Debt Collectors

Recent Posts in Debt Collectors

  • Debt Collection Harassment: How to Protect Yourself

    As debt has become a profitable business, debt collection agencies have sprouted and thrived throughout the country. Unfortunately, these agencies and the debt collectors they employ can become overly aggressive in their efforts to collect money from ...
  • 7 Ways You Can Sue a Debt Collector

    Most people want to pay off their debt; however, unfortunate circumstances in life can make it an extremely difficult task. On many occasions, a debt collector will work with those in debt and resolve the issue. However, not every debt collector ...
  • Earlier this year, in July, Judge John Z. Lee approved a $9.25 million settlement between American Express Co., American Express Centurion Bank, and customers who claimed the company and a hired third party, Alorica, made illegal debt collection and ...
  • CFPB Hearing on Debt Collection

    Debt collection is a $13.7 billion industry in the United States that employs over 130,000 people. At the Consumer Financial Protection Bureau (CFPB) Field Hearing on Debt Collection on July 28, 2016, Director Richard Cordray noted that much work ...
  • What is Charge-Off Date Fraud?

    When a consumer fails to make timely payments and becomes severely delinquent on a debt, their creditor may “charge off” the account, meaning that the creditor does not anticipate repayment in the near future. This in no way affects your ...
  • Bad news for debt collectors: the 11 th Circuit Court held in Johnson v. Midland that debt collectors may face penalties under the Fair Debt Collection Practices Act (FDCPA) for filing proofs of claims in bankruptcy for debts in which the statute of ...
  • insideARM Spotlight: April FDCPA Case Law Review

    Each month, insideARM provides a case law review highlighting positive, and some negative, outcomes for the accounts receivable management industry. Here are some notable cases: Bloodworth v. United Credit Service, Inc. The court affirmed that use of ...
  • Millions of Borrowers Facing Crushing Loan Costs

    If you’ve ever had to take out a payday loan, you know how expensive they can be. A loan for only a few hundred bucks could easily end up costing a borrower hundreds – or even over one thousand – dollars more in interest payments. ...
  • John Oliver Gives Away $14M on Last Week Tonight

    On last night’s episode of Last Week Tonight, host John Oliver gave away $14 million as part of an effort to increase awareness of debt, debt buyers, and zombie debt in America. American households currently own over $12 trillion in debt, $436 ...
  • Millions of Americans struggle with old debts they can’t pay back, and live with the uncertainty of knowing that at any moment, they could have their bank accounts or wages seized by collectors. ProPublica has spent years gathering data on how ...
  • Justices Wrestle with Debt Collection Tactics

    The Supreme Court recently heard oral arguments in a case involving an Ohio law that allows the state attorney general to use “special counsel” (independent contractors) to collect tax debts. This law has been in effect as far back as the ...
  • Beware of This New Debt Collection Scam

    The Federal Trade Commission is warning consumers of a new debt collection scam involving fake collection notices for phantom debts. According to the FTC website, criminals are putting a creative – and scary – twist on an old scam by ...
  • One of the largest debt collectors in the United States, Midland Credit Management, Inc. is facing a potential class action lawsuit from consumers accusing the company of trying to force payment of old debts that are no longer legally enforceable. ...
  • Myths & Facts About Payday Loans

    It is pretty common for those who are considering bankruptcy to have taken out one or more payday loans in the past. Payday loans, also called cash advance loans, are small loans that are meant, in theory, to be paid off by the time the borrower ...
  • TCPA Exemption for Fed-Backed Loans Circulated to FCC

    On February 17, a draft rule to exempt robocalls to collect federal debt from TCPA rules was circulated to the FCC. This proposal is looking to create a balance between consumer protections and a directive by Congress allowing companies servicing ...
  • In April of 2004, Kevin Prescott obtained a loan of $160,000 from Bank of America in order to purchase a piece of real estate in Pembroke Pines, Florida. Years later in 2012, Prescott defaulted on his mortgage, and Seterus, Inc. made preparations to ...
  • In our previous blog, we reported that national mortgage loan servicer Residential Credit Solutions (RCS) was ordered to pay punitive damages totaling $1.6 million in a case brought by Alena Hammer, an Illinois resident who endured unnecessary and ...
  • Financial distress can happen to anybody at any time, but new analysis by ProPublica reveals that black neighborhoods are drastically more likely to suffer high rates of collections lawsuits than white neighborhoods. There are a number of possible ...
  • One of the benefits of filing for bankruptcy is the protection of the automatic stay. During the bankruptcy process, creditors are forbidden from carrying out any sort of collection activities against you, including harassing phone calls, mail ...
  • The Consumer Financial Protection Bureau recently released a list of the most complained-about financial services companies. While companies like Bank of America and Wells Fargo appear in the top five, the rest of the top five is dominated by credit ...
  • The National Consumer Law Center (NCLC) has issued recommendations to the CFPB that would further regulate when and in what manner debt collectors can contact consumers. One recommendation is to prohibit debt collectors from calling cell phones or ...
  • A jury in Missouri has ordered Portfolio Recovery Associates (PRA) to pay Maria Mejia almost $83 million for violations of the Fair Debt Collection Practices Act (FDCPA) and for malicious prosecution. The majority of the award is based on punitive ...
  • Can They Really Call Me This Much?

