Insider Information

[OrchardParkGuy]

I've been reading on this website for a few months now and I've had quite a bit of negative information from my credit reports removed. My scores are still pretty low (517 EX, 533 TU, 548 EXP) but I'm also just recently out of bankruptcy and have a history of not really paying anything except my student loans.

Since this site has helped me so much, I figured the best way possible for me to help others is to share insider information I learned firsthand while working for a collection agency. They go by the name Sherman Acquisition, Alegis Group, Capital Management Services, Resurgent Capital Services, and RCap LLC. They are all based out of Greenville, SC even though they have post office boxes around the country and will tell you otherwise.

I was desperate for a job my last year of college and went to work there in customer service (i.e. I took incoming calls). I was never on an autodialer and never called and harassed anyone, so please don't hate me!

Some company info.... Sherman Acquisition buys bad debt from all sources. They buy collection debt all the way up to quarternary (four agencies before couldn't collect it), they buy recently charged off debt from creditors like AmEx, Discover, Sears, CitiBank; and they buy old judgments too so watch out on this one. Sherman is not a licensed collection agency so they employ their own "sister" companies Alegis Group and Capital Management Services to collect on the debt. This sets it up that Sherman is the new creditor and CMS or Alegis is the collection agency. This also adds two additional tradelines to your credit reports for the same debt.

Resurgent Capital Services is Sherman's third "sister." Resurgent buys debt from banks when the debtor is in bankruptcy. Eighty percent of the time this debt gets discharged through bankruptcy, but it's the 20% of the time when the bankruptcy is dismissed or the debt is not dischargeable that Resurgent swoops in and begins collection action. They monitor bankruptcies through Web Pacer for status updates everyday. Resurgent will know usually before the debtor that the case is either discharged, dismissed, or the debt is non-dischargeable.

How to fight these people:

1. Regulatory Complaints: In my year of working there, if a debtor filed a complaint with the FTC and/or the attorney general, when we responded to the complaint we usually responded by saying the account is closed and is being removed from the debtor's credit report. Agencies like this do NOT want to be subject to an Attorney General or FTC investigation.

2. BBB or NACP Complaints: Forget about these. This agency's stance on these complaints is that the BBB or NACP can't do anything to them. Their belief is that if they have a bad rating with the BBB, it shows their clients that they're doing their job. Management often says "Of course we have a bad rating with the BBB... We're a collection agency. What can the BBB do to us? Nothing." This is why you should go after them through regulatory channels instead.

3. Debt Validation: Most of the accounts this company buys and tries to collect on can not be validated. The accounts are simply too old once they make it to Sherman. The only agreement that they have for records is with Sears, CitiBank, and DriveTime auto loans. Sears and CitiBank will give them statements and other supporting documentation for up to a year after they buy the debt. DriveTime will give them information such as signed contracts indefinitely. If you ask for validation on anything else they cannot validate it.

4. 1-2 Punch: If you go this route with Sherman, Alegis, or CMS, make sure your debt is out of the SOL and that it's not in the timeframe of one of the accounts I've listed above. THEY WILL SUE YOU. They will sue you over pittance simply to have a judgment against you.

5. Call them. If you call them, you are calling a customer service person and not a collection agency. If by chance you do get a collection agency, ask for Sherman Acquisition's phone number. Call them and ask them what they're willing to do. I've seen American Express and Discover card accounts that had $5,000+ balances settled for $500. Only call them and settle with them if you absolutely have to such as if your mortgage lender requires them to be paid. People getting home loans accounted for 90% of my calls when the customer wanted to pay.

6. PFD: This will not happen with these people. Do not let a fast talking collector tell you it will because it will not. Sherman has decided to delete nothing out of "fairness" to all of the people that didn't get things deleted in the past. They will report it to the CRA as either "SIF," "PIF," or "Paid Collection."

I wish you all the best of luck. I hope this info helps anyone having to fight these people. I will say from my own personal experience working there, they are not the nightmarish collections people most agencies are. They do buy junk debt and aggressively collect on it, but they do follow the law 100%.

[chane]

That's great info. Thanks!