In desperate need of some legal advice! Should I file a law suit against this debt collector?
To make a long story short, I had a merchant credit card processing account setup through the original creditor, Cardservice International, approximately 4 years ago. During that time I only made a few charges using the account. They were large charges and totaled just over ,000 altogether. These charges were never deposited into my bank account and I was contacted by a man working with their fraud management department. He wanted me to send out products before receiving the funds so I did not agree and I stopped using the merchant account. I also contacted my bank to block their access to my checking account.
Now they have hired the collection agency Allen & Associates on their behalf to collect the ,000 that they never gave me in the first place! I’ve obtained former bank statements from Wachovia and spoken to a branch manager. I attempted to send this information to Allen & Associates, but the agent on the phone refused to provide me with a fax number where I could send documents to dispute this debt and told me that I should just get an attorney because they will sue me. They did "claim" that a representative from Wachovia will be present to testify that the deposits were made so tomorrow I plan to bring the list of supposed deposits into a branch to get a certified letter from a branch manager stating that they were not. This invalid debt for ,000 is also on my credit report as of right now. I’ve disputed it and it was removed at one point, but it appears that A&A has reported it again.
I need to legal advice on how to proceed. I’ve tried to dispute the debt, but obviously they will not allow me to even show them the documentation I have to support my claims. If I do file a suit against them do I file against the CA or the original creditor?
Tagged with: amp • bank statements • checking account • credit card processing • credit report • creditor • fax number • fraud management • legal advice • management department • merchant account • merchant credit card • merchant credit card processing • wachovia
Filed under: Legal Protection
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Firstly, IMO, Cardservice International is a reputable merchant account processor and the fact that their fraud department contacted you means something was particularly non-standard with the charges you submitted or the terms you had with your customer(s). Tell us more.
My advice is to cease all communication with the collection company, they have you on the run and believe they can eventually intimidate you to pay something. If they call again tell them all further communication is to be by mail and to stop calling you as you dispute the debt.
If they report it to the credit bureaus, you dispute it again to the credit bureaus.
If they commence legal action (which I doubt at this point), you will have ample opportunity to prepare your side of the story. Don’t run around gathering your evidence now, it’s they who have the initial burden.
I don’t think you have a sustainable action against anyone at this point. The collection agency can’t bring a suit unless they own the debt (which is unlikely). They will just "work you" until they get something from you or give up).
Hang tough until actions not words occur and consult an attorney at that time. RJ