abusive debt collecting practices Archives

Trump Administration Delays Consumer Protections for Abusive Payday and Car-Title Lenders

Posted on August 22, 2019by Admin

New consumer protections against abusive lending practices have been placed on hold by the Trump Administration for another 15 months. The protections that were enacted in 2017 were set to take effect this week are now being delayed, perhaps indefinitely. The reasoning behind the delay of this consumer safeguard: ‘It’s too troublesome for lenders.’

The delay is being viewed as just another example of the current administration stripping away consumer-friendly policies enacted under the Obama administration.

Debt Relief

Senators Take Action Against the New FDCPA Proposal

Posted on June 11, 2019by Admin

A number of United States Senators are calling on the Consumer Financial Protection Bureau (CFPB) to reconsider a recent proposal made that would allow debt collectors to contact consumers via unlimited texts and emails, as well as increasing the amount of times they can call consumers per week.

More than 20 senators signed a letter issued to the CFPB, specifically expressing concerns they had to the proposed update issued to the Fair Debt Collections Practices Act (FDCPA), which would give debt collectors additional ways to reach consumers who owe on a debt.

The letter was penned by Senators Bob Menendez, D-NJ, and Sherrod Brown, D-Ohio, as well as 19 Democratic and two Independent lawmakers. Several 2020 presidential candidates signed the letter, including Senators Kamala Harris, Kristin Gillibrand, Cory Booker, Bernie Sanders, and Elizabeth Warren.

The letter was specifically directed to the current CFPB Director, Kathleen Kraninger.

The main concern has to do with the fact that these changes seem to divert the FDCPA away from what it was originally intended to do, which was to protect consumers from harassment and unfair debt collection practices by third-party debt collectors. The FDCPA includes provisions to limit the time of day a debt collector may call a consumer, as well as the content expressed by the collector in the communications. Specifically, the FDCPA prohibits the following behavior from debt collectors:

Calling you prior to 8 a.m. or after 9 p.m.;
Calling you at work once you tell them not to;
Calling your family, friends and neighbors;
Threatening you with possible debt collection lawsuits;
Threatening you with criminal prosecution or immigration actions;
Talking to you abusively or profanely.

However, this new proposal was made with the mindset that consumers are reachable more easily through email or text messaging. Since these types of communications could be done at any time of the day or night and could be unlimited per the proposal, this could allow collectors to overwhelm consumers with communications. The senators expressed concern with the fact that not all consumers have unlimited text messaging, which means these communications could come at a high cost.

The new proposal does limit the time in between calls made by debt collectors. While the emails and text messages can be unlimited, collectors are limited to seven calls a week per debt. If they reach a consumer once, they must wait at least a week to call the consumer again. Click here to read the proposed changes in full.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.usatoday.com/story/tech/2019/06/06/debt-collection-senators-write-cfpb-letter-objecting-proposal/1361365001/

Debt Relief, Timothy Kingcade Posts

‘Overbiffing’ is the Latest Trend in Illegal Debt Collection

Posted on November 6, 2018by Admin

A new trend is occurring involving unfair debt collection practices known as “overbiffing.” This practice occurs when a creditor or debt collector overstates a debtor’s balance in hopes of getting more money than what is owed.

A recent case in New York highlighted the problem. In the case, a New York debt collector overstated account balances for thousands of consumers in an effort to defraud them into paying more than they actually owe. The debt collector also used abusive and illegal tactics to get consumers to pay. The Fair Debt Collect Collections Practices Act (FDCPA) specifically prohibits this type of behavior, as was addressed by the court.

The “overbiffing” term comes from the act that the debt collector is trying to accomplish. The scam these companies are trying to accomplish is to tell the individual that what they are paying, which is an overstatement of what they owe, will pay the person’s “balance in full,” which is shortened to “BIF.” Of course, these “balance in full” payments are well over what that person owes.

One such debt collector is based in Buffalo, New York, named Robert Heidenreich, also known by the name “Bobby Rich.” The debt collectors working for Heidenreich have been accused of overstating balances that they say consumers owe on accounts. Regulators in this case used forms to compare the actual balances these consumers owe to the amounts that these scammers are saying that they owe. What these regulators found was that the difference between these two amounts was in the hundreds or even thousands of dollars.

