got this taken care of. I left work for 2 hours during the day to run home and go thru every paper that I had until I found the the stub for when I paid it.

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I had wrote on there that it was paid on Jan 10th 2011. I had used a debit card to pay for it over the phone of a bank account I no longer had. So I had to figure out the account number and go to the bank. They were very helpful in pulling my statement, but it cost me $6.00. I went back to my office and called Jennifer back up and explained that I had the stub and the bank statement showing that I had paid this off for exactly the same amount that she said I owed.

She said she will talk to the lawyers and get back to me. Haven’t heard a thing. I finally got a hold of someone from Smith Haynes & Watson who confirmed that it was paid and referred me back to United Debt Holdings. He told me they were informed that this was paid. I thought according to the Fair Credit act that this type of threatening is illegal and especially since I had already paid this off. I was embarressed that I got a phone call at work and had to take this time dealing with it. These companies do whatever they like and need to start being held accountable. This is horrible that people do this. Please look into this matter.
Thank You

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  • It was my understanding that such companies are not allowed to bother you at work unless you tell them it is ok to reach you at that number. My first actions are always “this is my work number and I cannot accept calls of this nature while working, please send all correspondence to me in writing I assume if you bought my debt you know where I live and I look forward to your mail” and hang up. Never let them get under your skin or risk your current employment. 

  • Unfortunately the law does not provide much more protection than you got. You certainly could take legal action but since you resolved the issue at a cost of $6 you aren’t likely to get much more.Their “threats” were probably just careless errors and not idle.

    Were they rude? Yes. Were they less than competent? Yes. Are those meaningful violations of the law? Not really. You could have stonewalled, gone to court and embarrassed them but frankly I don’t think they would have cared. Nobody with an ounce of compassion wants to be in the collection business or the payday loan business. These folks are unable to find anything better and they have become bitter and angry taking it out on “suspects” like you. Try to forgive and forget and let it go.

    Good Luck!

    • I have to disagree. This conduct is outrageous and actionable. I strongly advise you to take action. This “problem” is rampant and our firm routinely wins recoveries for clients for this exact conduct. Zombie debt is alive and well and until people take the necessary steps and go after collectors for this, it will continue to happen. It would not shock me at all that this consumer will get another collector trying to collect on this paid debt.

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