Capitol One Sinks To A New Low
I didn't think it was possible, but Capitol One has sunk to a new low of human depravity. One of the debtors prisoners I work with has supplied me with undeniable proof in the form of a collection letter.
First, let's get one thing out of the way. The independent and undisputed authority on English usage, Webster's Dictionary, defines the term "sleazy" as follows:
"Sleazy. Adj. marked by low character or quality."
This most certainly describes what you are about to read. In fact, "low character" is undeniably generous in this case.
The debtors prisoner in question has an unpaid debt to a completely different bank, and that debt is several years old. The original lender wrote the debt off as "uncollectable" years ago, then sold it to Capitol One to collect this debt anyway, despite presumably having told the IRS it was "uncollectable" when requesting tax breaks for their supposed loss, so many years ago.
Capitol One, in turn, engaged the services of yet another collection agency, which calls itself "The Westmoreland Agency", to contact the debtor directly. Creating a chain of associations, affiliations, and subsidiaries confounds all attempts to hold Capitol One directly responsible for any unconscionable or illegal collections practices, violations of the Fair Debt Collection Practices Act, or potentially criminal behavior on the part of collection agents. (Question: Just as a thought experiment, ask yourself why would an honest, law-abiding company need to protect itself like this?).
This "Westmoreland Agency" (if that really is its name), then sent this debtors prisoner the most unconscionable collections letter that I have ever seen: At first glance, the letter appears to be a free credit card--not a credit card offer, but the letter actually has a plastic VISA card attached to it.
Closer examination of the letter reveals that this is actually a $20 "gift card", which of course must be activated by calling a toll-free number and providing verification of the debtor's identity (and presumably, his location, employer, and any other personal information the collection agent can glean from the conversation).
To send a debtors prisoner a plastic card emblazoned with the VISA logo as a "gift" is about as tasteful as sending an Auschwitz survivor a Hallmark card for Hitler's birthday. And yes, the debtor confirmed that the original debt was on a VISA card.
The back side of this "gift offer" contains a full page of confusing, incomprehensible legalese disclaimers which, when translated into English, basically says that debtors "voluntarily" agree to send themselves up a creek without a paddle if they call the telephone number to activate their gift cards. As required by law, the following disclaimer is present--on the back side of this generous offer: "...this communication is from a debt collector, and it and others from us are an attempt to collect a debt. Any information obtained will be used for that purpose." Interesting that they didn't make this incredibly important announcement more prominent, and on the front page, considering the enormous relevance this information has to the recipient.
But here is the kicker: This debtor has not repaid the debt yet because he has been homeless for the past decade. And why was he rendered homeless in the first place? Because the original creditor wrote this very same debt off as uncollectable while he struggled to pay it off under adverse conditions years ago, throwing him into the American Debtors Prison. Although he has worked full-time ever since, he can no longer even rent habitable housing because of his credit report, and likewise cannot obtain professional employment with a salary capable of repaying the debt. (This is a defining characteristic of the American Debtors Prison itself). It is interesting to note that the debtor has refused to file for bankruptcy for all these years, however, precisely because he wants to repay his debts.
Okay, I lied. Here is the real kicker: The VISA card attached to this collections letter says "Go Shopping" on it. Happy Birthday, Adolph.
If you dig even deeper into the slime of this letter, you'll find fine print that says, among other things, "But there is no obligation - even if you're unable to set up payment arrangements at this time, the gift card is yours! all you have to do is activate it. Call now."
Make no mistake about it--calling now and making contact with this collection agency would open this debtor up to a world of pain that would make his current homelessness seem like a vacation at Club Med.
But wait, believe it or not, there's even more. This "gift offer" is accompanied by a four-page "Terms and Conditions" document, which is also written in incomprehensible legalese. Not only that, but a quick translation reveals that under several conditions, there is actually a COST to the debtor associated with using this card.
This is the crap this poor debtor found in his mailbox--six pages of manipulative rhetoric, none of which he ever requested to be burdened with, and coming from a company that he had never once borrowed money from or had any association with. Meanwhile, he has struggled for nearly a decade in homelessness to save enough money to repay the creditor he actually borrowed money from in full--the very same company that "wrote him off" as a deadbeat.
The name "Capitol One" has arisen time and time again in my research of unconscionable lending and collections practices. But with this particular collections tactic, they have sunk to depths that make me question whether the employees of Capitol One really qualify as part of the human species.
