Company Info.

Information accurate as of April 07, 2004

This information was obtained using WHOIS database information and BBB record information. The company website has four (4) "Contact" pages, but none contain any contact information.

Investigative Report

Many I am sure have dreaded answering their phone because of what might be lurking on the other end (telemarketer or collection agency). Those that have come in contact with collection agencies can tell you they are not the friendliest of people. At first they are bright and chirpy, that is, until you tell them you don't have the money. It is almost like a Mr. Rogers gone bad. At times I can find the collection agencies quite humorous. Once you learn your legal rights, they tend to get more easily annoyed.

I would like to talk in particular about Client Services, Inc. I have received quite a few calls from this collection agency. All of the calls (except for the last two) were from a male representative. I never got his name (wish I would have). Every time the male representative would call, he would keep threatening legal action. When a company threatens legal action, it is not violating any laws (as long as they intend to fall through with the legal action, otherwise that would violate the Fair Debt Collection Practices Act).

The problem which I personally feel brought Client Services, Inc. over the line was when they just did not know when to shut up. It seems as if the company really enjoys using scare tactics and threatening people. Those tactics may work for some (or even many), but a far cry from affecting me.

While on the phone with the male representative, he kept asking for money. I informed him that I could not afford any payments. He was notified that I was in school. He continued on to harass (continually ask repeatedly the same question after being told the same answer numerous times). During one of our conversations, he crossed the line. After repeatedly reminding me that their client would be seeking legal action, he said that he would probably be doing an asset search on me. I saved him the time by telling him what little I owned. He then stated that if I did not make payment now then their client could take me to court and have my wages garnished (which is legal) and the client could get whatever amount they wanted.

OK. Hold the gravy train! This is a false statement. Granted, a debt collector/their client has the right to pursue the matter in court. They also have the right to file to have your wages garnished. But, to my knowledge, I have never, not once (except by collection agencies) heard that a debtee can simply request x-amount of money and just get it. I would imagine that the court would look at living expenses (food, clothing, hygiene items, utilities such as water, lights, gas, phone, lot/home rent/payments) and at what you make. Then calculate what could be affordable to allow the person to keep the minimum necessities. If what the male representative stated is true, then you would have people living on the streets because they didn't pay their credit card bills. Personally, I would think that making such a ruling would be somehow illegal and immoral.

During the next conversation, the representative contacted me and asked if I had contacted an attorney (still on the filing suit against me trip). I said no. He asked why. I stated I was busy with school and did not have time. He then kept harassing me. I finally just hung up on him (as I had done so before). The final call was when I was asked again if I contacted an attorney. I stated I had not. He then asked how I was going to pay the debt. I stated again I did not have the money. He then stated that since I could not make a payment then they had already filed suit against me.

I'm not sure if you caught that, but because I could no make a payment then they have already filed suit. That makes no sense at all. Whey even ask for money if you have already filed suit?

I checked up on this company. I found that I am not the only one with a similar complaint. According to the record on file at the BBB (Better Business Bureau), the following is shown:

"Customer Experience

Based on BBB files, this company has responded to any complaint brought to its attention. This Better Business Bureau has received numerous complaints against Client Services, Inc. (CSI). Complainants primarily allege that this company reported incorrect information to credit reporting agencies, attempted to collect on bills that were already paid and that representatives of the firm were rude and threatening on the phone."

They find it rude for you to hang up on them, but what do they expect? You answer their question. They ask it again and again (except phrased differently) and you answer it again. Eventually you get tired of answering the same questions. Why do they do this? I guess they figure there are those out there whom will eventually just give in and make some sort of payment. Some may actually fear collection agencies. Some give in to simply stop the collection agencies from harassing them.

One main problem I find is that people do not realize they have rights. The most common fear/myth is people believe that collection agencies have some sort of special legal power. The truth of the matter is that collection agencies are nothing more than a business. They have the same legal powers as you or any other person. The belief that collection agencies can just garnish your wages, etc at will is completely false.

Normally collection agencies do not actually file suit against you. It is the company you owe which files suit. If a debt is "assigned" to a collection agency, they (collection agency) may be able to file suit against you in small claims court. In addition, there are some agencies which "purchase" your debt from companies and you then owe the collection agency, rather than the original debtee. This all depends on the amount owed, type of debt you owe, and your local/state laws regarding the matter.

Report Updates

Update! May 27, 2004

Today I filed a complaint with the FTC against Client Services, Inc. When Client Services stated that they had already filed suit against me (this was told to me after I stated I could not make a payment they requested), they violated the FDCPA (Fair Debt Collections and Practices Act). The odd part was why did they ask for money if they had "already" filed suit? Therefore, it violated the FDCPA in the terms that they "falsely" threatened legal action. A collection agency can threaten to sue, but must have sincere intentions of doing so. Falsely threatening is illegal to do for businesses to consumers.