• Report: #496080
Complaint Review:

Consumer Recovery Associates

  • Submitted: Wed, September 16, 2009
  • Updated: Sat, April 10, 2010

  • Reported By: anonymously pissed off — Dallas Texas USA
Consumer Recovery Associates
2697 International Parkway Virginia Beach, Virginia United States of America

Consumer Recovery Associates CR Assets CR & Associates Consumer Recovery Association Is this legal. . .This company pulled my credit report for no reason claiming I had unpaid debt stemming back to 2001. There is no such deliquency on my credit report. Virginia Beach, Virginia

*Consumer Suggestion: Please read the FTC rules on collections

*Consumer Comment: Yup, it's legal

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First of all, this company left a message on my voicemail as follows verbatim "I'm trying to reach ________ _________.  This is John Shelton and I need to speak with you regarding some paperwork that's been forwarded here to my office out of Dallas County.  I don't believe that you've been made aware of this situation and I do need to get the information to you as soon as possible.  I can be reached at 877-243-5126, or you can reach me direct at 843-278-0375.  Once again (stating my name), it is very important you contact me as soon as possible."

Notice he never mentioned what company he was calling from and more than likely, the name he gave me is fictitious.  And he never mentioned the nature of the call or anything.  (I will keep this recording for my lawyer).  I thought something had happened to a family member or something.  So when I called the number, there was some voice recording that stated you are caller 4 and a representative will be with you shortly.  Once again the voice recording never identified the company by name so when a rep came on, I immediately asked the name of the company. The rep immediately got an attitude and said don't play games.  I said I don't have any reasons to play games.

Evidently, they have your number in the database and automatically identify you from that number because then he said is this _______ _______.  He then said what is the file#? I said the caller did not leave a file # and what is this regarding.  He then started saying we've sent you letters and you didn't respond and started naming off addresses he claimed letters were sent to me in regards to some bogus debt back in 2001.  I said what are you talking about, there are no delinquencies showing on my credit report.   He then went on to say something about reporting it to the IRS as unreported income as a 1099C and I would have to pay them several thousands of dollars.  I was like what the Fu**.  To top it off, he started saying you don't fit the normal profile of someone who doesn't pay their creditors.  I said what do you mean - this MF started naming stuff on my credit report.  I went to check my credit report and sure enough, they made an inquiry on my credit report.. 

Someone please tell me this can't be legal, that they can just pull a credit report on a person when there is absolutely no reason for them to invade your privacy for some bogus BS.  I am so upset right now.   I looked this company up on the BBB website and they have complaints against them.  The owner of this company is listed as Joe Cagle in Virginia Beach, VA.  There is a customer contact of Mr. Kalin Scott  at 757-368-3625.  The BBB has requested basic information from this company, but has not received a response.    I'm curious to know if anyone else has had any dealings with this company and maybe we should all complain to the FTC

This report was posted on Ripoff Report on 09/16/2009 08:43 PM and is a permanent record located here: http://www.ripoffreport.com/reports/consumer-recovery-associates/virginia-beach-virginia-/consumer-recovery-associates-cr-assets-cr-associates-consumer-recovery-association-is-th-496080. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Suggestion

Please read the FTC rules on collections

AUTHOR: Shawnn H - (United States of America)

Bottom line is they are breaking the law.  They cannot use threats to collect the debt.  If they  say they are going to sue or go to the IRS that is what needs to happen.  Next time record them which is legal because of their pre-reocorded message of this call maybe record etc..... ( so it goes both way..at least in CA) It is very clear under the FTC the threats are not allowed to collect a debt.  Send them a letter in writing asking for proof that the debt belongs toyou  and request to only be contacted by writing and they can legally no longer call you.
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#2 Consumer Comment

Yup, it's legal

AUTHOR: Tim - (U.S.A.)

There are a few, I think four, allowable reasons for someone to pull a copy of your credit report without your authorization.

Investigation connected to the collection of a debt is one of these allowable reasons.

If your primary concern is a corresponding drop in your credit score, don't worry. While this is an "inquiry" into your report, it does not adversely affect your credit as would an inquiry in connection with an application for credit.

You stated that the debt they are collecting is not showing up on your credit report. This is because the debt is from 2001. It's past the allowable reporting period which, in most cases, is seven years.

The IRS angle the collector is speaking of is referred to as "imputed income." Imputed income is income in the form of goods or services that are received at no charge. Usually it arises in the context of employment fringe benefits.

For example, if my company provides me with a vehicle for personal use, the value of the use of that vehicle is imputed income. If I were in such a scenario, I would probably look to what people pay per year to purchase such a vehicle. If it would cost $200 per month to finance the vehicle, the IRS says I should claim $2400 of imputed income.

Imputed income can also arise from the forgiveness of debt.

Consider this: if you loan me $200, I am not legally required to claim that money as income. This is because even though it is extra money in my pocket right now, there is a corresponding obligation to repay the money, so my overall "wealth" has not increased.

However, if you decide, out of the kindness of your heart or otherwise, that I do not have to repay the $200, my wealth has increased, because now there is extra money in my pocket that I don't have to pay back. I could, potentially, be required to report the $200 as income.

So their IRS threat is potentially viable. And here's how it would work. Even though the debt is too old to be reported, and probably too old to collect in a legal action, it should still be considered a liability in the eyes of the IRS at this point.

However, if the creditor (assuming that this is actually a legitimate debt) decides that it is going to forgive the debt, you no longer have the corresponding liability that went along with the money, goods, or services that you received but didn't pay for. So what once was a debt is now income that you may have to claim on your tax return.

But questions would still remain of how much income you would have to claim, and at what point in time it converted from debt to income.

Does interest on the debt have to be claimed, or just the principle? I don't know.

Is it considered income at the time the debt is forgiven, or do you have to go back to when the debt originated? Again, I don't know.

If you have to claim the income retroactively, in which case you would have to modify your 2001 tax return, and this results in an increase of taxes owed for that year, do you have to pay interest? I don't know. Penalties? Probably not.

At any rate, why would it ever be in the creditor/collector's best interest to forgive the debt? At this point, all they can really do is call you and send you letters, and a simple cease and desist letter could put a stop to that.

They could take you to court, but you probably have a solid statute of limitations defense. Plus, they can't legally do any damage to your credit report.

But they can still hold out some hope that you will pay the debt voluntarily. So why would they forgive it? Revenge? Not likely.

Long story short: I can't see anything illegal with what they are doing, and the IRS threat is potentially viable. But I really don't think you have a whole lot to worry about.

It sounds like you're dealing with a junk-debt buyer (a company that purchases the right to collect old debt, that isn't likely to be paid, for pennies on the dollar). If a junk-debt buyer was in the habit of forgiving debt, he would soon find himself out of business.

I would advise sending a cease and desist letter and seeing what they do. If they send you a 1099, and if its for any significant amount of money, you will want to have an accountant or (and preferably) a tax attorney review the situation.

Best regards! 

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