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Maybe someone can shed some light on this matter for me. I received a letter from Simm Assoiciates today. It's kind of got me upset as I've never received this type of letter before. This is the collection agency that is now handling my account with GECC Loans, one of my payday lenders. Simm's is now receiving payments through my debt consolidation company. I received a standard collection letter from them a few weeks ago. Of course, I sent a debt validation request by certified mail. They received this on March 7th. The letter I received today is dated March 12th so they haven't validated the debt.

This is what it states:

It has become necessary for this office to conduct a thorough investigation with regard to your assests and property ownership.

It is imperative that you contact this office upon receipt of this notices. Failure to complay will result in immediate commencement of this investigation.

This is an attempt to collect a debt by a debt collector. Any information obtained will be used for that purpose.

Can a collection agency even do something like this? GECC loans is one of the companies that has added on several hundred dollars in roll over and finance fees after I entered into debt consolidation. They continue to do so even now and are very uncooperative to work with. GECC is not licensed in my state to loan money to begin with. I'm really confused and not sure how to proceed with Simm's at this point. Part of the validation request also included a cease and desist. A collection agency can't sue you right? They can only recommend it to the original creditor from what I understand. So what kind of investigation can a CA do?

Posted: Sat Mar 18, 2006 4:56 pm Subject:

What do they mean? That they're going to check out what you own and try to take your stuff? Like your car and your house? Heck with them.

They're not even licensed here in Ohio, so what can they do, really?

Posted: Sat Mar 18, 2006 4:59 pm Subject:

That's all the letter said and that's the feeling that I am getting. They haven't even taken the time to validate the debt. Crying or Very sad

Posted: Sat Mar 18, 2006 5:02 pm Subject:

They'd have to go to court before they'd be able to take your stuff, right?

What are they going to tell the judge?

"Well no, we didn't validate the debt with her, and she was paying a billion percent interest, and we're not even licensed in her state."

Don't let them get you down..They're just trying to scare you.

Posted: Sat Mar 18, 2006 5:14 pm Subject:

This letter was from the collection agency, not the original creditor. I don't know what the CA can do but I know they can't sue. I'm going to check the FTC website since this is a third party collector. I think it's just another scare tactic. I have decided to go after GECC full force though. Mad

Posted: Sat Mar 18, 2006 5:32 pm Subject:

Go Mishele! Smile

*hands her a cape*

Heck with them.

Posted: Sat Mar 18, 2006 5:59 pm Subject:

Posted: Sat Mar 18, 2006 6:01 pm Subject:

They have not validated the debt, therefore they broke the law with this second letter. I have all the correspondence from them plus all the correspondence to them from me. This is when certfied mail comes in handy. I do believe in the first letter they did not state about the FDCPA laws either. hmmm? Mad

Posted: Sat Mar 18, 2006 9:09 pm Subject:

Way to go Mishele,I havnt received a letter from them yet,but Im sure I will since my $500 loan somehow turned into a $2000 loan with GECC.I had already made three $75 payments to GECC when they turned it over to Simms,Im beginning to think that they know that what they are doing is wrong and are trying to pass the buck to someone else.

Posted: Sat Mar 18, 2006 11:39 pm Subject:

Mishele,

The last agency I worked for sent out similar letters. They advised that they were doing "asset and liability" research. Basically what they have probably done was move your account to the "back end." They weren't getting the money they want in the "front end" so they are trying a new tactic to scare you into paying more money.

I should also mention that the former company I worked for got sued for the verbiage used in the letter. They were implying that they worked in a legal aspect, when in fact, they were just back end collectors. They aren't doing anything that hasn't been done before. They will use skip tracing databases to find out what you own, pull your CBR, etc. They are strongly implying that if you are suitworthy, that they will sue you. If they are an actual law firm, they might be able to get away with sending a letter like that. If they are a collection agency, they are really treading in the gray area.

If you have sent them a C&D letter, this could be what you are getting in return.

Posted: Sun Mar 19, 2006 6:39 am Subject:

Thanks for the input, beatle. I don't think they are a law firm. I checked them on the BBB website and they are a collection agency. They have a satisfactory record. According to the FDCPA laws, they must validate the debt before they can proceed with debt collection on the account. I have all the evidence that I need to prove that they violated the laws here. They sent the first letter on February 13, 2006 and they sent the second letter on March 12, 2006. So it was thirty days apart but I have thirty days from the receipt of the letter to dispute the debt. I did send them a cease and desist letter as part of the validation request. I clearly disputed the debt in this letter. It's all combined in one letter. I am going to file a complaint with the FTC today online. It seems to me that this is not the best collection agency. Well, they are collecting for payday lenders. That should tell me something right there. Confused

Posted: Sun Mar 19, 2006 6:42 am Subject:

Twokid,

I agree with you about GECC. What they are doing is wrong. It irks me to no end to so I have decided to take GECC down now. They are very frustrating to deal with. I'm sure you know that too. Also, I checked GECC on the BBB website. They have a Delaware address as well as the South Dakota address. They give the bank commissioners info in Nebraska to find out their license information. I check with the bank commissioner's office in Delaware and they are not licensed there. I'm going to check out the Nebraska site to see if they are actually licensed in Nebraska. I don't know if they are actually licensed in South Dakota but that is where I have been sending all my correspondence to GECC. It's time to get them gals!

Posted: Sun Mar 19, 2006 7:35 am Subject:

Jessi,

I need to find an avatar of mighty dog with the cape. Was it mighty dog? I can't remember the correct name of the cartoon character. LOL! I think that would be great to have for me now. I just filed my complaint online with the FTC against Simm's. We'll see where this goes.

Posted: Sun Mar 19, 2006 7:39 am Subject:

Beatle,

What is a CBR report? I think this is a scare tactic as well. I thought a CA could only recommend to file suit to the original creditor? I didn't think a CA could file suit. If it is an attorney's office, I would imagine this to be different. This doesn't seem to be an attorney's office to me. Any input would be great appreciated. Smile

Posted: Sun Mar 19, 2006 7:42 am Subject:

Mishele,

Its just another way for collection agencies to bully the debtor they really have no power, considering that your debt was already purchased by them from your original debtor...

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