Tag: debt collection

Debt Collection

Facing Debt Collection? Know Your Rights.

Posted on by Admin

When someone is facing debt collection, it is important that person knows his or her rights.  The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against 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, using profanity or offensive language;
  • Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit);
  • Calling you 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.
Debt Collection

Cellphone Robocall Ban Upheld by U.S. Supreme Court

Posted on by Admin

The U.S. Supreme Court issued a ruling this week that upheld a federal ban on robocalls to mobile devices. The ruling issued by the court broadened the ban, eliminating a 2015 exception that previously existed for government-debt collection while keeping the original 1991 robocall ban intact.

The matter came before the court in Barr vs. American Assn. of Political Consultants. Due to the coronavirus pandemic, the case was ironically argued remotely via telephone. The ban was originally created by the 1991 Telephone Consumer Protection Act, which issued fines up to $1,500 for any call or text placed to a mobile phone without prior consent by use of an automatic, robocall dialing or automated voice messaging system. The issue at hand arose after Congress created an exception to the law in 2015, that allowed for automated robocalls to consumers who owed debt to the U.S. government.

Debt Collection, Debt Relief, Medical Debt

How Long Does Medical Debt Remain on a Person’s Credit Report?

Posted on by Admin

After suffering a serious injury or illness, it can be hard to pay the bills that inevitably follow. Considering how many Americans are now facing medical debt in light of the coronavirus (COVID-19) pandemic, many wonder the effects this will have on their credit score and how long the debt will remain on their credit report.

After medical debt has been reported to the credit bureaus, it can remain on a consumer’s credit report for up to seven years. However, a person’s medical debt is not immediately reported to that individual’s credit as soon as it is incurred. It will not be reported to a person’s credit so long as that debt remains with the original service provider. Once a person defaults on the debt and it goes to collection, only then will the medical debt begin to show up on a person’s credit report.

Debt Collection

Consumer Groups Dispute Proposed Debt Collection Rule

Posted on by Admin

A new rule is being proposed by the Consumer Financial Protection Bureau (CFPB) that would require debt collectors to notify consumers as to whether they can be legally sued for a debt they are attempting to collect. This rule follows complaints made by consumers regarding debt collectors threatening to collect on debts that they otherwise would not be able to pursue legally.

Every state has statutes of limitation which control how long an individual or entity can bring a legal action. For collection of debt, this timeline in Florida is five years for debts resulting from written contracts, such as personal loans, and four years for oral contracts or revolving accounts, including credit cards. If a creditor contacts a consumer regarding a debt past that deadline, the consumer is not under any legal obligation to pay.

Coronavirus, COVID-19, Debt Relief

5 Ways to Protect Your Stimulus Check from Creditors

Posted on by Admin

As Americans begin receiving their stimulus checks from the $2.2 trillion CARES Act, many who are struggling with debt, worry this money will be intercepted by creditors seeking payment. More than 80 million stimulus checks have been processed thus far, which is a huge source of relief for the 20 million Americans out of work.

Many creditors view these stimulus payments as a chance to receive payment on outstanding debt, especially those that have already been reduced to court judgments. If a financial institution is given a garnishment order, it is possible they will immediately freeze that amount of money deposited into the account, only providing the consumer a limited amount of time before the funds are taken by the creditor.  However, certain measures can be taken to protect this stimulus money from creditors.

Coronavirus, COVID-19, student loan debt, Student Loans

How Student Loan Borrowers Will Benefit from the Stimulus Bill

Posted on by Admin

The recently passed $2.2 trillion stimulus bill provides several different forms of financial assistance for American consumers during the current coronavirus (COVID-19) crisis. The new bill also provides options for student loan borrowers who are struggling to keep up on their loan payments, which comes as good news for the over 44 million borrowers holding more than $1.5 trillion in outstanding student loan debt.

Borrowers who have federally owned student loans will not have to pay on their loans through at least September 30, including Parent PLUS Loans. This payment suspension will occur automatically and does not need to be requested by the borrower.

Bankruptcy Law, Credit Card Debt, Debt Collection, Debt Relief

Tips for Gen. X’ers Battling Credit Card Debt

Posted on by Admin

Credit card debt is a problem that countless consumers struggle with. But according to recent data provided by Experian, Gen X consumers carry more credit card debt than any other generation.

Experian’s data showed that Gen X holds the highest average credit card balances at $8,658. As members of Gen X approach middle age, many of them raising families, they are also struggling to pay down credit card debt they have been holding since their 20s.

Coronavirus, COVID-19, Debt Collection, Debt Relief

Debt Collectors Argue They are ‘Essential’ to Consumer Financial Health During COVID-19 Shutdown

Posted on by Admin

The coronavirus (COVID-19) has hit American consumers hard, putting many of them temporarily out of work. Relief efforts have been made on a state-by-state basis to assist consumers.

New York residents have been given a 30-day freeze period from state-owned medical debt and student loan debt collections. Another similar announcement came from the mayor of Chicago with respect to city debt through April 30, 2020.  The Department of Education has suspended collections on federal student loans, and they are encouraging private student lenders to do the same.

Debt Collection, Debt Relief

Tips for Getting Your Debt Out of Collections

Posted on by Admin

Getting out of debt can seem like a never-ending battle. Once someone falls behind on one or more bill payments, the debt collector calls can be relentless. The late fees and penalties that are often assessed on past-due accounts, not to mention the interest rate spikes that come along with missing a payment, can make getting back on one’s feet nearly impossible. There are certain steps that can help consumers who are facing these types of situations get out of debt and stay out.

Remain Calm.

It can be easy to react out of stress or panic and make decisions that someone would not normally have made, especially when dealing with debt collectors. It is important that whatever decisions are made by the consumer are ones that are carefully considered and logical. Many consumers may react out of fear and enter into payment agreements that they would not normally agree with and cannot realistically afford just to get the debt collector to back down. The aggressive techniques used by many debt collectors have this motive in mind. Make sure you understand and get the terms in writing, first. Never agree immediately to a payment arrangement over the phone with a debt collector.