If receive a debt validation letter, please read the fine print on both the stationary and envelope!

Debt collection tactics in the AE case:

• The top of the letter contains an address, but no company name.
• In small type at the bottom right of the letter are the initials DBAMEXBS….as in, Doing Business as American Express BS!
• The envelope contains no company name or address.
• The date of the letter is different than the official “post office” date on the envelope.  The date on the envelope reveals that it was mailed ten days later. Why the time lag?
• The sender gives the intended victim 30 days to dispute the debt “from the date of this letter” (or else!).  By holding the letter for two weeks, the debt collection group hopes to heighten fear in the heart of the recipient – convincing them to call the phone number listed on the letter.
• Even the amount of the disputed debt is wrong.
• The zip code included on the stationary and envelope are not even close.

If you receive an American Express debt collection letter that appears fraudulent, don’t call the number listed! If the sender failed to include your full credit card number, they don’t have it. Don’t provide it.

Phone American Express directly to validate your debt.  If you owe money but don’t wish to phone American Express, you should: 1) contact an attorney; or 2) respond in a few sentences stating that you dispute the debt. Full stop. No more.  Type your name, but don’t sign the letter. Don’t give your signature to crooks.

How could such a debt collection group get their hands on American Express credit card dispute cases?

The following article by Jeffrey Horowitz of the American Banker provides insight.

Bank of America has sold collections agencies rights to sue over credit card debts that it has privately noted were potentially inaccurate or already repaid.

In a series of 2009 and 2010 transactions, Bank of America sold credit card receivables to an outfit called CACH LLC, based in Denver. Co. Each month CACH bought debts with a face value of as much as $65 million for 1.8 cents on the dollar. At least a portion of the debts were legacy accounts acquired from MBNA, which Bank of America purchased in 2006.

The pricing reflected the accounts’ questionable quality, but what is notable is that the bank could get anything at all for them. B of A was not making “any representations, warranties, promises, covenants, agreements, or guaranties of any kind or character whatsoever” about the accuracy or completeness of the debts’ records, according to a 2010 credit card sales agreement submitted to a California state court in a civil suit involving debt that B of A had sold to CACH.

In the “as is” documents Bank of America has drawn up for such sales, it warned that it would initially provide no records to support the amounts it said are owed and might be unable to produce them. It also stated that some of the claims it sold might already have been extinguished in bankruptcy court. B of A has additionally cautioned that it might be selling loans whose balances are “approximate” or that consumers have already paid back in full. Maryland resident Karen Stevens was the victim of one such sale, which resulted in a three-year legal battle (see related story).

Bank of America declined requests to comment for this story, other than to say through spokeswoman Betty Riess that it works with credit card customers to try to resolve delinquent debt issues. CACH did not respond to several phone and email messages seeking comment on the terms of its purchases.

Some industry observers said that the language in Bank of America’s sales documents should be regarded as standard legalese intended to protect it against a disgruntled buyer’s legal claims. And even though Bank of America refused to stand behind the accuracy of the records it sold, debt buyers are the ones who make the call to sue.

Protecting your rights,

Dr. Joyce Starr

Related Post:

Credit Card Company Beats Wall Street Estimates by Raising Interest Rates

Master Card and Visa have been gouging cardholders for years, while American Express remained consumer and small business-owner friendly. Not any more. American Express raised interest rates about a year ago. Rates were hiked by over 5 percent annually in our low interest economy. The purported reason: Too many cardholders were walking away …

American Express Credit Fraud Alert – Phony Debt Collection on Behalf of American Express originally appeared on Rights Radio™ with Dr. Joyce Starr - An Independent Voice on May 14, 2012.

Joe shares a story about a client who lost several rental homes and cars due to a case of mistaken identity – but it’s definitely not what you think. Listen and enjoy.

Interview highlights: How a good financial manager can use your credit history backstory to reverse an initial credit rejection.

“A really good financial manager – whether auto or mortgage  – will typically be the person who pulls your credit file and examines it. The job of a good credit manager is to explore those issues with you.

Lazy Finance Manager

“A young man visited us at the car dealership. He had filed for bankruptcy, but we noticed that he had good credit two years prior to filing. He lost a couple of mortgages/houses to foreclosure and 3 vehicles were repossessed. We realized that there must have been an event. We told him that the banks need to know what happened to you – your story.

He said it was a case of mistaken identity.

“That piqued our interest. We said, ‘What do you mean by mistaken identity?’ He responded: ‘I was mistaken for someone else and shot 5 times. While  in the hospital, I lost my homes and my vehicles.’

“This was  confirmed by over 100k in medical bills. The bank said it didn’t want anything to do with him. We replied, ‘You need to hear his story.’

“The bank finally said, OK, we will do the deal with at least 5k down. It wasn’t a problem. He was a tradesman in the construction industry and was good at what he did. He was able to get his new truck, his credit on track, bought another house and wiped out the issues that plagued his credit history.

