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Zwicker / Bally's help needed

Date: Fri, 09/16/2005 - 21:53

Submitted by anonymous
on Fri, 09/16/2005 - 21:53

Posts: 202330 Credits: [Donate]

Total Replies: 6


Hello, we are "Ayesha" and "Spirit" from L.A. We're hoping that you all can help us figure out what to do about Spirit's credit problems.

Yesterday she got a letter from the law firm Zwicker and Associates regarding a debt to Bally's of $1141. It said that they had been hired by Bally's to collect the debt, but no suit or judgment has been filed. It also claimed that she had not paid "despite previous correspondence and communication from this office" - which is not true, she has never heard from them before. In fact, this is the first written correspondence Spirit has ever received regarding this debt. At least 2 years ago, her ex-girlfriend signed up at Bally's under her name and driver's license (although the ex's name is on there too). They never used the membership, and her ex said/thought it was canceled but apparently it wasn't.

Bally's never contacted her, at least at this address, and she doesn't recall them doing so at her old address. When she left that address, she never filed a change with the post office, however her ex might have notified any companies that sent mail to her. Bally's did try to call her old cell phone but she always told them she wasn't there and/or that they had the wrong number, because she didn't have any idea there was a debt and thought they were just trying to sell her a new membership. So they never spoke to her by phone regarding the debt.

Spirit has no way of paying this debt - she has absolutely no income as she has been diagnosed with severe fibromyalgia and can not work. She is thinking of applying for disability so that she will have health care when her Cobra runs out. She does not own anything worth money except for a handicapped-accessible van that is in both of our names. We own it outright, there is no loan.

The letter said to contact an account manager, and I'm pretty good at handling these sorts of things, so today I called Zwicker pretending to be her and explained the situation. They said that unless she was willing to report the person who signed up for the account as her to the police for fraud, she would have to pay. I said "Ok, thanks for the information" and hung up.

We have no idea what to expect next or how to get this resolved. Will they try to sue her? She has no income, so suing her would be pointless, not to mention how shamed they would be by her appearing in court in a wheelchair when she supposedly owes them for a fitness membership. If she qualifies for disability, will they forgive the debt? (I know student loans will, she has those too). Can they go after our van? How should we proceed?


First of all, from various things you said in your post, I'm not convinced you are dealing with a law firm at all. You said they asked you to contact an "account Manager", which makes me think this is a collection agency. It is highly doubtful a law firm would refer to one of their attorney's as an account manager

Second, did she at one time have a Ballys membership? To either of your knowledge is this a valid debt?? There are several suggested letters on this site. Write a letter asking them to validate the debt.
Here is one example: http://forums.debtcc.com/forums/about3433.html this letter should be sent Certified mail, return receipt requested.

Third, what exactly is the fraud?? IF you or Spirit suspect this may be a Case of ID theft, they certainly you should file a report, as other issues will certainly come up. But certainly, signing up for a member ship to a health club is not fraud. IN order to prove fraud, they would need to prove you intended not to pay for the membership. Maybe they could pursue charges of theft of services, but even that would be a hard one to prove. Additionally Bally's would have to initiate the charges, not a collection agency (or attorney, if that's what these people really are).That would be VERY BAD PR for Bally.

It's important to remember you can't be arrested for owing a debt. It's also important to remember, if someone want to have you arrested (for any reason) the Charges must be filed by the ???victim???and not by an ???Agent??? (i.e. collection agency or collection attorney).

They are threatening you hoping your cave in and give them money to go away. They cannot take your van (for one thing, it is probably worth far more than the debt) and also unless you gave Bally or them a security interest in the van, they cannot touch it.

IN trying to come up with some information for you I found a good answer for you at lawguru.com. Unfortunately I can't post the link due to forum guidelines, but there is a good answer for you. Generally social security earnings are going to be exempt from garnishment. Hope this helps!

Finally, because of the lies and baseless threats, you should file a complaint with the Federal Trade Commission as well as the Attorney General in your state and the State where these people are based. Good Luck!


lrhall41

Submitted by LCW on Sat, 09/17/2005 - 08:32

( Posts: 1151 | Credits: )


They are a law firm that specializes in collections. I've found a couple of old threads on them here, they sound like nasty folks to deal with.

This is not a case of ID theft, the person who signed them up was her ex-girlfriend. The issue is that Spirit thought the account had been canceled by the ex, but it wasn't. We don't know if the ex called to cancel it but Bally's didn't follow through, or if the ex lied. Spirit did not know there was a debt until she got the letter from Zwicker.

Are there any laws regarding customers being notified of a debt by the original creditor? If she never received notice of the debt from them, does that matter?


lrhall41

Submitted by on Sat, 09/17/2005 - 15:58

( Posts: | Credits: )


Hi AyeshaSpirit

According to the fair debt collection practices act, the collection agency must have to produce the specific details proving that the debt has been legally passed on to them. It must include:


  • The details of the account.

  • All the calculation should be shown of the amount that is owed.

  • Any copies of the papers to be furnished that shows the payment agreement.

  • Provide a verification or copy of any judgment if applicable

  • The original creditor needs to be identified.

  • The Statute of Limitation needs to be proven for the collection of the debt.

  • The license of the collection agency applicable in the state is to be furnished along with the license numbers and Registered Agent

  • Proof of the agreement that the debt collector has purchased the debt or has been hired by the creditor to collect the debt from the debtor as this is the basic contract law.

  • Complete payment history showing the details of the creditors, payment history, amount of the debt, break up of fees/interest should be provided in paper.

  • A copy of the original signed loan agreement between the debtor and the original creditor establishing the debt between both the parties also has to be produced.

If the collection agency is not able to provide the following details, you can dispute with them and get this item removed from your credit file.

Please let me know if I need something more to clear this thing out or if I am mistaken anywhere.

Regards
Roxette


lrhall41

Submitted by roxette on Sat, 09/17/2005 - 16:03

( Posts: 4009 | Credits: )


Hi cloudySky

A warm welcome to you here!

Well, ironically speaking, signing in the debt validation letter should be done in such a way so that you don't have any evidence in the court in case if you ever take it. Include the record number of your certified mail ??? return receipt requested number at the top of your letter.

It is best to sign the letter with your signature at the end overlapping the written text ???Yours sincerely, ??????..??? so that no one is able to scan your name as it is overlapped by the printed text.

Regards
Roxette


lrhall41

Submitted by roxette on Sat, 09/17/2005 - 18:22

( Posts: 4009 | Credits: )