While the credit collection industry is often home to questionable business practices, some companies take unethical and even illegal business practices much further. Consumer Recovery Associates, found online at consumerrecovery.com, also doing business under a variety of other names, is a junk debt company. They purchase debts that have been settled, are past the statute of limitations or are otherwise invalid then attempt, via a variety of strategies, to collect on these debts. Consumers may receive phone calls about their own debts or their friends, neighbors, and family members. Consumer Recovery Associates has, according a number of reports, repeatedly violated Federal Trade Commission regulations.
If you receive a call from an organization identifying itself as CIA and Associates, CC Associates, Consumer Credit Association, Consumer Recovery Associates, Court Company, CR Associates, C & R Associates, Farm CIA & Associates, J Lamb and Associates, you should be wary. Federal Trade Commission regulations require that a debt collector identify themselves and the debt, as well as providing verification of the debt in writing. Intimidation techniques, abusive speech and threats are not allowed under current credit regulations.
How should you respond if you get a call from Consumer Recovery Associates or a similar company? First, provide no information. Do not offer your social security number, bank account information or payments in any way. Tell them not to call and to communicate only in writing. Take the time to check your credit reports and inform yourself about the statute of limitations in your state. Ignore any threats of lawsuits or IRS action. If you do receive information in writing from a junk debt company, respond in writing. Request verification of the debt, proof that the statute of limitations has not expired, proof that they have the right to collect and 30 days to review this information. In most cases, you will see that they lack the legal right to collect your debt, particularly if the statute of limitations has expired. Do not agree to a settlement, confirm that you are responsible for the debt, or make any payments until you have confirmed that the debt is valid and the collection agency has the right to collect.
See rob.orangejack.com/2008/08/26/cr-associates-877-738-4814-8777384814 for a listing of names and numbers typically associated with this junk debt collection company. Report calls from Consumer Recovery Associates to the Federal Trade Commission at 1-877-FTC-HELP.