Federated Adjustment Company, Inc.

Review: I returned a call 9/26/13 to Federated Adjustment Company .I wanted to find out what the call was for. I was transferred to a collector who stated is was regarding a bill with [redacted]. She stated that the bill was now at $961.10 & earning interest and also on my credit. I told her that I was in dispute with the hospital that called them & also with [redacted]. That the location I was transported from I could have walked. The collector goes on to tell me that I was not in any mental state to do so at that time. At which point I got upset with the collector and told her it was none of her business what my mental state was & that I was not speaking with her any further. I called back and spoke with a "Supervisor [redacted]" but still feel that the collector that I spoke with originally was out of line to speak with me that way. I would like to get my bill resolved with [redacted] an a apology from Federated Adjustment Company. I do not appreciate the way I was spoken to or the way this situtaion was handled

Business

Response:

I apologize if the consumer feels this situation was handled wrong and unprofessionally. While I understand the consumers displeasure with the medical decision that day it was the decision of the attending medical professionals at the time. They obviously thought under the circumstances of the consumers medical condition, whatever that may have been, the request or hope of walking to the location of the next medical facility was not an option. During our effort to explain that, the consumer became defensive and felt offended. I apologize again for any offense she felt. I would be more then happy to work with the consumer directly and set up some sort of arrangement to satisfy this matter. The account is currently listed as a dispute with the credit bureaus as a result of the consumers concerns about the necessity of the service.

Federated Adjustment Co Inc

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Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.

Review: This company is collecting on a debt that I do not owe. On top of that at the time of filing this collection on my reports this company does not have a surety bond in the state of Texas. The Texas Finance code states that a A third-party debt collector or credit bureau may not engage in debt collection unless the third-party debt collector or credit bureau has obtained a surety bond issued by a surety company authorized to do business in this state as prescribed by this section. They are in direct violation of Texas law. This has also been verified with the Texas Secretary of State.

Sec. 392.101. BOND REQUIREMENT. (a) A third-party debt collector or credit bureau may not engage in debt collection unless the third-party debt collector or credit bureau has obtained a surety bond issued by a surety company authorized to do business in this state as prescribed by this section. A copy of the bond must be filed with the secretary of state.

(b) The bond must be in favor of:

(1) any person who is damaged by a violation of this chapter; and

(2) this state for the benefit of any person who is damaged by a violation of this chapter.

(c) The bond must be in the amount of $10,000.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 392.102. CLAIM AGAINST BOND. A person who claims against a bond for a violation of this chapter may maintain an action against the third-party debt collector or credit bureau and against the surety. The aggregate liability of the surety to all persons damaged by a violation of this chapter may not exceed the amount of the bond.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.Desired Settlement: This company needs to remove this collection from all of my credit reports Immediately and all alleged records against me must be purged from their files. If this is not done within 10 days of receipt of this complaint I will file a lawsuit

Business

Response:

This account is no longer active, we have closed it out.

Federated Adjustment Co In

Review: I had several medical debts which were sent from aurora to federated. One of the bills totaled about 1400.00 dollars. I made a payment arrangement with federated by providing my bank acct info and told the to draft a certain amount if money per month from my account. The larger bill was eventually transferred to another agency so therefore federated was not to collect the debt anymore. I found out that federated kept taking money out of my account after the larger bill was transferred for a new medical debt. I did not authorize them to do so. I immediately put a stop payment to stop them from continuing to take my money. I have since paid off all debts with federated but feel they should delete these negative entries from the credit bureaus. They falsely took my money. They now report to the credit bureaus as paid in full, but I want them to delete them all together. I attempted to talk to the [redacted], but he does not respond to my emails.

ThanksDesired Settlement: I want federated to have the negative entries removed from all credit reporting agencies whom they report to.

Business

Response:

M.s [redacted] is correct in saying she has had several accounts with our office. She had multiple accounts sent from Aurora as she stated. She did in fact set up payment arrangements with our office to begin to pay those charges off as well. We had consistent payments from Ms. [redacted] from 3-2013 through 11-2013. We received a new placement from a different medical provider, [redacted], on 6-2013 for $264.00. On 8-2-2013 we spoke with Ms. [redacted], as we needed to set up more payments with her, and we explained we had received a new charge from a different provider. During that conversation Ms. [redacted] authorized 10 payments of fifty dollars to run on the 15th and 30th of each month from 8-15-2013 through 12-30-2013. As of 10-4-2013, Aurora closed the remaining inventory and re listed the remaining balances with another agency, PPS. Since we still had the 264 dollar charge from the NON AURORA provider, [redacted], we continued to process the payments Ms [redacted] authorized. Prior to processing the payments on 10-15 10-30 and 11-15, a notice was sent to Ms [redacted] reminding her we were going to process those payments. It also would have stated on the notice the payment was being applied to [redacted] since it would have been the only active account remaining. None of the previous payments Ms. [redacted] had made were applied to the [redacted] account until the Aurora accounts were closed. So payments of 50 dollars were processed on 10-15, 10-30 and 11-15-2013. and applied to the [redacted] account. On 12-10-2013, we received 3 returned check notices regarding Ms [redacted]' payments from 9-30, 10-30 and 11-15. Two days later we got a 4th notice for non authorized payment from 10-15-2013. The 9-30 payment was actually applied to the Aurora balance since they were still active at that time. The other 3 from 10-15 10-30 and 11-15 were applied to the [redacted] account balance. Federated was charged a 12 dollar fee for each of the checks but since one was posted to a then closed Aurora account, we could only pursue her for the 3 that were applied to the [redacted] account. The total she ended up paying on 2-25-2014 was 264.00 in principle, 36.00 in check fees for the 3 returned checks, and then 8.00 in interest. We have since updated the account as paid in full to the credit reports. While some agencies may agree to delete credit entries once a balance is paid, that is actually a violation of the FCRA. Unfortunately, as we have explained to Ms [redacted] in the past, we will not be deleting this account. We are not reporting erroneously nor did we process any payments that were not authorized by Ms [redacted] herself.

Business

Response:

Federated did nothing wrong in this case and did notify the debtor of our intentions to process payments for account in question. The account should continue to report as a paid in full collection. However to avoid anymore disputes or time being wasted on this same account we have requested the deletion of the entry.

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.