Rapid Recovery Solutions, Leading Collection Agency, Comments On Legal Headaches Of Phone Payments Cited In InsideArm

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In response to an InsideArm article discussing the legal issues of paying a debt collector over the phone, collection agency Rapid Recovery Solution affirms electronic transfers over the phone can be more complicated due to authorization requirements.

On February 10, John Monderine, CEO of Rapid Recovery Solution, comments on an article published by InsideArm with regard to the legal problems associated with paying debt collectors over the phone.

The article, published on Inside Arm, states some debtors pay collectors with electronic fund transfers over the phone. Usually these transfers come from reading off check information, like bank account numbers and routing numbers. Electronic funds transfers are typically one-time payments that can be authorized over the phone.

However, other types of transactions often come with a lot of restrictions, the article said. Recurring payments made electronically have to be authorized by the debtor with a written letter of consent, as stated in Regulation E For instance, if a debtor wanted to set up monthly electronic payments, authorization would have to be given and written out. After obtaining the written document, the article said the collector has to make a copy and send it to the debtor for their records. This process is also required for debit cards.

John Monderine, CEO of collection agency Rapid Recovery Solution, said sometimes debtors attempt to authorize these payments over the phone by reading off identifying facts. “Unfortunately, audio authorization does not qualify as a valid type of authorization,” he said. “Everything must be hand-written or e-mailed to the collector. Without authorization, we cannot withdraw the funds and it gets messy.”

Some debtors are also allowed to set up a check by phone payment, the article said. The debtor allows the collection agency to write out a physical check with the proper account information and deposit it. However, article said the collector has to have proof that the debtor allowed them to deposit a check in their stead. This proof does not have to be in the form of a written letter, the article said.

The article concluded that agencies in defiance of the Regulation E law could be liable for damages and other legal consequences.

Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.

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