Archive for the ‘Stop Debt Collectors’ Category
Debt Collectors can be nasty and have earned their reputation for not being easy to deal with. It is easier it seems to avoid them altogether, hoping that the problem will go away on its own. Unfortunately, collection agencies have a hard time giving up. They know they are supposed to work within the rules set forth in the FDCPA and yet they often continue to violate them one way or another. They know that a debt collector can do more to make life difficult and aggravating for consumers when it comes to student loans, than other collections, and can take a judgment against you without even filing a complaint. Federal loans also carry with them the opportunity for debt collectors to have employment wages garnished or have a tax refund paid to the lender directly.
If you have a Federally sponsored student loan and cannot pay, and wish to avoid debt collectors, either write a letter demanding the collector to cease contact; or, ask in writing for a deferment on your loan; or better yet, negotiate the balance, perhaps through an attorney (not a “debt settlement company”). Because student loans are different types of debt than typical consumer purchases, debt collectors are often instructed by the lender to agree to deferments or in some cases a reduction of the entire amount, payable over time. Whether it is because of a difficult economy, finding and keeping a job, a disability, care for a family member, personal illness or military service, these options can be very helpful and make things easier for you to handle.
Beginning on July 21, the debt collection industry will be monitored closely by two regulatory agencies– the Fair Trade Commission (FTC) and the newly formed Consumer Financial Protection Bureau (CFPB). The FTC has been around for many years but the CFPB was created to reform the financial industry and better protect consumers, resolve widespread consumer complaints, and tighten debt collection laws. Here are a few ways consumers can hope for positive changes affecting the collection industry, including putting a stop to debt harassment.
Enforce the Fair Debt Collection Practices Act (FDCPA)
The Consumer Financial Protection Bureau will be able to enforce federal consumer financial laws, including the FDCPA. The purpose of the Act is to eliminate abusive debt collection practices such as contacting consumers outside of specified hours and using profane language in communication related to the debt. The CFPB will have the power to penalize companies that fail to comply with the FDCPA and can enforce violations of the Fair Credit Reporting Act and the Truth in Lending Act.
Review Debt Collectors’ Practices
Many Americans, as well as those in federal government, believe that financial institutions, the debt collection industry, and credit reporting companies are in need of reform to better protect consumers. The CFPB will review debt collector practices for example, and determine if their methods are abusive or unfair, but will still leave to private law firms the ability to pursue claims on behalf of individual consumers for monetary damages and private enforcement. If the Bureau deems necessary, businesses could be forced to tighten collection practices and reduce debt harassment at the hands of overly aggressive debt collectors.
In most cases, people who receive collection calls accrued the debt themselves and have fallen behind on their payments. In some instances, however, these charges are a result of identity theft. Because people rely on technology to pay bills and make banking transactions, it is important to stay protected against hackers and Internet fraud. The best way to avoid collection agency harassment is to reduce the risk of having your identity stolen in the first place.
Consumers who use debit cards should check their account activity frequently. Every major bank has an online banking option which makes it quick, convenient, and free to monitor checking accounts. Anyone who comes across questionable or suspicious transactions on their statement should contact the bank as soon as possible.
Credit cards are better protected against fraud. Therefore, they should be used for online shopping and other Internet transactions instead of debit cards. Information shared online runs the risk of being stolen by hackers and used without your knowledge or consent. Again, people who suspect their accounts have been used fraudulently should contact the credit card company immediately.
Collection calls only begin once payments have not been made for a significant amount of time. Regular credit checks are a surefire way to stop theft in its tracks. Some criminals can open new cards in the victim’s name; in some cases, the only way a person knows that this new account exists is by seeing it on their credit report. Credit scores are very sensitive to missed payments, and even a fraudulent card can have a negative impact on your score for a while.
It is important to understand why collection calls feel like harassment in order to deal with the stress they create.
Many Americans have fallen behind on their credit card, mortgage, and/or car payments because they have experienced some form of financial difficulty. This causes stress on the individual, as well as family and friends that are affected. To make matters worse, collection agencies are making harassing collection calls about past-due accounts on a daily basis. These agencies use fear tactics on vulnerable people for one purpose: to make money.
When a consumer falls behind on their payments, creditors often retain debt collectors or sell the debt to them for a fraction of the total debt. Now, it is up to the collection company to turn a profit for themselves by collecting as much money as possible. It is typical for these agencies to pitch a “deal” to settle for less than the original debt; in fact, they are still making a profit because they bought the debt for far less. This is when the debt harassment starts.
