Stop Debt Harassment

Asset Acceptance, A Debt Collection Company, Will Pay $2.5 Million Fine

2012-02-02T14:43:00.001-05:00

Asset Acceptance, a debt collection company, had been contacting consumers trying to collect debts that were not owed. In some cases, the debt was too old to collect because it was past the statute of limitations. If the consumer was to make a payment on the old debt, the clock on the debt would be restarted allowing debt collectors to take legal action.

The Federal Trade Commission states that Asset Acceptance has agreed to pay a $2.5 million fine. In addition, the debt collectors will have to tell consumers that their debt is too old to legally enforce, and the company will not be allowed to enter the debt on the consumer’s credit report without informing the consumer first.

For more information on your rights, contact us.

Bill Collectors Calling the Wrong Consumer

2011-08-12T14:47:00.000-04:00

Consumers with good credit ratings are getting harassed by debt collectors. The reason is their names are similar to those on the bill collectors' lists. There is no quick and easy solution to this problem. However, you can ask for the name of the caller and the company. Ask the bill collector to send written verification of the debt. Keep a record of the date and time that the debt collector called. By law, debt collectors must send you written confirmation within five days that states the creditor's name, the amount owed, and the procedures for disputing the debt.

A bill collector may try to intimidate you into paying a debt you do not owe. If the debt collector is making threats or asking for personal information, it could be a scam. Do not give out any personal information, such as your social security number, over the phone.

If bill collectors continue to call, even after being informed that they have the wrong person, there are federal and Florida laws to protect you. Call us at 1-866-553-3272.

Debt Collection Agency Ordered Not to Use Facebook

2011-03-15T14:47:00.000-04:00

Mark One Financial LLC (Mark One) of Jacksonville was ordered not to use Facebook to contact a St. Petersburg woman to collect $362 for an unpaid car loan. In the lawsuit, the woman states that Mark One sent her and her relatives messages on Facebook telling her to call the company regarding the unpaid car loan. In addition to using Facebook, the collection agency contacted her six to ten times a day by phone, sent her text messages, contacted her neighbor and sent a courier to deliver a letter to her workplace.

This is a violation of the Florida Consumer Collection Practices Act.

Debt Collector Harassment Report on Today Show

2010-11-01T12:17:00.000-04:00

Lisa Myers reported on debt collector harassment. Debt collectors were harassing the Whitlocks for a $15,000 debt stemming from landscaping work. The Whitlocks were not satisfied with the work that was done. The contractor would not come back to fix it. Debt collectors began harassing them for $15,000 which was far more than the debt they owed. The debt collectors threatened the Whitlocks with sending information to the IRS, stating the client was proceeding with a lawsuit that would damage their credit report, and even threatened to have the Whitlocks followed. The Whitlocks have filed a countersuit and the matter is pending.

Unpaid debt is being sold to debt buyers for pennies on the dollar. Debt buyers will then sue the consumer. Debt buyers may not even care if the consumer actually owes the money. They hope to intimidate a consumer enough so that they will pay, regardless if they owe the debt or not.

The Federal Trade Commission has seen the number of complaints increase from 91,000 in 2007 to over 120,000 in 2009.

To see the full report, go to http://today.msnbc.msn.com/id/3041440/vp/39737563/

Debt Tagging

2010-07-16T11:46:00.003-04:00

Stacie Schaible of News Channel 8 discusses "debt tagging". Debt tagging is where debt collection companies buy old debt for pennies on the dollar. The debt collector will call people with the same name as the consumer who owes the debt, with the hope that the debt collector will reach the correct person. If the debt collector does not reach the correct person, there is a chance that the person the debt collector reaches on the phone will pay the debt because that person fears that it may be a debt that they had forgotten about. To see the video, go to http://www2.tbo.com/video/2010/jul/14/debt-tagging-46949/video-news/ or to read the article, go to http://www2.tbo.com/content/2010/jul/15/companies-use-new-bill-collecting-method-debt-tagg.

There are Florida and Federal laws to protect consumers against debt collector harassment. For more information about these laws, go to www.againstbillcollectors.com/fairdebtlaws.html.

Fast Cash International

2010-05-19T10:03:00.000-04:00

According to reports, Fast Cash International has been calling people harassing them for loans they do not owe. One woman received calls stating that she owed $756.12. She did not owe it and contacted the FBI. Fast Cash International, according to the woman, was threatening to arrest her and said that they were lawyers for the U.S. federal government.

This is a violation of the FDCPA. Consumers have rights, even if they owe the debt. Debt collectors must follow guidelines. They cannot threaten to have a consumer arrested or impersonate a government entity. Debt collectors cannot threaten to take a consumer to court, unless they are prepared to do so.

The woman attempted to call Fast Cash International with the number listed on her Caller ID, but the call would not go through. A website for Fast Cash International did not have a telephone number.

If you are being harassed by a debt collector, contact us at 813-314-4595 or 866-553-3272.

Supreme Court Ruling

2010-05-03T15:25:00.001-04:00

Debt collectors can no longer use the "bona fide error" defense under the Fair Debt Collection Practices Act. In the case, Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, the plaintiff sued the defendant for violating the FDCPA. Carlisle McNellie attempted to foreclose on Ms. Jerman's home, after she had already paid her mortgage. Carlisle McNellie required Jerman to submit proof in writing within 30 days that she had paid the mortgage, but the FDCPA does not require the proof to be in writing.

Carlisle McNellie stated that it should not be held liable due to a "bona fide error". A lower court agreed. however, when the case went on to the Supreme Court, Justice Sonya Sotomayor ruled that "ignorance of the law will not excuse any person, either civilly or criminally."