All the best,
Paul
First, let's get one thing out of the way. The independent and undisputed authority on English usage, Webster's Dictionary, defines the term "sleazy" as follows:
"Sleazy. Adj. marked by low character or quality."
This most certainly describes what you are about to read. In fact, "low character" is undeniably generous in this case.
The debtors prisoner in question has an unpaid debt to a completely different bank, and that debt is several years old. The original lender wrote the debt off as "uncollectable" years ago, then sold it to Capitol One to collect this debt anyway, despite presumably having told the IRS it was "uncollectable" when requesting tax breaks for their supposed loss, so many years ago.
Capitol One, in turn, engaged the services of yet another collection agency, which calls itself "The Westmoreland Agency", to contact the debtor directly. Creating a chain of associations, affiliations, and subsidiaries confounds all attempts to hold Capitol One directly responsible for any unconscionable or illegal collections practices, violations of the Fair Debt Collection Practices Act, or potentially criminal behavior on the part of collection agents. (Question: Just as a thought experiment, ask yourself why would an honest, law-abiding company need to protect itself like this?).
This "Westmoreland Agency" (if that really is its name), then sent this debtors prisoner the most unconscionable collections letter that I have ever seen: At first glance, the letter appears to be a free credit card--not a credit card offer, but the letter actually has a plastic VISA card attached to it.
Closer examination of the letter reveals that this is actually a $20 "gift card", which of course must be activated by calling a toll-free number and providing verification of the debtor's identity (and presumably, his location, employer, and any other personal information the collection agent can glean from the conversation).
To send a debtors prisoner a plastic card emblazoned with the VISA logo as a "gift" is about as tasteful as sending an Auschwitz survivor a Hallmark card for Hitler's birthday. And yes, the debtor confirmed that the original debt was on a VISA card.
The back side of this "gift offer" contains a full page of confusing, incomprehensible legalese disclaimers which, when translated into English, basically says that debtors "voluntarily" agree to send themselves up a creek without a paddle if they call the telephone number to activate their gift cards. As required by law, the following disclaimer is present--on the back side of this generous offer: "...this communication is from a debt collector, and it and others from us are an attempt to collect a debt. Any information obtained will be used for that purpose." Interesting that they didn't make this incredibly important announcement more prominent, and on the front page, considering the enormous relevance this information has to the recipient.
But here is the kicker: This debtor has not repaid the debt yet because he has been homeless for the past decade. And why was he rendered homeless in the first place? Because the original creditor wrote this very same debt off as uncollectable while he struggled to pay it off under adverse conditions years ago, throwing him into the American Debtors Prison. Although he has worked full-time ever since, he can no longer even rent habitable housing because of his credit report, and likewise cannot obtain professional employment with a salary capable of repaying the debt. (This is a defining characteristic of the American Debtors Prison itself). It is interesting to note that the debtor has refused to file for bankruptcy for all these years, however, precisely because he wants to repay his debts.
Okay, I lied. Here is the real kicker: The VISA card attached to this collections letter says "Go Shopping" on it. Happy Birthday, Adolph.
If you dig even deeper into the slime of this letter, you'll find fine print that says, among other things, "But there is no obligation - even if you're unable to set up payment arrangements at this time, the gift card is yours! all you have to do is activate it. Call now."
Make no mistake about it--calling now and making contact with this collection agency would open this debtor up to a world of pain that would make his current homelessness seem like a vacation at Club Med.
But wait, believe it or not, there's even more. This "gift offer" is accompanied by a four-page "Terms and Conditions" document, which is also written in incomprehensible legalese. Not only that, but a quick translation reveals that under several conditions, there is actually a COST to the debtor associated with using this card.
This is the crap this poor debtor found in his mailbox--six pages of manipulative rhetoric, none of which he ever requested to be burdened with, and coming from a company that he had never once borrowed money from or had any association with. Meanwhile, he has struggled for nearly a decade in homelessness to save enough money to repay the creditor he actually borrowed money from in full--the very same company that "wrote him off" as a deadbeat.
The name "Capitol One" has arisen time and time again in my research of unconscionable lending and collections practices. But with this particular collections tactic, they have sunk to depths that make me question whether the employees of Capitol One really qualify as part of the human species.
All the best,
Paul
posted by Paul at 2:04 AM
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