Dealing with unscrupulous debt collectors has been a common consumer crisis nowadays. There are debt collectors that go as far as being brave enough to pose as law enforcement, intimidating debtors or even threatening arrest or jail time. The FTC has been busy as of late shutting down several abusive debt collection agencies using "dirty" schemes in getting victims to pay up. One being a debt collection company based out of Georgia, Williams, Scott & Associates, who was accused of being behind a scheme in which consumers whose debt the firm had purchased were threatened with imminent arrest and other phony claims, if immediate payment wasn't made. Federal authorities said the company's employees even lied to consumers by making such claims as being part of a federal task force.
The best way to avoid being bullied by shady debt collectors is to stand your ground and realize they can face some serious consequences if they do not use proper protocol. There are ways to turn the tables on them and win the advantage:
Remain calm. When a debt collector first talks to you, he is weighing up your ability to pay and may attempt to get you to say or agree on things you should not. Keep the call brief and under any circumstances, do not admit guilt of the debt before you receive validation. Remember, you are under no obligation to speak with the debt collector over the phone.
Request proof. It's time to turn the tables. Put the debt collector on the defensive and ask for proof of the debt. Again, keep it brief; politely ask for their name and contact information. Under federal rules, the collection agency is legally required to first legally validate the debt by proving you actually owe it and that they are legally entitled to collect from you, only if you request it.
Know what is right and what is wrong. These persistent buggers will often try everything up their sleeve to get you to pay, many of them being unethical or illegal. It is imperative to know your rights under the Fair Debt Collection Practices Act (FDCPA). They cannot call before 8:00 AM or after 9:00 PM, contact you at your place of employment if you've asked them to stop, harass you with repeated phone calls, claim to be a lawyer or law enforcement or talk to a third-party regarding your debt. There are a slew of other restrictions they have to be mindful of, and the consumer should be too. If during the conversation they break any of these rules, call them on it.
Understand the time limits or "statute of limitations". The statute of limitations, which vary by state, refers to the amount of time in which a collector can sue you for repayment of a debt. It is important to note that the statute of limitations does not eliminate the debt; it just eliminates the option for creditors to drag you into court. Collectors can still call and send you letters. Consumers should not restart the clock by inadvertently agreeing to a payment plan on the expired debt, making a payment on the old debt, or even acknowledging to the debt collector that the debt belongs to them.
Showing posts with label FDCPA. Show all posts
Showing posts with label FDCPA. Show all posts
Monday, November 24, 2014
Wednesday, November 5, 2014
Secondary Debt Collectors Are Required To Provide Debt Validation Notice
In Tocco v. Real Time Resolutions, New York Judge William Pauley, III recently ruled that secondary collectors are still required to send a validation notice to avoid confusion by consumers over who holds the debt, and whether they have the right to contest it. This means that subsequent debt collectors must send separate validation notices to the consumer, even if they received a notice from the prior debt collector.
Under the Fair Debt Collection Practices Act (FDCPA), §1692g, a consumer has the right to request the validity of a debt being claimed against them and that the collection agency has to prove it. They must send, within five days of their initial contact with you, verification of the debt, or a notice stating the amount of the debt, the name of the creditor and a statement that the debt will be assumed valid if the consumer does not dispute it within 30 days of receiving it. Pauley also pointed out that "a consumer who has challenged an initial debt collector to verify a debt may not realize he or she has the same right with respect to a subsequent collector."
After you receive verification, this is when a consumer should immediately send your debt validation request (within the 30-day window). Basically, a debt validation letter is a request to prove the account being claimed is legally yours, the amount being claimed is correct and the collection agency claiming it has the legal right to claim it. When you send a validation request, it is advisable to send it via certified mail with a return receipt requested. The return receipt can be used as proof your letter was received by the debt collector. At this time, the collector must cease all collection efforts until you receive written proof of the debt. (View a sample debt validation request letter).
Some debt collectors play by the rules, and some do not. If any debt collector has failed to present to you the required notices, it is best to speak with an experienced consumer attorney. Consumers may sue for up to $1,000 for statutory damages, plus attorney's fees for any FDCPA violations. Stop the harassment today!
Friday, May 9, 2014
"Will My Wages Be Garnished?"
At Davis Consumer Law Firm, that is the one of the top concerns coming from clients who are being harassed by debt collectors. If a debt collector threatens to garnish your wages in order to collect a debt, this could be serious business. What does that mean for you? You may now have a claim against that debt collector - they may have just violated the Fair Debt Collection Practices Act, which could entitle you up to $1,000 in statutory damages.
In most states like New Jersey, UNLESS the creditor obtained a court judgment stating that you owe them money, creditors and debt collectors cannot threaten to garnish your wages. For instance, if you are behind on credit card payments or owe a doctor’s bill, those creditors cannot garnish your wages UNTIL they sue you and get a judgment. There are a few exceptions each state; defaulted student loans, child support orders and unpaid income taxes are some of the few types of debts where your wages are able to be garnished without a court judgment. For residents and workers in Pennsylvania, a credit card company cannot garnish wages from their paycheck, regardless if there is court judgment or not. However, a credit card company can garnish their bank account, including deposited wages, only if the creditor has obtained a court judgment.
