Archive for the ‘ Debt Collection Laws – Federal ’ Category
How to collect a time barred debt without violating Fair Debt Collection Practices Act
Here is an interesting conundrum. Defendant Portfolio Recovery Associates (“PRA”) purchased a time barred debt from Brewer and sent Brewer a “notice” that the debt has been transferred. PRA sent Brewer a letter that states: “Portfolio Recovery Associates purchased the account referenced above [Capital One Bank, balance $ 2,444.20] on 03/22/07. Interest continues to accrue […]
Collection agencies – when is manipulating your Caller ID signal a violation of FDCPA?
The Fair Debt Collection Practices Act (“FDCPA“) prohibits the use of false or deceptive means in the connection with the collection of a debt. So…when Mr. Glover was dunned for a consumer debt and the collection agency that called him had its caller i.d. come up on Glover’s phone as “unavailable” did the agency violate […]
FDCPA – trap – Do NOT require a consumer to put its dispute in writing
In October of 2006, the FDCPA was amended to exclude pleadings from the definition of initial communication. Hence, if a complaint is not an initial communication, the service of a complaint upon a defendant does not trigger a duty on the collector/lawyer to serve the debtor with a validation notice. But recently, the 6th Circuit […]
FDCPA applies to attorney’s communications to other attorneys
The U.S. Court of Appeals for the Fourth Circuit just decided Sayyed v Wolpoff and Abramson. Sayyed was a consumer that was delinquent on his discover card. Wolpoff is a law firm that sued for the balance due plus attorneys fees. In pursing its client’s case, Wolpoff served interrogatories that did not state “This is […]
Consumers’ demand for verification of debt does NOT have to be in writing
Collection agencies and collectors – BE VERY CAREFUL. An unpublished opinion from from the United States District Court from the Northern District of Ohio called Jerman v Carlisle, McNellie et al at 2006 U S Dist LEXIS 85339 held that a debtor’s demand for verification of the debt does not have to be in writing […]
The ugly truths about medical debt
My colleague, Michael Herin, writes a very good blog about debt collection. Mr. Herin, recently wrote about the ugly truths of medical debt His blog post is very interesting and I highly recommend it, although I only disagree with him on one issue. Mr. Herin states that if a patient has insurance, that it is […]
Remember – The standard is the LEAST Sophisticated Debtor
I am amazed at collection agencies that try to get creative with the collection letters. After all, the FDCPA provides safe harbor language to include in a demand letter. When collection agencies avoid this safe harbor, they usually get Pearl Harbored. Take, for instance,
Fair Debt Collection Practices Act Attorneys Fees may be reduced by results
The U.S. District Court for Ohio just decided Maddox v The Martin Company, 2006 U.S. Dist. LEXIS 42563. The Defendant, while pursuing the Plaintiff for a debt, apparently disclosed the Plaintiff’s social security number to the defendant’s nefarious niece. Ms. Maddox sued the Martin company under various Consumer Protection theories including the Fair Debt Collection […]
IRS’s Plan to use private collectors is halted
When Congress passed the American Jobs Creation Act of 2004, it agreed to allow the IRS to hire private debt collectors to collect back taxes. Recently, the IRS’s plan to employ two private debt collection agencies has been halted. What is disturbing about this statute is that it does not provide any remedies to the […]
Michigan Debt collection Law Preempted again by the Feds?
In USA Today, an article reports that the House of Representatives is expected to vote next week a bill that would prevent you, as the consumer from freezing your credit report. Freezing one’s credit report is the process of suspending further entries into your credit bureau in the event that your identity is stolen.