First Notice Pre-FDCPA

Long ago Collector Magazine advice

Are the stats higher or lower today?

Collector is a publication of 

ACA International

Old Advice Handout

A little overdone, but eye-catching and still makes the point.

Dicken's Experience

A good site to concisely explain Charles Dickens' father's debtor's prison experience

History in an Hour

1959

Window Envelope Commentary

Envelope History

The envelope. The ubiquitous envelope.  The famous bill-containing window-type envelope.

Americus F. Callahan of Chicago, Illinois, received the first patent for a windowed envelope on June 10, 1902. Originally called the "outlook envelop", the patent initially anticipated using thin rice paper as the transparent material forming the window, though this material has since been replaced by clear plastics. The design has otherwise remained nearly unchanged for 112 years. Now it has been recently judged, albeit erroneously,  a window into a complete panoply of one’s  private credit, or shall we say one’s collection on-goings, not by showing a name-which, of course is allowed, but by showing one of over 4000 collection agencies’ or attorneys’ proprietary,  unknowable and esoteric  identification number .

Unintended consequences

In the federal policing of collection agencies and collection attorneys (over which virtually no one would shed a tear)  , the sometimes arcane and convoluted world of the Federal Fair Debt Collection Practices Act (PL. 95-109), the eleven decade old window envelope has finally been adjudicated a menace to privacy*.

This ruling does not affect the consumer's HIPAA privacy of health insurers' mail--or payments, or current 41 pounds of junk mail each person in the US receives every year (gulp, 100 million trees), but rather creditors’ third party representatives--collectors and lawyers, who attempt U.S.  Mail communication regarding consumer debts.  (Phone is a whooooole ‘nother but equally litigious problem)

Since 1978 the law has been basically a victim of the boiled frog theory. On its face, and on first reading, it appeared fair (the ironic first word in its name) for both consumers--the author was in the business pre-1978 and will attest that the industry  was unrestrained to say the least-- as well as legitimate collection agencies and attorneys—but what a gold mine for the manufacture of predatory legal community members’ fees.

Every time this law evolves via a hyper-sensitive ruling like the one mentioned above-specifically Douglass v. Convergent Outsourcing, 765 F.3d 299 (3d Cir. 2014), it’s another windfall for the legal representatives and their attendant and arbitrary “fees”.  Let’s face it, there is a place for this line of reasoning written into the law: notations such as government agency, important, immediately, now, can not only violate both the letter and the spirit of the law in making a consumer anxious and apt to react not in their best interest or worse—side-stepping the “least sophisticated” consumer’s right to dispute. In the 1970’s that we remember, by firsthand knowledge,  much worse was written on envelopes—thus the congressional thinking was to address this particular problem in the legislation.

However a proprietary and nondescript number appearing on the envelope has not harmed the debtor—nor does the debtor even know he was harmed until, with this ruling, a legal advisor informs him that, yes; he was indeed harmed and by law, could recover $1000.00 for their suffering. Wink, wink, nod, nod. “…You know, now that I think of it, yes, yes, I was harmed by the number ‘172883-182HHG-18-8-3G’, my  neighbors, any the public seeing the letter and my postman all may know that’s a collection agency or legal-type number” –shall we get started and sue?

Would it be wrong in stating the vast majority of suits have swept up legitimate agencies in minor and technical cases such as the above? Maybe. Also, there are probably hundreds of thousands of threats of lawsuits that were settled with the debtor’s legal advisor and never made it to the filing, or court argument stage. One attorney requested $5000.00 from our company, ten years ago for specious violations of the law—where it doesn’t even apply-on a commercial (business to business) case!

Even the consumer is affected by exorbitant legal costs

There have been times when too-precise wording and [mis-] interpretation by the consumer may have been detrimental to their situation. One such example, of many, is when they believe that if they tell the third party collector to cease and desist albeit with no explanation as to why, the collector will simply put their tail between their legs, close the file and go away. The reputable collector will cease;  but for fear of possible lawsuit, and to still protect the balance his client is claiming, he may recommend that his client, the creditor to whom the consumer allegedly owes money, that a lawsuit be instituted—thus causing increased time and expense for all parties, including the court system.

