Iowa Man’s Overdue Debt Tripled by Debt Collector

Vietnam War veteran Dana Franks of Iowa is under pressure from an Omaha, Nebraska-based debt collection firm to pay over $15,000 for a $5,000 credit card debt from 2006.

The debt stems from a Capital One credit card Franks used after the passing of his wife eight years ago. While Franks would like to settle the debt, it has proven to be more difficult than originally expected. Regardless, he didn’t think he’d owe more than three times the debt’s original amount.

While it’s not uncommon for debt collectors to purchase debt from lenders at significantly less than the total owed, in many cases just pennies on the dollar, the firm in question – Brumbaugh and Quandahl LLC – would not reveal how it came to the $15,517 figure it’s seeking, or why it refused to consider any of his lump sum payment offers, according to The Des Moines Register.

The Des Moines Register notes that Brumbaugh and Quandahl has a fair share of consumer complaints. According to the publication, there are 55 complaints by Nebraska’s attorney general (five of which were made in the last two years), along with 17 complaints to Iowa’s attorney general and the Better Business Bureau. The firm has also been named in a class action alleging violations of the Fair Debt Collection Practices Act (FCDPA), as well as the Nebraska Consumer Protection Act.

Although federal and state laws prohibit garnishment of the $1,054 Franks earns in monthly military disability, the firm has kept him from improving his credit rating.

The last time Capital One pursued Franks for the debt was in 2008, when the bank claimed $7,365. It wasn’t until recently that Franks received a letter from Brumbaugh and Quandahl demanding that he pay a sum of $1,293 over the course of the next 11 months, $239 more than his monthly disability check.

Franks has been in touch with the Consumer Protection Division of the Iowa Attorney General, who notes that there is a five-year statute of limitations on such collections if an oral agreement is involved, with a 10-year limitation on written agreements.

If you find yourself harassed or battered by debt collectors for an old or excessive credit card debt, it may be time to consult a consumer law attorney such as our firm. We’ll help determine whether the debt is legally valid, demanding all documentation of the original debt. We can also use the law to stop illegal and abusive debt collection tactics. Now is the time to get your free case review and speak with one of our lawyers.