Debt collectors will often use threats and lie to the consumer to try to force a payment out of them. They will up the ante even further to squeeze as much money out of the person as they can. This causes added stress and anxiety on the consumer who is already overwhelmed by their finances in the first place. Even though some of the tactics they use are unethical, collections companies continue to use them for financial gain.
It is important for people in this situation to remember to stay calm. Many of the intimidation practices used by debt collectors calling the home or office are empty promises. If the threats feel like harassment then an experienced debt collection lawyer can help you learn your rights and stop the deception once and for all. Otherwise, taking positive steps to get out of debt is the best way to stop collection calls.
According to the “Top 10 List of Complaints” by Illinois consumers last year, phone calls regarding consumer debt harassment topped the list at number one. This statistic proves two things: that the state is still suffering from high unemployment rates and other financial troubles as a result of the failed economy, and people are as annoyed as ever by debt collection calls. This problem is not limited to the residents of Illinois; in fact, this is a nationwide dilemma.
Many of these complaints were made by people who experienced collection agency harassment. Abusive tactics were reported, including illegal practices used to scare people into making a payment. These scare tactics can be very convincing at times, but as the old saying goes “you can’t get blood from a stone.” In most cases, the consumer does not have enough money to pay off their debts otherwise their accounts would not be in collections in the first place. Until consumers are able to come up with enough money to make a payment, how can they stop debt collectors from abusing their power?
Consumers have two options: turn them in and/or sue them. There are laws in place that regulate debt collection practices, and agencies should be held accountable when they break the rules. First, go to the Fair Trade Commission to complain then do the same with your state’s attorney general. A last resort to make the harassment stop is to take legal action against the offending agency. Some debt collectors are so ruthless that it seems as though they want your happiness and peace of mind along with your money. Don’t let them control your life – find an attorney that will fight for your health and your wealth against illegal and unfair debt harassment practices.
While millions of Americans must grapple in this difficult and topsy-turvy economy, some businesses continue to thrive. In fact, Portfolio Recovery Associates, Inc., a company that purchases, collects, and manages consumer debt, are reporting record-breaking profits.
Portfolio Recovery Associates, like other debt collectors, makes money by purchasing consumer debts from creditors, banks and other financial institutions. As defaulted debt or late pay debt increases, buyers and debt collectors like Portfolio Recovery Associates see their revenues rise as well. From 2009 to 2010, Portfolio Recovery Associates experienced increases in net income of 66% from $12.4 million to $20.6 million. At the end of their fourth quarter of 2010, Portfolio Recovery Associates’ total revenue rose 38% from 2009 for a record $100.8 million.
Isn’t it ironic if not more than a little bit aggravating that the success of debt collectors, like Portfolio Recovery Associates, has a banner year while most Americans struggle with loss of income, jobs and being choked by debt? Debt collection and debt buying are not on recession proof; they are recession successful. As Americans fight to pay off accumulated debt, collection agencies flourish.
Of course, someone needs to do the collecting, it is just that when collectors deal with so much business in response to market conditions, it makes one wonder if the abusive behaviors consumers complain about will rise as well and/or if all the FDCPA protections are being complied with . The next time you receive an aggravating or uncivil collection call, remember that you have rights, and you don’t have to tolerate abuse.
Our law firm Kimmel & Silverman, P.C. -CreditLaw.com- 800-NOT-FAIR, pledges to stand against unfair debt collection acts and practices. We promise to ensure our clients are treated fairly and with respect by debt collectors and their collection lawyers. We will not stand for abuse or collection harassment towards our clients, nor allow them to be contacted at unusual times and places. We will not stand for our clients to be contacted regarding another person’s debts, or for debts they have paid or don’t owe. We pledge to put a stop to these violations of law, in a quick and efficient manner.
We further pledge to make fair debt collection acts and practices the rule and not the exception; we will never cease in vindicating the rights of our clients. We pledge to uphold the Fair Debt Collection Practices Act, its provisions and rules so that debt collectors feel compelled to act with civility and appropriate conduct towards others. We will defend the standards of fair debt collection laws.
We pledge to battle any collectors who put payment above fairness or civility, and will stop abusive practices that are inconsistent with that ideal. We will fight to ensure that consumers no longer feel the collector has the upper hand.
We pledge to stop abuse by collectors who cannot govern themselves appropriately. We will fight those who violate your rights. We pledge to stop unfair practices that result in money being taken by deception, tricks or taken unfairly.
We will make the collector prove that they are entitled to what they seek, and have proof that the consumer actually agreed to be charged those amounts. We will not permit debt collection based solely upon what a collector says.
