debt collection abuses Archives

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Lawmakers Fight to Close Robocall Debt Collection Loophole

Posted on March 9, 2017by Admin

Federal lawmakers are attempting to close a recently opened loophole that allows the federal government to automate unwanted, even incorrect debt collection calls to consumers. This all started in late 2015, when an addition to a budget bill amended the existing telecommunications law allowing robocalls “made solely to collect a debt owed to or guaranteed by the United States.”

Sen. Ed Markey (MA) is attempting to put an end to this with the HANGUP Act of 2017, which would close the debt-collection loophole opened by the 2015 budget bill.

The proposed legislation goes a step further,“walking back” the FCC’s July 2016 “Broadnet” decision, in which the Commission ruled that anyone in the federal government, including contractors, could send out robocalls, so long as the automated calls explicitly involve government business.

Senator Markey argues that the intention of the Telephone Consumer Protection Act, which limits the use of robocalls, is clear: “consumers should not be subject to unwanted robocalls and robotexts on their phones. But recent carveouts by Congress and the FCC allow government contractors to robocall and robotext consumers without their affirmative express consent…No one wants to be interrupted during family mealtime or when helping children with homework.”

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

More Consumers Report Debt Collectors are Denying Requests for them to STOP Calling

Posted on January 16, 2017by Admin

A shocking three out of four consumers reported that debt collectors ignored their requests to stop calling, according to a recent survey by the Consumer Financial Protection Bureau. The survey also revealed that consumers felt threatened by debt collectors, were contacted late at night and early in the morning and the debt collectors oftentimes used false information- all violations of The Fair Debt Collection Practices Act.

The survey examined a sample of consumers drawn from credit-reporting records about their experiences with debt collectors. More than 1 in 4 consumers contacted by a creditor or debt collector felt threatened, 3 out of 4 consumers who asked collectors to stop contacting them said they refused to do so. More than a third said debt collectors called between 9 p.m. and 8 a.m., according to the survey.

In addition, more than half reported a mistake in the debt, such as an incorrect amount, a debt not owed or a debt owed by a family member. The frequency of calls was also excessive- 17% said they received eight or more calls in a single week.

Consumers are protected from these predatory and unfair practices by The Fair Debt Collection Practices Act– but only if they exercise their rights. The law’s consumer protections include:

Communication: Consumers can tell debt collectors how and when to contact them- including telling them to stop contacting them entirely.

Harassment and abuse: Debt collectors cannot use abusive language, threaten violence or repeatedly call and harass them.

Truthfulness: Debt collectors must be honest about the amount of the debt, whether it is past the statute of limitations for lawsuits and cannot misrepresent themselves.

Debt validation: Consumers must receive a validation letter within five days of the first contact with information about the amount owed, the original creditor seeking payment and their rights on disputing the debt.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Consumer Warning: ‘Phantom Debt Collection’ Schemes- Could you be at risk?

Posted on April 4, 2016by Admin

Federal and state authorities are cracking down on a multi-million dollar debt collection scheme that profited at least $3.8 million from consumers who were tricked into paying off debts they never owed in the first place.

The Federal Trade Commission has taken action, setting up “Operation Collection Protection,” an ongoing effort to combat phony debt collection schemes, which has become the number one consumer complaint at the FTC.

Six companies and three individuals are being sued who used a variety of business names including Stark Law, Stark Recovery and Capital Harris Miller & Associates in what the complaint alleges was actually part of a “telephone boiler room operation” that harassed consumers nationwide for money they did not owe.

Victims had previously entered personal information into online loan websites. Authorities believe many of these sites were fake and designed to gather consumers’ personal information. Callers allegedly told the consumers they had outstanding debts and threatened them with lawsuits or said that debt collectors would contact their employers or relatives.

The debt collectors detailed personal information over the phone, including consumers’ social security numbers, full names, addresses and employment information to convince consumers of their legitimacy.

Phantom debt collection is a growing problem. Last year, the FTC received nearly 900,000 debt collection complaints. Debt collection complaints even surpassed identity theft, which had been the number one issue for consumers for the past 14 years.

You have rights when it comes to debt collection. Remember these tips:

Be wary of anyone who calls out of the blue attempting to collect payment on a debt.
Ask the collector to mail you written details about the debt owed.
Make sure you document the debt collector’s name, address and company name and ask for the original creditor’s name.
Know that you have the right to dispute any debt you feel you do not owe.
“Phantom debts” will not appear on your credit report, so to confirm whether you owe, download your free annual credit report from each of the three credit bureaus at annualcreditreport.com.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

At Capital One, easy credit comes with numerous lawsuits

Posted on January 5, 2016by Admin

No lender sues more of its customers than Capital One, according to ProPublica’s review of state court data. The debt collection lawsuits target workers who earn below $40,000 a year. Unfortunately, state laws offer little protection- even workers near the minimum wage could have a quarter of their take-home pay taken or their bank accounts completely cleaned out.

ProPublica obtained and analyzed court data from 11 states, including Florida. Capital One stood out in every state for having the most number of lawsuits against its customers. For example, in Indiana counties for which court data is available — home to about two-thirds of the state’s population — the bank filed about 3,360 suits in 2014. That’s about a quarter of the suits Capital One filed in 2010, but still more suits than all other national banks combined in 2014. In Clark County, Nevada, which includes Las Vegas, Capital One’s suits comprised about 40 percent of all suits by major banks. In Miami-Dade County, Florida, the total was about the same.

The lawsuits were often over debts as small as $1,000, which reveals a hidden side of Capital One’s business. The bank has only the fourth-largest credit card portfolio, but such a large portion of its cards are held by those with poor credit that it is the country’s largest subprime lender. With those loans comes a high risk of default, and the company is particularly aggressive at recouping its losses.

Experts agree, the “disturbing” volume of lawsuits filed by Capital One should prompt regulators to investigate whether the perils of subprime credit cards outweigh the benefits. The federal Consumer Financial Protection Bureau is in the process of writing new rules for debt collection that are expected to cover a wide range of activities, including the filing of lawsuits.

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, Credit, Timothy Kingcade Posts

4 Ways Debt Collectors Abuse Your Rights

Posted on April 11, 2014by Admin

Debt collectors often resort to abusive practices to try and collect on a debt. This can include lying, using profanity and even intimidating you to try and get you to pay up. Many consumers do not know that they have rights when it comes to these abusive debt collection practices. The Fair Debt Collection Practices Act (FDCPA) protects consumers from harassing phone calls, threats and abusive language debt collectors often use to obtain payment.

Do not be a victim to these most commonly used debt collection practices:

• Threats of garnishment / criminal action. If a debt collector calls and threatens to garnish your wages, it’s a lie. The only exceptions are for student loan debt and taxes. A debt collector must sue you, first and this can take months.

• Calling too late or too early. The law states that a debt collector can only call you between the hours of 8 a.m. and 9 p.m. in your time zone.

• Calling your neighbors or employers. Debt collectors cannot reveal who they are or why they are calling. If they do not abide by this, they run the risk of having a lawsuit filed against them for releasing third party information.

• Not putting it in writing. Do not settle a debt if it is not put in writing by the debt collector. If you give a debt collector access to your bank account, they can take everything and leave you with nothing to pay your rent and bills.

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.

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.