Illegal Collection Practices By Debt Collectors

Junk debt buyers and collection agencies are infamous for their collection strategies that range from threatening phone calls to actual credit card lawsuit. Threats of wage garnishment, property liens and fraud charges are also very common. Some collectors go as far as contact the people around the debtor, including employers, friends, and relatives, in a bid to shame the debtor into paying. With all these aggressive collection tactics, the question becomes, are they legal?

Not so, according to the Fair Debt Collection Practices Act or FDCPA. The FDCPA is a federal law that protects consumer rights against unfair collection practices that debt collectors, junk debt buyers, creditors or any other debt collection agencies apply. Whether it's a threat to face jail time or garnish wages, we have compiled some of the most common, and downright illegal, threats creditors and junk debt buyers use to scare people into paying:

Wage Garnishment

Did you know, that in some state like Pennsylvania, it is completely illegal for junk debt buyers or creditors to threaten debtors of garnishing their wages because this act is completely illegal? If an activity cannot be carried out, it cannot be used as a threat. Wage garnishment does not occur in Pennsylvania for credit card debt so scaring people into paying via wage garnishment is completely illegal.

Jail Time

Most creditors and junk debt buyers use credit card lawsuit and jail time as threats. Here's the straight fact: There is absolutely no law in existence in the US that will cause debtors to go to jail for unpaid card debts. Zip, zero, nada. Since jail time cannot be carried out, using it as a threat is illegal. Sure, creditors can file a credit card lawsuit for the debt but jail time should not be used to scare people into paying their debts.

Contacting Friends and Family

Creditors and junk debt buyers are not allowed by law to contact a debtor's friends, family or employer to shame debtors into paying their debts. Regardless of the circumstances, they should not discuss debtor's financial problems with other people. The only time a creditor can contact a relative or a neighbor is if they cannot locate the debtor but only after a good faith effort.

Unfortunately, the fact that many debtors remain ignorant of the law is the reason why many creditors and collectors continue to apply the above illegal practices. If your creditor or collector crossed the line, don't hesitate to report them to consumer attorney and sue them for violating your rights.

When Is The Right Time To Press Charges Against Card Debt Collectors?

Debt collectors and junk debt buyers are infamous for their aggressive, abusive, and inappropriate collection efforts. While some debt collectors abide by the law, others are just plain stubborn, applying illegal collection practices and sometimes, even crossing the line.

If you got unpaid debts and your creditor or the junk debt buyer is threatening to file a credit card lawsuit, it's never a good idea to take the situation lightly. However, if your creditor is threatening you with wage garnishment, property lien, or even jail time and you believe they crossed the line just to collect the money, you need to consult with a local consumer law attorney who has great experience in handling similar cases. It's highly likely that you will be advised to press charges. Below are some of the most common collection efforts by debt collectors that are illegal under the Fair Debt Collection Practices Act:

* Profane, obscene or abusive language
* Threats of violence or bodily harm
* Repeated phone calls each day
* Threats of ruining your credit
* Threats of jail time, calling your employer or your mother and telling on your debts
* Threats of wage garnishment, property lien, extracting money straight from your savings account (They will have to win the credit card lawsuit to be able to do all these)
* Implies that he is a lawyer when he is not, presents misleading information about representing the company to collect debts
* Attempts to collect even after filing a Chapter 7 bankruptcy
* Tries to collect a higher amount of money than the original amount
* Continuously contacts even when you sent a Cease and Desist letter
* Phoning your work office even when your employer specifically tells him not to call again
* Phoning you before 8 in the morning or after 9 in the evening, unless you told the collector it's fine to call you during these hours
* Failed to provide a written validation of the debt after you sent them a debt validation letter

It's critical to put keep a good record of all communications you had with an abusive collection agent . The record could make or break your case once the other party files a credit card lawsuit . You can also add copies of letters sent to you by the collector, cancelled checks, receipts and other notes.

