Expert: Ontrack Financial Group llc - 7/16/2009

Question
QUESTION: I apologize in advance if this is a long story.  I promise to try to make it as brief as possible.  

I am being harassed by the law offices of Cohen and Slamowitz, LLP in Woodbury, NY.  The last time I was contacted by them, the balance due was $5, 554.68. This all began when I opened a Discover card in 2006.  At that time, I was in a relationship with a man who began using my card without my permission, and he very quickly ran my card up.  I was in a situation where I could not file charges against him because I was concerned about my own safety and well-being.  Anyway, I made a concerted effort to pay the bill, and paid Discover Card a considerable amount of money, but it got to the point where I could no longer afford it.  This is where Cohen and Slamowitz come in…

I was first contacted by Cohen and Slamowitz this past January, 2009.  I immediately sent them a letter disputing the validity of the alleged debt and requested formal documentation that substantiated their claim.  They sent me a letter back notifying me that they were in receipt of my correspondence and had contacted their client and were currently awaiting their response. On June 16th, I finally received a letter from them which included “documentation to support our client’s claim for the balance due.”  It was nothing more than copies of several statements originally sent to me by Discover card.  On June 24th, someone from Cohen and Slamowitz  called me in regarding this issue.  The woman I spoke with said that legal action was not yet being sought, the debt was still in collections, and asked me if I would be able to make some arrangement to repay this debt.  She told me that they (Cohen and Slamowitz) were not required to provide me with the requested documentation proving the validity of this debt.  She then took on an accusatory tone, telling me that I needed to tell them why I was disputing this debt.  I explained to Ms. Mallan that the original letter that had been sent to me did not say that I needed to explain why I was disputing the debt--  I was only required to say that the debt was being disputed, which I did well within the required 30 day time period after receiving the original letter.  Ms. Mallan then told me that they will be going ahead with pursuing a law suit against me.  On June 25th, I received another letter from Cohen and Slamowitz that read “Our client has authorized us to commence a lawsuit against you.”

On June 29th, I filed a police report for fraudulent use of credit card.  The report specifically notes the Discover Card in question and includes the card number.  I don’t know what my next move is.  Do I tell Cohen and Slamowitz that it is a case of fraud?   Is there something I should file with the FTC, or my local court system? Someone had told me to get an affidavit of fraud, but I have researched it and it is my understanding that an affidavit of fraud is only good if someone else opens a card in my name without my knowledge, which is not the case in this situation.  I just don’t know what to do 

Ever since June 25th, I have been living in constant fear, waiting for Cohen and Slamowitz to pull the rug out from under me.   I have read all of the horror stories, and I am terrified that I am going to wake up one morning with my bank account frozen.  I am an elementary school teacher who is off for the summer, and I have spent my entire summer so far in a constant state of anxiety, fear, and depression.  



I don’t know if this matters or not, but my legal residence is in NJ.  I have been staying with my elderly grandmother in Staten Island, NY for a while now to help her out, so Cohen and Slamowitz have been contacting me at the NY address.  

Thank you in advance for any help or advice you can offer.

ANSWER: Dear Julie,

Thank you for contacting us.

Send the debt collector a copy of the Police Report certified mail.  Contact all 3 credit bureaus and place a fraud alert on your credit report. the debt collection agency can not take action against an account that's in dispute or considered fraud.  

You have the right to ask that nationwide consumer credit reporting companies place "fraud alerts" in your file to let potential creditors and others know that you may be a victim of identity theft. A fraud alert can make it more difficult for someone to get credit in your name because it tells creditors to follow certain procedures to protect you. It also may delay your ability to obtain credit. You may place a fraud alert in your file by calling just one of the three nationwide consumer credit reporting companies. As soon as that agency processes your fraud alert, it will notify the other two, which then also must place fraud alerts in your file.

   * Equifax: 1-877-576-5734; www.alerts.equifax.com
   * Experian: 1-888-397-3742; www.experian.com/fraud
   * TransUnion: 1-800-680-7289; www.transunion.com



An initial fraud alert stays in your file for at least 90 days. An extended alert stays in your file for seven years. To place either of these alerts, a consumer credit reporting company will require you to provide appropriate proof of your identity, which may include your Social Security number. If you ask for an extended alert, you will have to provide an identity theft report. An identity theft report includes a copy of a report you have filed with a federal, state, or local law enforcement agency. For more detailed information about the identity theft report, visit www.consumer.gov/idtheft.

The police will investigate your ex an may place charges on him for credit card fraud.

Good Luck

Ontrack Financial Group


---------- FOLLOW-UP ----------

QUESTION: Thank you so much for your response--  I have just 2 quick questions.

1. Is there anything specific I should write in the letter to the collection agency besides the file number/account reference.  Should I tell them that I am disputing the debt because of fraud and/or that I have placed a fraud alert on my credit report?(accompanying the copy of the police report)

2.  Will this just buy me time, or solve my problem for good?  (i.e. Will Cohen and Slamowitz come knocking at my door again in 90 days or 7 years?)  If this is only a temporary fix, is there any way for me to put an end to this for good?

Again, thank you for your response, I feel better already.  I'm just so anxious to be done with this!

Answer
Dear Julie,


To answer question number 1 yes do all the above.

question # 2

Cohen and Slamowitz will have to place the account in dispute/ fraud status and investigate ( they usually close the account as uncollectable ).  If they purchased the account, then this should be the end of it/  If they are working the account as a third party, the creditor may in fact close the account.  The account could be grouped together and sold to another collection agency.  So I can't tell you for sure, however keep all the paperwork.  Always send everything certified mail.


Ontrack Financial Group llc