The Better Business Bureau serving Metropolitan New York has recently learned of a debt collection agency claiming to operate out of New York City, and which may be conducting business in violation of the Fair Debt Collection Practices Act, which was passed by the United States Congress in 1977 and amended in 1996.

According to complaints filed with the BBB, a company named 'Check Processing Bureau Enforcement Division' solicits consumers via mail and telephone for monies owed on bounced checks that consumers claim to have no record of. The company refuses to furnish consumers with copies of their bounced checks or any additional proof of debt, as required by law, stating that it can only provide such information in a court setting. Consumers are also told that the company will pursue criminal action if they do not pay. Most consumers believe the company is trying to scam innocent people into paying a debt which not only does not belong to them but which also may be completely made up.

Complaints have been received by the BBB from late 2006 to early 2007, over 7 years after the company alleges that the checks were written. As most banks do not keep such records after a period of 7 years, consumers have not been able to confirm their debts with their banks. Among the 17 complaints filed against this company with the BBB, 2 were not responded to by the company and 15 are still pending the firm's response.

Although most consumers believe the debt to be illegitimate, some were caught unaware and agreed to pay the "debt". Some of the so-called debt included:

• A "check" written in 1999 identifying a woman with her maiden name when she had been using a married name since 1998.
• A letter of debt collection sent to an address that the debtor never lived at although her husband had. The name on the "check" was an incorrect spelling of her maiden name.
• A "check" written to Shoney's, a restaurant that does not accept checks.
• A $170 "check" made out to Pizza Hut.
• A "check" number that was inconsistent with the consumer's checks written during the same time period.

'Check Processing Bureau' did not provide proof of any of the above checks to consumers.

According to the Fair Debt Collection Practices Act, if the consumer notifies the debt collector in writing within thirty days after getting the first notice that the debt, or any part of it, is disputed, the debt collector must cease collection of the debt until it obtains verification of the debt or a copy of a judgment, and mails a copy of that verification or judgment to the consumer. Consumers claim that 'Check Processing Bureau' has contacted them repeatedly with threats of arrest after requesting that the company provide evidence of their alleged debt. Threatening to have a consumer arrested if his or her debt is not paid is also in violation of the Fair Debt Collection Practices Act.

In New York City a debt collector must be licensed with the Department of Consumer Affairs in order to collect debt from a New Yorker. Check Processing Bureau Enforcement Division is not a licensed debt collector in New York City.