Tag: abusive debt collection

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

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

Posted on by 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.

Credit, Debt Relief, Timothy Kingcade Posts

FTC Shuts Down Debt Collector for Allegedly Threatening Lawsuits, Arrests against Consumers Who Don’t Owe Anything

Posted on by Admin

The Federal Trade Commission (FTC) is cracking down on “Phantom” debt collection schemes that go after individuals for money they do not actually owe.  The FTC shut down an operation that collected more than $690,000 in fake debts by threatening consumers with lawsuits and arrests, a violation of the Fair Debt Collection Practices Act (FDCPA).

A court order has stopped the business operations of Hardco Holding Group and S&H Financial Group.  The debt collection operation is accused of using deceptive and abusive practices to collect fake debts.  Since June 2015, the companies and their operators Daryl M. Hall and Dequan M. Sicard illegally collected supposed payday loan and other debts from consumers using the threat of legal action and arrest.

Often, doing business as Alliance Law Group, the companies employed a two-step collection process. The complaint alleges the first step involved calling victims claiming that a lawsuit had been or would soon be filed against them due to an outstanding debt they owe.  The victim of the scam would then be provided with a phony case number for reference.

The FTC claims that during most of these calls, the operators of the scheme did not identify themselves as debt collectors. To make the collections seem legitimate, the FTC notes that the collectors would often possess or claim to possess individuals’ personal information, or claim to be from an unrelated, legitimate small business.

The reps advised callers that they could settle the action by making a payment over the telephone using a credit or debit card.  If the victim refused to pay immediately, collectors would threaten legal action and arrest.  The FTC charged Hardco and S&H Financial with violating the FTC Act and the Fair Debt Collection Practices Act, and seeks to refund individuals affected by the fake debt collection scheme.

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, 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.