A local Gulf War veteran with chronic cognitive and mobility disabilities has an additional worry as spring begins. Darrell (he does not want his last name used) credits his latest stress to the aggressive efforts of a collection agency, Daniel N. Gordon Professional Collections (DNGPC).
DNGPC first contacted Darrell by mail in January 2010, regarding an old Bank of America credit card account that was opened in 2004 and closed in 2005. The account had since been purchased by Asset Acceptance LLC, a large Michigan-based "debt buyer" that routinely hires DNGPC, based in Eugene, Ore., to pursue its Pacific Northwest accounts.
The collection agency demanded nearly $14,000, which included an alleged principal sum of $6,854 -- an amount Darrell said he "strongly questions" -- combined with interest, "costs, disbursements, and reasonable attorney's fees" that were not enumerated. Also omitted were disclosures regarding consumer rights, including those to request validation of debt or dispute the debt.
Aware of his consumer rights per the federal Fair Debt Collection Practices Act and the Washington Collection Agency Act, Darrell replied to the agency by certified mail the following week, disputing the amount and requesting verification of the collection agency's allegations. Two months later, the agency mailed Darrell a form that asked him to admit to the debt but provided none of the information he had requested. Darrell replied again by certified mail asking for validation of the debt.
Darrell said he heard nothing from the collection agency for almost
18 months, until July 2011, when DNGPC informed him, by mail, it planned to sue. The collection agency filed an allegedly typical, unsigned Bank of America cardholder agreement with the court but did not include a copy of Darrell's actual contract. To date, the agency has still not provided Darrell's contract or any documentation to demonstrate how his principal allegedly accrued.
"I'm stunned that a collection agency can just produce a generic unsigned cardholder agreement and claim that I signed one like it," Darrell said. "Can this be legal?"
In short, the answer is no.
The Washington Department of Licensing indicates that DNGPC does not have the necessary licenses to collect debt in Washington. In order to practice debt collection in the state, a collector must obtain a collection agency license. Collection agencies are also subject to consumer protection laws.
A Western Washington U.S. District judge ruled in March 2011 that DNGPC met the state definition of a "collection agency" yet did not have a license. Similar recent cases have concluded the same. Even so, a check with the Washington Courts website (courts.wa.gov)reveals that the agency is aggressively pursuing debts in the state court system, with hundreds of cases in King, Snohomish and Pierce counties.
DNGPC also filed questionable documents with the court, including an erroneous document claiming hand delivery of the agency's original complaint to Darrell in mid-January 2010. The court filing describes the documents were received by "John Doe" -- supposedly Darrell -- a 45-year-old, brown-haired man, 5'10" and weighing 180 pounds. A glance at Darrell reveals an older, graying man, who is about 6'1" and weighs 240 pounds.
Others maintain receiving similar letters. Local resident and debtor Steven Mandelas stated the delivery of a similar "John Doe" service affidavit filed in his 2007 case was logistically impossible, as he was out of the state at the time.
A consumer protection agency attorney, Aaron Radbil, whose firm represented Mandelas, has seen a pattern to complaints about DNGPC. "Our office has been presented, on several occasions, with claims that DNGPC allegedly failed to properly serve consumer-debtors with documents relating to debt collection actions initiated against them," Radbil said.
While it's difficult to determine how DNGPC has skirted state laws, it appears Asset Acceptance which has used DNGPC's services, has exploited a legal gray area: Because Asset Acceptance is a debt buyer, it can claim it owns the defaulted Bank of America debts it purchases and is not subject to debt collector laws. The Federal Trade Commission publically disagrees with this opinion, and federal cases have concluded that debt buyers function as collection agencies. Even though Asset Acceptance is subject to federal laws, regulatory authorities in this state are reluctant to act.
Calls seeking comment from a DNGPC attorney and an Asset Acceptance corporate relations representative were not returned.
Meanwhile, springtime optimism is outside of Darrell's immediate jurisdiction: DNGPC now demands he pay more than $15,600. The situation not only challenges him financially, but it has confronted his political outlook.
"I proudly served in the United States Air Force for 13 years, including two missions to Saudi Arabia during Desert Storm," Darrell said. "I certainly didn't think the America that I felt so honored to represent -- at the time -- would ever allow a megabank's collection agency to harass ordinary people like me."