Legal Question in Consumer Law in Washington

Collections theft

I had a collections due and tried to work with the company, I was refi-ing my house and wanted to pay them with the proceeds, they agreed but took a check number as a 'good faith' gesture, I told them NOT to cash it as I did not have the money being on disability. they agreed not to and told me to keep them informed as to how the refi was going, which I did. When I called, the collector always jumped all over me that the loan wasn't done etc, and finally, he, without my knowledge or permission, cashed that check leaving me negative $650 in the bank with checks bouncing all over, I could not pay my mortgage, I was in a PANIC STATE!! I called, they refused to talk to me, said my money wasn' t important to them etc, I wrote to the AG & BBB & FTC demanding they pay me back the money they took, that they also pay off the collections for me and they pay my bounced check fees and the one months mortgage I missed--they paid all but the mortgage & bounced check fees.

Now, can I take them to court for what they did not pay and punitive damages too? I think I was letting them off easy considering they stole money from my account and put me in a panic, and they still are quibbling--now I want blood!!


Asked on 8/04/07, 6:07 am

1 Answer from Attorneys
Elizabeth Powell ELizabeth Powell PS Inc

Re: Collections theft

Blood is not going to help, and Washington doesn't allow punitive damages. Ever. Other sorts of damages, yes, but not punitive.

"Working" with a collection company is an excercise in deception and futility. When you send somebody your account information (i.e. on a check) it is the same as giving them permission to rummage in your bank account. Don't ever do that.

"Good faith" gestures are what con men request from their marks.

My suggestion for you is that you go read budhibbs.com, and google Federal Fair Credit Collection Practices Act, which will lead you to a site called pennlawyer.com. Mr. Rubin has an exhaustive discussion on collection practices.

Frankly I am amazed that they paid anything back to you. Generally, they fall off the planet at that point.

Violations of the Federal Fair Debt Collection Practices Act carry a civil fine of $1000 per incident. You will need to understand this thoroughly in order to proceed.

And you are going to have a tough time finding an attorney who will take this on for you with some sort of alternative fee payment scheme, unfortunately. Not impossible, but you might do better to have a consult and then take the collectors to small claims. The jurisdictional limit there is $4000.

The collectors cannot be represented by counsel in small claims, but they can ask to have the case removed to district court so they can have counsel. Then you are in a better position to get a lawyer.

My bottom line is to recommend that people never EVER send bank account information to collectors. If you review Bud Hibb's site, this position will make sense, I hope.

Sounds as though you had a tough situation, and I am not sure based upon these facts that a court would give you any more remedies.

Hope that helps. Elizabeth Powell

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Answered on 8/04/07, 9:43 am


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