Debt Collectors Using Prosecutors' Letterhead To Recover Debts

The New York Times:

The letters are sent by the thousands to people across the country who have written bad checks, threatening them with jail if they do not pay up.

Read the whole story at The New York Times

Comments

[Jill1975]

04:16 PM on 09/18/2012

It would be an understatement to point out that there is a conflict of interest here.

[DawnK]

04:16 PM on 09/17/2012

That tactic is dirty and deceiving. It's more disgusting on the part of the District Attorney's offices that seem to have cuddled up to and are spooning debt collectors. Turns my stomach.

[thereisonlyoneparty]

01:15 PM on 09/17/2012

There are specific laws regarding writing bad checks.

The headline implies that the situation is one of regular debt collectors (people seeking to collect unpaid unsecured debts) are using the power of the state to facilitate collection. that is not what is happening at all. People who only read the headline will be completely misled.

[Paul Ar]

01:59 PM on 09/17/2012

Actually, that is exactly what's happening. The only difference between these companies and other collectors is that these guys pay the local DA to allow them to impersonate the DA when collecting the check. I don't think the DA is allowed to license the DA brand.

[thereisonlyoneparty]

11:10 PM on 09/17/2012

Not the same.

I strategically defaulted on student loans (as someone who can expatriate and live free of US law, I can do it). I have committed no crime. I cannot be arrested for not paying. Ever.

Writing a bad check is completely different. Writing a bad check can be considered a criminal act.

The bulk of the complaints seem to be over the nonsense class that serves to up the amount paid to the state for its participation in this little scam. But that state does this type of thing. Get a moving violation. It will likely be reduced to a fine and you will be required to attend a motor vehicle safety class, which will require a fee.

The people have the option to fight this. They choose not to. It is easy for them to just pay. Businesses have the option of trying to get their money without involving debt collection or the DA, too. But that is time consuming and likely more expensive. This appears to be the easiest way to get this job done.

[Air Vice Marshal Park]

12:51 PM on 09/17/2012

Earlier in life, I worked as a bookkeeper for a grocery chain. We did everything possible before turning checks over to the county for prosecution. We accepted partial payments, we accepted promises of future payments ("I'll gladly pay you Tuesday."). We waived the $30 fee for good customers or hardship cases. We were especially reticent about putting people on the do not accept list once they cleared a bad check.

The advent of ACH systems has just about eliminated the accidental bad check. This system instantly clears the check through the customer's account or refuses to accept it at the point of sale. The residue of bad checks left almost always involve deliberate fraud.

[Paul Ar]

02:04 PM on 09/17/2012

If what you are saying was true, there would be no bad checks. More than 50% of bounced checks clear on redeposit. DA-sponsered check collection companies only have a slightly better success rates than regular debt collectors, but they charge sometimes 10x the fees. And most of the fee is for a class you don't have to take. What's the justification for that? .

[Air Vice Marshal Park]

02:47 PM on 09/17/2012

You may live in a town too small to have anyone using ACH check clearing but, where it is used, bad checks are a thing of the past. It converts your check to something like a debit card debit that is instantly transacted. If you don't have enough money in your account, the transaction is declined on the spot

[mdsman]

12:06 PM on 09/17/2012

Just a couple of points....
1 - “If I meant to bounce this check like a criminal, why do I need a class on budgeting?”
See, they don't think you are a criminal, thus the class. Are you saying you are?
2 - Neat new feature in Checkbooks. They now have this thing called a Register. You write your balance at the top and then, when you write a check, you put in this thing and subtract that amount from the balance. When you deposit money, you put in the same document and add it to the balance.
Then, before you write a check, you know if there is enough there. And since addition and subtraction are really hard, you log into your account, every couple of weeks and make sure you disn't make any mistakes. If you can't log in, the bank sends you a piece of paper that has everything you did, listed. You just compare to your register and make sure everything is right.

