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I am trying to clean my credit report. I am a RJM Acquisitions sufferer. I had them removed from TransUnion, but on Experian they will not budge. While reading Texas codes, I ran across the Texas Finance code, section 392. It requires that debt collectors, as defined by 15 U.S.C. Section 1692a(6), post a $10,000 surety bond with the Secretary of State.

Yesterday, I sent RJM a written notification full of Code citings informing them that there was NO surety bond on file, that I new my rights and requested that they remove the debt from my report. I gave them a deadline of Friday April 6th to notify me that they are legal here or I would notify the State. I also disputed the debt based upon this information with Experian. Today I received the notice from Experian that the debt was to remain. I received the dispute resolution from Experian, I called Experian to find out why RJM was allowed to act without a bond. Basically I was told that the law does not preclude them from listing it as an outstanding debt. But she also said something that scared me...

This is all over a $62 claim starting from a book club. What she said was RJM could file a judgment or resell it over and over again. It is not the resell that scares me. It is the judgment. Would a debt collector spend time and money on a judgment for $62.00 if they do not have the proper bonding??? Has anyone experienced this?

Thanks in advance...

Posted: Fri Mar 30, 2007 4:54 pm Subject:

Welcome to the Community Very Happy

I don't think for that amount it would be worth it to them. A CA has a debt of mine and proceed to rack it up several thousands of dollars-a hundred something a month interest-. I can't get them to validate either. They will probably add interest and sell it to someone else. Maybe someone has experienced this before and can add something.Good Luck..KAren

Posted: Fri Mar 30, 2007 5:34 pm Subject:

Thanks for your reply Bossy4455. I think I posted this in the wrong forum. It should have been in the Dealing with collection agencies forum. Newbie error. Can it be moved?

Posted: Fri Mar 30, 2007 5:57 pm Subject:

Experian are about useless,they actually benefit collectors more than consumers. File your complaints with whoever is in charge of bonding. When the attorney general contacts them,tell him you would settle for a deletion and purge of your record. They have already violated a few rules. Here is the link for two of them:
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#809

http://www.ftc.gov/os/statutes/fcrajump.htm
Read up on your finance code,Texas has some good consumer laws. If you have not already done so,please send this letter certied return receipt.

http://www.debtconsolidationcare.com/forums/about216.html
There is a consumer attorney that is a member here.I am gonna move your topic to the correct place. Try to pm texaslawyer.

Law Student · Posted: Fri Mar 30, 2007 7:15 pm Subject:

I've read the Texas Finance Code section 392, or the Texas Debt Collection Act. It seems that even if they were to sue, there's little they could get. texaslawyer, who is in this group would be able to help you greatly.

RJM is a pack of jokers. As I posted elsewhere, I recently reviewed a dun from them, on which they admitted the last payment was in 1993. They don't seem very smart, showing that the debt's SOL has run in their own letter of demand.

It is my understanding that in Texas they have to provide you with validation of the debt within 30 days, and remove the item from your CR until they do. Again, texaslawyer could help you there.

California Law Student

Posted: Fri Mar 30, 2007 7:41 pm Subject:

Thanks Cajunbulldog and Law Student. I did not send the letter certified but I did send it with delivery confirmation, using 2 day mail. Hopefully that will be just as good. I faxed it as well. The links are helpful. I will try and make contact with Texas Lawyer.

I did not mention in the first post that the letter I sent was in response to the RJM verification letter that was sent after I originally disputed the debt with Experian. After I received the letter from RJM suggesting that I did owe the debt, I did research on the code and called Experian to find out why RJM was allowed to place a derogatory on my credit report when they were not bonded. Their remedy was a 2nd dispute.

After the conversation with experian, I sent RJM the letter regarding the lack of a bond in response to their verification letter. In this letter, I again disputed the debt and the fact that they do not have a bond on file with the Secretary of State.

