The largest collector of medical debt in North Carolina fought tax assessments on three corporate jets for five years. Now it has agreed to pay up after losing appeal after appeal. Does that make Absolute Collection Service a victim of its own game?
Why a collection agency needs three corporate jets is a mystery to me. Of course, I am sure the executives love having access to them for personal use.
Regardless of their use, the firm owed back taxes to Wake County, NC where the planes have been based. After rounds of appeals, the firm has finally agreed to a payment of $189,000 to settle back taxes owed on the aircraft.
Absolute Collection Service fought the county tooth and nail about the tax assessments. It used numerous appeals, yet does not provide the same level of protection for the debtors that owe it money.
Through a combination of mailed notices and collection calls, the company contacts those whose medical and other debts have been placed with the firm. Debtors who are unable to pay are not given any relief. Instead, just like at any collection agency, they are told to pay up.
Watching a collection agency refuse to pay a legitimate tax debt is quite entertaining. One must also wonder how much was spent in legal bills as they tried to get out of paying less than 200 grand in back taxes over the course of a five year dispute.
In order to get out of future taxes, the firm initiated a sale and lease back of one of the aircraft just to evade county property taxes. It is apparently legal, and was done intentionally in response to a change in tax law.
Debtors who owe Absolute Collection Service might want to see if the firm will allow them to dispute their collection bills through numerous appeals. Clearly the firm believes that a debtor has the right to fully appeal any debt over an extended period of time. By the way, the statute of limitations on private debt in NC is only 3 years, making an extended appeal process advantageous to the debtor!
Contact information for the firm is: 919-755-3900
If you are having difficulty paying medical debt with any debt collector, see how you can get help with medical bills.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
Favorite quote:
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."
Thomas Jefferson
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