ComplaintsforAmerican Recovery Service Incorporated

• Initial Complaint

  10/03/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I am filing this complaint as a result of unfair credit reporting practices by American Recovery Services, Inc. (ARSI), a third party debt collection agency; acting on behalf of American Express to collect a debt. On July 1, 2022, I was contacted by ARSI regarding an outstanding debt on two American Express accounts under my name. As a result of this call, in collaboration with ARSI to liquidate the two outstanding debts owed, I was set up on a monthly payment plan. I SPECIFICALLY asked ARS what was the minimum amount I had pay towards each card debt owed (which I was told by ARSI that the minimum I had to pay was $308.00 towards one account and $67.00 towards the other account, In addition to making a $400 payment on July 1, 2022. I was told by ARSI that I had a PAYMENT date of the 30th of each month with my first payment commencing on August 30, 2022. I made the $400.00 payment as advised on July 1, 2022, and I was instructed by ARSI to make follow on payments by the 30th of each month until both debts were fully liquidated.

  Near the latter part of August 2022, I received notification from my credit reporting agency of a significant derogatory credit reporting of delinquency to my credit file by American Express. I immediately contacted ARSI about this matter and they then referred me to American Express. ARSI stated that they did not report to credit reporting agencies.

  When I contacted American Express about the negative credit reporting and informed American Express of the payment plan that was set up between myself and an ARSI representative (Ms. Serena Rivas), I was told by American Express that if payments were set up for the 30th of each month, that date was well past the date in which their company (American Express) reports to credit agencies. I was told by an American Express agent that their company reports on/about the 20th day of each month to credit reporting agencies. This clearly showed why my initial August 2022 payment was report as “not paid” by American Express because an ARSI agent had set up my payment dates well beyond when my current and future payment EVER being reported as paid on-time or as agreed. In addition, I was told by American Express that the monthly amount set up for re-payment (which I want to note that the minimum amount established to pay was the minimum amount I was told by ARSI that I had to pay) was an insufficient “minimum” amount; in order for the accounts NOT to be reported negatively to credit reporting agencies. During this specific call to American Express, I was advised of the MINIMUM monetary amounts that MUST be paid each account in order to prevent negative credit reporting. American Express advised me that I needed to contact ARSI in order to correct the above erroneous payment date and minimum amounts that must be paid on the two accounts being handled by ARSI. When I inquired with American Express about correcting this error to my credit reporting file, I was advised by American Express that ARSI needed to submit a “corrected” report to them before they could make in changes to their previous (August 2022) credit reporting.

  I immediately contacted ARSI and informed them of the information I had been told by American Express concerning (1) the August 30th and follow-on 30th of each month payment date(s), (2) the insufficient MINIMUM payment amounts required that they (ARSI) had established AND TOLD ME THAT I HAD TO PAY; and (3) that they (ARSI) needed to send them a corrected report, since I was told by ARSI when to make the payments and the minimum amount I had to pay.
  The ARSI agent who set my minimum payments and payments dates up, escalated this problem to a supervisory level (Ms Bea) for action and resolution. ARSI acknowledge that they indeed had set up and advised me of a payment date beyond American Express’s credit reporting AND that the minimum amount set up by them for repayment was an INSUFFICIENT amount in accordance with the minimum amount required by American Express for the accounts to be viewed as being paid on time.

  At this time ARSI re-established my payment due date each month to the 14th of each month and modified the Minimum amount due to be paid on each account. This correction was made directly by the supervisor Ms Bea. I received updated emails of this change from ARSI. I further pursued that a correction via email, account notation etc. be sent to American Express regarding the above noted payment and payment date error for August 2022 done by ARSI, so that my account could be updated CORRECTLY. With this annotation, American Express could then make a correction to my credit reporting file for August 2022 reporting.

  Ove the past 3 months---AUGUST, SEPTEMEBER AND Now OCTOBER, I have diligently tired to get this matter resolved with ARSI; and all to no avail. I was told by the supervisor at ARSI (Ms. Bea) that she would make the August 2022 payment matter in question correction to American Express. I have reached out to ARSI OVER 15-20 TIMES VIA PHONE CALLS to resolve this matter. Even American Express (as a result of my calls to them for assistance) has reached out to ARSI to help me resolve this matter and TO NO AVAIL OR RESOLVE. My last call to ARSI on September 26, 2022, to try and resolve this matter, the ARSI representative declined to discuss the matter further with me and the supervisor who also was working with me on this matter, NEVER ANSERERED OR RETURNED MY PHONE CALLS. On my September 26th call, ARSI REPRESENTATIVE Serena Rivas informed me that their company was NOT allowed to speak with anyone from American Express (EVEN THOUGH AMERICAN EXPRESS REPRESENTATIVES WERE MORE THAT WILLING REACH OUT TO SPEAK WITH AN ARSI REPRESENTATIVE) and Ms Rivas also stated that if American Express call that SHE WOULD NOT TAKE THER CALL!

  At this point (my final call to ARSI) led me to no other option but to seek the help and assistance of the Better Business Bureau for help in resolving this longstanding matter. I have acted in good faith to liquidate this debt that I fully acknowledge that I owe. I have responded to and fulfilled each request made to me by ARSI in good faith as well. It is understandable that an error was made to me by ARSI (Ms Serena Rivas) back in July 2022 when I initially make telephone contact with ARSI regarding liquidation of the debt owed. HOWEVER, it is an unjust to me as a consumer to not be afforded “due process” and a correction about their error being submitted to American Express, so that American Express can make a correction to my credit report. I want to note again that American Express is more than willing to assist me as a former client in making the credit reporting correction, ONLY IF ARSI provides them the substantiating information to do such. ARSI refuses to do this DESPITE acknowledging that they erred in initially setting up my payment due date and erred in advising me of the minimum monthly amount I had to pay towards the delinquent debts from American Express.

  I am now asking the Better Business Bureau for assistance in resolving this matter. I am asking that ARSI submit documentation to American Express that will acknowledge and show that they erred in establishing my initial August 2022 payment due date and the minimum amounts that I had to pay on each account; which as a result of their error, caused my information to be negatively reported by American Express to the credit reporting agency.

  I want to thank you in advance for any assistance your office can provide me. If any additional information is required, I can be reached at the above address or via telephone at (404) 955-4031 or via email at : [email protected]. I eagerly await your reply.

  

  Business response

  12/12/2022

  Mr. W*****’s accounts were placed with American Recovery Service Inc. (ARSI) by American Express for collection on 06/22/2022.  Once an account is placed with ARSI, we attempt to collect the balance in full. ARSI does not report to the credit reporting agencies and therefore does not address credit reporting concerns with consumers.  American Express handles credit reporting, and all questions on credit reporting should be directed to American Express.  The ARSI representative discussing the accounts with Mr. W***** provided him with the contact information for the department at American Express to assist with his credit bureau reporting concerns. After Mr. W***** discussed his accounts with American Express, he contacted ARSI and the payment schedule was updated at his request. 
  
  Mr. W***** has continued to reach out to American Express to address the same concerns raised within this complaint. ARSI is in communication with American Express regarding the concerns and we will continue to provide any information requested from our client to assist with their review of this situation. We request Mr. W***** direct any specific questions regarding credit reporting to American Express and we will provide them with the information needed.   

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