Worried Sick! Please Help, only have till 5PM!

I posted this in the wrong place already. (Payday Loans Forum) and again in the wrong place, I am so sorry, I am just worried sick.
I got a call this morning from caller ID: IFP INC #866-951-2350. Regarding my son's debt to Best Buy. I told them to call him directly and they said they had. They told me to make sure my son called them back or his lawyer or they would call his place of employment. That this was a serious matter.

I called my son and he said they had left the same message. So he called them. He says they had a lot of information about him, including the amount owed and his SS number, address etc. I was suspicious this might be a scam, since they got him to agree to a monthly payment of $150, reduce the debt from almost $1400 to $900. But asked him for his checking account number so they could do automatic withdraws. This raised a big red flag for me.

I researched them, got a different phone number for IFP though a government site. Called that number and suposedly got the manager, he verified that the name and number of who called me was their employee. He said he would go out to the floor and talk to the person about my son's situation.

I did feel threatened since when I called "Ms J" (original caller) back to ask why, if she had all this information she had to get my son's checking account number. She said the only way they could guarantee collection was to auto draft from bank. I told her I had told my son to place his bank on hold in case it was a scam. She told me she would wait a couple of hours before she ran the first auto draft and if that didn't go through she would call his place of employment.

Another issue I have, even though I was glad she did. She gave me all of my son's information, amount owed, when he last paid, what the debt was, but not what he settled for, since I was willing to pay it off. He is 22. They did not have his authorization to release this information to me.

She also never mentioned she had settled with him for a smaller amount, and told me he owed almost $1,400.00.

She just called me back. Saying that if he paid monthly the amount would still be in full. They would only settle if I lock in the $900 in full by 5PM today!! And I would have to give them MY CHECKING account now!! I don't know what do to! I could just transfer the money to my son and have him pay in full and not disclose to them my checking account number.

First problem my son NEVER authorized for her to disclose his information to me. Isn't this a huge problem for them?

Any idea if he can still pay this back to Best Buy or he must go through this CA?
She said he hadn't paid since FEB 09, yeah I know....

Any help, comments, insight will be much appreciated! I know this is long and winded, but it also helped organized my mumbled and confused thoughts. I am sorry.

OP

Do not pay a thing!!!!!!

Yes it was against the law for her to talk to you about your sons debt. He can now sue them for this. First thing he needs to do is send a debt validation letter to them. The agreement is not in writing therefore it is worthless.

first off never give bank info without something in writing.next time they call let them know you or your son or his employer will not speak to them without something in writing.then file AG,and FTC complaints.again do not pay them a thing until you get something in writing.this sounds like many bottomfeeders we get on here.

Thank you both and I understand what to do.

I am so worried that the debt will get even worse if he doesn't pay or agree to pay today. He does owe the money, he has been months late. So he is at fault.

They are settling only today for $970.00.

After that they already have my son's bank account number and permission to withdraw every month $150, until the $1,400 is paid. Only he agreed over the phone. Does this not count? Won't the bank just draft it?

I will start drafting the letter right now. May I post it here without any sensitive information of course? Just to make sure I got it right.

Thank you!

I personally would not give them any $$$ until I got the agreement in writing. Collection agencies have been known to lie. If they are settling for $970 then why is he willing to have $150 a month drawn out of his account? Also, under the Electronic Funds Transfer Act, they cannot force you to pay by electronic transfer. I don't let anyone into my account anymore.

without something in writing you can dispute the debit as fraud,and his bank will set him up a new account that isn't linked to the old one.stop this scam in their tracks,and don't give them a thing without something in writing.

The thing is, they will settle for $970 if he pays today. But if they have to take installments, they must collect the full amount, $1400, by paying $150 a month until paid off.

Thank you!

Thank you Paul. My last reply was to Aubrey.

I am so afraid to try dispute a debit that was authorized by my son as a fraud. They do say they have him recorded. How do I fight this? dear lord...

again they threatened illegaly,and are therefore entitled to nothing until they furnish something in writing.

