CMG Recovery Services out of NY

CMG Recovery Services out of NY.
They contacted me about 2 weeks ago (calling my parents, not me and that violates Fair Debt Collection Act) but when I got the message and called them back, I was told I was being sued for fraud and my drivers' license would be suspended for up to 5 years (this is also what they told my parents in addition to telling my parents they were an attorney's office). They told me to "just go to any computer and type in Sec 399-A:7. At that point they did not even have my name yet.
I did not have a computer online so I told them I would not. Long story short, the loan is NOT mine, it was taken due to my id being stolen by my now 23 year old daughter 2 years ago.
When I asked CMG to send me proof of the debt, they stated they did not have anything as it was an "online payday loan" and they did not have a signature, etc. Nothing except that it was deposited into an account my daughter depleted when she left town 2 years ago using my debit card.
I have no idea who these people are, but because I was scared, I did pay them $100 and set up a "tenative payment plan". Since then, after researching the Texas state laws and this other so-called Sec 399-A:7, I am not going to pay them. I emailed them an email today demanding proof of the debt and that I was disputing it. I will follow up with sending that exact same document via certified mail tomorrow to the address on the letter they emailed to me.

Has anyone else been hearing from them and they can seriously sue (and win) a lawsuit when they don't even have proof of the debt? And they can have a person's DL suspended? If this were my debt, I would pay it........IT IS NOT and this just goes around and around for these id theft items as it has done for 2 years.

If they really did sue, it's possible if the person does not show up to the court date that a default judgement would have been entered for the CA. (but you would have had to had a summons issued, and be properly served)

Sounds like a bottomfeeder. I would even as so much as dispute the 100 dollars with your bank saying you did not realize that they were not a ligitimate company when you gave them the 100 dollars, and you may have to close your account so they cannot debit it anymore, as they will try.

I would also send a C&D letter to them. I would also send them a debt validation letter.


CMG Recovery Services, LLC
481 Oliver St
North Tonawanda, NY 14120


Toll Free: 1.888.711.7577

Fax: 1.716.957.3433

Thanks, that bank account was closed 2 years ago. What I paid them from for the $100 was from just a preloaded VISA card which has no other money on it.
I sent them the following as an email and also am sending it as certified, return receipt to the address on the letter (which is also the address you listed.) If they contact me or my parents again I will send the C&D letter but for now, this is what I am sending which I am guessing will suffice. I will try to get back my $100 at a later date. Waiting to see how "mad" this email makes them. As my next "payment" date was today, I haven't heard anything yet.

Date: Dec 30, 2008
To: CMG Recovery Services
481 Oliver St
North Tonawanda, NY 14120
Attn: Mark Byer


Mr. Byer,
I am writing in response to your email (which is attached) because I do not believe I owe what you say I owe.

This is the first I've heard from you, or any other company on this matter therefore, in accordance with the Fair Debt Collection Practices Act, Section 809(b): Validating Debts:

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

I respectfully request that you provide me with the following information:
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) Provide a verification or copy of any judgment (if applicable);
(4) Proof that you are licensed to collect debts in Texas
(5) Copies of all paperwork submitted for this debt to include paperwork showing signatures which attribute this debt to me.

Be advised that I am fully aware of my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. For instance, I know that: because I have disputed this debt in writing within 30 days, you must obtain verification of the debt or a copy of the judgment against me and mail these items to me at your expense; you cannot add interest or fees except those allowed by the original contract or state law. you do not have to respond to this dispute but if you do, any attempt to collect this debt without validating it, violates the FDCPA;
Also be advised that I am keeping very accurate records of all correspondence from you and your company including recording all phone calls and I will not hesitate to report violations of the law to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.

I have disputed this debt; therefore, until validated you know your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them of my dispute with this debt. Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act § 1681s-2. Should you pursue a judgment without validating this debt, I will inform the judge and request the case be dismissed based on your failure to comply with the FDCPA.

