If You Owe Money....Or Even If You Don't!

I'm starting to see complaints on the internet about a company called Afni, Inc., starting with a recent post on the national blog, the Daily Kos.

According to these complaints, this company is often dunning people to pay money they don't owe to companies they've either never done business with or have paid in full. Afni, Inc. a collection agency, demands payment, insists on absurd levels of "proof" that a debt has been paid, and worst of all, puts black marks on the credit reports of those who don't send them a check, according to these reports.

A Google search on Afni, Inc. turned up a number of a complaints, and described Afni, Inc. as a "junk" debt collector, a company that buys debts for pennies on the dollar and makes its money by collecting these debts using tactics that many people see as punitive and abusive. People accused of owing debts report that the company demands receipts for payment on debts that are years old, for example, or refuses to acknowledge that people have never done business with the company in question.

(One consumer reports getting Afni, Inc. to admit that she was eight years old when her supposed "debt" was incurred, but despite this, Afni, Inc. still demanded payment. )

Afni, Inc. isn't the only debt collector reported as using less-than-stellar-tactics, and in these hard economic times, such situations will probably increase. What can you do if you find yourself dealing with a company like this?

Keep in mind that if you really do owe the money, a debt collector has the right to demand payment. However, debt collectors are limited in the tactics they can use, and certain tactics that qualify as harassment are against the Fair Debt Collection Practices Act.

If you think that you don't owe the debt, contact the debt collector and ask for specifics. (Keep a record of the call, who you talked to and what was said.) If you're sure that a mistake has been made and the debt collector still insists you pay, send that collector a certified letter asking for validation of the debt--be sure to use that word validation--that is, proof that they indeed have a legal right to collect the debt.

You can do this with a debt collector, but not with the original company. In other words, if you supposedly owe money to a store or utility and they contact you, requesting validation of the debt won't work. (For more specifics on requesting debt validation, here's an excellent article from CreditInfoCenter.com.)

If the debt collector refuses to provide validation but still demands payment, try contacting your state Attorney General and the Federal Trade Commission with a complaint about the collector violating the FDCPA. Again, make sure that you document every contact with the debt collector.

You should make every effort to pay a valid debt. But companies that use intimidation tactics, or demand you pay money you don't owe can be dealt with if you stay calm, document each contact, and learn what your options are under the law.