A consumer can take action against a debt collector if the consumer feels the debt collector violated the laws currently in effect. If you feel your rights have been violated, please contact us at 866-553-3272.

Debt Collectors Calling the Wrong Number

2010-04-01T10:11:00.000-04:00

Many consumers are complaining that they are receiving calls from debt collectors looking for other people who may have had their phone number in the past. It can be an automated system contacting you, asking you to press 1 if you are the debtor. What do you do if you are not the debtor and want the calls to stop?

Registering for the DO NOT CALL list will not help. The debt collectors are not trying to sell you anything. The DO NOT CALL list is to stop sales calls.

If you have caller id, you should try to call the phone number that is displayed. If you do not have caller id, you may need to get help from a consumer protection agency to help you call the company.

It may take more than one call to get the calls to stop. Keep a record of the number of times you have called, and the name of the representative with whom you spoke. If you have to call a second time, get the name and address of the company, so that you can send a certified letter telling them to stop.

You may want to contact the Attorney General's Office to report a debt collector. Florida's Attorney General, Bill McCollum, can be reached at:

Attorney General of Florida
The Capitol, PL-01
Tallahassee, FL 32399
phone: (850) 414-3990
website: www.myfloridalegal.com

Debt Settlement Firm Has Assets Frozen by Alabama Attorney General's Office for Deceptive Practices

2010-03-12T12:51:00.000-05:00

Alabama Attorney General's Office and Alabama Securities Commission filed a complaint against Keith Anderson Nelms for violation of the Deceptive Trade Practices Act. Mr. Nelms and his firms, Allegro Law LLC and Allegro Financial Services LLC, were advertising as a law firm, but were referring cases to another company, Americorp, which is not a law firm. In addition, Mr. Nelms is not licensed to practice law outside of Alabama. However, his clients were from across the United States.

Allegro promoted debt settlement, wherein clients are encouraged to stop making monthly payments in order to encourage the creditors to write off the debt, and settle for a reduced payment. This results in a lower credit score and additional problems for the consumer, but more fees for the service provider.

The complaint alleges that Mr. Nelms and Allegro have violated the Deceptive Trade Practices Act by using false and misleading representations made to consumers. The Sale of Checks Act was also violated in that any person engaging in a business that receives money as agent for obligors for the purpose of paying such obligors' bills, must obtain a license from the Securities Commission prior to conducting business in Alabama. Allegro did not have a license.

Attorney General Troy King said this ended "one of the largest debt settlement schemes in the nation."

Attorney General and Chief Financial Officer Help Protect Consumers Against Abusive Debt Collectors

2010-01-26T16:01:00.001-05:00

Attorney General Bill McCollum is working to protect consumers against bill collector harassment. The Attorney General’s office has been criticized for not doing enough to address the 4,400 complaints received in 2009. McCollum’s office proposed an initiative to make some tactics an inherent violation of the State’s Deceptive and Unfair Trade Practices Act.

In turn, Chief Financial Officer, Alex Sink has given her support for four reforms that would make it easier to track abusive debt collectors. One of the reforms includes reducing the number of complaints needed to refer an abusive collector to the State Attorney or Attorney General, and eliminating a time period required, as opposed to the current requirement of five complaints in one year.

For more information, go to www.againstbillcollectors.com/articles.html

Can you inherit debt?

2009-10-09T11:25:00.000-04:00

If a family member dies and leaves unpaid debt, who is responsible for paying it? The Federal Trade Commission is trying to help people understand their responsibilities. The FTC has issued an alert stating that family members are not responsible for the debt, unless you are the spouse, and even the spouse's responsibility may be limited. The person's estate is responsible for paying the debt. Therefore, before any money is distributed to family members, generally, all debts must be paid.

For more information, you can read this article
http://www.againstbillcollectors.com/media/CantInheritDebt-StPeteTimes081509.pdf

If a debt collector is harassing you about the debt, you can contact our firm for assistance. Contact us.

Debt Collectors Using Texting to Contact Consumers

2009-09-11T14:15:00.002-04:00

Some debt collectors are resorting to sending text messages to contact consumers. Consumers should not have to pay to be contacted by a debt collector. Since some phone plans charge per text message, the consumer is being charged each time a debt collector sends them a text message.

The Federal Trade Commission is working to change the Fair Debt Collection Practices Act to include banning cell phone contact and texting.

For more information, go to
http://www.againstbillcollectors.com/media/Limiturgedontextingtocollectdebt.pdf

Abusive Debt Collectors

2009-09-03T16:04:00.001-04:00

CBS News reported on a woman who was being harassed by debt collectors for a bill she didn't owe. The debt collectors claimed she owed $4400. She paid $900 to settle because she felt she couldn't pay an attorney to fight the claim. She did not realize that the debt collectors would have to pay her attorneys' fees if she was successful, so she could have hired an attorney without any cost to her.

Andrew Cuomo, New York Attorney General, sued the group that was harassing the consumer. The difficult part can be that these debt collectors close their offices (after being sued numerous times) and then re-open under different names.

Watch the video.

Zombie Debt

2009-09-02T13:06:00.002-04:00

Zombie Debt is old debt that has resurfaced. The debt may have been settled in bankruptcy proceedings, may not have been your responsibility, such as identity theft, or the statute of limitations may have expired.

If you have been contacted by a debt collector regarding an old debt, send them a certified letter asking for proof that you owe the debt. Check the statute of limitations on old debt. If the collector files suit against you, attend the hearing with evidence that the statute of limitations has expired. Do not agree to make a payment to show good faith, because that will re-establish the debt.