Basically, if you don't write checks for more than you have, you'll never get these letters.
But we all know, people like to try to gain the system and hope a check doesn't hit before they deposit more money.
It is illegal and can be punished quite severely.

I have had bank accounts for over 30 years, across 4 continents, and have never bounced a check....Zero Sympathy. Stop stealing, which is what you are doing

[stargazer13]

12:12 PM on 09/17/2012

banks have stolen more then bad check writer ,s

ever could dream about :(

[Paul Ar]

12:12 PM on 09/17/2012

Actually, it's not a crime to write a bad check unless you're intending to rip off the merchant. And the $200+ they charge in fees is ONLY because you are being treated as a criminal. In most state, the ordinary bad check penalty is $20 or $30.

[mdsman]

12:21 PM on 09/17/2012

Actually, if it happens once, many banks will even waive the fee.
But, regardless, it is considered fraud and a federal offense.
Punishment is rather severe.
The fact that they only charge a penalty does not make less a crime. would you rather they go for full prosecution every time?

You know that you are writing a check, with out the money being there. If not, then stop using checks. Go with cash, credit or money orders. Addition and subtraction seem to hard

[Ed Baker]

11:37 AM on 09/17/2012

Writing bad checks is a crime. It's fraud.

[Paul Ar]

12:13 PM on 09/17/2012

Not a crime unless you're intending to rip off the merchant.

[mdsman]

12:33 PM on 09/17/2012

So, writing a check, knowing that you don't have the money, is what?
Don't kid yourself, it is illegal.
They should make the fee, for bounced checks, min of $50 or 100% of the amount; whichever is greater.
People bouncing checks add to the cost of everything.
If you can't grasp addition and subtraction, use credit, debit cash or money orders.
And don't even bring up identity theft, that is a completely diferent issue

[Ed Baker]

12:34 PM on 09/17/2012

Prove that's not your intent - you bounced it, then you let it go so long without paying it that the merchant turned it over to a collection agent.

Fraud.

[outtopastur]

05:27 PM on 09/17/2012

Innocent until proven guilty. Deliberately writing bad checks with intent to defraud is one thing--and having a check returned due to identity theft, bogus transaction fees made by the banking institution and an estranged spouse closing the account behind your back is another.

[Ed Baker]

05:28 PM on 09/17/2012

Then don't pay - go to court.

[portfolio]

11:12 AM on 09/17/2012

This unholy alliance between our government and big business has been slowly growing for decades.

It's time to push back.

Do your best to vote for candidates that are NOT lawyers or businessmen.

[Ed Baker]

11:37 AM on 09/17/2012

Better yet, don't write bad checks.

[Cypher6]

01:04 PM on 09/17/2012

You have absolutely no idea how much money the government and multi-national corporations have been stealing from American citizens for over 50 years.

Hint #1: It's in the tens of TRILLIONS.

Hint #2: CAFR - your state - look it up. Do the math you claim to know.

[stargazer13]

12:13 PM on 09/17/2012

don't vote for
R,s & D,s

that would help :)

[inkfink]

10:53 AM on 09/17/2012

"...the right to unilaterally kill it's citizens without any court order or review." I wonder how long it will take before the Oval Office starts taking a percentage of corporate contract hits No doubt the profits would lead to another form of this robo-signing. Wonder how much they're going to charge for the course on how to cooperate with your muderer?

[realitytrumpsbull]

02:53 AM on 09/17/2012

Checks are going away. Banks will be perfectly happy to add to your negative balance.

[disemail6]

01:23 AM on 09/17/2012

The government has started up debt prisons too..... You know, the very reason why people came to America and rebelled against their European monarchs was because all someone had to do in the old country was claim they owed a debt and the innocent person was put in prison, loaded on a boat, and sent to Australia or Georgia.... or they suffered inside the prison till the debt got paid..