Heidenreich’s employees were also accused of misleading the consumers about who was calling. Many of the employees knowingly violated the FDCPA by posing as attorneys or even law enforcement, as a scare tactic. Threatening legal action when one does not have the right to do so or impersonating an attorney or law enforcement is a blatant violation of the FDCPA. These employees would tell the consumer that they had committed a crime and were about to either be arrested or served with notice of a legal proceeding regarding the debt. The consumer would then be directed to another debt collector pretending to be an attorney, who would take payment over the phone on the alleged amount owed. If the consumer questioned the person on the phone, the debt collector would become aggressive and even abusive in response, which is another violation of the FDCPA.

If you have been contacted by a debt collector who is committing one or more of these actions, it is important you know your rights. Per the FDCPA, any third-party debt collector is not allowed to use threatening or abusive language when communicating with the debtor regarding a debt. The FDCPA also prohibits third-party debt collectors from misrepresenting who they are, as well as the consequences of not paying the debt. If a third-party debt collector has done any of these actions, you may have a valid claim for damages under an FDCPA violation.

As a consumer, you also have the right to request validation of the debt from the debt collector. This validation must be produced in writing and must include how much is owed and to whom the debt is owed. You should then take that information and check to make sure that the amount given is, in fact, correct. This information can be validated, for example, with information on the consumer’s credit report.

If a debt collector has violated any provision of the FDCPA, it is important you report the debt collector to the state attorney general’s consumer affairs division, as well as the FTC.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

How to Handle Creditor Harassment

Posted on October 8, 2018by Admin

Dealing with creditors and debt collectors is one of the worst parts of dealing with debt. Even the thought of continuous debt collection calls can keep a person up at night. Debt collectors are oftentimes relentless when making these calls and can cross the line from a legal standpoint. It is important to remember, that as a consumer you have rights when it comes to debt collection.

The Fair Debt Collection Practices Act (FDCPA) was created to protect consumers from harassment and threatening behavior from third-party creditors.

The FDCPA protects consumers from the following creditor behavior:

Contacting your employer regarding your debt or another party, except for contacting them to get information on your location;
Contacting you at unreasonable hours, either very early in the morning or late at night;
Calling you at work after being told to no longer contact you at your place of employment;
Calling excessively or repeatedly;
Using threatening or abusive language or behavior;
Threatening a lawsuit when they have no intent to pursue a lawsuit;
Threatening to publish or share your information because of your failure to pay a debt;
Any other abusive, obscene or threatening behavior.

The important first step to take when faced with a debt is to ask for confirmation on the amount owed. In fact, the debt collector is required to notify you that you have the right to request this validation within 30 days after receiving the first written communication from the debt collector. Requesting validation of the debt can also be done over the phone. By requesting validation of the debt, the consumer is making the debt collector verify that the debt is actually owed.

If the amount is accurate and you still are not able to pay on the debt, it is always recommended that you speak directly with the creditor and explain the situation. Tell them that you are unable to pay. Never provide your bank account, routing number or debit card information to the creditor.

The FDCPA also dictates other requirements as to when the collector can call, which is only between the hours of 8 a.m. and 9 p.m. The debt collector is also restricted from using any language or tactics that may be deemed harassing, threatening or abusive. If the debt collector tries to contact other third parties, such as friends or family members of the individual, they may not disclose information on why they are trying to reach the debtor but can only contact them to get the correct contact information for them.

The ideal situation would be for the creditor to work with you on an affordable repayment plan option. Many times, a letter from the debtor is not enough to get the collector to stop communication, and at this point, an attorney may be needed to write a letter. If a third-party debt collector persists in this behavior, you may be entitled to file a legal claim for an FDCPA violation and sue them for damages, which can include attorney’s fees plus an additional $1,000.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Just How Often Do Debt Collectors Harass People? The Answer Might Surprise You

Posted on October 26, 2017by Admin

According to the Consumer Financial Protection Bureau (CFPB), debt collectors are required to stop calling once an official request has been made to cease communication. However, approximately 75 percent of consumers who have asked for debt collection calls to stop say that the calls kept coming.