Even if you owe the debt, you have rights. Send the debt collector that is harassing you a cease and desist letter by certified mail. If the debt collector continues to harass you, you can take legal action.

If you have requested proof that you owe the debt and the debt collector cannot provide it to you, be sure to fill out a credit report dispute so that it will be deleted from your credit report.

If you need assistance with understanding your rights, please contact us at 866.553.3272.

2009-07-20T14:08:00.002-04:00

ABC's 20/20 Nightline

A laid off executive was harassed by a bill collector for being late on his car payment. The debt collector called in the middle of the night, threatening to wake up his neighbors and let them know he didn't pay his bills.

A bill collector was constantly harassing a woman at work and even threatened to call her employer's payroll department to let them know she wasn't paying her bills.

An identity theft victim was continually called by bill collectors for a debt that she didn't owe. Even after she explained that she had filed a police report, they called to harass her about the debt.

If you are being harassed by a debt collector, you have rights. Contact us for more information. http://againstbillcollectors.com/contact.php

Watch the video: http://www.youtube.com/watch?v=JNycHZK9YRE&feature=related

2009-07-10T15:57:00.001-04:00

ABC7 Exposes More Debt collector Illegal Tactics

Victims of aggressive debt collectors share their stories. A young woman was continually harassed about an old debt that she didn't owe. She didn't have a credit card at the time the debt was incurred. For more cases regarding debt not owed, see http://www.againstbillcollectors.com/caselist/1.html

Watch the video: http://www.youtube.com/watch?v=YhGNiofkzaA

2009-07-07T14:28:00.003-04:00

ABC News - Credit Card Predators

Debt collectors can use tactics that are intimidating and sometimes illegal. A woman's neighbor was contacted by debt collectors. The debt collectors told the neighbor that the woman was going to be arrested for not paying her bill. This is illegal. To stop debt collector harassment, start by sending a certified letter. To see a sample letter, go to our blog dated September 22, 2008. www.againstbillcollectors.blogspot.com and then contact us.

Watch the video: http://abcnews.go.com/Video/playerIndex?id=6161250

2009-07-06T12:46:00.003-04:00

Fox Morning Show with Mike and Juliet - Bill Collector Harassment

Fox Morning Show discusses bill collector harassment, such as calling late at night and calling numerous times at their work. The story involves a woman, whose husband was serving in Iraq, who received numerous phone calls from a debt collector stating that her husband hadn't paid off his student loan. The bill collector threatened to take their house and their car. She had to contact her husband serving in Iraq. He said that he had paid off the student loan before going off to war. When the wife relayed this to the bill collector, they didn't believe her and continued to harass her.

Another story involves a woman that fell behind on her payments because her husband was out of work. The debt collector began harassing her at work by calling numerous times and embarassing her in front of her co-workers. They contacted her co-workers and asked them to relay messages to her regarding being late on her payments. You have rights. For more information, go to www.againstbillcollectors.com.

Watch the video: http://www.youtube.com/watch?v=8RlV265WKkQ

2009-07-02T11:43:00.002-04:00

MSNBC Video - Consumers Cry Foul

MSNBC reported on a war veteran that was harassed by debt collectors. The debt collector threatened to contact the military regarding an old debt that the war veteran had thought was taken care of years ago. The FTC is inundated with complaints about debt collector harassment. There are Florida and Federal laws to protect you. For more information go to www.againstbillcollectors.com

Watch the video: http://www.msnbc.msn.com/id/21134540/vp/29921806#29921806

2009-06-30T10:19:00.003-04:00

How do you stop a debt collector from harassing you?

If you have fallen behind on your payments due to an illness or a job layoff, debt collectors will be calling you. They have the right to collect on the money you owe, but some debt collectors cross the line.

There are some collectors that threaten to have you arrested, make improper bank withdrawals, intimidate people and make harassing phone calls. According to the National Consumer Law Center, a collector has even threatened to call a woman's work place until she lost her job. The Better Business Bureau reported that one debt collector called a consumer's grandmother four times a day using threats such as "if she dies, then her life insurance can pay this debt off."

The Fair Debt Collection Practices Act requires that debt collectors treat you fairly. If the debt is legitimate, then you have to pay it, but you still have rights.

A debt collector cannot call you before 8 am or after 9 pm.
You cannot be contacted at work if the collector knows your employer disapproves.
Write a letter telling the debt collector to stop calling you.
If you have an attorney, tell the debt collector to contact the attorney. If you don't have one, the debt collector can ask your friends and family about how to get in touch with you.
A debt collector cannot use profane or threatening language.
A debt collector cannot misrepresent the amount of your debt, such as in the case of a consumer, who filed for bankruptcy in 1993. She was contacted in December of 1997, saying she had an unpaid credit card balance of $5,655 from 1992. With interest the letter claimed the debt had grown to $19,400.
Debt collectors cannot say that they will put a lien on your property, unless the really mean to do so.
Debt collectors cannot legally claim federal benefits, such as Social Security or your retirement accounts, like your IRA or 401(k) unless the debt is owed to the federal government. In 1996, Congress passed the Debt Collection Improvement Act which allows the government to take a portion of federal retirement, federal salary and Social Security benefit checks to cover non-tax debts owed to the government, such as federal student loans.
A debt collector may not use false statements, such as: falsely implying that they are attorneys, that you have committed a crime, or that they operate or work for a credit bureau or misrepresenting the amount of your debt, the involvement of an attorney in collecting a debt, or indicating that papers sent to you are legal forms when they are not.