When we get calls to our firm, we frequently receive several questions regarding wage garnishment. To reassure many consumers out there, we have compiled a Q&A on this post to address some of the inquiries we receive:
What is wage garnishment?
A wage garnishment or wage attachment is an order from a court or a government agency that is sent to your employer. It requires your employer to withhold a certain amount of money from your paycheck for the payment of a debt.
Can I get fired by my employer if my wages are garnished?
Although debtors are often embarrassed because now their paycheck and employer are now involved, they cannot be terminated from their job due to wage garnishment. Title III of the federal Consumer Credit Protection Act (CCPA) protects employees from being discharged by their employers because their wages have been garnished for any one debt and limits the amount of employees' earnings that may be garnished in any one week. It should be noted that it does not protect an employee from discharge if the employee's earnings have been subject to garnishment for a second or subsequent debts.
Can my bank account or checking account be garnished?
In Pennsylvania and New Jersey, if the creditor has a court judgment against you, they can garnish your bank account for a consumer debt. If you are in Pennsylvania and your bank account is owned jointly by your spouse, they cannot garnish that bank account unless the judgment is against both spouses. In New Jersey, with prior notice to the consumer, creditors who have a judgment against you can seize joint accounts in their entirety or try what’s called a “bank freeze” or “bank levy”. This is where the creditor has the sheriff freeze your bank account. The non-debtor whose money is in the account will need to file a petition in the court for return of his/her funds.
Can they garnish my Social Security benefits?
A federal law (applying in all states) disallows creditors from garnishing your Social Security benefits.
What should I do if a debt collector threatens to garnish my wages?
Be sure to jot down the date and time they contacted you and the debt collector’s information (the individual’s name, phone number and the debt collection company). Give our firm a call (855) 432-8475 for a free case evaluation. If this is an FDCPA violation, you would be entitled to free legal representation and up to $1,000 in statutory damages. Even if it turns out not to be, this service is still 100% free. Regardless, we will fight diligently on your behalf to make the debt collector pays for harassment and breaking the consumer protection law. Visit www.usacreditlawyer.com for more information on debt collection and consumer protection laws.
In most states like New Jersey, UNLESS the creditor obtained a court judgment stating that you owe them money, creditors and debt collectors cannot threaten to garnish your wages. For instance, if you are behind on credit card payments or owe a doctor’s bill, those creditors cannot garnish your wages UNTIL they sue you and get a judgment. There are a few exceptions each state; defaulted student loans, child support orders and unpaid income taxes are some of the few types of debts where your wages are able to be garnished without a court judgment. For residents and workers in Pennsylvania, a credit card company cannot garnish wages from their paycheck, regardless if there is court judgment or not. However, a credit card company can garnish their bank account, including deposited wages, only if the creditor has obtained a court judgment.
When we get calls to our firm, we frequently receive several questions regarding wage garnishment. To reassure many consumers out there, we have compiled a Q&A on this post to address some of the inquiries we receive:
What is wage garnishment?
A wage garnishment or wage attachment is an order from a court or a government agency that is sent to your employer. It requires your employer to withhold a certain amount of money from your paycheck for the payment of a debt.
Can I get fired by my employer if my wages are garnished?
Although debtors are often embarrassed because now their paycheck and employer are now involved, they cannot be terminated from their job due to wage garnishment. Title III of the federal Consumer Credit Protection Act (CCPA) protects employees from being discharged by their employers because their wages have been garnished for any one debt and limits the amount of employees' earnings that may be garnished in any one week. It should be noted that it does not protect an employee from discharge if the employee's earnings have been subject to garnishment for a second or subsequent debts.
Can my bank account or checking account be garnished?
In Pennsylvania and New Jersey, if the creditor has a court judgment against you, they can garnish your bank account for a consumer debt. If you are in Pennsylvania and your bank account is owned jointly by your spouse, they cannot garnish that bank account unless the judgment is against both spouses. In New Jersey, with prior notice to the consumer, creditors who have a judgment against you can seize joint accounts in their entirety or try what’s called a “bank freeze” or “bank levy”. This is where the creditor has the sheriff freeze your bank account. The non-debtor whose money is in the account will need to file a petition in the court for return of his/her funds.
Can they garnish my Social Security benefits?
A federal law (applying in all states) disallows creditors from garnishing your Social Security benefits.
What should I do if a debt collector threatens to garnish my wages?
Be sure to jot down the date and time they contacted you and the debt collector’s information (the individual’s name, phone number and the debt collection company). Give our firm a call (855) 432-8475 for a free case evaluation. If this is an FDCPA violation, you would be entitled to free legal representation and up to $1,000 in statutory damages. Even if it turns out not to be, this service is still 100% free. Regardless, we will fight diligently on your behalf to make the debt collector pays for harassment and breaking the consumer protection law. Visit www.usacreditlawyer.com for more information on debt collection and consumer protection laws.
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