Phone conversations can also be a part of record keeping. You can either take note or record the conversation but only with the permission of the person on the other line. Any record you keep may be used if the case reaches the court.

Why Debt Disputes are Important

A debt dispute is the act of arguing, disagreeing, or questioning the balance. In cases where in credit card balance problems arise, it is important to dispute the debt in question, especially if certain things do not add up. However, note that disputing the balance won't just start and end with calling your creditor and denying you owe them money. All types of disputes require accurate timing and precise approaches. Getting the upper hand is the key to an effective debt dispute as it can help you avoid a possible credit card lawsuit. You can actually walk away with cleared debt or settle the balance at a much smaller sum than the original amount with the right approach.

One of the most common ways to raise a dispute is to question the balance by phone. However, note that verbal contention won't hold much weight in court unless your creditor chooses to file a credit card lawsuit against you. Your creditor can simply deny all these allegations and that's the end of that.

Another common ways to raise disputes is by sending debt verification letter. Debt verification letter requires the creditor to review the correct name and address of the debtor. However, please note that a correct name and address won't really do much to build your case. Debt verification letters will not protect you legally either because they do not require account validation process.

So what can you do to effectively raise a dispute against creditors? Sending a debt validation letter is considered as the most effective way to argue the debt. Unlike debt verification letter, the Fair Debt Collection Practices Act supports debt validation letter. Debt validation letters is set by law through the FDCPA to compel creditors, collection agencies, and junk debt buyers to present corroborative evidence and certified proof that the balance is indeed under the debtor's name, if the debtor sends a debt validation letter.

If the junk debt buyer or the creditor failed to completely certify your credit card account, they cannot go on collecting money from you. This shows that debt validation letters can help protect you from balance claims made by debt collectors and creditors. The fact is, debt validation letters are grueling requirements that creditors, more so for debt collectors, who cannot access important documents that could pin the debt under your name. Bottom line is, a well written debt validation letter could help creditors and junk debt buyers from collecting money, and eventually avoid credit card lawsuit altogether.

Credit Card Lawsuit Tips: Dealing With a Collection Company The Smart Way

No one likes it when rude collection agents come knocking on the door to collect the money and no one likes to wake up and receive a summons for unpaid credit card debts. Unfortunately, hundreds of people across the country are neck deep in credit debt and with the looming economy; it seems there's no way getting out of a this situation than to work with your creditor to resolve the problem.

Dealing with a debt collector is not easy. Therefore, we have compiled several tips that will help you avoid a possible credit card lawsuit and resolve the issue with your creditor:

Keep Everything in Record

You can't expect your creditor or the junk debt buyer to stick to the agreement so make sure you keep everything in writing and keep a good record of all communication with the other party. Made special note if you came across an abusive or rude collector who showed unprofessionalism when collecting the debt. This could be useful when you file a complaint against that person for violating your rights.

Talk To The Manager

Don't waste your breath talking to a mere representative and go straight to his manager. If you haven't received any results from talking to the manager, you can file a complaint against that agency as well as a report to the Federal Trade Commission for unnecessary, unprofessional behavior.

Don't Ignore The Debt Collector

No matter how tempting it is, don't ignore the debt collector because they are counting on it. Besides, problems won't go away if you ignore them. However, do not subject yourself to abusive behavior and threatening phone calls either. It's best to talk to your creditor in writing only. This way, you won't be vulnerable to threats, abuse and you won't be talked down into paying the money without due process.

The worst thing you can do is to ignore the summons because this is exactly what the creditor or junk debt buyer expects. They want you to ignore the summons so they can win the credit card lawsuit by default, allowing them to obtain your money straight from your bank account or through wage garnishment and property liens. Apart from your savings being sucked dry by the junk debt buyer, you will also be ordered to pay for their legal costs so it is best toanswer the summons , face the credit card lawsuit head on rather than simply ignoring the problem and letting your creditor get an easy win.

