I wanted to make folks aware of an issue that I'm having with Union Adjustment. Union Adjustment is a so called 'zombie debt collection firm'. They buy up obligations from firms that have written them off, often many years prior, and attempt to collect on them. I had an issue with a car loan 14 years ago, and they have recently decided to bring it 'back to life'.

I filed for bankruptcy about 9 months ago for a different issue. Union Adjustment is listed on the schedule and was served notice of this on at least 3 occasions. Part of the process in doing a bankruptcy is that the creditor has to file a 'claim' to get paid the money their owed. The rest of the creditors on the schedule filed a claim, Union Adjustment did not. The rules thus say, they don't get paid.

Fast forward 9 months and I got a letter in the mail from my bank saying they've received a subpoena from Union Adjustment seeking my bank statements. This in violation of the automatic stay provision of the bankruptcy code, which mandates they are not allowed to pursue the debt once I'm in bankruptcy. It is also in violation of the Fair Credit Collection Practices Act. I am in the process of pursuing a sanction against their attorney for this as I write this with the bankruptcy court.

In addition, they have placed an entry on my credit report that says the debt became an issue in 2007. This is incorrect, since the loan was 14 years ago, and also illegal. I'm trying to get that resolved as well.

The moral of the story is if you're having an issue with a debt collector, it pays to do your homework and read the regulations. Debtors have rights too, and companies like Union Adjustment don't seem to understand that. One of the things I found when I did this homework was that Union Adjustment has an 'F' rating with the local Better Business Bureau. I can understand why!