“Most people think that the banks don’t care about your backstory. They do, but someone must advocate on your behalf and tell them what happened. Unless they know there is a backstory, they will look at a deficient credit report and reject it out of hand.

“Here’s the key: We waited for the bank’s turn-down. At that point, we knew which credit analyst was looking at the submission, contacted him, explained the backstory, and the decision was turned around.

“If you’re applying for credit, particularly with car dealerships, your initial contact will be the financial manager at the car dealership. While some are lazy and will drop it from the start, others  will go the extra step and try to convince the bank that this is a contract worth considering. Finding yourself a good dealership who is ready to be your advocate is an important issue.

“It’s based on relationships – do I want to do business with these people? In the mortgage industry, you’re still dealing with a point person. It may be the loan person at the bank or at the mortgage company. There should be one person you can talk to directly. They want to put the deal together and are looking for reasons. You need to have a good backstory.

To your credit!

Dr. Joyce Starr

Related Posts:

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The Rights Radio Power Hour features car loan financing: Why and when good credit can hurt you. My guest Dora Lee Stallard, finance manager of a Nissan Dealership and also the director/founder of FreshStartIndy.com. Show Date: April 8, 2009 Preposterous as it may sound, it’s often easier to obtain a car …

Bank Overdrafts: Outrageous Bank Overdraft Fees & Practices – How to Prevent Excessive Overdraft Fees

The Rights Radio Self Help Hour features outrageous bank overdraft fees. Consumers are being raked over the coals by overdraft rates and by the reordering of debits to increase fees. Show Date: April 9, 2009 Rights Radio financial guru Joe Stallard joins me in identifying ways to prevent or reduce exorbitant …

Credit Guru Joe Stallard: How to Repair Your Credit

Rights Radio.com features credit guru Joe Stallard: Lifting the shroud of secrecy on credit issues, credit repair, credit bureaus and how you can raise your credit score. Following a career spanning some 15 years in financial services, Joe Stallard has gained valuable insights into the inner workings of the credit …

Credit Report “How to” + Backstory: Explaining Your Negative Credit Score originally appeared on Rights Radio™ with Dr. Joyce Starr - An Independent Voice on February 18, 2011.

Purchase the audio replay on Starr Publications.com.

Purchase the Insiders PDF Report: How to Repair Your Credit Score.

Highlights:

• How many years does a negative item remain?
• Can credit card companies deny a favorable rating even when overdue bills are paid?
• What if derogatory items are not removed?
• Isn’t it more difficult today to file for bankruptcy?

“There is so much secrecy around this arena. Let me give you an example. People today have access to their credit records today only because congress enacted this right into law. When several congressmen ran into credit issue problems, they began to understand that is a highly secretive and powerful world. This industry doesn’t want you to know a great deal. Once the credit bureaus satisfy their legal requirement of giving you this free report, you could soon find yourself mired in a mess of corporate policies and non-responsiveness to the consumer.”

Purchase the audio replay at Starr Publications.com.

Purchase the Special Insiders PDF Report: How to Repair Your Credit Score.

Joe Stallard is a member of the Rights Radio Braintrust. You can purchase a one-on-one consultation with Joe about your credit score repair problems. Contact Us for Information.

How to Repair Your Credit Score. Listen to this RightsRadio.com show for answers. originally appeared on Rights Radio™ with Dr. Joyce Starr - An Independent Voice on July 27, 2008.

Following a career spanning some 15 years in financial services, Joe Stallard has gained valuable insights into the inner workings of the credit and finance industry. His experience includes both the auto industry, where he was the "dreaded" finance manager, and the mortgage industry as a loan officer.

Joe discusses credit issues – including credit repair, recovering from bankruptcy and dealing with the credit bureaus – in a practical, no-nonsense approach sure to get results.

Lifting the shroud of secrecy surrounding the credit and finance world, he offers the consumer a common-sense strategy for dealing with real-world issues that impact the majority of people today.

Joe will address the ten most common questions that he encounters.

Listen to Rights Radio on July 16, 2008 at 5:00 PM EST for the answers. Join our mailing list below & receive a direct link to the LIVE show. Call-In Number (US/Canada): 1.888.815.9756

A few highlights:

• I have always had a sterling credit rating, or so I thought. Yet, my credit score is still not very good. Why is this and can I do anything to raise the score?
• How can I get derogatory stuff removed from my credit report?
• When I contacted the credit bureau about removing a derogatory item, they said that they had confirmed" the bad item. What’s up with this and how can I change it?

Joe Stallard is a member of the Rights Radio Braintrust. If you would like a private, one-on-one telephone session with Joe, please visit our Contact page.

Credit Guru Joe Stallard: How to Repair Your Credit originally appeared on Rights Radio™ with Dr. Joyce Starr - An Independent Voice on July 1, 2008.