Once you have been contacted by telephone, the debt collector must outline your debt, stating the amount, whom you owe the money to, and what action to take if you don't owe the money. If you don't owe the debt, you must write a letter stating you don't owe the money within 30 days.

If you decide to pay the debt, even if you don't owe it, just to get rid of the debt collector, it is an admission of guilt and it will have a negative impact on your credit score.

There is a statue of limitations on debt. Generally 3 to 15 years. Check with your state attorney general's office to find out the limit in your state (Florida State Attorney General's website: http://myfloridalegal.com). Do not accept new credit offers from a creditor you never repaid. Once your credit relationship is renewed, the statute of limitations starts over again.

If you have been treated unfairly, contact your state attorney general's office. You should file a complaint with the Federal Trade Commission 877-FTC-HELP or go to www.ftc.gov.

You have the right to sue a debt collector in state or federal court within a year of the date the law is violated. You may recover money for the damages you suffered plus an additional amount up to $1,000. A group may also sue a collector and for damages up to $500,000 or one percent of the collector's net worth, whichever is less.

2009-06-29T09:56:00.003-04:00

MY9NEWS Reporter exposes NJ debt collector

Old debts, known as zombie debt, can resurface without warning. Credit card companies sell the debt to debt collectors, who then contact you and increase the amount owed. You have 30 days from the day you receive the letter from the debt collector or bill collector to respond. Send a certified letter to the debt collector. See our blog dated January 22, 2009 for complete information to include in the letter. www.againstbillcollectors.blogspot.com

For more information on zombie debt, read http://www.againstbillcollectors.com/pastarticles.html

Watch the video: http://www.youtube.com/watch?v=NTVZ4rU2_84

2009-06-26T14:28:00.003-04:00

MSNBC Video - Deceptive Practices Used by Debt Collectors

MSNBC investigates deceptive practices used by debt collectors. The video shows debt collectors that pretend to be police officers in order to trick people into thinking they are going to be arrested. This is illegal. There are Florida and Federal laws to protect you. For more information go to www.againstbillcollectors.com.

Watch the video http://www.youtube.com/watch?v=jwrFy2bMn5Q

2009-06-23T11:29:00.002-04:00

Saxon Gilmore represented two consumers against Suncoast Vacations. As a result of our efforts, the company decided not to pursue the charge for a vacation rental package, which was contested by our clients.

2009-06-16T12:05:00.001-04:00

A federal judge in the Middle District of Florida, Tampa Division, recently entered a judgment for statutory damages against Equilease Residential Services, LLC and in favor of our clients pursuant to the Florida Consumer Collection Practices Act. The Court approved the full amount of statutory damages sought by our clients.

2009-06-02T11:13:00.002-04:00

Complaint filed against debt collection agency

A class-action complaint has been filed against CollectionCenter Wyoming, a debt collection agency. The plaintiff alleged that CollectionCenter Wyoming sent collection notices for past due medical bills after a judgment was ordered in Laramie County Circuit Court. This was in violation of the Fair Debt Collection Practices Act.

CollectionCenter Wyoming had garnished the plaintiff's wages for the past due medical bills. The funds to cover the garnishment were paid to the Clerk of the Court. However, a month later, the debt collection agency sent another notice to the plaintiff.

In addition, according to the court documents, the debt collection agency included private identifying information in its court filings that could lead to identity theft.

A prior complaint against CollectionCenter Wyoming stating the collection agency had made continued attempts to collect on a debt after the claims on that debt were dismissed has been settled and the suit was dropped with prejudice.

2009-06-01T14:45:00.002-04:00

New York Attorney General Andrew Cuomo Investigating Debt Collection Firms

New York Attorney General Andrew Cuomo announced this week that he is expanding his probe into twenty bill collection and debt collection firms for abusive or deceptive debt collection practices. Cuomo's office shut down two of Lamont Cooper's firms, called Emanee Development, Inc. and Dial Tech LLC. Allegedly, the firms violated the Fair Debt Collection Practices Act.

The Attorney General's Office plans to look into collection practices and how bill collection and debt collection firms deal with complaints. The Attorney General's goal is to stop the harassing phone calls, frivolous lawsuit threats made by the bill collectors or debt collectors, and any other violations of the law.

If you are being harassed by bill collectors or debt collectors, contact us.

2009-05-15T15:12:00.001-04:00

Debt Collectors Using Facebook
Posted By: Jessica Duff
May 7, 20009
http://www.todaysthv.com/news/news.aspx?storyid=84670

In today's Web report, Jessica Duff takes a look at the issue of debt collectors using Facebook to contact people that owe money. But is it legal? Apparently it is not legal to use such tactics. It violates both state and federal law. It shows how desperate debt collectors are to track down overdue accounts.

There are people on Facebook that actually work for debt collection agencies. And they may be requesting to be your friend.

Many debtors are having employees create accounts on Facebook. This is what consumer experts are calling facebait. But some debt collectors are getting to be deceptively sneaky.

"Using any false, deceptive or misleading methods would be illegal under federal law," says consumer attorney Jason Baxter.

"We've seen a rise in the number of calls where debt collectors are becoming more and more aggressive and more and more creative," Baxter adds.

Among the things a debt collector is not allowed to do is publicly embarrass or humiliate the debtor.

On Facebook, the law requires a debt collector to identify him or herself once they are your friend. When this happens, however, all of that person's other friends know he's in debt.

That's harassment. And that's illegal.

If you are being harassed by a bill collector, contact us.

