Is Receivables Management Corporation of America calling you? You may need to know this.*
Many people whose credit card balances, student loans and medical bills have gone to collections complain of harassment and abuse by third-party debt collectors who constantly call them at home and even work. Most of these consumers don't know that such mistreatment is just as illegal as it is unethical.
Your Rights Under the FDCPA
As an indebted consumer, you have rights no matter how large your debt is. The Fair Debt Collection Practices Act (FDCPA), a consumer protection law that was passed in 1977, prohibits debt collectors from using unprofessional and unethical methods to collect money from you.
Examples of illegal activities include:
- Screaming, swearing, and calling you names
- Calling you at work after you’ve made it clear that your employer doesn’t allow personal calls
- Calling several times a day and either hanging up when you answer or becoming verbally abusive
- Saying that they have a judgement against you when they don’t
- Discussing the debt with anyone but you, your spouse, attorney, and co-signers.
- Threatening to have you arrested
Company Profile: Receivables Management Corporation of America
Receivables Management Corporation of America is a collection agency with offices in White Hall and Wynne, Arkansas. It was established in 1941, has approximately 20 employees, and is managed by its President, Bea Cheesman.
A review of records archived at the PACER (Public Access to Court Electronic Records) website confirm that Receivables Management Corporation of America has been accused of debt collection methods that are illegal under the FDCPA.
Alleged Violations against Receivables Management Corporation of America
On or about February 8, 2013, Receivables Management Corporation of America mailed a debt collection letter to a Wisconsin resident regarding a debt allegedly owed to “Hot Springs Radiology Services, Ltd”.
The letter, which appeared to be created using a template, contained the following text:
Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume this debt is valid.
If you notify this office in writing within 30 days from receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification.
The consumer filed a class action suit against Receivables Management Corporation of America after concluding that the language in the letter appeared to require the consumer to request verification of the debt, when the plain language of the statute required a consumer to dispute the debt.
She alleged that the statement misled consumers about their rights and how to exercise them.
The matter was later dismissed.
Hire an Attorney
The phone numbers for Receivables Management Corporation of America are 1-870-535-1220 and 1-877-448-2302. If either one appears on your caller ID when your phone rings, it means that a debt collector is calling. If they make statements that mislead you about your rights under the FDCPA, hire a consumer attorney.
The FDCPA requires debt collectors to be completely transparent in all communications with consumers, and if you sue Receivables Management Corporation of America, you could be awarded $1,000 per FDCPA violation as well as attorney's fees, court costs, and any actual damages.
Never forget that no matter how large your debt may be, you have rights that debt collectors have to respect, or risk consequences.
*Case taken from PACER (www.pacer.gov). File number is 2:13-cv-01137-CNC from United States District Court, Eastern District of Wisconsin, Milwaukee Division
Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Receivables Management Corporation of America, or any other third-party collection agency, you may not be entitled to any compensation.