Law Student · Posted: Fri Mar 30, 2007 7:57 pm Subject:

Usually, disputing the debt with one of the credit rporting agencies can be futile. The credit reportor simply sends a dispute to RJM or whoever, then the collector just says, "yes this debt is valid", then the credit reporting agencies tells you "it's valid". Brings to mind violations of the FCRA. They don't appear to have really validated the debt, so it shouldn't be on your CR if that's the case.

I can't remember, but under the Texas code, if they aren't bonded (and probably not licensed) can't you sue? (I study California Law).

Posted: Fri Mar 30, 2007 8:31 pm Subject:

Posted: Sat Mar 31, 2007 9:40 am Subject:

I just wanted to add a bit of info that I discovered today and want to share with Texas folks. Scott Matte is the contact for both RJM Acquisitions and Island acquisitions. They have the same registered address with the New York Department of State, Division of Corporations. RJM does not have a surety bond posted with the State of Texas but Island does. If RJM gets in a jamb with Texas, he will transfer the debt to Island so that it is legal. This is their business entity info from the New York Department of State, Division of Corporations.

Posted: Sat Mar 31, 2007 11:25 am Subject:

I believe RJM uses a different collection agency to do its work in Texas. (RMA?) From the original post, I am not sure any collection activity was taking place. If you have proof that RJM was engaged in collection activity, not just reporting, then they violated Texas law and are liable for not less than $100 per occurrence for trying to collect without having the bond.

Posted: Sat Mar 31, 2007 12:17 pm Subject:

Thanks for your reply TexasLawyer

Up until the point that I disputed, it was only reporting activity by RJM on Experian and Transunion. Subsequent to the dispute, they sent a validation letter, notified me that the debt was owed, said I had 30 days to dispute and included a payment stub with the amount due noted as $62.00.

It was not until after the dispute with Experian that RJM violated the law. In my case, RJM is representing themselves. Their validation letter mentions no DBA or other business affiliations. The mail to address for the debt is RJM in Syosset, NY.

I am going to pay them the money and have written a nice letter. I am only doing this because I know they will transfer the debt to Island National, which is legal here.

I agree, at a minimum, they should have to pay the $100.00 fine.

Posted: Sat Mar 31, 2007 12:39 pm Subject: The letter I sent

This is the letter I sent them. There may be some errors. I am posting it here because it may be useful, with some editing, for folks in Texas that are being hounded by a collector that has no surety bond.

Law Student · Posted: Mon Apr 02, 2007 7:24 pm Subject:

I would also report them to the Texas AG. They might not be bonded, but they are practicing collections in Texas. On the demand letter I saw, it had a fax number with area code 512 (in Texas). I don't know where the 800 number rings. It was also on an RJM letterhead.

Posted: Tue Apr 03, 2007 8:39 pm Subject:

atxmbb: I think you should seak some legal counsel before you send them the money. The Texas statutory recovery is no less than $100 for this violation. However, you may have some excellent leverage if you find a lawyer to look into this as a class action.

If you are interested, send me a private message and I can refer you to someone who does this type of work. The will give you a free consultation.

And Law Student: You know far too much for a law student. My school didn't even teach me this area of the law. Neither did the bar review courses. I am interested in your background. If you want to work on a future referal relationship, send me a private message.

Law Student · Posted: Tue Apr 03, 2007 10:02 pm Subject:

Thank you very much texaslawyer. The school I attend encourages students to seek a specialization from the beginning, and I have always been interested in consumer law. I have done a great deal of outside research apart from my school. I have a little way to go to sit for the California Bar Exam, which I hear not many pass on the first go round. But I am confident. I subscribe to the findlaw website to get the latest state summaries (for free) and bankruptcy courts, etc. as well. Thanks again, I take that as a great compliment.
Law Student
San Francisco, California

Posted: Wed Apr 04, 2007 7:16 pm Subject:

Law Student: You will find more than enough work in the consumer law area. There are also many opportunities to provide unpaid help to those in need. If you balance it right, you can earn a living and make a big difference in other peoples' lives on a daily basis. Check out the National Consumer Law Center to find more resources for consumer law.

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