Finally, if you do not own this debt, I demand that you immediately send a copy of this dispute letter to the original creditor so they are also aware of my dispute with this debt.
Thank you for your prompt attention to this matter.

Also don't forget that under the Fair Debit Collections Act, that they have 5 days to send a dunning letter from the first contact.

Good luck!

Thanks beli2005...I did forget that part but will add it in as a deadline for them. I appreciate your help.

Well, no answer from them as of today (and they recieved my email but not the certified/return receipt letter I also mailed out). Either they gave up (unlikely) or they are lying low for a while. Budd Hibbs gave me a "call script" to use if they call me again. Either that or they went to file whatever they can but they are in NY, I am in TX and they are NOT licensed to debt collect in the state of TX and for them to file a lawsuit would mean they would have to file it here and there is no proof based on my first conversation with them (because it was an internet electornic signature loan). Sigh.........to EVERYONE.....keep your info locked up safely (pay stubs, bank info, id's, etc) even from every family member.

You should send a DV letter CMRR, emails are to easily lost in the internet unknown and they can use that as a defense. Plus, since you are in Texas you can really bite them. Look up Texas finance code, chapter 392. Texas law dictates that you can send DV notice anytime, plus they HAVE to cease all collection activity AND provide proper validation within 30 days, or they must remove any reportings to the credit reports.

Plus, for added bite you can cite Texas Business and Commerce Code, Chapter 17, written notice. basically while they have 30 days to validate, they have 60 days to comply with all of it (including removal if they can't validate in 30 days) or not only can you sue them, but you can sue them for treble damages!

Oh and I had one heck of a good laugh... I looked up Sec 399-A:7 and it is about being licensed as payday lenders! You should quote this to them the next time you talk to them:



That by hiring them as a collector, they are acting in a dishonest fashion and will lose their license. Texas also has nice statues about companies who use unethical CAs!

But what I find so hilarious is they told you to go look up reasons why a payday lender could lose their license!!!!!

honestly I would not spend a lot of time messing with these morons....

i would call them and record the call. In that call I would talk about the threat they made of suspending your driver's license. I would do everything I could to get them on tape confirming the threat. and then I would contact your state attorney generals office ASAP with that tape.

this is of course assuming that you live in a one-party recording state. Then again your DV letter very clearly told them that you will record all phone calls, so in that case i would wait to make this call until after they have signed for your letter. at that point they have been duly notified of your intention and have no excuse.

When it comes to identity theft, your best bet is to file a police report, honestly. you can file a report over a specific debt and state that your identity was stolen by someone who used it without your permission to create this debt. I know it's your daughter, but strictly from a legal standpoint it is an option that can cover your butt. Also, be sure to check your credit reports for any signs of this debt.

Thanks everyone, I took those steps also. And yeah, they are quite the bottom feeders. Wish I had not given them $100 when they first called but I got my script written down for when and if they call me again, on what to say. And TX is a one party right to record state meaning I don't even have to tell them I am recording the call as long as I know it.
I doubt they will sign for the letter, I did send it certified, return receipt requested last Monday to the address on attachment in the email they sent to me.
They will lie low for a while and then pop up again, but thanks for the other TX statute info, I'll add that to my "script" if they call me and quote it and tell THEM to go to a computer, go to google.com and type it in. I was shocked when I read what they told me to look up also (should be fun). And the police won't take a report because it was 2 years ago that my daughter did that but I have alerted all credit reporting bureaus but even getting messed up credit straightened out thru them is a nightmare. Send a million "proof of debt" demand letters and get nothing back but it stays on the report as 'valid'.
Thanks again, I truly appreciate the feedback.

please keep us updated on this, I would love to know what they do next!

I registered as a community member so it should be easier to track these and I'll let you know what happens. Last time they went "underground" for about 6 months.....they will either disappear or I missed something and I will get a knock at the door from sherriff's office (but since it is not my debt and I have done everything I can don't see how they can do that based on my conversations with Tx State AG office and Federal Trade Commission and even local sheriff. I'll let ya'll know though. Thanks to EVERYONE for their help and advice.

