For most people, the decision to file bankruptcy is a difficult one. While bankruptcy makes financial sense for many individuals, the social stigma can feel overwhelming. At the same time, many individuals feel the need to file bankruptcy to stop repeated calls from debt collectors.
Filing bankruptcy should stop debt collection. Unfortunately, it’s not always that simple. Here is what you need to know.
When most people think of consumer debt, they think of credit card debt. Recently, however, student loan debt surpassed the total amount of consumer credit debt—totaling more than $ 1 trillion dollars.
Depending on the type of loans, consumers have a variety of repayment options and rights during the collection process.
[Read more…] about Student Loans Repayment Options, Collections, and Consumer Rights
Are you tired of being harassed by consumers? According to recent article in the New York Times, debt collectors are tired of consumers mistreating them. You read that right.
The Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive, unfair, and deceptive debt collectors, not vice-versa.
If the debt collectors have it their way, collectors may get their own bill of rights, against consumers.
Dealing with debt collectors is rarely fun. The good news is that a federal law, the Fair Debt Collection Practices Act (FDCPA), protects consumers against abusive debt collection efforts.
Not only are you protected against abusive debt collectors, you are entitled to statutory damages, actual damages (if applicable) and reasonable attorney fees and costs under the FDCPA if your case is successful. That means I handle these cases full contingency and the debt collector has to pay my fees.
The FTC has put together a nice video that highlights consumer rights under the FDCPA. Of course, this is just the tip of the iceberg. If you have been contacted by a debt collector, get in touch with me for a free case evaluation.
Check out this handy video from the FTC:
(video: http://www.ftc.gov/multimedia/video/credit/debt/debt-collection.shtm)
The Minnesota Department of Commerce brought down the hammer on a local debt collector recently, stripping First Financial Services and its owner of their collection licenses and levying $100,000 in fines for violations of the Fair Debt Collection Practices Act.
It is not known if the company and owner can borrow the money from a family member, put the fines on a credit card, or make monthly payments to cover the hefty fines.
[Read more…] about Debt Collector Fined for Violating Fair Debt Collection Practices Act
Debt collection lawsuits are big business in Minnesota. Just one debt buyer—Midland Funding—has filed over 15,000 debt collection lawsuits in the last three years.
Many consumers get sued for a debt, think the lawsuit is fake, and then ignore it.
As a result, they lose their case before it even starts. If you were recently served and think the lawsuit is fake, think again.
[Read more…] about “Fake” Debt Collection Lawsuits are Usually Real