Archive for FDCPA
A Discussion of the FDCPA and Consumer Bankruptcy
Posted by: | CommentsAttorney Good-Ashman\’s appearance on BCTV\’s Ask A Lawyer program.
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The New Consumer Financial Protection Bureau
Posted by: | CommentsIn July 2010, a new federal agency was created to help protect consumers. It is called The Consumer Financial Protection Bureau. The CFPB’s tasks include:
- Conducting rule-making, supervising, and enforcing Federal consumer financial protection laws
- Restricting unfair, deceptive, or abusive acts or practices
- Creating a center to take consumer complaints
- Promoting financial education
- Researching consumer behavior
- Monitoring financial markets for new risks to consumers
- Enforcing laws that outlaw discrimination and other unfair treatment in consumer finance.
While the CFPB is still gearing up its operations, it has launched a new website full of helpful information for consumers, including information regarding:
- Bank Accounts
- Budgeting
- Credit Cards
- Credit Counseling Agencies
- Credit Reports and Credit Scores
- Debt Collection
- Gift Cards
- Home Foreclosure
- Home Ownership
- Investments
- Student Education Loans
If you are facing a consumer law issue, there is help available! Contact our office for a free consultation with a knowledgable consumer law attorney today!
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FBI Warns of Payday Loan Collection Scam
Posted by: | CommentsIn a recent post, the Federal Bureau of Investigation warns of a telephone collection scam related to delinquent payday loans where the scammer calls the victim and demands payment for a delinquent payday loan in order for the victim to avoid legal consequences. These “collection” calls usually involve outrageous threats, including arrest or physical violence, upon the victim’s refusal to pay.
The FBI warns that these scams are particularly effective because the scammers often have accurate information regarding the victim such as a Social Security number, date of birth, and other similar personal information.
If you are the victim of such a call, the FBI recommends the following actions:
- Contact your bank;
- Contact the three major credit bureaus and place an alert on your file;
- Contact your local law enforcement if you feel you are in danger; and
- File a complaint with the FBI.
If you have been harassed by a debt collector, contact our office to discuss your options.
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What Practices are Off Limits for Debt Collectors Under the FDCPA?
Posted by: | CommentsThe following are examples of conduct that is not permitted in the collection of debts by a debt collector:
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
- use threats of violence or harm;
- publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
- use obscene or profane language; or
- repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
- falsely claim that they are attorneys or government representatives;
- falsely claim that you have committed a crime;
- falsely represent that they operate or work for a credit reporting company;
- misrepresent the amount you owe;
- indicate that papers they send you are legal forms if they aren’t; or
- indicate that papers they send to you aren’t legal forms if they are.
Debt collectors also are prohibited from saying that:
- you will be arrested if you don’t pay your debt;
- they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
- legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.
Debt collectors may not:
- give false credit information about you to anyone, including a credit reporting company;
- send you anything that looks like an official document from a court or government agency if it isn’t; or
- use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
- try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
- deposit a post-dated check early;
- take or threaten to take your property unless it can be done legally; or
- contact you by postcard.
If you have been the victim of an abusive debt collector, contact us.
Source: Federal Trade Commission
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“Debt in America and its Collectors” on Dateline NBC on Friday, March 27 at 10PM (ET)
Posted by: | CommentsVisit msnbc.com for Breaking News, World News, and News about the Economy
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Revisiting Wage Garnishment in Pennsylvania
Posted by: | CommentsIn Pennsylvania, wages are exempt from garnishment except in the following situations:
1. For certain actions related to divorce;
2. For support;
3. For board for four weeks or less;
4. For amounts awarded to a landlord arising out of a residential lease. Note that the amount subject to attachment must have the security deposit deducted from it. Also, the sum garnished cannot be more than 10% of the net wages per pay period or a sum not to place the debtor’s income below the poverty level;
5. For items falling within the Pennsylvania Higher Education Assistance Agency Act (student loans); and
6. For restitution to crime victims, costs, fines, or bail judgments pursuant to an order in criminal proceedings.
If a debt collector has threatened to garnish your wages, you should contact an attorney.
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Debt Collectors Joke About Violating the Law
Posted by: | CommentsWatch this video to see how funny debt collectors think it is to call your neighbors and relatives when trying to collect a debt. The debt collectors admit they do it to embarrass you. They claim it is totally legal but it is not. It is a violation of the Fair Debt Collection Practices Act for a debt collector to contact a third party regarding your debt.
If you have been the victim of abusive debt collection, please contact us.
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“I’m Going to Put a Judgment on You”
Posted by: | CommentsOften we hear reports from clients that a debt collector threatened to put a judgment against them if a debt was not immediately paid. This is a misleading statement and may be actionable under the Fair Debt Collections Practices Act and/or the corresponding Pennsylvania law protecting consumers from abusive debt collection practices.
In reality in Pennsylvania, a debt collector cannot simply place a judgment on you. They must go through the entire lawsuit process. See I’ve Been Sued By a Debt Collector in Pennsylvania for an overview of the process. Also, see General Overview of the Debt Judgment & Execution Process. Remember, you should never ignore a lawsuit that has been filed against you.
If you have had a debt collector make a threat to put a judgment on you, have been the victim of any other kind of debt collector harassment or abuse, or simply would like to discuss your debt problems, please contact us. If you are not located in Pennsylvania, you can contact us for the name of an attorney who practices in your area and/or visit the National Association of Consumer Advocates attorney referral website.
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Debt Collection After Bankruptcy Filing
Posted by: | CommentsAfter you file for bankruptcy, you receive protection from debt collection by the automatic stay. This is a Federal law that prohibits your creditors (and debt collectors) from attempting to collect debts during the pendency of your bankruptcy, with some exceptions. When you receive a discharge in bankruptcy, the automatic stay becomes permanent and any debt listed and discharged in your bankruptcy cannot be collected upon.
However, people who have filed for bankruptcy and/or received a discharge have been increasingly receiving collection calls and/or letters from debt collectors (not the original creditors listed on the bankruptcy.) Even though you are protected by the automatic stay/discharge order, the debt collector will claim that they did not have knowledge of the bankruptcy. They simply purchased the debt from the original creditor who did not tell them that a bankruptcy was filed.
If you are in this situation, you should contact an experienced consumer attorney for assistance. It is important to notify the debt collector (preferably in writing by certified mail, return receipt, with a copy of your “Notice of Bankruptcy Filing”) of your bankruptcy. After the debt collector has knowledge of the bankruptcy, they must stop collecting on the debt. If they do not, you may be able to take action against the debt collector under either 1) the Bankruptcy Code as a violation of the automatic stay/discharge order or 2) the Fair Debt Collection Practices Act.
You are not alone and YOU HAVE RIGHTS! Contact an attorney today!!!
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Congress’ Intent When Writing the FDCPA: Protect Consumers First & Foremost
Posted by: | CommentsThere is a section in the FDCPA entitled “Congressional findings and declaration of purpose.” For those of you not familiar with reading laws, this section essentially sets out what Congress had in mind when writing the FDCPA. Arguably, this section can be used as a guide when encountering a question involving the remaining provisions of the FDCPA which may be unclear or when countering an argument by a debt collector.
The Congressional findings section of the FDCPA are very interesting and I will summarize them below:
1. Congress found that there “is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors” and that these practices “contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to the invasions of individual privacy.” Section 1692(a).
2. It was also the opinion of Congress that the “existing laws and procedures for redressing these injuries are inadequate to protect consumers.” Section 1692(b).
3. Congress stated that there are ways for debt collectors to collect debts other than by abusing consumers. Section 1692(c).
4. It was also the opinion of Congress that, even if the abusive activity occurs entirely within one state, that abusive activity directly affects interstate commerce. Section 1692(d).
5. Congress stated the purpose of the FDCPA was to:
a. “eliminate abusive debt collection practices by debt collectors”
b. to ensure that debt collectors who are not abusive are not “completely disadvantaged”
c. “to promote consistent State action to protect consumers against debt collection abuses.” Section 1692(e).
After reading Congress’ findings and declaration of purpose, it becomes obvious that Congress intended first and foremost (almost to the extent of exclusively) to protect consumers from abusive debt collection by debt collectors. There is no mention of protecting abusive debt collectors. None, zero, zip, nada. The only intent Congress had in creating the FDCPA with regard to debt collectors was to “insure that those debt collectors who refrain from using abusive debt collection practices are not completely disadvantaged.” (Emphasis added.) Section 1692(c). Note that this isn’t even a strong protection for law-abiding debt collectors, just an expression that Congress thought it was okay to disadvantage debt collectors (probably given debt collector’s huge advantage over consumers) so long as compliant debt collectors are not “completely disadvantaged.”
The FDCPA is approximately thirty years old. Although the FDCPA has been refined and fleshed out by case law over the years, it is time for Congress to take action to ensure further and better protections (and updated damages) and remedies to protect consumers from abusive debt collection activities and to affirm that the Courts are following Congress’ intent in their application of the law.
(Copyright - Amy B. Good-Ashman 2008)
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