Business Conspiracy

George Bernard Shaw, in a play in 1906, first wrote the phrase, “All businesses are deemed conspiracies against the laity”-a very applicable quote to think about in your own business dealings—whatever they may be.

Is collection, by its definition and purpose more so? It is extremely doubtful-but arguable. Enter “car dealers” (an oft-derided industry) in your favorite search engine.  Not bad—many ads for dealers and deals. Then enter “debt collection.” Quite a Big difference. Debt collection searches yield all the ways a lawsuit or threat thereof will “stop them in their tracks” and assuage the debt. In fact, if the proper word string is typed in, you may get a particular attorney in New York who has made  YouTube videos where he has dubbed in individually, virtually  every collection agency and collection attorney in the metropolitan area (how did he find the time?). So the video says in effect (paraphrasing), “Have you been contacted by [xyz agency] recently? We will protect your rights and bring them to justice for their violations of the FDCPA” Or some such speciousity. 

Be aware that of the hundreds of thousands of lawsuits that have entered against collection agencies in the federal court system since 1978, there have indeed been numerous bad actors in the collection business—as in all businesses, and members of the collection trade association ACA International would be glad to root them out so all are not painted with the same brush. This could happen via an onerous suit or after numerous real violations, or their being dropped by their insurance company or Secretary of State Bonding Division—or in more egregious violations, the state attorney general.

Talkin’ Technicalities but nonetheless Dept.

The Fair Debt Collection Practices Act, 15 U.S.C. §1692f(8) (“FDCPA”), forbids debt collectors from putting on the envelopes of debt collection letters “any language or symbol, other than the debt collector’s address.”

* In Douglass v. Convergent Outsourcing, 765 F.3d 299 (3d Cir. 2014), the debt collection agency mailed the consumer a collection notice that contained the consumers' name, address, and a sequence of letters and numbers in (some accounts say a) “misaligned” clear plastic window on an envelope and poorly formatted letter, that let a QR Code (barcode) and a bare account number show used by the collection agency to internally track the consumer's collection account.

All of this information, including the internal tracking number, showed through the address window of the envelope. The Third Circuit ruled that the disclosure of the consumer's account number on the face of the debt collector's envelope was an impermissible language or symbol, which violated § 808(8) of the FDCPA.

The court was not technically wrong, only misguided. Keep those windows clean!

Watch your Christmas Spending...

Debtor's Prison - 1829

From Jenni's Birmingham Blog

Free Credit Report Information from Federal Trade Commission (FTC) Website

Apparently there are many bogus "Free Credit Report" sites so go to: 

The FTC Government Site for Information.

Abraham Lincoln Collection Agent

Rather than specializing, Lincoln practiced general law, and so we see him taking on both civil and criminal cases, with breaches of contract and patent infringements sharing space with bootlegging, assault, even murder cases. Much of his work concerned debt collection, for which Lincoln was known well beyond Illinois, and these cases provide a unique window on nineteenth-century business. Lincoln also went out on the road twice yearly to try cases in the state’s circuit courts; this edition documents some of these tours in detail.

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The cases represented paint a vivid picture of America in the decades leading up to the Civil War. The nation's surging expansion is reflected in cases over land speculation, property disputes, construction, and, of course, the railroads, whose interests are a consistent theme throughout. Other trials touch on domestic law, the Black Laws, even the California gold rush.

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We thank the University of Virginia Press for the information above.
The Papers of Abraham Lincoln:Legal Documents and Cases
Daniel W. Stowell, EditorSusan Krause, Assistant EditorJohn A. Lupton, Assistant EditorStacy Pratt McDermott, Assistant EditorChristopher A. Schnell, Assistant EditorDennis E. Suttles, Assistant EditorKelley B. Clausing, Research AssociateR. Dan Monroe, NHPRC Editing Fellow

Debold American Gallery : Memorial Day Acquisitions

The Debold American Gallery has just completed the final details and has now taken possession of two rare original photos from the 1933 Chicago World's Fair.

