Enhanced Recovery Company is one of many debt collection companies that purchases bad debts from the original creditor and then attempts to collect those debts. Once the company purchases the debts, they have the right to collect them. Many lenders sell debts to companies like Enhanced Recovery Company just as the statute of limitations is about to expire on those debts; ERC then gets another three or four years, depending on state laws, to collect the debts.
ERC doesn’t have absolute power to collect debts in whatever manner it chooses, however. It has to follow the Fair Debt Collection Practices Act, or FDCPA, which governs all debt collection activities. Unfortunately, ERC doesn’t always follow this law, according to consumer complaints. The Better Business Bureau has closed 253 complaints about this company this year alone and 523 in the last three years.
Complaints Against ERC
Many complaints against ERC allege that the company calls people who are not legally responsible for a debt and tries to demand payment for the debt from them. This behavior doesn’t stop when the company is informed in writing that the person does not owe the debt or is disputing the debt.
This behavior is illegal, as the FDCPA states clearly that debt collection companies are not allowed to disclose debt information to anyone except the original debtor. In the event that the original debtor cannot be located, debt collection companies are allowed to call friends and relatives to ask for current contact information; however, they may not discuss the debt itself or demand payment, and calls to third parties must cease altogether once they contact the debtor.
In addition to this behavior, ERC engages in harassment of debtors, according to consumer complaints. These complaints allege that ERC sometimes calls debtors at unreasonable hours–it is illegal to call between 9 pm and 9 am–or makes calls several times a day. ERC also continues to call debtors even after being asked not to call them, and may call work numbers in addition to home numbers. Some complaints allege that ERC has been rude or verbally abusive to customers, which is also against the law.
Finally, customers have serious concerns about the way that ERC handles payments if the customer agrees to pay the debt. Many of the complaints lodged against ERC have to do with customers being double charged for payments or getting overdrafts or returned checks because ERC took the money out on a day other than the day they had agreed to debit a consumer’s account.
What to Do
The best way to protect yourself is to refuse to provide bank account information to ERC and to contact your attorney for further instructions. Anyone who has been harassed or otherwise treated unfairly by ERC should also contact an attorney. You may be entitled to compensation; in addition, filing a lawsuit can put an end to the harassment.