2009-05-12T10:26:00.001-04:00

Stacie Schaible of Newschannel 8 had an interesting segment on bill collector harassment "Money 911: Bill Collector Advice". To see the video, go to this website:
http://www2.tbo.com/video/2009/may/07/money-911-bill-collector-advice-78566/video-news-money911/

2009-04-28T14:10:00.002-04:00

Have you been Harassed or Mistreated by a Debt Collector in the Past One or Two Years?

If so, you may have an action under the Fair Debt Collection Practices Act or the Florida Consumer Collection Practices Act.

The Act prohibits Debt Collectors from:

• Not telling you during the first call, or in the first letter, that they are debt collectors attempting to collect a debt and that any information obtained will be used for that purpose
• Refusing to identify themselves or their employer on the phone
• Calling you constantly
• Calling you between 9 p.m. and 8 a.m.
• Swearing at you or insulting you on the phone
• Leaving you abusive phone messages or phone messages that refer to your debt
• Calling, or threatening to call, your neighbors, friends, or employers and telling them about your debt
• Calling you at work after you have told them not to call you at work
• Threatening you with lawsuits, garnishment of wages, liens on property, or arrest for not paying a bill

If you have suffered from any of these abusive collection practices, you may be entitled to compensation.

Compensation

As a consumer, you are entitled to file a lawsuit against any debt collector who violates your rights under the Fair Debt Collection Practices Act. The Act allows a consumer to recover statutory damages of up to $1,000, actual damages, and attorneys’ fees and costs. There is a similar provision under Florida law.

Additional Information

If you would like additional information regarding your rights under the Act, please click on the following link for Against Bill Collectors’ website: http://www.againstbillcollectors.com. If you would like your case evaluated, you can contact Against Bill Collectors toll free at 866.553.3272 or againstbillcollectors@saxongilmore.com.

2009-04-17T11:19:00.004-04:00

Free Webinar

Consumer Lawyer Michael Rosen will be hosting a free webinar on Thursday, April 30, at 1:00 ET. The topic will be "Stop Debt Collector Harassment". Items discussed will include how you can protect yourself from illegal debt collection tactics and a discussion about Florida and Federal Laws on the subject.

To register for the event, please send an email to againstbillcollectors@saxongilmore.com to let us know and instructions will be sent to you.

2009-04-03T14:12:00.003-04:00

Are you being harassed by debt collectors or bill collectors for past due medical bills? Have you received proof that you actually owe these bills? Under HIPAA, patients have a right to access information which also can be used to verify the validity of a person's medical debt. You should send a certified letter to the collection agency requesting a detailed itemized statement, UB-04 coding abstract for hospital debts or CMS-1500 detailed statement for insurance provider debts.

The Fair Debt Collection Practices Act states that you have the right to demand that the debt collector stop further contact until these documents are produced. The debt collector may not be able to produce these documents.

Contact us for assistance in understanding your rights.

2009-03-31T16:38:00.004-04:00

After graduation, you may have more than just student loans to payoff. More college students are getting into debt from credit cards. University of South Florida, Florida State University, and many more universities across the country are making millions of dollars from marketing deals with credit card issuers.

The banks acquire the mailing lists from the universities and send out mass mailings, or setup booths on the universities to entice college students to sign up for their credit cards with the school's logo. The university then receives money for each credit card issued. This practice is, in effect, encouraging students to get into debt.

Florida Attorney General Bill McCollum and New York Attorney General Andrew Cuomo are reviewing the situation.

Of course, students can get into debt on their own. Over spending and making the monthly minimum payments on their credit cards is a recipe for disaster. If you are a college student who is behind on your bills and being harassed by debt collectors or bill collectors, contact us.

2009-02-25T14:36:00.003-05:00

Techniques Debt Collectors or Bill Collectors will use to get you to pay:

Debt collectors or bill collectors are, in effect, salesmen. Many are paid a commission based on the number of debts they are able to collect. They will strongly urge you to send your check to them immediately, via FedEx or Express Mail, which will add another $12 to the debt you already owe.

Debt collectors or bill collectors may try to get you to give them a credit card number to charge the monthly payments. You don't want to use credit to pay off credit. You will never get out of debt.

They may tell you to pay with Telecheck, and that all you need to do is give them your checking account number and routing number. The payments will be deducted automatically from your checking account. If there is not enough money in your checking account, you will be charged overdraft charges by your bank, so you will have even less money to pay your creditors.

Your best bet is to mail the check to the debt collector or bill collector via certified mail, so that you have a record of receipt.

If the debt collector or bill collector decides to sue you and gets a judgment, they may garnish up to 25% of your wages. The debt collector or bill collector may try to seize your bank account. If you own property, the debt collector or bill collector may record a lien against your property, which will have to be paid when the property is sold.

Some debt collectors or bill collectors may use deceptive practices, such as telling you that they will settle for a lesser amount and then when you send in the check, send the remainder of your debt to another debt collector to collect the difference. Other debt collectors or bill collectors have been known to cross out the words "Paid in Full" on the check and then deposit the check. This practice is illegal in many states, such as Arkansas, Colorado, Connecticut, Georgia, Kansas, Louisiana, Maine, Michigan, Nebraska, New Jersey, North Carolina, Oregon, Pennsylvania, Texas, Utah, Vermont, Virginia, Washington, and Wyoming.

Know your rights. Contact us.

2009-01-22T16:00:00.004-05:00

If you have been contacted by a debt collector or bill collector, you have the right to validate the debt. Send the debt collector or bill collector a certified letter with a return receipt requested, asking for the name and address of the original creditor, the total amount owed (original amount owed and any interest or penalties listed separately), and any payments made on the account. You may want to request the original signed document. If the debt collector or bill collector is not the original creditor, then ask for proof that the original creditor has sold its debt to the collection agency.

