Monthly Reflections

As August comes to a close, looking back over the month reveals that we once again settled over 10 FDCPA cases for our clients.  In most every case our clients received monetary damages from the debt collectors who violated the law.  And in every case our clients' debt was forgiven, negative trade lines removed from their credit reports, and the debt collectors agreed not to sell the debt.

I truly enjoy helping people who have gotten behind because of a bad break, the economy, or any number of other reasons.  We settled FDCPA cases this month for:

• Attempting collect unlawful interest and fees;
• Threatening criminal charges;
• Threatening to sue when the statute of limitations had passed;
• Suing when the statute of limitations had passed; and 
• Contacting a client after the debt collector had been informed that the client was represent by a lawyer.

We look forward to continuing the fight for consumers in the coming months.

 

    www.debt-relief-law.com

Payday Loan Scam is Alive and Well

If you are receiving threatening calls about a payday loan, please read the FBI release in link below.  DO NOT give these jackals any personal information or agree to pay them.

http://www.fbi.gov/news/pressrel/press-releases/paydayloanscam_120710

     www.debt-relief-law.com

The Statute of Limitations and Charged Off Debt

If you have been contacted by a debt collector on a debt that is past the statute of limitations, there are several ways to deal with the situation.  The statue of limitations is the time within which a lawsuit must be filed.  In Kentucky, for instance, the statute of limitations on credit card debt is 5 years from the time the last payment was made.  

There are also statutes, called borrowing statutes, that allow the borrowing of a shorter statute of limitations if that would be of benefit to the state's citizen.  For example, if your payment was to be made in Virginia where the statute of limitations on credit card debt is 3 years, then you may be able to apply that shorter statute of limitations to your charged off credit card debt.

One thing you should never do is enter into an agreement to make payments to a debt collector, particularly one in writing.  When you do this you create a new contract that is enforceable under your state's contract statute of limitations (in Kentucky 15 years for a written contract).

If your debt is outside the statute of limitations, you can tell the debt collector to stop contacting you.  If the debt collector continues to contact you, it violates the Fair Debt Collection Practices Act (FDCPA), and you can file suit to collect $1000 statutory damages.  In addition, the debt collector would have to pay your attorney fees and costs for filing the suit.

Also, if your debt is outside the statute of limitations, and the debt collector threatens to file a lawsuit to collect on the debt, it violates the FDCPA as well.  Again, you can sue the debt collector and collect $1000 statutory damages, attorney fees, and costs.

If you are dealing with a debt collector contact a lawyer.  Many will offer a free consultation and, if you have a case, take the case at no cost to you.

     www.debt-relief-law.com

     866-279-9721

Sixth Circuit Broadens FDCPA Debt Validation Requirement

In the case of Haddad v. Alexander, Zelmanski, Danner & Fioritto, PLLC the Sixth Circuit Court of Appeals  gave more detailed guidance on what information debt collectors must provide when validating a debt after a debtor has requested such validation in writing.  In reaching its holding the Court said: “the verification provision must be interpreted to provide the consumer with notice of how and when the debt was originally incurred or other sufficient notice from which the consumer could sufficiently dispute the payment obligation.”


This standard goes beyond what other circuits have required.  Most have merely required that the debt collector state in writing that the amount being sought is the amount the debt collector claims is owed.  The new requirement is clearly a victory for consumers and gives consumer rights attorneys another arrow in their quiver with which to fight debt collectors.

      www.debt-relief-law.com