The CFPB released a report earlier this year that surveyed over 10,800 consumers in 2014 and 2015 about their recent experiences with debt collectors. They received approximately 2,000 responses that revealed that over one in four consumers have felt threatened by the debt collector that most recently contacted them. Although debt collection agencies are not allowed to abuse or harass consumers, many collectors do not play by the rules. Approximately 40 percent of consumers surveyed said they asked a creditor or debt collector to stop contacting them, however; only one out of four people reported the collector actually stopped.

Debt collection is a $13.7 billion industry in the U.S. and the most frequent topic of complaint fielded by the CFPB. Approximately 70 million people have been contacted by a creditor attempting to collect on a debt in the past year, according to the CFPB.

The CFPB recently issued proposed rules that would strengthen consumer protections by limiting how often debt collectors can contact consumers. The rules would also require these companies to get the details right and offer an easy dispute process.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Supreme Court Supports Bids to Collect Expired Debts in Bankruptcy

Posted on May 18, 2017by Admin

Voting 5-3, the U.S. Supreme Court has ruled that debt collectors can use bankruptcy proceedings as a means to collect old debts, where the statute of limitations has expired. The court ruled that this was not a violation of the U.S. Fair Debt Collection Practices Act.

Consumer advocates accused debt collectors of violating the law by filing tens of thousands of outdated claims with bankruptcy courts in hopes that some debtors would not object.

Justice Sonia Sotomayor filed a dissenting opinion in which Justices Ruth Bader Ginsburg and Elena Kagan joined. “Professional debt collectors have built a business out of buying stale debt, filing claims in bankruptcy proceedings to collect it, and hoping that no one notices that the debt is too old to be enforced by the courts. Debt collectors do not file these claims in good faith; they file them hoping and expecting that the bankruptcy system will fail,” Sotomayor wrote. This practice is both “unfair” and “unconscionable,” she added.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The High-Tech Methods Debt Collectors are using to Find you- and Your Money

Posted on May 3, 2017by Admin

Debt collectors are using some new high-tech tactics to collect and track down consumers. New software is allowing debt collectors to insert voicemails into phones by the thousands without a single ring, bypassing regulations that restrict how often they can call consumers.

Ringless Voicemails

Companies such as Stratics Networks maintain that because no phone calls are made, regulations prohibiting auto-dialed collection calls do not apply. But consumer protection attorneys disagree, arguing that just because the phone does not ring, does not mean it’s not a call. The Telephone Consumer Protection Act forbids debt collectors from harassing consumers.

Avatars

Animated cartoon characters show up in borrowers’ inboxes and smooth-talk borrowers into paying up. Collections managers design personalities of avatars, who speak multiple languages and weigh debtors’ credit scores when negotiating payment.

Speech Analytics

Advanced language-recognition programs not only track keywords during a conversation but identify the emotion of the borrower. Cursing out a debt collector? Prompts generated by CallMiner Inc. software help steer conversations back on track.

Supervisors using the speech-analytics company’s system see color-coded boxes on call-center computer monitors. Small green boxes represent routine conversations. During those calls, agents are reminded to recite mandatory “mini-Miranda” statements that inform consumers of their rights. But a box turns red and expands when a call contains expletives or long silences.

Skip Tracing, Spoofing and Scrubbing

In a practice called skip tracing, collection agencies search databases to find borrowers who have skipped out on paying their debts. Some collectors track debtors on Facebook and other social media sites. A Texas agency is linking Social Security numbers to social media accounts, raising privacy concerns. Another tactic known as spoofing, debt collectors insert local area codes in caller-ID displays, enticing the person being called to answer the phone. The Consumer Financial Protection Bureau is proposing to ban the practice.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Select Portfolio Servicing Accused of Violating Telephone Harassment Law

Posted on January 3, 2017by Admin

Debt collector, Select Portfolio Servicing, Inc., is being sued for violating telephone harassment statutes. A consumer filed the complaint in the U.S. District Court for the Southern District of Florida alleging that the debt collector called his cell phone hundreds of times in an attempt to collect a debt. The plaintiff alleges he suffered damages when he received more than 350 collection calls after he demanded the company stop contacting him.