We will review letters our clients receive and we will pursue collectors whose letters violate the mandates of the fair debt collection practice act. We have no tolerance for deception, threats or half-truths. If a collector cannot prove its claim to payment of the amounts sought, we will work tirelessly to have it removed in full and stop collection calls.
Our attorneys pledge to do all of this and will litigate all claims where the fair debt collection practice act has been violated. We will put the pressure on the debt collectors and remove it from our clients. We will not allow calls before 8:00 a.m. and after 9:00 p.m. There will be no excusing telephone calls filled with false information, threats or intimidation.
We pledge this to you, our current and future clients. If you are a victim of unfair debt collection practices, or think you might be, call us and see what we can do. Remember, when debt collectors called you, they never expected you to call us! © 2009-2011 Copyright, Kimmel & Silverman P.C. – CREDIT LAW.COM- 800-NOT –FAIR- All Rights Reserved
In 2008, Portfolio Recovery Associates Inc. was sued for fraud after affidavits were submitted bearing the name of Martha Kunkle, who died in 1995.
It appears that Martha Kunkle has come back to life. Last July, lawyers for Portfolio Recovery Associates sought judgment in a lawsuit against a Seattle woman for $2,892.10 in credit-card debt and interest that she allegedly owed. It was a fairly standard debt-collection case except that Portfolio included an affidavit signed by Martha Kunkle to vouch for the debt’s validity.
A spokeswoman for Portfolio Recovery said the document was “inadvertently used by our outside counsel” because of “human error,” adding that the suit was dropped later “upon review of the case.” She also stated that Mrs. Kunkle’s name does not appear on any other affidavits submitted in other cases.
This practice of robo-signing, in which affidavits are signed without fully reviewing underlying documentation, is more common in debt-collection cases than foreclosures.
Minnesota Attorney General Lori Swanson is investigating numerous debt buyers debt collectors for this practice of falsifying affidavits. Missouri Attorney General Chris Koster said he wants to investigate whether Martha Kunkle’s name appears on any affidavits used to collect debt in the state of Missouri.
Concerns about Ms. Kunkle’s affidavits were raised in 2008 by lawyers for Jeanie Cole, one of thousands of Montana residents sued by Portfolio Recovery Associates to collect debts. After failing to locate Ms. Kunkle, lawyers for Ms. Cole interviewed her daughter, who worked at Providian in a document-processing division. Providian National Corp, a credit-card issuer, sold a number of delinquent account balances to Portfolio Recovery Associates and other debt collectors, which then sued the borrowers to collect the debt.
The daughter testified in a deposition that other Providian employees used the name Martha Kunkle when signing affidavits. Along with other employees, the daughter was responsible for signing affidavits. After counter suing Portfolio Recovery Associates for alleged violations of the Fair Debt Collection Practices Act, Ms. Cole was the lead plaintiff in a 2008 federal-court suit in Montana alleging the company targeted 16,000 borrowers using “false and misleading” affidavits.
Article Source: Dead Soul Is a Debt Collector
Listen! Don’t pay this debt collector under any circumstances!
Voice mail from SSA Group to a consumer
A Pennsylvania debt collector conducted fake court hearings in a mock courtroom in its offices and even sent uniformed officers who appeared to be sheriff’s deputies to serve civil subpoenas demanding that consumers appear for “hearings” and “depositions,” the state attorney general’s office contends in a lawsuit.
Intimidated consumers allegedly provided their bank account numbers and even turned over the title to their cars.
The action seeks an order from a real state court freezing the assets of Unicredit America Inc. and prohibiting the company from continuing to collect debts or conduct further proceedings at its Unicredit Debt Resolution Center in Erie, according to a press release from the office of Pennsylvania Attorney General Tom Corbett.
The suit, which was filed by the office’s Bureau of Consumer Protection, alleges violations of the state Consumer Protection Law and federal Fair Debt Collection Practices Act.
“This is an unconscionable attempt to use fake court proceedings to deceive, mislead or frighten consumers into making payments or surrendering valuables to Unicredit without following lawful procedures for debt collection,” says Corbett in the release. “Consumers also allegedly received dubious ‘hearing notices’ and letters–often hand-delivered by individuals who appear to be sheriff deputies—which implied they would be taken into custody by the sheriff if they failed to appear at the phony court for ‘hearings’ or ‘depositions’.”
The president of the company declined to comment Friday, reported the Pittsburgh Channel, a local ABC affiliate.
Attorney Larry D’Ambrosio is accused of orchestrating the hearings in the mock courtroom, the Pittsburgh Tribune-Review reported. He could not immediately be reached for comment on the Erie County lawsuit.
Original article by ABA Journal: Article Source