Section 809 (U.S.C. Section 1692g) of the FDCPA states that

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

Keep a record of any contact you have with the debt collector. Here is a form for you to use. Contact form

After 30 days, if they have not sent you satisfactory proof, send a copy of your receipt for your registered mail, a copy of the first letter that you sent and a letter stating that they need to remove the collection listing from your credit report because they are now in violation of the FDCPA, section 809(b). Again, send this via certified mail, return receipt requested and keep a copy of the letter.

If they do not agree to remove the listing, then contact us.

2008-12-12T14:13:00.003-05:00

Consumer debt is increasing in unprecedented numbers. In September, outstanding consumer debt in America reached $2.59 trillion. That's an increase of $6.9 billion since August.

The debt collection industry is benefiting from this economic crisis and becoming a booming business. Credit card companies, banks, and other lenders are continuously turning to the debt collection industry to collect outstanding debts, and some of the debt may be old. The change in bankruptcy laws in 2005 has made it difficult to discard old debt, so the old debt is resurfacing (also known as zombie debt - see our blog dated July 10.)

Debt collectors are using more advanced ways to collect debts. There are companies that help debt collectors determine which accounts are recoverable using computer models with a scoring system. They can tell the debt collector the probability of re-payment and the approximate amount of the payment.

The collection process usually begins with phone calls after a payment is 90 days late. The debt collector can also use internet searches and skip tracing to find the debtor. Skip tracing is where the debt collector uses credit reports, loan applications, etc. to find the debtor's friends, family, neighbors or even employers in order to contact the debtor.

Debt collectors may work with you to settle the debt, by collecting a lump sum or lowering your monthly payments. Not all debt collectors follow the law. Last year, the Better Business Bureau and Federal Trade Commission received almost 100,000 complaints against bad debt collectors. If you are being harassed by a debt collector, contact us.

2008-11-21T13:00:00.003-05:00

During these difficult financial times, some people are late making their payments. Are you one of them? Are bill collectors calling you? If so, here is some information that may help when talking to the debt collector.

1. Don't become hysterical and tell them all of your personal problems. Stay calm. Ask for details regarding the debt you owe, such as the name of the company, address, date the debt was incurred, and amount owed. Within 5 days after you're first contacted, the debt collector must send you a written notice telling you the amount you owe, the creditor to whom you owe the money, and what to do if you believe you don't owe the money.

2. Debt collectors have rights. They can contact you in person or by mail, telephone, telegram, or fax between the hours of 8:00 a.m. and 9:00 p.m. They can inform credit card bureaus of your unwillingness to pay, which will damage your credit.

3. You have rights, too. Debt collectors cannot use abusive language or threaten you. They cannot continue to call you at work if you have instructed them not to do so. Send the notice directly to the debt collector via certified mail, with a return receipt, to document proof the debt collector received your cease and desist notice.

4. Don't pay money you don't owe. If you decide to pay the debt, even if you don't owe it, just to get them to stop calling you, it is an admission of guilt and it will have a negative impact on your credit score. Dispute the claim in writing. If it is an old debt, check with your state attorney general's office. There is a statute of limitation on debt: generally 3 to 15 years.

5. Get help. If you are being harassed by debt collectors, you can file a complaint with the Federal Trade Commission or your state attorney general's office. If the debt collector has broken the law, you have the right to take action against them. Contact us.

2008-10-10T11:57:00.003-04:00

West Virginia's State Attorney General Sues Florida Debt Collector

West Virginia's state attorney general's office has filed a lawsuit against Charles Howell & Associates, Inc., a Tampa-based debt collector. Gregory Wells, the company's president and CEO is also named as a defendant. The suit claims that Howell & Associates called West Virginians about nTelos cellular phone agreements involving several hundred dollars in cancellation fees.

Consumers were threatened with a law suit, although Howell & Associates have no lawyers on staff and do not file lawsuits. The debt collectors threatened to report consumers to law enforcement officials, disclosed consumers' debt information to employers and other third parties, and threatened to add more fees to the consumers' debts.

Debt collectors can receive commissions based on their collections, so they tend to be overly aggressive and may cross the line from a legal standpoint. Consumers are protected from debt collection harassment abuse by the Fair Credit Reporting Act, Fair Debt Collection Practices Act, and the Florida Consumer Collection Practices Act. If you have been contacted by Charles Howell & Associates, contact us.

2008-10-07T10:34:00.003-04:00

Additional ways to avoid being harassed by a debt collector:

1. Complain to a Government Agency

If you are being harassed by a debt collector, contact an agency, such as the Federal Trade Commission or your state attorney general's office. These agencies enforce the laws that prohibit debt collection abuse.

2. Bankruptcy

Filing for personal bankruptcy stops all collection activity from collectors, creditors, or even government officials. But, as a general rule, debt collection harassment can be stopped without going to the extreme of filing bankruptcy. Bankruptcy should be saved for consumers that have serious financial troubles.

3. Sue the Debt Collector for Illegal Conduct.

Consumers are protected by federal and state fair debt laws, such as the Fair Credit Reporting Act, Fair Debt Collection Practices Act, and Florida Consumer Collection Practices Act. Debt collectors often break these rules because they think they can get away with it or that consumers are unaware that they have rights in these matters. However, only consumer debt transactions are covered by these laws. Original creditors and their employees are excluded from the federal law.

Keep in mind, however, that the debt collector has specified defenses under the law, including bona fide error defense. This is a limited defense and the debt collector must show that it adopted reasonable procedures to avoid such errors.

