abusive debt collection practices Archives - Page 3 of 3

Bankruptcy Law, Credit, Debt Relief, Florida Bar, Timothy Kingcade Posts

5 New Rules Can Protect You From Extreme Debt Collection Practices

Posted on August 4, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) has taken many steps to protect borrowers from illegal debt collection practices. However, debt collectors continue to use extreme measures to try to collect on debt. The Director of the CFPB, Richard Cordray said, “We continue to hear about serious problems with debt collection – debiting accounts without authorization, calling at all hours of the day or night, threats of arrest or criminal prosecution or threats of physical harm to consumers and even their pets.”

As a result, the CFPB has proposed a new set of rules that will further monitor debt collectors’ practices and prohibit them from harassing and tricking consumers. Below are five of the new rules that will protect consumers from abusive debt collection practices.

According to the CFPB, approximately one-third of all consumers who are contacted by debt collectors said the attempt to collect was for the wrong amount. This occurs because debts are often sold to debt collectors with limited and inaccurate or incomplete information about the consumers and their debts. However, new proposed rules would force debt collectors to “scrub” their files and make sure they have the correct consumer and debt information before contacting the borrower.
The CFPB’s new proposal would also prohibit debt collectors from contacting consumers more than six times per week. Some debt collectors contact consumers multiple times per day, causing a major disruption to their daily lives. The new limits would also give consumers the right to tell collectors not to call on a particular phone line or at a particular time of the day, such as during work hours.
Another new rule would force debt collectors to disclose more information to consumers regarding their debt. This rule gives consumers the opportunity to defend themselves against illegal practices and enable them to spot a debt collection scam. The same rule would also force collectors to tell consumers if their debt is too old to initiate legal action.
Debt collectors would also be forced to provide consumers with a debt report if they disputed a debt via written notice. Until the debt report is provided to the consumer the collectors would not be permitted to actively pursue debt collection.
Finally, the new rules would also prevent debt collectors from transferring debt without responding to debt disputes. If the debt is transferred before the dispute, the next collector would not be able to pursue the debt until a response is submitted.

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 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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

You can sue over Robocalls- Know your rights when it comes to Collection Calls

Posted on July 12, 2016by Admin

Debt collectors have the right to contact you, but they do not have the right to harass you. Recently, a woman received robocalls from the same business four or five times a day, all hours of the day and night, even on holidays- including Christmas day! She received a total of 800 robocalls in a year and a half period. After repeatedly telling the company to stop contacting her, she took legal recourse. The woman had suffered complications from bypass surgery and had fallen behind on her car payments.

The unwanted calls are in violation of the Telephone Consumer Protection Act, the number one complaint to the FCC. Consumers have the right to sue and can be awarded up to $1,500 for every call that does not fall within these guidelines.

Here are five illegal tactics that unethical debt collectors use:

Harassment. Relentless calling, 4-5 times a day falls into this category.
Timing. Debt collectors must limit their calls between 8 a.m. and 9 p.m. on weekends and weekdays.
Pretending to be someone else. Debt collectors always have to identify themselves and who they work for.
Making threats. It is illegal to make threats to get you to pay. The debt collector cannot threaten physical harm, jail-time or let your neighbors know about an outstanding debt.
Contacting third parties. It is illegal for a debt collector to contact employers, neighbors or leave messages with anyone regarding your debt.

Know your rights as a consumer. The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

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, Debt Relief, Timothy Kingcade Posts

U.S. District Court in NY Grants Debt Collector Motion to Certify Important FDCPA Issue

Posted on May 16, 2016by Admin

In an Order dated this month, a Federal Judge in New York determined that a decision he rendered in the matter of Halberstam v. Global Credit and Collection Corp.(U.S. District Court, ED, NY, 15-cv-5696 (BMC) be certified for an immediate interlocutory appeal.

The Fair Debt Collection Practices Act (FDCPA) case involved leaving a message with a person who answers the debtor’s phone. The issue presented in the case was whether a debt collector, whose phone call to a debtor is answered by a third party may leave his name and number for the debtor to return the call- without disclosing that he is a debt collector – or whether the debt collector must refrain from leaving call back information and simply attempt to make the call at a later time.

In the May 5, 2016 Memorandum, Decision, and Order Judge Brian M. Cogan wrote:

“I had no doubt, and I remain of the view, that the purpose of leaving such a message was to induce plaintiff to return the collection agent’s call without knowing that he was calling a collection agent. Describing the purpose of the call to a third party as a “personal business matter” was at least as suggestive, and probably more, of a business opportunity for plaintiff to make money as it was of its true purpose, which was to cause plaintiff to pay money. I granted summary judgment for plaintiff because I found that by leaving a message for plaintiff with a third party that was calculated to induce a return call without the debtor knowing that he would be calling a collection company, defendant violated section 1692c(b) of the Fair Debt Collection Practices Act (“FDCPA”).

The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

Further, the issue of whether leaving a message with a third party violates the FDCPA has the potential to impact a large number of other cases, as well as debt collection practices more generally.”

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Military members have twice the amount of debt collector complaints

Posted on April 7, 2016by Admin

According to a recent study by the Consumer Financial Protection Bureau (CFPB), members of the military submit debt collector complaints at twice the rate of civilians. Debt collection, mortgages and credit reporting were the subject of most of the complaints, according to the CFPB’s report.

