Collection from Tracers
by A horsecrazy rider
I have a tracer (Capital Recovery) that told me that they could get me $450 from HUD that was owed to me back in August of 2002. At the time they told me I didn't need my ex-wife's signature. A year or so later, they told me that I needed my ex-wife's signature. I asked them if she needed mine to get her half and they said yes. So I told them I wasn't willing to collect on the money then because I didn't want her to be able to collect anything.
So then in 2010 they started sending me letters again stating they were going to collect on my half from Hud in the amount of $225. I just never responded and they seemed to go away. I actually called HUD and they said there was some kind of lien of something that was in the name of Capital Recovery and they were now the only ones who could collect on the money.
Now in April 2011, I get a notice that they have gotten HUD to release a check for my half. However, CR is now sending me a notice that I owe them the 32% on the $450 for their services. To date, I have received the money but I have not cashed the check yet. The check amount is only for my half of the $450.
So my question is how long do they have to try to collect this money? What happens if I never cash the check? Since they told me I would get the $450 and then later retracted it, do I have any loop hole to get out of their contract?
Reply from DebtCollectionAnswers.com:
Ugh! It was a mistake to do business with this company in the first place. The FTC and HUD have both been warning consumers about HUD tracers for years:
We don't know what's involved in getting out toe this contract and getting your full money. (We don't even know if that's possible. The FTC says "It is not illegal for borrowers to use tracers or for tracers to be paid a fee for their service. However, it is illegal for a tracer to tell a homebuyer that the homebuyer must pay the tracer a fee in order to get a refund.")
It may be more trouble than it's worth to fight with them at this point, but if you want to try, we would suggest you contact the FTC and your state attorney general's office for help.
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