Additional claims to consider in debt collection harassment cases include:

Tort claims such as invasion of privacy or defamation
State debt collection remedies
State unfair and deceptive acts and practices laws
State credit repair organization laws
Unauthorized practice of law statutes
Criminal Laws

2008-09-22T16:37:00.004-04:00

How to avoid being harassed by a debt collector:

1. Deal with your creditors before you are referred to a collection agency. Call the creditor to explain your situation. Make sure that you actually owe the money. Do not make promises you can't keep, such as making a payment on a certain date, when you know you will not be able to make the payment.

2. Send a letter via certified mail. Keep a copy of it.

Here's a sample:

Dear Sir or Madam:

I am writing to request that you stop contacting me about account number _____ with (name of creditor) as required by the Fair Debt Collection Practices Act 15 U.S. C. section 1692c (c). (Note: Delete reference to the Act where the letter is to the creditor instead of a collection agency.)

(Describe any harassment you have received. If appropriate, include information about why you cannot pay the bill or do not owe the money.)

This letter is not meant in any way to be an acknowledgment that I owe this money. I will take care of this matter when I can. Your cooperation will be appreciated.

Note: Even though it is against federal law, not all debt collectors will stop harassing consumers. If this is the case, contact us .

3. Contact a Lawyer.

If your letter doesn't stop the harassment, a letter from a lawyer should. The lawyer may be able to raise legal claims for violations of the federal law that prohibits debt collection harassment. Federal law states that collection agencies cannot contact consumers represented by lawyers. This does not apply to creditors collection their own debts, but creditors usually abide by the law as well.

4. Negotiate with the creditor.

Its better to negotiate with a creditor before the debt is sent to a collection agency, but you may be able to work with the collection agency.

5. Raise complaints about billing errors.

If the collection letter contains an error, write to the company and request a correction. Consumers have the right to dispute a debt. Collection agencies must tell you the steps to take to dispute the date during the first contact or within five days of the first contact. If the consumer disputes the debt in writing within 30 days, the collection agency must stop collection efforts while it investigates the debt.

If the debt involves a line of credit, a credit card, or an electronic transfer of money, you have the additional legal right to require the creditor to investigate the bill.

2008-09-19T14:52:00.002-04:00

Unpaid hospital bills are being auctioned to debt collectors.

Hospitals are trying to recover unpaid medical bills by auctioning the debt online. Debt collectors will buy the debt or provide guaranteed payments to hospitals for access to the unpaid accounts. The agencies will receive a portion of the fees collected, so they will try to collect more than the debt owed, in order to cover its initial investment, and they may be more aggressive with the debtor because they need to recoup their costs.

The auction-site owners say that they have safeguards in place to protect patients from abuse, such as recording the telephone conversations and getting permission from the hospital before suing a patient.

2008-08-29T10:19:00.003-04:00

What do you do if a debt collector has contacted you?

Once you have been contacted by telephone, the debt collector must outline your debt, stating the amount, whom you owe the money to, and what action to take if you don't owe the money. If you don't owe the debt, you must write a letter stating you don't owe the money within 30 days.

If you decide to pay the debt, even if you don't owe it, just to get rid of the debt collector, it is an admission of guilt and it will have a negative impact on your credit score.

There is a statute of limitations on debt. Generally 3 to 15 years. Check with your state attorney general's office to find out the limit in your state (Florida State Attorney General's website: http://myfloridalegal.com). Do not accept new credit offers from a creditor you never repaid. Once your credit relationship is renewed, the statute of limitations starts over again.

If you have been treated unfairly, contact your state attorney general's office. You should file a complaint with the Federal Trade Commission 877-FTC-HELP or go to www.ftc.gov.

You have the right to sue a debt collector in state or federal court within a year of the date the law is violated. You may recover money for the damages you suffered plus additional amount up to $1,000. A group may also sue a collector for damages up to $500,000 or one percent of the collector's net worth, whichever is less.

2008-08-27T15:32:00.005-04:00

A debt collector cannot call you before 8 am or after 9 pm.
You cannot be contacted at work if the collector knows your employer disapproves.
Write a letter telling the debt collector to stop calling you.
If you have an attorney, tell the debt collector to contact the attorney. If you don't have one, the debt collector can ask your friends and family about how to get in touch with you.
A debt collector cannot use profane or threatening language.
A debt collector cannot misrepresent the amount of your debt, such as in the case of a consumer, who filed bankruptcy in 1993. She was contacted in December of 1997, saying she had an unpaid credit card balance of $5,655 from 1992. With interest, the letter claimed the debt had grown to $19,400.
Debt collectors can't say that they will put a lien on your property, unless they really mean to do so.
Debt collectors cannot legally claim federal benefits, such as Social Security or your retirement accounts, like your IRA or 401(K) - unless the debt is owed to the federal government. In 1996, Congress passed the Debt Collection Improvement Act which allows the government to take a portion of federal retirement, federal salary and Social Security benefit checks to cover non-tax debts owed to the government, such as federal student loans.
A debt collector may not use false statements, such as: falsely implying that they are attorneys, that you have committed a crime, or that they operate or work for a credit bureau or misrepresenting the amount of your debt, the involvement of an attorney in collecting a debt, or indicating that papers sent to you are legal forms when they are not.

2008-07-31T17:14:00.003-04:00

Consumer complaints to the Federal Trade Commission about debt collectors have consistently ranked No. 1 among all industries for several years in a row.