While the higher rate of complaints could be due to a variety of factors, including time away for deployments and frequent moves from base to base, it is concerning because unpaid debts can threaten a military career.

The complaints concern disputes over money owed, debt collector calls to commanding officers and threats against security clearances held by service members. Veterans also complained of bill collectors trying to collect on medical bills that should have been paid for by the Department of Veterans Affairs.

It is unfortunate that the brave men and women who serve our country are being targeting by these unfair, deceptive and abusive debt collection practices. But it also comes as a warning to members of the military to diligently check their credit reports and proactively protect their credit files while away from home.

Related Resources:

http://www.insidearm.com/daily/debt-collection-news/cfpb-report-highlights-high-rate-of-collection-complaints-from-servicemembers/

https://www.washingtonpost.com/news/powerpost/wp/2016/03/23/military-members-have-twice-the-bill-collector-complaints/

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Bankruptcy Code & Debt Collection Laws Clash in Court, Again

Posted on January 18, 2016by Admin

Another court has found that when a creditor files a claim in bankruptcy that the creditor knows is barred by the statute limitations, it is not a violation of the Fair Debt Collection Practices Act (FDCPA). The FDCPA typically protects consumers from fraudulent attempts to collect a debt. However, the Bankruptcy Code explicitly allows creditors to file time-barred claims, creating a possible conflict in federal laws. Under Section 502 of the Bankruptcy Code, any filed claim is deemed allowed if no one objects.

As a result, the courts in Florida and other parts of the country are split on whether or not filing a stale claim violates the FDCPA in bankruptcy. For example, in 2014 there was a controversial case involving a creditor filing a proof of claim in bankruptcy after the statute of limitations to collect had expired. In this case, courts were split on whether or not it violated the FDCPA to file a stale claim in bankruptcy, especially within the Eleventh Circuit. This issue has given rise to a circuit split and could potentially reach the Supreme Court.

In the most recent ruling, Ana Castellanos filed a complaint alleging violations of the FDCPA, including “(1) making a false representation of the legal status of a debt; (2) using a false representation and deceptive means to collect a debt; and (3) using unfair and unconscionable means to collect a debt.” The district court in this case noted that, “the Bankruptcy Code provides the debtor a means to object to impermissible proofs of claim, such as those that are time-barred.”

The court ultimately ruled that even though the FDCPA and the Bankruptcy Code guidelines are conflicting, the FDCPA must yield to the Bankruptcy Code. In Florida, FDCPA claims can proceed while in other parts of the country they cannot. This strong federal law protects consumers against certain unfair collection practices, including:

Calling you repeatedly to annoy or harass you.
Trying to collect more than you owe.
Failing to send a written notice of the debt.
Threatening violence.
Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit, etc.)
Using profanity and abusive language.
Calling before 8 a.m. or after 9 p.m.
Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.).
Contacting you at your work, after you have requested them to stop.
Failing to verify disputed debts.
Ignoring cease communication requests.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

A WIN for Consumers! FTC Announces Major Enforcement Action against Debt Collectors

Posted on November 5, 2015by Admin

The Federal Trade Commission and other law enforcement authorities around the country have announced the first coordinated federal-state enforcement initiative targeting deceptive and abusive debt collection practices. This nationwide crackdown encompasses 30 new law enforcement actions by federal, state and local law enforcement authorities against debt collectors who use illegal tactics. These tactics include, but are not limited to: harassing phone calls, phony impersonations, false threats of litigation, wage garnishment – even arrest.

It has been documented that collectors even tried to collect on so-called phantom debts – phony debts that consumers do not actually owe. The illegal practices also included the failure to give consumers legally required disclosures and notices, or to follow state and local licensing requirements.

“Being in debt is stressful enough for many Americans without also being subjected to intimidation and false threats,” FTC Chairwoman Edith Ramirez said. “Debtors have certain rights and rogue collectors that step outside the law will face the consequences of illegal behavior.”

According to the complaint, the defendants also failed to identify themselves to consumers as debt collectors, falsely portrayed themselves as process servers or attorneys, and falsely threatened arrest or litigation. The defendants unlawfully disclosed consumers’ debts to third parties in an attempt to embarrass the consumers into paying them. All of these are in violation of the Fair Debt Collection Practices Act (FDCPA), which was designed to help prevent creditor abuse and harassment.

Click here to read more on this story.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Government Debt Collectors Targeted for their Abusive Practices

Posted on March 20, 2015by Admin

A recent CNN report found that special treatment is being given to debt collectors hired by government agencies. These collectors are charging steep fees and making threats, which include wage garnishment, foreclosure and even arrest. Other debt collection firms that are hired to go after credit card debt or auto loans are held accountable for such acts.

A senior member of the House Financial Services Committee is currently reviewing the report. He said he fears that low-income Americans are the most likely to suffer. The high fees leave many Americans unable to pay off their debts and afford their monthly bills.

The debt collectors are using power given to them by the government to pressure individuals into financial commitments they cannot afford. Unfortunately for consumers, the FTC admitted that the laws governing debt collection do not apply to the types of bills that government debt collectors pursue.

Click here to read more on this story.

If you 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.