You should know that the Texas statues won't work over the phone, as they specifically state it all must be in writing. Just so you know.

you are a teacher huh?well that is the biggest bunch of hooey i have ever seen.one,a CA must have license to collect period.some talked about on these threads have no license at all.second,it is up to the CA to prove you not only owe them the debt,but that you owe it period.third,if a lawyer is collecting they also must be bonded in that state...example i am in illinois.if a bottomfeeder calls to collect.let's say PRC for instance.they never state what debt i owe.just that i owe.next they state that they can only take payment by phone.after that they threaten everything under the sun.i send the letters.they violate them.i sue them for FDCPA violations.see how it works?i almost get the feeling you teach collectors and think you can come on here spreading your stupidity.hope people see your idiotic post then mine.now...SCRAM TROLL!!!!!!!!!!

This is true if you don't ask for the documentation in Discovery. If they don't produce it, you file a motion to compel..if they still don't produce you can motion to dismiss (if they don't end up in contempt of court that is).



All you have to do is object to the affidavit as heresay...simple as that. You do that and the judge will not allow it unless they can produce the signer, since this is your basic right under the law.




You can also sue in small claims court.

Oh and yes, you CAN sue someone for not having a bond. Having to have a bond is listed under Texas Finance Code Chapter 392, and then there is this:

Sec. 392.403. CIVIL REMEDIES. (a) A person may sue for:

(1) injunctive relief to prevent or restrain a violation of this chapter; and

(2) actual damages sustained as a result of a violation of this chapter.

(b) A person who successfully maintains an action under Subsection (a) is entitled to attorney's fees reasonably related to the amount of work performed and costs.

So yes, a Texas resident CAN sue for a company not having a bond, states that right in the code I coped & pasted above.

so, let me get this right....you have never filed a case yourself in court regarding debt collection law. yet you have students.....

So, I just have to ask--how is it that one becomes a "teacher" when they have no formal first-hand experience on the matter themselves?

Look, let's cut to the chase. I know who you are. And i know of your reputation. I am not saying that you have not done some good, but last time i knew you had your very own website, with your very own forum, in which to grace everyone with your knowledge that was all learned second-hand, so you dont need to come over here and fight with people about how right you are.

At least with so many of us here, we can speak of things we did in court, things that worked for us and others that didnt. And no, we dont need to post up docket numbers to suit you--if you want to run your website that way, thats your business but we dont do it that way here.

for one thing, I take note of your claim that fdcpa violation cases must be tried in federal court. The FDCPA itself disagrees with you and it is known that such cases can be filed and tried in state district courts, not just federal courts. If you need clarification, refer to section 813 of the FDCPA:

now, i am certain that it may not be the best way to go about it, but telling people that they must file in federal court when the law states otherwise, well, that would have me worried about just how well you actually know this law. Then again, anyone can read it themselves....Many of us here bring experience to the table that you simply do not have. And, considering some of the complaints I have seen regarding your handiwork and level of expertise, you should be ashamed of yourself. I seem to recall a forum experience you took part in from 2001....when you were caught red-handed posting as someone else and claiming to be a 73 year old hispanic woman on $300 per month pension. the IP addresses were compared, and a phone number you posted was checked with reverse lookup....and you were flat busted. To me, this is not the action of a professional, nor is it one of a reputable "teacher". Maybe you can tell everyone here about how youre this massively knowledgeable and highly successful credit teacher, yet you needed a secured credit card yourself?? hmmmm......

Any questions, "teacher"?

Thanks for dropping by and do have yourself a blessed new year. With all due respect to you(!), if we want your advice, we know where to find you on your own website. Not to mention, when I write letters for people, I not only dont charge them over $100 to do so, but mine dont contain grammar and spelling errors.

kthxbyenow

i didn't know this mope has his own site.good lord.