Tag: debt collector

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When Debt Collectors Call Know your Rights

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When a debt collector calls, it’s important to know your rights.  In July, the Consumer Financial Protection Bureau required debt collectors to do their “due diligence” to help ensure they are collecting on legitimate debt and put a cap on their weekly attempts to reach a consumer.  The bureau also increased enforcement, bringing more than 25 cases on debt-collection tactics that deceive or abuse consumers.

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.

It is important that consumers verify everything when it comes to a debt they may (or may not) owe.  In a recent CFPB survey, half of Americans contacted about a debt in the past year said they were given inaccurate information about what they owed. Debt collectors are legally required to follow up their phone call with a written notice detailing the debt.

Understand that just because someone is calling to collect a debt, does not mean you should pay it right away.  It is always important to verify.  The collection attempt could be for a so-called zombie debt that is past the statute of limitation or a debt collection scam.

If you do in fact owe the debt, make sure and take notes. Write down every name and employee number you speak with, including the agency, the number they called, the time of the call, etc. Take notes on what was said.  This detailed record keeping can prove helpful if you need to file a complaint about the debt collector’s behavior in the future.

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.

Related Resources:

http://www.cnbc.com/2017/01/12/know-your-rights-when-a-debt-collector-calls.html

 

Bankruptcy Law, Credit, Timothy Kingcade Posts

Debt Collection Horror Stories: Beware of Illegal Practices

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According to the Fair Debt Collection Practices Act, debt collectors are prohibited from threatening violence, using profanity, calling incessantly, inflating a debt or impersonating an attorney. However, the Act has not yet put a stop to illegal harassment. In fact, debt collection companies have used some outrageous practices to collect on debts.

Below are some of the latest outrageous allegations of abuse:

• Threatening to take away children. The Federal Trade Commission (FTC) shut down a debt collector in Texas for using abusive scare tactics to force people to pay off their debts. Consumers reported the company threatening to take away their children, send them to jail or send the sheriff’s department to their job site.
• Posing as an attorney. Some debt collectors have been allegedly calling debtors and posing as an attorney or a representative from a law firm in order to scare them into paying off their debts. In some cases, the attorney imposters have even charged unauthorized attorney’s fees known as “juice.”
• Threatening to dig up dead bodies. According to the FTC, the debt collection agency, Rumson, Bolling & Associates was accused of threatening to dig up deceased children of other debtors and drop them at their doors if they did not pay funeral bills.
• Threatening to hurt pets. Rumson, Bolling & Associates was also accused of threatening to kill a debtor’s dog in one report.
• Collecting debt owed to other companies. The FTC has also reported a new scheme where scam artists are stealing customer information and trying to collect on debts owed to another company. In some cases, scammers are trying to collect on debt that has already been paid.

To read more on this story visit: http://money.cnn.com/2013/02/06/pf/debt-collection/index.html

Consumers who have been victims of threatening debt collection practices may want to consider taking legal action. Even in cases where consumers owe money – there are certain actions debt collectors can and cannot take in contacting debtors, which are guided by state and federal law. The Fair Debt Collections Practices Act, the Fair Credit Reporting Act and the Telephone Consumer Protection Act restrict debt collectors on when and how they can contact debtors. For example, these regulations protect calls to telephones and cell phones, calling at certain times of day, repeated or threatening calls and calls to non-debtors (such as the debtor’s family or colleagues).

If you have any questions on this topic or are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com.

Credit, Timothy Kingcade Posts

8 Ways to tell if a Debt Collector is a Scammer

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If someone calls to collect payment on a debt you were unaware of, it’s important to ask the following questions to ensure you are not getting scammed.
1.) Basic Information: Whether the collection caller is attempting to collect on a real debt or if it’s a scam, the caller is going to ask you questions. Make sure and ask some of your own. A real collector is going to provide you with the company name, address and phone number. Scammers will likely refuse to give you this information.
2.) Get Confirmation: A genuine debt collector has five days from the first phone call to send you written confirmation of the debt. That confirmation letter should be more than a demand to pay. It should also spell out some of your rights and include information on the collection agency, such as the company name, mailing address and phone number.
3.) Verify that the agency exists: Input the company name and/or phone number into an Internet search engine. Have there been any complaints against them? Confirm that the company is licensed or allowed to work in your state. Some scammers will claim to be from genuine collection firms or attorney’s offices. Contact your state attorney general’s office or department of consumer affairs and verify this- and most importantly, do NOT disclose any personal information to them.
4.) Pull your credit report: Credit reports provide a quick snapshot of your current debts. If someone calls and says you owe money and it is not listed on your credit report, it’s like to be a scam. Consumers should be checking their credit reports at least one a year. You can get each of your three reports free every year at AnnualCreditReport.com or by calling 877-322-8228.
5.) Check your state’s statute of limitations: If the statute of limitations has expired, the collector cannot make you pay. In addition, seven years after you went into default, the debt has to come off your credit report — even if it’s sold to collectors. No matter who owns it or when they bought it, it cannot be listed on your history or used to compute your credit score.
6.) Send for verification of the debt: After you’ve been contacted by a debt collector, you have 30 days to demand proof that it’s a real debt and that it belongs to you. If the debt isn’t an outright con, you want verification. As a return address, consider using a post office box or office address instead of your home address to protect your home address.
7.) Make sure you get real proof: The verification you receive could take many forms. It could be a copy of your contract with the original creditor, a copy of the charge-off statement or an invoice from the original creditor. Or it could simply be information about the debt, such as the original creditor’s name, the account number, charge-off amount and current balance. The collector should also be able to furnish at least the last four digits of your Social Security number.
8.) Determine if it’s yours—and theirs: When you receive the verification information, read it carefully. Check the billing address, the styling of your name, the middle name or initial listed and even designations like “Jr.” or “Sr.” If anything is off, it could be a case of mistaken identity or a scam. You also want to make sure the debt is being handled by the agency that contacted you.
To read more on this story visit: http://money.msn.com/debt-management/is-that-debt-collector-a-scammer-bankrate.aspx.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.