Verizon CBCS Collections Scam

Two years ago, I received a letter from CBCS, an Ohio based collections agency, informing me that I owed Verizon $290.21.  I knew this to be false.  Over a sixth month period, I disputed this collection action with the credit reporting agencies, CBCS, and Verizon itself. 

Equifax and the other credit report agencies would remove the false collection action.  CBCS would then re-report it.  Total scum bags.

I kept writing letters.  I sent detailed proof showing that I had canceled my phone and Internet service with Verizon.  After several months, I received a letter from Verizon indicating that I did not owe them any money.  Gee, thanks for screwing my credit up for six months.

Almost two years later, CBCS and Verizon are at it again.  They sent me another collections letter!

After doing extensive research, I concluded that this is a scam that CBCS and Verizon are running together.  We're considering filing a class action against Verizon and CBCS for violating the Fair Credit Reporting Act, among other things.  At the very least, we're going to sue them in small claims court. We can collect $5,000 from Verizon and CBCS - $1,000 for each violation of the Fair Credit Reporting Act.  There have been way more than five violations.  We're still considering our options.

I wrote them a nasty letter, demanding that they pay us for having to deal with this drama, and for having our credit score lowered. I suspect they'll ignore it.  I hope they do.  A judge will see the letter, which is carefully reasoned, and realize what shysters CBCS and Verizon are.  Please, please, please ignore me!

I suspect others have been ripped off.  If you've gotten one of these nasty collection letters, leave me a comment.  We should talk.  These crooks really need to be stopped.

In the meantime, I've disputed the charges with the credit reporting agencies. Here are their relevant addresses:

Equifax
P.O. Box 105873
Atlanta, GA 30348

Experian
P.O. Box 2104
Allen, TX 75013-2104

Trans Union LLC
P.O. Box 1000
Chester, PA 19016-1000

I informed the credit reporting agencies that they are under an affirmative obligation to investigate this invalid debt.  I told them it's invalid.  These agencies usually do a good job of removing stuff.

Verizon and CBCS are another story.  If they keep reporting it, the agencies will keep repeating it. What Verizon and CBCS are doing is illegal.

Under 15 U.S.C. § 1681s-2(A): “A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.” Likewise, under Section 1681s-2(B)(i): “A person shall not furnish information relating to a consumer to any consumer reporting agency if the person has been notified by the consumer … that specific information is inaccurate [].” In Nelson v. Chase Manhattan Mortgage Corp., 282 F.3d 1057 (9th Cir. 2002), the Ninth Circuit Court of Appeals held that a consumer may sue a party who reports false information to the credit bureaus.

The crooks can be contacted at:

Verizon California
236 E. Town Street
Columbus, OH 43215

CBCS
PO BOX 69
Columbus, OH 43216

I'm so sick of this.  I am considering making it my life's work to sue these types of companies.  I've never wanted to do criminal prosecutions, but I have a vengeful streak.  It doesn't get much more corrupt than this.

Comments

[Patrick]

Consider the Fair Debt Collection Practices Act as well, particularly Section 807(5) and (8). The FDCPA also has a reasonable attorney's fee provision for a successful plaintiff.

[Joe]

It may not be a scam so much as bad paperwork filing. I don't think these companies communicate with each other or within themselves well enough to avoid terrible situations like this.

[Mike]

Thanks, Patrick.

Man, I am fuming over this.

I was mad the first time it happened; but figured I'd let it slide. But my credit dropped almost 40 points due to the open collection. I might be in the market for a car soon.

They're banking on me needed my credit more than I need $291.

Why is it that, if I went into Wal-Mart and attempted to steal $30, I'd be in jail.... But Verizon and CBCS can hold my credit hostage in an effort to steal $300 from me, and nothing will happen to them?

[Mike]

Joe: It's definitely a scam. They "accidentally" keep bad records hoping to ensnare people.

BTW, one of your bosses, Dmitry Gorin, was my professor for Sentencing & Corrections. Cool guy. He was a prosecutor at the time he taught the class. Looks like he went over to dark side.

Small world.

[Patrick]

If I were in your shoes Mike, I'd sue tomorrow. Google "Mitchell Berns Delta" (without quotes). Our link on Berns is the second entry, I think, and the Consumerist link is informative as well.

Berns is a personal hero, for his no-s**t-taking attitude toward corporations that consider individual customers to be statistics rather than bosses to be served, and his willingness to embarrass and humiliate one of those companies on general principle, no matter the cost in time.

Berns gave Delta ten times the hell Delta gave him, and he doesn't even have a blog or a website. I'm happily ditching Verizon as soon as my contract runs out, just based on your post.

[Bentley]

I *just* got one of these today for a supposed account with AT&T BROADBAND LLC back in 1997-1999 .... who had broadband back then??!? So stupid. I'm just not going to reply to the letter.

[Vanessa]

I just received a collection letter from the same company stating pretty much the same thing. I do not however, dispute the once upon a time i may have owed this debt, but it was from 1997, WOW!!!!! and I am pretty sure that it has been "charged off". Which back than it was Airtouch celluar... so i never really had a Veriszin phone. Please contact me if my info can help.

[Monica]

I just got one of these from Verizon, who handed it to IC SYSTEM collection company. They are saying we owe on a router that was never shipped back.. I have the UPS tracking number, from the UPS store i used to send it...

What can I DO?

[me]

I thought there were laws against any debt over seven years old? Tell them to take you to court. Then when the ruling goes in your favor, they will have to pay the court costs.

[Ashley]

I cleared a debt with Verizon about two months ago. They still sent me to collections for a zero balance owed to them. I am just starting to try and clear this up.