California Debt Blog

Persolve LLC

I have a new case with Persolve, LLC that I thought I would write about.

Persolve sued my client. My client doesn’t owe the money. So I filed an answer and served discovery. Persolve just responded to my discovery. They produced no contract, no credit card statements, no evidence of any kind that even had my clients name on it. They have a bill of sale from the credit card company to collector A, then from Collector A to collector B then from Collector B to Persolve. The bill of sales don’t show any accounts that were sold, so you can’t even tell if they own this account.

They claim that they don’t need to have the documents in order to sue my client. They literally sued her because they have a CD with her name, address, and a dollar amount on it in a spreadsheet. Sadly, they would have won if she just ignored it, which is why they make money doing this. 

While I would like to say I am surprised, I am not. This is standard operating procedure.

If you have been sued by Persolve, call an attorney. You need to fight with these people to make them prove that you owe anything.

Brachfeld Law Group and Erica Brachfeld

I have an important update if you have been sued by Erica Brachfeld or Brachfeld Law Group. This also applies if you have settled a case with Erica Brachfeld or Brachfeld Law Group and you are expecting payment from them.

I settled a case with them two months ago. The settlement called for them to make payments. (The specific terms are confidential and I will not disclose those.) The first payment was made, but not the second payment. I inquired to her attorney about the payments. Here is what I was told:

"Unfortunately Brachfeld Law Group has informed me they are unable to pay settlements at this time.  They are experiencing cash flow issues and can’t make payments."

In talking to other people I know, I understand Brachfeld has laid people off as well. It appears that Brachfeld may be going the way of Mann Bracken.

My advice if you have been sued by Brachfeld: file an answer to the lawsuit and fight her on it. I don't think she will be able to proceed with these cases much longer.

More on sewer serves and debt collectors

Crain's New York Business has an article today about sewer service in New York. The article points out "The spread of sewer service mirrors the growth of the debt collection business, which over the past 25 years has grown alongside the explosion in credit-card and other kinds of consumer debt."

According to the article, there is a new report from the New Economy Project that shows a significant increase in debt collector's using sewer service techniques. This group has filed suit against one firm alleging sewer service practices.

So what do you do to protect yourself? First, if you are receiving letters from debt collectors, periodically check the court where you live to see if a lawsuit has been filed. Some counties, like Sacramento, Santa Clara, and others, let you check online to see if you have been sued. Others are not online, but a phone call to the clerk will get the trick done.

Second, if you believe someone thinks they served you, either because you found papers on your front step, a neighbor says something to you, or you get a judgment or garnishment notice, immediately call an attorney. A sewer serve can be set aside, but it has to be done quickly. Don't delay in protecting your rights.

A sewer serve is a violation of the Rosenthal Act as well as the Fair Debt Collection Practices Act. But that does not seem to be working to stop this heinous practice. In the meantime, we need to wait for our legislative leaders to increase the penalties for sewer service situations.

More on Regional Arbitration Services

I have written about Regional Arbitration Services before. Sadly, so have others and others. Apparently, they have the same MO time after time. They call, threaten that the police are coming, then try to bully you into paying them money. I have two clients with the same situation. So, we responded the same way each time: we filed a lawsuit.

You would think that a company that thinks it is owed money would respond to a lawsuit. You would think they would at least bother to file an answer. But they have not. Two cases - no answers. They have not responded to discovery either. These folks should be in the dictionary next to the word bully. If you say no, they yell, scream and threaten. But the minute you stand up to them, they hide and cower in Canada.

My advice: if you receive a call from RAS, or any of the other multitude of names that they go by, call an attorney. A letter or two from an attorney should stop these people. Do not pay them. Do not bully them. Take careful notes on what they say and then let a professional put an end to this for you. If people stop paying them, they will go the way of Mann Bracken and end up bankrupt.

FAQ: What is a default and why should I worry?

Question: The debt collector sent me a "Notice of Entry of Default." What is this?

Answer: The short answer: a Notice of Entry of Default means that the debt collection attorney is asking the court to enter a default, or note that you did not file an answer. This effectively ends the case.

Why does this matter? If you cannot respond to the lawsuit, they win. Its like a forfeit in sports. The debt collector wins and you do not get a chance to prove that you do not owe the debt, that the debt is not yours, or show that they have no admissible evidence of the debt. In other words, you lose.

All is not lost. If you timely file a motion to set aside a default, you may still get your day in court. This is especially true where you can prove you were not served with the lawsuit. In other words, you have to show that this was a sewer serve.

If you receive a notice of default, you need to talk to an attorney immediately about your options.

Some debt collection phone numbers to watch out for

Based on calls to my office, existing clients and some research there are a few numbers you need to watch for on your caller ID:

1. 347-772-2135 - this is the number that comes up in the fake police scam I wrote about earlier today.

2. 877-498-1496 - this number is for a company that calls itself Check and Credit Reporting, Inc. They are not listed with the NY Secretary of State, where they claim to be based.

3. 888-900-3120 - this company is called Regional Arbitration Services. They are based out of NY, or Ontario, Canada or Colorado. They appear to be a debt collector, but have threatened to have people arrested.

If you get a call from one of these numbers, tell them that you will not take any calls, get the name of the person you spoke to, and obtain an address where you can send correspondence. They typically will not give you an address. Then talk to an attorney about your rights.

If you have phone numbers that you think need to be added to this list, please email me at jonathan@jonathangstein.com so that I can look into those as well.

Fake Debt Collector Scam

This story is courtesy of News10 in Sacramento and Suzanne Phan.Here are the highlights of the story:

"A Yuba City woman nearly fell victim to a terrifying scam involving a fake debt collector and a phony cop. Michelle Bertsch received a dozen calls at home and at work on her cellphone in March from a man claiming to be a debt collector. The man demanded Bertsch pay a due balance of $1,395 or pay in installments of $500. But Bertsch didn't owe anyone any money.

Then, after about a dozen calls from the alleged debt collector, Bertsch received a call from a woman pretending to be a Yuba City police officer. According to Bertsch, the woman identified herself by name, said she was a police officer with Yuba City Police, and then said "I'm coming to your work, you are getting arrested and sent to jail for seven to 21 days." Adding to her concerns, Bertsch later dialed the number shown on her cellphone and it truly did connect her with the police department.

The Better Business Bureau says that number has been used by numerous scam artists. "It says it's located in the Bronx. But people have gotten calls from it from all over. It's even traced from out of India," said Almond. "All they're doing is dialing for dollars all day long." 

According to a press release from the FBI, Internet Crime Complaint Center has received many complaints from victims of payday loan telephone collection scams. The release stated: "How the fraudsters obtained the personal information (of victims) varies, but in some cases, victims have reported they completed online applications for other loans or credit cards before the calls started."

The Better Business Bureau say people need to realize that the police department does not call to collect debts."

This is mostly old news to those of us who represent consumers. The scary part is the debt collector using technology to mask its number and have it appear to be the police. The police WILL NOT call you over a debt. It is a civil matter. Do not let the debt collectors bully you over this.

If you get a call like this, call the police and confirm they are not calling you. Then file a report. You may also wish to contact the BBB, the FTC and talk to an attorney about your rights.

 

More on JPMorgan Chase

Last week I wrote about the California Attorney General suing JPMorgan Chase for its debt collection practices. Today, Lawyers.com comes out with an article abou tthe same issue.

There are two issues that should be pointed out.

First, these practices are simply not acceptable. Suing someone without proper support should not be permitted. Obtaining default judgments when you know that you have not properly served someone needs to be stopped. This lawsuit from the California Attorney General goes a long way to stopping that.

Second, the sheer volume of lawsuits filed by debt collectors clogs the court. "Tort reformers" talk about how many lawsuits are filed by personal injury attorneys. JPMorgan Chase was filing more in a DAY than are filed in months by personal injury attorneys. And that is just one debt collector. This clogging of the court uses judicial resources that could be used to help so many more Californians. While JPMorgan, Capital One, Brachfeld and Associates, Legal Recovery Law Offices, Frederick J. Hanna and Associates and the other debt collectors have every right to use the court system, if they are filing lawsuits without making sure they have the proper paperwork, it delays, even denies, justice for the rest of us.

Remember, debt collector's will come after you aggressively. While the California Attorney General is doing her part to stop this, you must still be vigilant and protect your rights.

JPMorgan Chase sued by California Attorney General

According to Yahoo, JPMorgan Chase was sued by the California Attorney General. The basis of the lawsuit is that JPMorgan Chase is filing lawsuits in California without any support. Basically, these are nonsense lawsuits where Chase cannot prove anything, but filing them in an effort to bully consumers into paying.

Yahoo reports that the lawsuit claims that JPMorgan Chase assembled a “debt collection mill that abuses the California judicial process,....” The lawsuit seeks "to hold Chase accountable for systematically using illegal tactics to flood California’s courts with specious lawsuits against consumers...."

This isn't anything new. Although JPMorgan Chase filed 469 lawsuits IN ONE DAY, they are not alone. Capital One, Persolve, LLC, Bank of America, Wells Fargo, FIA Card Services, Brachfeld and Associates, are all doing the same thing. The lawyers have very little information when they file a lawsuit. Once an answer is filed, they don't want to proceed because they cannot prove the facts.

If you have been sued by JP Morgan Chase, Capital One, Persolve, LLC, Bank of America, Wells Fargo, FIA Card Services, Brachfeld and Associates, Legal Recover Law Offices, CIR Law Offices, or any other debt collector, you should immediately talk to an attorney. My office gives a free consultation to anyone sued by a debt collector.

FAQ: Do I really owe a civil fine for shoplifting?

Question: I have received a letter from an attorney demanding money after my child (or myself) was accused of shoplifting. Do I really owe this money?

Answer: Maybe.California Penal Code section 490.5 states "The parent or legal guardian having control or custody of an unemancipated minor whose conduct violates this subdivision shall be jointly and severally liable with the minor to a merchant or to a library facility for damages of not less than fifty dollars ($50) nor more than five hundred dollars ($500), plus costs."

But does this mean you are automatically on the hook? No. Many companies will have an out of state law firm, typically in Florida, send a demand letter for $500. Sometimes the letter is for more claiming additional "costs." This works out well for the retailer because it is hard for an individual to find an attorney willing to help for less than $500. So it becomes a situation where it is cheaper to pay these folks to go away then it is to hire an attorney and fight it.

If you receive one of these letters, you should look for an attorney to consult with. I offer free consultations on this issue of restitution. Call me or email me and we can talk about the letter and your rights.