    In my experience, many of my clients are plagued by collection calls. Many of these calls violate a bankrupcty discharge, or are made once the debt collector knows that my client is represented. In those cases, I would argue that the Fair Debt ...
  • Judge Jonathan Lippman, New York's chief judge, recently proposed a new set of rules for debt collection lawsuits filed in the State of New York. Based on the state of the debt collection lawsuits that I see filed in Illinois, I fully support ...
  • The natural response to a phone call from a debt collector is to ignore it. After all, that's what voice mail is for, right? In my opinion, it's better to answer the phone. Here's why: 1. You need to know who is calling and how the call ...
  • The Top 5 Things That You Should Not Do When Sued

    The longer I practice law, the longer my list of "what not to do" becomes. Here's my updated list of what not to do when you are sued by a creditor. 1. Do not ignore the lawsuit. Many people simply ignore lawsuits filed by debt ...
  • The CFPB has issued a request for comments regarding debt collection practices. This is the first step in the CFPB's rule making process. The CFPB is seeking comments and anecdotes relating to the debt collection industry. It seeks information ...
  • Amending The Fair Debt Collection Practices Act

    On October 30, 2013, U.S. Representative Steve Cohen (D-TN) introduced H.R. 3402, the Fair Debt Collection Improvement Act. The bill was referred to committee. This does not mean that the bill will ever make it to the House Floor. From 2011-2013, ...
  • The Telephone Consumer Protection Act, Consent, And You

    In general, when you apply for a credit card, an automobile loan, or a home loan, you are consenting to being called by the creditor. Most creditors use automated phone dialing systems to call their customers. Auto dialers allow a customer service ...
  • A sudden and unexpected serious injury or illness can catch anyone off guard. In fact, this particular scenario inspires more Americans to file for bankruptcy and foreclosure than any other financial difficulty. Medical debt can quickly become ...
  • Why You Should Fight Credit Card Lawsuits

    In my experience, when consumers appear in court, they often make bad choices by "doing the right thing." Let me be very clear -- confessing to judgment in a credit card lawsuit is a terrible idea and is absolutely not "the right ...
  • In 2011 Encore Capital Group rolled out a "Consumer Bill of Rights" that was touted as an effort to " set the industry standard for consumer conduct. " Per the linked press release, Encore is the nation's largest ...
  • American Banker: Chase Halts Credit Card Debt Sales

    According to American Banker, Chase has quit selling credit card debt in anticipation of increased regulatory scrutiny. This comes as no surprise given California's lawsuit against Chase as well as the recent rumblings at the OCC. Ever since the ...
  • Debt Collectors, Debt Buyers, and Collection Agency Act

    I recently attended Max Gardner's Debt Buyer Boot Camp. During the boot camp, the panel briefly discussed the Unifund CCR Partners v. Shah series of cases. These cases deal with a credit card debt that had been sold by the originating lender. ...
  • Since the implosion of the real estate market, we have seen a massive number of foreclosures in Illinois. In many of these cases, homes were sold at auction for much less than the amount due on the mortgage. The difference between the auction price ...
  • The Fair Debt Collection Practices Act (FDCPA) states that when a Plaintiff brings a case in bad faith and with the purpose of harassment, that Plaintiff will be liable for the Defendant's attorney's fees and costs. The Federal Rules of Civil ...
  • When I go to the courthouse, I often see consumers appearing in court pro se who make truly poor choices when speaking to the judge. I also see people who are facing a judgment based on prior oversights and decisions. Here is my list of absolute ...
  • In the new year, the CFPB will be regulating the debt collection industry. This represents the first time that one federal agency will have the responsiblity of regulating the debt collection industry. The new rules issued by the agency also give the ...
  • One of the hazards of being an attorney is that, sooner or later, very little will shock you. I thought I'd heard the worst of the worst in debt collection stories. Having just read this article, I realize that I was wrong. The Fair Debt ...
  • According to the New York Times, debt collectors in certain jurisdictions have been using the letterhead of the local prosecutor's office in order to collect debts. Although the article does not fully explain exactly how the letters threaten ...
  • What Is The Statute of Limitations on Old Debt?

    The "common knowledge" on the Internet is that creditors can't sue you for "old debt." Like most things that are "common knowledge," this is only partially accurate and the correct information is not that commonly ...
  • According to the Illinois Bar Journal, there is legislation pending in Springfield that would change how judgment creditors give notice to judgment debtors in collection actions. When a creditor obtains a judgment against a borrower in a collections ...
  • Can I Be Arrested For Failing To Pay My Debts?

    The United States abolished debtor's prisons in the 1830s. Less-than-scrupulous debt collectors are using a loophole in Illinois state law to bring them back. The difference between the 1830s and the 2010s is that now, debtors are being jailed ...