The one on the left shows the tall Hall of Science at night. The official photographer's comments on the reverse claims that the tower was illuminated "...in blue and rose color neon tubes."

The official photographer by the way, was Kaufman & Ferry Co. (425 So. Wabash Avenue)of Chicago, Il.

The photo below is a daytime image "Looking northwest across the lagoon from the court of the Electrical Building." They further note that you can view the vaulting skyscrapers of Chicago's loop in the background.

The Debold of American Gallery 
is a part of BCA Financial Services Collection
Agency of Bloomfield, NJ.

Holiday Season 2006 Collection Agency Message

BCA Financial Services Collection Agency Clients:

Start off 2007 on the right foot:

This past year at BCA we have seen literally hundreds of claims come in to our office with very little or no “back-up” information.

Remember the last time you obtained a loan at a bank? You sat there and filled out numerous boxes of information so detailed that they can tell you the maiden name of your mother. When you extend credit at your business, it’s not unlike a bank loan. While you may not need as much information as the above bank, you’ll need all the basics—plus: TRADE STYLE for business credit transactions and PLACE OF EMPLOYMENT for consumer transactions.

Protect your business – obtain information when giving credit.

Quiz of the Month

Who can tell the folks at the Debold Gallery what, or where this is? The answer will be posted on Thanksgiving Day 2006. Hint: It's in New Jersey. The winner will receive an e-mail of the beautiful fill-length picture of this art deco structure. E-mail John Debold at deboldjohn@bcafinancialservices.com

Now don't cheat by right-clicking and searching "properties" to see what Debold Gallery named the picture.

Weekend Feature: The Debold American Gallery

M.H. Roberts Obituary that appeared in the New York Times, September 21, 1957.
Please feel free to visit the Debold American Gallery. Your first stop should be the "Main Gallery." Here is a collection of some of the finest and rarest of american prints and frames. There's over 500 to view (and examine with Picasa's magnifying glass feature). You may find some of the special exhibits fun and historically informative as well. One stop you should make is the Thomas Flyer at the New York to Paris Race of 1908. Here you'll find photos of family ancestor Montague Roberts, who was the driver at the start (in Times Square, New York City). He had to leave at Wyoming however as he honored his commitment to drive in that season's French Grand Prix. I will add in the near future references to some further reading on the subject.

Below is Time magazine's Obituary on Monty. (They didn't get it quite right however, [see above re: Monty' s departure] but for that matter, neither did the New York Times-shown above.)

Time magazine Monday September 30, 1957:

Died. Montague H. Roberts, 74, mechanical engineer, pioneer automobile buff, who taught Franklin D. Roosevelt how to drive; in Newark, N.J. On Feb. 12, 1908, while thousands of waving spectators roared hoarsely, Roberts climbed into a Thomas Flyer, yanked down his goggles and dusted out of Times Square, pitted against five other massive autos in the first New York-to-Paris-via-the-West auto race. Surviving mud burials in Iowa, sandstorms in Montana, Roberts left his car mates in San Francisco, and they brought the battered Thomas—"the best car in the world in 1908"—into Paris on July 30, 26 days ahead of its nearest competitor (three of the six made the finish).
Here's what American Heritage magazine (November 1996 vol 47 issue 7) said, as was verified by two other book authors, regarding the location of his departure:

Montague Roberts had just been given the nickname Get Here Roberts when he withdrew from the Thomas team in Cheyenne to fulfill a previous obligation to drive in a trophy race back East. By then he’d driven the car for forty days, and he’d driven beautifully, knowing when to press the car forward to make time and when to take it easy to stay out of the ditches as much as possible. As he left, the Thomas had a commanding lead of a week over the Zust; his replacement was a young man named E. Linn Mathewson who was associated with the Thomas dealer in Wyoming.

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A beautifully written and detailed "must read" book on this subject is Julie M. Fenster's Race of the Century, published by Random House. I believe she was the author of the 1996 American Heritage article excerpted above.