NEVER give an account number to a collector! ALWAYS tell them to cease all communication by any means other than the USPS! Back that up with a cease communication letter! Do not believe anything they say about last chances! The harder you make it for them the lower your bill will go unless they give up completely! Read my article at http://tinyurl.com/debtcall for more help! There are more and more attorneys eager to take these cases to collect easy money from collectors that break the law. Check out www.naca.org to find one!

so?they also have it the same tape them strongarming,and threatening him.doubt they will bring that tape into evidence on anything.they will say anything to scare people.dispute it.now that they have his or your bank info it will never be safe.they are counting on you being scared.don't be.they acted illegaly,and won't do a thing except call and threaten.that's it.

First off, take a breath, relax and don't let these people frighten or bully you. Definately do not give them any information about you or your son's bank accounts. As stated above, your son should send them a debt validation letter. Do so via certified mail, return receipt requested. Don't pay them anything unless you get written verification of the debt. Don't be pressured into "pay now for a discount" offers. If the offer is legitimate they will provide it in writing and give you a reasonable amount of time to make the payment. If they call you again say this:

"Persuant to the provisions of the Fair Debt Collection Practices Act, I demand that you immediately cease calling us and communicate with us only in writing. Also, be advised that my son's employer does not permit contact of this nature at the workplace." Don't be afraid to say that. All these people are are voices on the telephone, they cannot hurt you in any way for exercising your rights. Once you tell them this, they are prohibited from calling you (you can also tell them not to contact you at all, but since you indicated that you want to clear this debt up, you may want to get letters from them to facilitate that) at home or at his work. Then include that language in the letter your son sends. The collection agency will have 30 days from the date they receive the debt validation letter to provide you written proof of the debt. If they fail to do so they cannot bother you any further. Once you have written proof of the debt, you can correspond with them to arrange for payment. Make payments via money orders so they don't get your checking account or debit card numbers. If they insist that you send payments via UPS or FedEx, this is a big red flag. Scammers will do this to avoid prosecution for mail fraud. Send payments via US mail only. As to working directly with Best Buy, it is certainly worth calling Best Buy to ask, but they will likely not do so now that its been sent to collection. If they do agree to accept payments from you, request that agreement in writing with the stipulation that they will call off the collection agency hounds.

Wow guys! I am feeling stronger already. You know my son is a kid, he bought all these "toys" when he was 20 or younger. He'd been trying to pay off until he just couldn't. He does have a job but $150 is way too much for him. He also goes to college.

I am just so sorry his credit score has been damaged so badly. Funny thing the lady at the CA told me his credit score was quite good for someone his age. Could this just me another way to make you pay before the score actually gets hit? (theoretically) It's probably already very poor.

I'll get my son to check it.

Just to add. I did not give them my account number. My 22 year old naive son did! He should go to the bank have his account changed tomorrow.

Thank you so much John and Paul and Aubrey and all that have replied.... :::::deep breath::::

(I haven't even eaten all day, these idiots! now I have a headache to boot)

Now that I read a little further down I also suggest - strongly - that your son contact his bank immediately and see if they will stop any ACH debits that these people may make. Explain to them that he believes he was scammed into providing his account information. In your letter to the CA (or if they call you again) tell them you are specifically revoking any authorization made to debit his account (he will probably have to do that, not you). If he can't stop the debit then once it comes out, he can go to the bank tomorrow or Monday and have it reversed, by filling out a form attesting that he never gave or revoked the ACH authorization, whichever situation is applicable. Just be sure to be truthful on the form, as it is a legal document.

Well, take a deep breath and get something to eat - have a cup of tea?

The laws were put in place to help us escape from these strong arm tactics. Use them to your advantage as we all have here. Last July I owed 7 payday loans and was in debt $30,000 on credit cards. Through the help of this board, my payday loans are gone (following advice here) and I've negotiated settlement on 2 credit cards so far. I can sleep at night and not worry about the phone calls.

Follow the advice given (don't let them intimidate you) and you'll feel the same way. If you have to, tell them you spoke to a lawyer who advised you to ask for validation.

Good luck and keep in touch. We'll be interested in knowing how you do.