Category Archives: Creditors

How to sue your creditors as per the Fair Credit Reporting Act

It is not a tough job to sue your creditors if they are not following the laws as per the Fair Credit Reporting Act. The rules were made so that the creditors abide by it. If they are not following the laws, then you can sue them for each violation. You can sue a creditor on following grounds mentioned in this article.

Lawsuits

Lawsuits

Reporting inaccurate information on your credit report – If the creditor is reporting inaccurate negative information on your credit report, you need to dispute those items and the creditors will fix it. If you make a partial payment and they are not reporting it to the credit bureaus, they are violating the laws.

Not reporting a debt that is disputed – If you dispute a debt, and the creditor fails to give you information on that account, then they should report it as disputed to the credit bureaus. If they neglect to do this, you can make them pay for it.

Pulling your credit report without permissible purpose – creditors are not allowed to pull your credit report without permissible reasons. If they are making inquiries on your credit report without your permission, it is a serious violation and you can take actions against them.

FCRA

FCRA

Calling your place of employment – just because you have a debt with a creditor, they cannot violate the laws. If you request a creditor not to call you at your place of work, then they have to abide by it. If they are still calling your place of employment repeatedly, then you can take legal actions for such violations.

Creditors cannot harass or abuse you on the phone – creditors are required to do collections in a fair manner. They cannot harass or abuse you on the phone if you are not able to pay a debt within a certain period of time.

They are many other ways to sue a creditor if they are violating the laws. Its important that you be organized and do proper documentation, take notes of all phone calls. You can sue the creditors for each violation and make enough money to pay off your debts or at least make a dent in it.

Informative link about Fair Credit Reporting Act:

http://www.ftc.gov/os/statutes/031224fcra.pdf

Know your rights against harassment from creditors and collection agencies

Debt collectors are very famous for crossing the lines and violating the federal laws in their attempts to obtain payment. They will use their most scary and intimidating tactics to recover payments from you. In most of the cases, people are not aware of the legal restrictions applicable during collections and that’s why they end up being harassed by the creditors and the collection agencies.

Following are the possible violations of the FDCPA:

  • When a collection agency is contacting a third party, they have to identify themselves with their business. If they don’t tell you the name of their company for whom they are doing the collections, it is a violation of the law. They are only required the collect the contact information of the person on whom they are doing the collections.
  • Debt collectors cannot discuss about your debts with the third parties. If they try to give your personal information or disclose your debt details, it is a violation of the law.
  • Collection agencies are allowed to contact the third party once only, unless they are requested to be called again.
  • Collection agencies cannot contact you after you are being represented by an attorney. If they are try to call you after receiving the power of attorney from your lawyer, it is a violation of the FDCPA.
  • Collection agencies are allowed to call between 8 am and 9 pm, your time. They are not allowed to contact your place of work or home after you have sent the partial cease and desist letter and requested communication in writing only.

Following cases are considered to be harassment or abuse:

  • Debt collectors harass, oppress, or abuse any person
  • Threat of Force or criminal means to harm you or your property
  • Using profane language
  • Calling repeatedly
  • Calling you without disclosing identity (“I am a debt collector attempting to collect a debt”)
  • Most of the collection agencies violating the laws are famous for presenting false and misleading information to recover the payments from the consumers. They will attempt to collect more than what is owed. In certain cases, they will use scary and intimidating tactics like they are calling from the federal bureau or the attorney’s place and if the payment is not done, they will take you to the jail, or garnish wages. Don’t be afraid if they are threatening to sue you. They are trying to blow hot air.

How to deal with the creditors calling you and asking to pay your bills?

Most of us fell behind on some of our bills and it can get late to a certain period of time. This is the time when the creditors start calling you repeatedly asking to pay the debts. Most of the creditors will threaten you on the phone. They will want to scare you or back you into a corner and make you think in an irrational manner.

Most of the creditors and collection agencies will try to be ruthless at some point. This mostly happens if the creditors are collecting on unsecured debts. Creditors collecting for mortgage or auto loan are more reputable in their collection attempts. They know they have the title of you car or your house and if you are not making the payments, they will take away the car or the house. Here are five ways to deal with the creditors.

Always check the latest credit report. Make sure that the debt for which the creditor is collecting is legit. It mostly happens that inaccurate items get reported on your credit copy and you are being called by a creditor for a debt that is not at all yours.

