NCO Financial Systems, Incorporated: Are Illegal Debt Collection Practices Too Common?

I first became aware of NCO Financial Systems when I began receiving voicemails from them about two weeks ago. The voicemails simply stated that so-and-so was calling from NCO, that it is an attempt to collect a debt, and to call a certain phone number with the specified confirmation code.

I thought this was odd, since they didn't even state who they were looking for and I have no accounts in collections. I even checked my credit report and I was right - all accounts are listed "paid as agreed".

So I decided to find out what I could about NCO Financial Systems Incorporated before returning their calls. As it turns out, I am glad I did not answer the phone.

According to many thousands of complaints listed on www.budhibbs.com, www.ripoffreport.com, and even www.bbb.org (the Better Business Bureau's website), NCO violates collection laws right and left. The BBB has about 150 complaints listed, the Bud Hibbs has many pages of consumer comments, and Rip Off Report has a few thousand NCO complaints listed.

To sum up the typical consumer experience with this collection agency is difficult. Not everyone has had the same experience with NCO Financial Systems Incorporated, but far too many have been harassed by this collection agency.

Let's start with the phone calls. Many customers have had NCO call them before 8:00 a.m. or after 9:00 p.m. local time. This is prohibited by the Fair Debt Collection Practices Act. Many customers have also been called at work, even after telling the NCO representative they are not allowed to receive personal or collection calls at work. This is also illegal. Collection agencies are not allowed to call you at work if you have notified them that you aren't allowed to take their calls at work.

Collection agencies are prohibited from harassing consumers. Harassment is defined by the FDCP Act as threat or use of violence, use of obscene language, or using the phone to intentionally annoy someone (which includes repeated rings/calls). Far too many consumers have been screamed at by NCO representatives. Many others have received numerous phone calls. By numerous, I mean about 100 calls in one month.

Many times people cannot even get NCO to verify the debt they're collecting. Other times, they discover that NCO is collecting a debt past the statute of limitations in their state or a debt that has been paid to the original creditor. Why on earth should you give your money to a company that doesn't have a valid reason to take money from you?

This brings me to my next point. The Fair Debt Collection Practices Act also stipulates that collection agencies must verify your debt. Unless they verify the debt in an initial phone call, written verification must be sent within five days. The verification must include the original amount of debt, original creditor you owed the money to, and your rights to dispute. Many people never received this verification from NCO. Again, why should you pay a company money if they can't prove you actually owe them money?

Consumers should also know they have the right to ask collection companies to not call them. The collection agency may still call ONLY to notify you they are stopping collection action against you or taking special remedy. Many consumers have sent letters via certified mail to NCO Financial Systems, telling them they must cease phone calls in accordance with law. The letters are usually sent certified, and a certified return receipt is usually not sent back to the consumers. And guess what? The phone calls still do not stop. This is true of consumers who may have a debt, and consumers who have no past due accounts and are not the individual being sought by NCO.

After reading through the complaints for a few hours, I have come to a few conclusions. First, you need to know the law. Read the Fair Debt Collection Act. Know your rights. Secondly, communicate with them by mail whenever possible (assuming they ever send you anything). In case of a dispute, written communication proves your points much more than verbal agreements. Also, keep track of when they call, and who, if anyone, you talk to.

If you need more assistance in dealing with NCO Financial Systems Incorporated, look at the sites I've mentioned. They're listed below, too. Learn from other people who have been scammed, and how they fought back. You could literally spend hours reading the complaints. It may even keep you up at night. These discussions make for frightening reading but I suggest you read through some anyway.

If you have had an encounter with this collection agency and they violated the law, complain. If the Federal Trade Commission received a complaint from each of the thousands negatively affected by this company, maybe something will finally be done.

The address listed for NCO, which also goes by the name of NCO Group Inc, can be found at www.ncogroup.com. Their contact info, as well as an online feedback form, can be found here.

Sources:
http://www.baltimore.bbb.org/commonreport.html?bid=20014093
http://www.budhibbs.com/debtcollectorpages/nco_financial_systems_cmts.htm
www.ripoffreport.com
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm