Category : Debt Collection Defense
At the heart of a court case in Minnesota is the debt collector’s letterhead that includes WWJD, a popular acronym for What Would Jesus Do.
The Minnesota Independent reports, “What Would Jesus Do” if he owed money to a collection agency? That’s one of several questions raised by a lawsuit filed in a Minnesota court. A Monticello debt collection company is facing a federal class action lawsuit because it sent out collections notices with a WWJD header. The case pits the religious rights of a small business against the Fair Debt Collection Practices Act which prohibits harassing, oppressive or abusive communication in debt collection procedures.
The debt collector says that the acronym is not threatening or harassing and that it has the right to include it on its correspondence. The case is set to go to trial in district court later this summer.
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As consumers run up debt and debt collectors come to call at their door, there are companies at the ready to buy up the “junk debt” and then try to collect on the outstanding amount owed years later.
On Credit/Debt Recovery, they explain the process, “Their secret is, they purchase old, bad debts that the original creditor wrote off as uncollectable, and then pursue them years later when your credit score has come back up. See, they aren’t stupid. If you’re the same 420-credit score who never paid that bill for the last 10 years, they won’t waste your time. But if you’ve gone on to purchase a home and clean up your act and you’re now enjoying a 650-plus score, you’re their prime target.”
Once your credit score is back to normal, you are considered the target and will want to take care of the debt to avoid having your score ruined again. In situations like this, it is best to seek the advice of an experienced debt collection attorney.
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More American consumers are experiencing the hassle and fear of being hit with false claims of debt, when debt collection agencies pursue them for payment on debts that never belonged to them.
Listed below are a few recent news items that bring the issue of false debt pursuit to light:
- The behemoth debt-collection organization Capital Acquisitions and Management (CAMCO) was shut down by the government when it was found to have received an estimated 80% of its revenue from false debt claims.
- The Minnesota attorney general was forced to bring a lawsuit against debt collection agency, Allied Interstate, when the organization refused to stop harassing innocent consumers for debt that did not belong to them.
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The Buffalo News reports on a debt collection agency owner who was arrested on 6/23/09 for threatening its customers, which is an illegal debt collection practice.
According to the story, a Buffalo-based collection agency’s employees posed as police officers and threatened to put overdue customers in jail.
The owner was arrested and the operation was shut down by State Attorney General Andrew M. Cuomo, who said that several debt collection agencies run by Tobias Boyland of Buffalo were some of the worst violators in the industry.
One of the components of the Fair Debt Collection Practices Act ensures that consumers will not be threatened by debt collection agencies while they are attempting to collect the outstanding money owed. Debt collectors need not threaten the customer while in the course of their job.
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If your loved ones and employer are being harassed by a debt collection agency that is seeking information about you and your finances, the collectors might be violating the law.
The Fair Debt Collection Practice Act was signed into law by the U.S. Congress and protects consumers from predatory and illegal debt collection practices. Listed below are a few of the guidelines for debt collection agencies when communicating with third parties in efforts to obtain information about consumers.
- A debt collector may not mail a postcard to your friends, family or employer
- A debt collector is permitted to seek information about your whereabouts from a third party, but they are not permitted to tell the third party that you owe debts
- They are not permitted to call any third party individual more than once, unless given permission by the third party
In order to protect yourself from false debt collection, illegal debt collection and harassment, it is helpful to collect and maintain information on the party or parties that are pursuing you for payment.
When dealing with a debt collector, it is wise to always ask for and record the following information:
- The name of the creditor and the debt collection agency
- The name of the individual debt collector that has contacted you
- A phone number where you can reach the debt collector
- The dates of the calls and the information exchanged during the conversation
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If you are experiencing intimidation and coercion at the hands of an aggressive debt collection agency, you might be entitled to take legal action against those perpetuating illegal debt collection practices.
Listed below are a few signs of debt collection abuse:
- Swearing at you on the phone or any type of name-calling or profanity
- Threatening to ruin your reputation or “drag your name through the mud”
- Publishing your name and contact information on a public list of consumers that owe back debt
- Phone calls at all hours of the day and night
- Bothering your employer for information about you and causing embarrassment at your workplace
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With consumer debt soaring, debt collectors are busy in their business. There are some ways to stall or hold off the debt collector.
The Wall Street Journal in their article, Five Ways to Keep Debt Collectors at Bay, offer these five tips:
Debt Collection Defense
- Establish a Repayment Plan
- Work Out Your Debts
- Make Partial Payments
- Play Hardball
- File for Bankruptcy (worst case scenario)
The article recommends doing everything possible to make the payments, including cutting other costs and exploring other ways to raise money to pay off the debt.
If you are facing debt collection, contact an experienced debt collection defense lawyer to assist you.
The Fair Debt Collection Practices Act has safeguards to protect consumers. It is important to speak with a financial attorney who specializes in debt collection before making any hasty decisions.
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Though the U.S. Congress passed the Fair Debt Collection Practices Act to protect consumers from illegal debt collection practices, there are a few loopholes in the Fair Debt Collection Practices Act that provide collection agencies with protection from liability.
These loopholes mean that it is especially important to keep complete records of all interaction with the debt collection agency and to seek legal counsel when planning a lawsuit. Listed below are protections for debt collectors:
- A debt collector won’t be held accountable for his or her actions if the collection agency can prove the actions were a result of error
- The collector is free of liability if they can prove their actions were done in good faith
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If you are having a difficult time paying your debt, you probably have debt collection agencies calling you often. You might want to know if you can force them to stop calling you or if that is even possible. Yes, it is.
The Federal Trade Commission offers this advice, “If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter, even if you don’t think you owe the debt, can’t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector in writing to stop contacting you.”
They do suggest sending the letter by return receipt requested as well as keeping a copy of the letter. There are two exceptions in which the debt collector can contact you after the letter has been received. Those are if they will be taking you to court or to tell you they will no longer be contacting you.
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