Be aware of the consumer rights explained in the Fair Debt Collection Practices Act. You will have a fair idea on how a collection agency or a creditor is supposed to deal with you when they are collecting for some account. If they try to violate the laws during collections, you should record their phone calls and sue them. Do not let the creditors abuse or intimidate you on the phone. They will try all possible ways, sometimes illegal methods, to get the money from you.

If the debt is too old and you don’t have the money to pay it back, then check the statute of limitations of your state. If the debt is past the statute of limitations of your state, they cannot take any legal actions against you. You need to send a dispute letter explaining that you are aware of the laws of your state and the debt is past the SOL period. This should stop them from doing further collections. If the debt is within the SOL period, then you should try to negotiate with the creditor. The creditor will refuse your offer at first, but if you make it known to them that they are getting something rather than nothing, they will eventually budge. If the creditor has agreed for a settlement amount, make sure that you have the settlement offer in writing.

Never give the creditors access to your bank account or give them post dated checks. In most cases, the creditors try to do unauthorized debits from the customer’s bank accounts.

If the creditor is calling you to pay a legitimate debt, then you should make a plan to save enough money and make a lump sum payment towards settling the debt. You must make sure that the creditor is reporting the account accurately to the credit bureau after the account is paid off.

How to stop bill collectors harassing you over inaccurate or outdated debts

Under the Fair Debt Collection Practices Act, if you are being forced to pay a debt that you are not complete sure of, you have the rights to dispute the debt and get the actual details from the CA. They will contact the original creditor and get info on the debt for which you have disputed.

The FDCPA is your most powerful weapon against any unfair or illegal collection practices. Each and every debt collector is required to follow the three basic rules mentioned in the FDCPA.

  • Important FDCPA Rules:

1) Legal notification letters

All collection agents and certain attorneys must comply with section 12 of the Fair Debt Collection Practices Act (FDCPA) and must send the debt collection letters using the right words as mentioned in the laws. Section 807 explains the sixteen specific examples of false and misleading tactics. Anyone violating the laws can face a fine up to $1,000 per violation along with punitive damages.

2) How to take actions!

The FDCPA requires every debt collection company to follow the laws and contact the right person for their debts and collect the accurate amount. Collectors have the legal rights to locate a person by “skiptracing” but sometimes, they end up calling the wrong person because of the inaccurate information and record-keeping. It’s not illegal to contact a wrong person by mistake, but if the collection company has been well notified that they are calling the wrong person and must stop all their collection attempts, they must prohibit all their actions. In case, the collectors still continue calling the wrong person even after being informed, it is a serious violation of the federal laws, just like anyone using harassing and abusive collection tactics especially if the debtor has already disputed the validity of the debt.

  • What to do if the calls continue?

After you have sent a written dispute to the collection agency regarding the validity of the debt, the collectors must stop all collection efforts and cease all contacts until have validated the account according to terms mentioned in Section 809.

If a bill collector continues to demand payments without validating the debt, he can be sued for violating the FDCPA. The debt collectors have the room to continue all collection attempts until your written dispute is receiving by them. If you don’t dispute within the 30 days time frame, the debt will be considered valid and the might take you to the court. That’s why it’s important to send letters through certified mail with return receipt requested. You will have a proof with date and time and signature from the collection company that they have received your letter. Keep all written correspondences including envelopes and mail receipts. This information will come handy when you are filing a case against a debt collector violating the FDCPA. In most states, recording debt collector’s phone calls secretly is legal. Check with your state laws before recording the calls. To be in the safe side, always let the collector know that you are recording the conversation for legal purpose. When you have the proof, contact your state attorney general and file a complaint against the illegal company.

Bills collectors are able to validate the debts if it’s a recent delinquent account. There is every possibility of getting the correct information from the creditor. But if the debt is few years old, it becomes harder to validate because of the actual information of the debt passing from one company to another and original creditor deleting some accounts or records from their system. An original creditor will sell age old debts to junk debt buyers and thus it becomes almost tough to validate the account with accurate information. The actual information gets lost on the way. The FDCPA doesn’t require collectors to tell when a certain account was sold to another company. Therefore, different companies might call you over a period of time for the same account. Always ensure that you dispute the debt whenever you are called by a different bill collector and try to get the accurate information.

Knowledge is power. Be well versed of the FDCPA laws and your rights so that you are better prepared to deal with collection situations as they come up. Sometimes, the collectors get nasty in their collections. Don’t be intimidated! Protect yourself by being aware of the laws and report any kind of violations to your state attorney general.