The Fair Debt Collection Practices Act, prohibits deceptive, unfair and abusive practices by third-party collectors. The act doesn't apply to a company's in-house debt collectors, but the FTC can go after in-house collectors due to a provision of the Federal Trade Commission Act that prohibits "unfair and deceptive acts in commerce."

If you are being harassed by a debt collector, here are steps you can take to ensure that you resolve your situation quickly:

1. Don't ignore calls or written communications from collectors.

"As long as the collector is not being abusive, it's a good idea to communicate with the collector because if you don't owe the money, you'll be able to convince the collector to go away," Kane said.

"If you do owe the money, you may be able to work out some partial payment or long-term payment, which you may not be able to do if you don't maintain some line of communication with the collector."

2. Make the collector prove you owe the debt.

Within five days after you're first contacted, the collector must send you a written notice telling you the amount you owe, the creditor to whom you owe the money and what to do if you believe you don't owe the money.

3. If a collector calls about a bill you already paid, send them proof in writing that you met the obligation.

Respond in writing and provide documents showing the account has been paid or settled in full. If you don't have the records, you can dispute the debt or try to get proof from the original creditor.

4. Don't tolerate abuse from debt collectors

Collectors cannot threaten violence or publish a list of consumers who refuse to pay their debts (except to credit bureaus). They cannot use obscene or profane language, or repeatedly use the telephone to annoy you. They cannot call you at work if you tell the collector that your employer will not allow it.

Collectors are prohibited from revealing the existence of your debt to any other party unless you've given consent or a court has given permission.

A collector may contact a third party to find out your whereabouts. They can learn where you live, your home phone number and where you work. They are not entitled to your work number, although they can easily obtain it once they know where you work.

5. Take action if you are being harassed with collection calls.

Send the debt collector a written notice to cease communications in connection with the debt or written notice that you refuse to pay it. Send the notice directly to the debt collector via certified mail, with a return receipt to document proof the collector received your cease and desist notice.

Once the collection firm receives your notice, it must stop contacting you, other than to tell you that the collector or creditor may invoke further specified legal steps to collect the debt.

The best way to deal with debt collectors is to communicate with them quickly, document all communications, and to try to work out a payment plan, if possible.

2008-07-29T15:43:00.002-04:00

Recently, a federal appeals court held that debt collection agencies cannot avoid responsibility for abuses by blaming them on creditors.

In the case of Reichert v. National Credit Systems in the UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT, Judge Mary Schroeder, ruled that the federal Fair Debt Collection Practices Act requires debt collectors to prove that they have used detailed procedures to ensure that they do not take actions that are prohibited by the act, such as harassing consumers, overbilling or making deceptive statements.

"A debt collector is not entitled to just sit back and wait until a creditor makes a mistake and then institute procedures to prevent an occurrence," the court ruled.

The case involved an Arizona consumer, Robert Reichert, who was contacted by a debt collector about an outstanding bill from his old apartment complex. The debt collector, National Credit Systems Inc., had tacked on charges for "attorney's fees," but couldn't explain where the charges came from. The collection agency claimed that it had overlooked the error because the landlord-creditor had always provided accurate information in the past. The court rejected that defense, holding that debt collectors must show detailed preventive procedures to escape liability for their actions.

"The court's ruling will compel debt collectors to police themselves more effectively," said Deepak Gupta, an attorney for Public Citizen who argued the case. "The ruling is very significant at a time in which increasing numbers of Americans are being contacted by debt collectors and abuses are on the rise."

2008-07-25T09:34:00.002-04:00

An Illinois debt-collection agency is being sued for attempting to collect invalid debts. AFNI is accused of harassing consumers for debts they did not owe. They did not check to make sure the debts were legitimate before contacting the consumers. These debts were reported to credit bureaus and AFNI refused to take steps to remove the invalid debts from consumers credit reports.

This is a direct violation of the Fair Credit Reporting Act which states "The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system."

2008-07-22T12:19:00.003-04:00

Have you been harassed, abused or mistreated by a bill collector? Have you received calls from a bill collector before 8:00 a.m. or after 9:00 p.m.? You are not alone. A couple was unable to pay $1,600 in rent after the husband had lost his job. Debt collectors began harassing them, calling them before 8:00 a.m. and after 9:00 p.m. and the debt rose to $9,000.

Federal rules regulate debt collection activity. Thirty eight percent of the FDCPA complaints in 2007 were due to debt collectors attempting to collect a debt not owed or an amount larger than the actual debt. According to the Fair Debt Collection Practices Act, debt collectors are not allowed to call consumers at the consumer's place of employment, before 8:00 a.m. or after 9:00 p.m. or if the consumer is represented by an attorney. If you are being harassed, call 866.553.3272 for a free consultation.

2008-07-10T14:20:00.001-04:00

"ZOMBIE DEBT RISES FROM THE GRAVE TO GET YOU"
Article posted in 03/25/08 Tampa Bay Times
Article taken from Newsday

After Kim Mullen filed for bankruptcy in 1993, she cut up all her credit cards. Since then, the Long Island resident has managed to obtain a good credit rating.

But four months ago, a debt collector contacted her, saying she had an unpaid card balance of $5,655 from 1992. With interest, the letter claimed, the debt had grown to $19,400.

As old debt seems to rise from the dead, it’s taken on a name – zombie debt. And in recent years, more such debt is coming back to haunt consumers, according to lawyers who specialize in debt.

Many credit card companies have started selling delinquent accounts to collectors to boost quarterly earnings, according to a report by Kaulkin Ginsberg, a Maryland-based adviser on debt collection. The collectors then resell some of that debt to other collection agencies.