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  1. #1
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    Fraudulent Debt Collectors Working for Company?

    A few years ago I made a down payment of about $7,000. A few months later some personal and economical issues strongly affected my financial situation. This caused me not to make any payments for this. The charge was sent to collections and ruined my credit. About a month ago from today, I received a call from a debt collector. I spoke to him for a while and requested a callback. He offered me to pay $4,184 in which case my debt would be completely removed. I owed a total of about $13,000 because of the interest that I got over the years. I thought this was a pretty good deal. I assumed it was legit because I was positive this was a legitimate debt collector. He knew all my debt, the amount that it was rising, e.t.c. I also asked him to provide verification and he did. I sold some of my major valuables to gather the money and called him back. I made payment through my debit card and finally felt free from the debt. Now today, I check my credit report. I see that instead of wiping my debit, he subtracted the amount I paid from it. It showed that I still owe $9,763. This is the exact amount that it produced if you subtract the amount that I paid from the original amount. I thought to myself and I relied that this couldn't have been an external scam. This person was clearly working for the company since he did not gain anything from this. He led me into believing that this would remove my whole balance, but instead it was a payment. How can a bank try to get money by fraud? This debt was with Citibank and they are a very reputable bank. Is there any way I can get my money back? All I wanted to do was fix my credit so I can refinance my home for lower interest. Also, please do not negatively comment on my debt because many people these days have much higher amounts of debt then this.

  2. #2
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    How is that fraudulent? He's just a smart debt collector! You sill owe them the rest of their money.
    Respectfully,
    Mr. Terrence

  3. #3
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    Quote Originally Posted by THAMAN View Post
    How is that fraudulent? He's just a smart debt collector! You sill owe them the rest of their money.
    That's fraudulent because he lied about clearing the whole debt. That doesn't make him smart, any debt collector who lies can get what he wants. He has the customers trust because he is working for the company.

  4. #4
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    That's not correct, they just lie to get their money.
    Respectfully,
    Mr. Terrence

  5. #5
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    Quote Originally Posted by Spunkyasp View Post
    That's fraudulent because he lied about clearing the whole debt. That doesn't make him smart, any debt collector who lies can get what he wants. He has the customers trust because he is working for the company.
    I hope that you have some kind of agreement in writing. If not, try to get something in writing ASAP.

    It could just be a glitch -- let's hope so.

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  6. #6
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    Quote Originally Posted by Mike - Limestone View Post
    I hope that you have some kind of agreement in writing. If not, try to get something in writing ASAP.

    It could just be a glitch -- let's hope so.

    -mike
    I asked them to send me a confirmation letter but the never did. Should I contact them for the writing agreement or will they know something is up?

  7. #7
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    I find they do anything they can to get money, lying is one of them.
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  8. #8
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    Quote Originally Posted by Spunkyasp View Post
    I asked them to send me a confirmation letter but the never did. Should I contact them for the writing agreement or will they know something is up?
    Yes, contact them asap and try to get something (anything) in writing. Good luck!

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  9. #9
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    Quote Originally Posted by Spunkyasp View Post
    I asked them to send me a confirmation letter but the never did. Should I contact them for the writing agreement or will they know something is up?
    What collection agency was this? Did the agency own the debt or were they collecting on behalf of CitiBank?

  10. #10
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    Collection agencies can make settlement offers but usually you get the settlement offer in writing prior to wiht all the account information on it.

    Some guys calls up and says yea just gimme 4,100 and you hand out a debit card number over the phone?
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  11. #11
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    Yeah Sorry once you go into debt collectors don't care what they do to get your money.
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  12. #12
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    If they offered you a settlement, and lied about it, thats definitely illegal. I would call Citibank and talk to them. If they made a mistake, easy fix. If he lied, do a charge back because he committed fraud. Simple fixes
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  13. #13
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    Once your account goes into collection, I don't think the lender has any control of your debt its all in the hands of the collection agency, but I could be wrong. Also they would do anything to collect whats owed. I'm pretty sure agents work on commission.
    Respectfully,
    Mr. Terrence

  14. #14
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    Quote Originally Posted by RandyT View Post
    If they offered you a settlement, and lied about it, thats definitely illegal. I would call Citibank and talk to them. If they made a mistake, easy fix. If he lied, do a charge back because he committed fraud. Simple fixes
    Thank you, I will do just that.