America is doing the same thing... It started with dead beat dads and now it is spreading to other debts. Pretty soon that student loan will mean 5-7 years in Leavenworth

[Ed Baker]

11:38 AM on 09/17/2012

Or one could simply not make children one cannot support, or one could not write bad checks.

[Paul Ar]

12:15 PM on 09/17/2012

Yeah. And one could simply not buy food, to be able to afford the $220 fee the collection agency ads to the $20 bad check.

[outtopastur]

05:28 PM on 09/17/2012

Blah, blah, blah.....

[disemail6]

01:19 AM on 09/17/2012

That is ok, because the prosecutor's office will use fake charities to trick traffic violators into turning themselves in by mailing out phoney notifications that the violator has won a huge prize and has to claim it on a certain day at a certain location.... and when the person who thinks they won a new boat or motorcycle show up, they find out the cops are there saving money by tricking fools into showing up and getting arrested

[Paul Ar]

12:17 PM on 09/17/2012

The only difference is the check writer hasn't committed a crime. So far, in this country it's not a crime to owe money you can't pay. (Like $200 for a phony check writing class.)

[disemail6]

02:29 PM on 09/17/2012

Then why are there men in jail who got behind on their child support payments ?

[SolarArray]

10:33 PM on 09/16/2012

Heh, I might, perhaps, maybe owe thousands and thousands and I've not been called. "Come and get me, copper...."

[AppalachianLady]

08:24 PM on 09/16/2012

This should be illegal. In fact, I am not real sure that it is not already illegal, given that it is fraud by both the collectors and the prosecutors. Problem is, who will prosecute the prosecutors?

So I think the US Department of Justice needs to look into this.

[Ed Baker]

11:39 AM on 09/17/2012

Writing bad checks is a crime in most states.

[Paul Ar]

12:19 PM on 09/17/2012

Not unless you're intending to rip off the merchant. It's not a crime to be a lousy at keeping track of your checking account balance.

[AppalachianLady]

03:41 PM on 09/17/2012

Yes, and so is fraud and official malfeasance.

[mamabeverley]

08:17 PM on 09/16/2012

Threatening jail time for someone that accidentally bounces a check AND trying to make them pay for a class is rediculous. I am not talking about people that habitually bounce checks. But, accounting errors do happen, and not just by people. In these days of bank fraud, you could think you have money and dont. I myself, had $4,000 worth of airline tickets charged to my bank account. I was lucky enough to go to the ATM that day and catch it. But what if you did not and bounced a check?? This is total BS.

[disemail6]

01:20 AM on 09/17/2012

bouncing a check is a felony... It is a form of fraud

[mamabeverley]

10:57 AM on 09/17/2012

I have never bounced a check in my life. It seems to me it is only fraud if you do it on pourpose. If someone steals the money out of your account and you dont know it and write a check for groceries thinking you have plenty of money, is it still fraud?? In my case, I had $4,100 in the bank, when they were done, I had $100. If I wrote a check for $125 and it bounced, would it be fraud and a felony?? I hope not. not on me when someone else stole my money....it happens everyday.

[Paul Ar]

12:20 PM on 09/17/2012

Not. Only if you have criminal intent. It's not a crime to be incompetent at keeping track of your finances.

[Ed Baker]

11:39 AM on 09/17/2012

If it's gone to a collector, it wasn't an accident.

[mamabeverley]

01:17 PM on 09/17/2012

Do you really believe that?? My son had surgery in the spring....I paid up front in full. Did not get a bill, did not expect a biil. Imagine my surprise to get a bill from a collector, for $406....that amount I paid. It seems the applied my payment to another patient with a similar name. I never got a bill. And before you say they dont do that, tell that to the woman that got MY cancer treatment by accident. We all had those little name bands and everything that you check before hooking up the IV........OOPS.

[bill555]

05:49 PM on 09/16/2012

What's more, very often the revenue stream from these types of arrangements is not transparent and funds can ultimately be dubiously allocated. Collusion like this should never be permitted as it can easily lead to corruption - this is not rocket science.