Expert: Regan Shinski - 10/20/2010

Question
QUESTION: I live in Texas and am 23 years old. Will try to write this efficiently...My mother took me for a hospital emergency visit in 2003 when I was about 15-16 (a minor). She never paid the bill. A few days ago, I received a call from CBCS collections agency. They tell me that her debt has transferred over to ME even though I had no joint accounts with my mother at the time (how could I? I was a minor at the time). Is it legal for them to collect that debt from ME? What can I do? I have yet to find out if they have sent it to my credit report and am worried! Please advise and Thank you,
Crystal

ANSWER: Hi Crystal:

If it happened as you say, you are not legally obligated to pay the bill.  The only POSSIBLE exception (and even this is a stretch) is if you somehow ACCEPTED ownership of the debt through a new agreement when you were an adult.  I am also assuming you were not an emancipated minor.

You need to get copies of your credit reports and see if it is reporting.  A free copy can be obtained once a year at www.annualcreditreport.com.  If it is reporting you need send them a letter demanding it's removal and explaining the situation.  Even if it's not on there, I would send a letter putting them on notice and future collection activities - including reporting to credit bureaus - would be a violation of federal law.  In the letter you can also put that you want all future communication with them to be in writing.  This should stop any calls if they are calling you constantly.

Also, you can dispute the account directly with any credit bureau that is reporting it as a collection or you can go to WWW.FICOFIGHTER.COM for professional credit repair options.

Good luck, I hope this helps.  It's likely you are safe but need to take a few steps and stay vigilant.

Regan
www.ficofighter.com

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

QUESTION: I would like to know specifically which federal law would be in violation should the collection agency report this to the credit bureaus or should the continue to contact me for unlawful collections if I have sent a letter asking them to stop. Please advise.
-Crystal

Answer
The Fair Debt Collection Practices Act (FDCPA) governs collection agencies and their activities related to collecting by third parties.  It is a complex law and different courts have given different interpretations on different sections of it.  It serves as the basis for virtually all major credit repair activities and lawsuits.  For your purpose, a main point would be that all courts have deemed reporting to the credit bureaus as "collection" activity.  So they are reporting a false debt, they are illegally "collecting."  This is probably more detail than needed but it is VERY clear and understood by every court and licensed collection agency in the land that this activity violates the FDCPA.  Section 807 is one of the places to look for your situation.  The FDCPA is linked here:  http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

A secondary law is the Fair Credit Reporting Act (FCRA).  This law sets out standards of activity for the credit bureaus.  Some jurisdictions have limits a consumer's ability to directly sue a credit bureau under the FCRA but in extreme cases, credit repair companies and attorneys have used this statute.  You are not there yet and should not need it in a case as clear as this one.  The FCRA is linked here:  http://www.ftc.gov/os/statutes/031224fcra.pdf

Your state of Texas also has some regulations.  Specifically the Texas Business & Commerce Code, Chapter 20. Regulation of Consumer Credit Reporting Agencies.  http://www.statutes.legis.state.tx.us/Docs/BC/htm/BC.20.htm

However, again, you will not need this.  Focus on the FDCPA and you should be fine.

Good luck, let me know if we can help.

Regan
We Fight, Your Credit Wins -- WWW.FICOFIGHTER.COM