Select Portfolio Servicing, Inc. allegedly used an automatic telephone dialing system to contact the plaintiff in this case. The plaintiff is requesting a trial by jury, $1,000 in statutory damages, actual damages, all attorney fees paid, and any additional relief the court deems appropriate.

Click here to read more on this story.

Click here to learn more about the Fair Debt Collection Practices Act (FDCPA), designed to help prevent creditor abuse and harassment.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Can a Debt Collector Contact You During the Holidays?

Posted on December 14, 2016by Admin

Getting a call from a debt collector can be a frustrating and stressful experience, and the last thing you want to deal with during what is supposed to be the “Most Wonderful Time of the Year.” Even though it is legal for debt collectors to try and recoup a debt you owe, there are restrictions.

For example, debt collectors cannot contact you at times they know are inconvenient (i.e. – before 8 a.m. or after 9 p.m.) They cannot contact you at your job if you ask them to stop, they cannot repeatedly contact you throughout the day, they cannot threaten you or lie to you about the debt, and they cannot discuss your debt with any third party.

All of these are in violation of The Fair Debt Collections Practices Act (FDCPA).

But what about during holidays? Although the FDCPA does not specifically state which days of the week debt collectors can and cannot call you and does not designate a holiday exemption, it does state that collectors cannot communicate with you during times which are known to be inconvenient.

So you could essentially argue that a call on Christmas Eve is, in fact, a violation of the FDCPA. This would likely fall under, “calling at times known to be inconvenient.”

If you believe a debt collector is violating the law by calling you outside the allowed times or by calling more frequently than they should, after you have asked them to stop calling or have sent a cease and desist letter, you can report them to the Consumer Financial Protection Bureau and your state Attorney General.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Holiday this year! If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://blog.credit.com/2016/12/can-a-debt-collector-call-me-during-the-holidays-163536/

https://www.thebalance.com/when-can-debt-collectors-call-960573

Bankruptcy Law, Credit, Timothy Kingcade Posts

Tips for Dealing with Debt Collectors

Posted on April 17, 2014by Admin

It’s one of the things consumers dread the most- a debt collector calling to collect a payment on an unpaid credit card, medical bill or past due student loan. Experts agree that ignoring debt collectors’ letters and phone calls is a bad idea. It can only make matters worse. The best advice is to avoid debt collectors altogether and attempt to negotiate a payment plan with the original creditor before it is sold to a third-party debt collector.

The following tips will help you deal with debt collectors:

1.) Educate yourself. Become familiar with the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from harassing phone calls, threats and abusive language debt collectors often use to obtain payment. These tactics are illegal and should be reported to the U.S. Consumer Financial Protection Bureau (CFPB). To learn more about the FDCPA and the protections it offers, watch this short video: https://www.youtube.com/watch?v=5o-ci9nVEgA.

2.) Do not ignore. The law allows consumers to send written requests for verification of the debt within 30 days of being contacted by a debt collector. Do not ignore letters, phone calls or court notices about debt lawsuits.

3.) Keep copies and records. Experts say keep these as long as you keep your tax documents. Others believe these should be kept for as long as the statute of limitations. Documents detailing proof of settlement or resolution of debts should be kept forever.

4.) Safeguard your bank account. Debt collectors can file a lawsuit against consumers for nonpayment of debts. Freezing savings or checking accounts is one of the court-ordered options for collecting debts. Do not make payments using your bank account and routing numbers. Make payments with money orders or a third party payment service so you have proof of payment but avoid paying with a personal check. Let collectors know if your bank account contains only exempt funds. You should also tell them if you have filed for bankruptcy. This will cease all collection attempts.

5.) Record conversations. If a debt collector uses abusive language or threatens you, record the conversation. Using these type tactics to collect on a debt is illegal. Another option is to tell the debt collector the conversation is being recorded, as many collectors will be less likely to overstep their bounds if they know they are being recorded.

6.) Get it in writing. Any agreements for making debt collection payments should be confirmed in writing and signed by a debt collector before you make your first payment. This can avoid any misunderstandings about the amount to be paid and time period to pay off the debt.

If you have any questions on this topic or are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.