  15. #15
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    Similar thing happened to me but on a smaller scale. I made a payment deal with one guy at an agency, sent off $1000 via western union, and then the next week I find out the guy quit and instead of having any deal worked out they simply subtracted it from the larger over-inflated debt. He just wanted whatever commission he got from me before leaving. Since my credit was already fubar I just waited until the account went to the very last creditor before court action and made a decent settlement with them. ALWAYS get stuff in writing.
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  16. #16
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    I just noticed the charge came from "Citicorp" what will happen if I file a chargeback for this?

  17. #17
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    Do you have the guy's name or any other information? Even the name of the collection agency?

    Call Citicorp and explain to them what the deal was and that the collection agency hasn't kept it's side of the deal. Explain to them that they're not getting another dime and you are going to file a complaint with the Attorney general for violations of the Fair Debt Collection Act. If you keep pressing them on it they might fold but without anything in writing you're kind of screwed.
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  18. #18
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    Debt collectors routinely use illegal or unethical manners to get money. Anytime you do anything like an agreement or even a check over the phone (which I would never do again), make sure you get it in writing. Tell them you cannot proceed until you have the agreement in hand, and signed, on there company letterhead.

    Its bad to owe a debt, but its worst having to deal with scumbags trying to trick you into something totally different then you agreed to.

  19. #19
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    Quote Originally Posted by csparks View Post
    Anytime you do anything like an agreement or even a check over the phone (which I would never do again), make sure you get it in writing. Tell them you cannot proceed until you have the agreement in hand, and signed, on there company letterhead.
    VERY good advice. Everyone should follow this in future similar scenarios.

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  20. #20
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    Quote Originally Posted by Spunkyasp View Post
    I just noticed the charge came from "Citicorp" what will happen if I file a chargeback for this?
    As a few other members on the board pointed out always get something in writing. Keep in mind that verbal commitments never hold any value. I know it’s too late now and you need to look forward on what you can do now to rectify the issue which came from this fiasco but it will be difficult since it was all done over the phone with nothing in writing.

    The chance or probability of you actually receiving a letter stating the information discussed over the phone is slim to none. Of course, you can give it a try but I doubt they will mail you anything. If you don't mind me asking and I am not trying to delve more information than required but were you originally paying various different loans off or just this one? If so then I think you should really consider looking into debt consolidation programs which will be good for a few situations.

    Good luck on resolving this and hopefully everything turns out well in your favour.
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  21. #21
    Quote Originally Posted by Spunkyasp View Post
    A few years ago I made a down payment of about $7,000. A few months later some personal and economical issues strongly affected my financial situation. This caused me not to make any payments for this. The charge was sent to collections and ruined my credit. About a month ago from today, I received a call from a debt collector. I spoke to him for a ....
    Quick question, does your phone provider record calls?

    Phone them up and give them the exact date and time

  22. #22
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    All they did was lie to you, consider yourself lucky. Imagine if a debt collector showed up at your house while you were at work, your wife was home alone, and refused to leave. Here's a local story about a threatening debt collector.
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  23. #23
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    The absence of proof could be a problem. Otherwise, since he was the bank's agent they theoretically should be bound by the contract he made on their behalf to accept the stated amount as full settlement of the debt. When you report Citibank to the Attorney General for fraud, you should phrase it as "Citibank made this agreement via its agent".
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  24. #24
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    Quote Originally Posted by Steven View Post
    I find they do anything they can to get money, lying is one of them.
    Amen to that. That's ALL debt collectors are, lying individuals.
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  25. #25
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    Quote Originally Posted by linux-tech View Post
    Amen to that. That's ALL debt collectors are, lying individuals.
    Debt collectors definitely have a bad reputation.

    Speaking of that, debt collectors I have met in real-life (friends of friends) seem to be aggressive individuals as a whole. Perhaps the line of work just attracts that, given the obvious challenges.

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