Learn to identify their violations, cancel the debt and get paid by debt collectors . Check debt collection letters /calls/texts you receive for the following common Debt Collector violations:
Do you have debt collectors calling, texting or writing you letters? Are they violating the law?
Common Debt Collector Violations:
Called repeatedly or not stopped calling after you advised them to stop
Threatened you with a lawsuit or wage garnishment, when lawsuit or garnishment is not intended or unlawful
Misrepresented the character, amount or legal status of the debt
Failed to disclose their identity or that they are calling/writing you to collect a debt
Asked you to pay more than owed or added interest/fees beyond the initial debt amount
Informed a party (or parties) about your debt other than an attorney or your spouse (e.g. co-workers, relatives, etc.)
Failed to inform you, in writing, within 5 days of the initial communication of the amount of debt, original creditor if different from current creditor, your right to dispute within 30 days, and more. Note: “initial communication” includes reporting negative information on your credit report!
Made any false statements or misrepresentations
Member Receives Windfall!
One of our members in California received a letter from John, a debt collector attempting to collect on an account, but the letter misrepresented the amount of the debt – – in other words, the debt amount was incorrect! Then our member received a phone call from Mary, an employee of that same debt collection agency attempting to collect on that same debt, but Mary also misrepresented the amount of the debt. Finally, yet another debt collector (Michael) from that same agency attempting to collect on that same debt called our member so frequently as to constitute harassment. Do you have your calculator handy? We’ll help you – – because the acts of the debt collection agency, including John, Mary and Michael violate the federal Fair Debt Collection Practices Act (FDCPA), with a penalty of up to $1000 for each violator’s acts, that’s $4000 in sub-total because we have 4 violators here; the debt collection agency itself, John, Mary and Michael. In addition, California’s Rosenthal FDCPA also carries a penalty of up to $1000 for each of these 4 violators’ bad acts, that’s another $4000. How much was the original debt for – – $976. Our member had a chat with BWBC about this matter, took the right steps, settled for $6,800 and decided to use that settlement money paid to her by this debt collector to pay off the $976 debt. As you can see, she ended up with a nice surplus:-)
THE PLAYERS in the DEBT COLLECTION GAME
Original Creditor
Simply put, when you borrow money or secure credit or incur a bill (cell phone, utility, medical), the company from whom the money was borrowed (or reportedly borrowed if it’s not your debt), is the original creditor. Original creditors are not generally subject to the Fair Debt Collection Practices Act (FDCPA), but may be subject to various state-level debt collection laws.
Debt Collector
The Debt Collector, as defined for our purposes here, is either assigned the delinquent account by the original creditor or another debt collector. Or, they bought the account once it became delinquent (unpaid for over 180 days, generally) and are now collecting on the debt for a fee paid by the original creditor. Debt collectors are subject to the FDCPA and state-level debt collection laws.
Debt Buyer
Debt buyers usually buy debt in bulk from Original Creditor or Debt Collector for pennies (3-10%) on the dollar. On the whole, they have access to limited information on the account and sign a disclaimer when they buy the debt which indicates that the seller made no warranties regarding the accuracy of information purchased! This is critically important to remember if you are dealing with a debt buyer attempting to collect an alleged debt from you. Can they even prove the alleged debtor is you, or that the alleged debt is yours?. If not, they lose!
Debt buyers Include law firms; in fact, it is a common process for law firms to engage in the practice of buying debt. Let’s face it, consumers are more likely to take law firms seriously and be more afraid of legal actions when lawyers are involved. So, their calls and letters attempting to collect debt could be very fruitful.
Finally, debt buyers may also be defined as debt collectors if they customarily collect debts on their own behalf or on behalf of another, in which case they would be subject to the federal FDCPA as well as state-level debt collection and debt buyers’ legislation.