Why Creditors Press Charges Against Debtors

It’s natural for credit card companies, or any other credit companies for that matter, to press charges against delinquent debtors who no longer pay the minimum payments of overdue balances. There are many factors that resulted in even more aggressive collection methods many creditors use in order to get their money; one of the most obvious is the failing economy. The rather unstable economy meant banks and credit card companies need get the most out of delinquent debtors, which is why they tend to scare them off into paying by filing credit card lawsuits.

In most cases, credit card lawsuits are filed through various law companies that take in high volume cases so if you served with a summons, you’re probably one of the hundreds of debtors who received the same thing and the summons are usually delivered and not mailed. The Summons can either be given to you in person or it is left at your front door.

Why Do Credit Card Companies Sue?

Despite the increasing number of delinquent debtors facing credit card lawsuits in the country, not all creditors will readily pursue legal action because many value their customers more, despite the unpaid debts. So if you suddenly received a summons for credit card debt, it’s usually after a creditor has contemplated all possible efforts to get a hold of delinquent debtors.

Here are the factors many card companies consider before filing a credit card lawsuit:

1) Debt amount

2) Is there a co-signer responsible for the overdue account

3) Debtor’s employment (possible candidate for wage garnishment)

4) A debtor’s mortgage records

5) Debtor’s age/disability (if any)

The fact is, credit card lawsuits are filed because someone has to be responsible for paying the debt. If say, you got enough money for everyday expenses and more, and yet, you are continuously dodging paying even minimum credit card debt payment, then you are a perfect candidate for collection or a credit card lawsuit.

To avoid any sort of trouble with your creditor, diplomacy is still the best way to resolve such problems. Make sure you work with your creditor in order to come up with a great payment scheme that is favorable to both parties. The fact is, many creditors hate pressing charges as much as debtors hate receiving summons for credit card debt. If you can talk your way out of a credit card lawsuit, you will be saving yourself a lot of time and money. So open the lines of communication with your debtor and make an effort to settle the dispute out of court.

Sued For Credit Card Debt? Don’t Make A Payment

Dealing with credit card lawsuit that is out of statute? If you are one of the thousands of Americans who are facing a lawsuit for unpaid debts, it is important to know the rules your state and local laws you can use against abusive junk debt buyers and/or collection agencies.

Depending on your state, card debts can only be collected at a given period. This is called stature of limitations. A debt collector can no longer collect the debt if the debt is out of statute nor can he press charges for the unpaid debt.

Unfortunately, hundreds of debt collectors are getting richer manipulating the system for years. They will try to issue a complaint or even file a credit card lawsuit against old debts which are sold and resold to various collectors for penny on the dollar. You can only imagine how much these people make once they were able to collect from unsuspecting debtors. Also, since the debts have long been written off, the burden of tax is significantly reduced.

Once you are served the summons, you can either panic and do nothing or you can defend yourself Pro Se. If you chose to fight the credit card lawsuit, start by filing an answer to the summons and complaints. Debtors are given 20 days to file an answer otherwise, the court will rule a default judgment against you, giving the creditor rights to garnish your wages or worse, put liens on your properties in order to satisfy the debt.

No debtor should ignore a summons because this is exactly what creditors are counting on. Once they win the credit card lawsuit via default judgment, they can easily freeze your account, garnish wages, and make the debtor pay for their own legal expenses too. In short, ignoring the summons will cost you more in the end, which is why it is critical to read and review local and state laws to determine what steps you should take when a creditor files a credit card lawsuit against you.

In addition, if your creditor sues you, do not, under any circumstances, start paying for the debt! Repayment will re-start the Statute of Limitations clock, sabotaging your defense if the credit card lawsuit made it to court. So before you make any decision, make sure you have taken into consideration all factors concerning the debt otherwise, you might unwittingly admit that the debt in question is indeed yours, through recent payments.

Facing a Credit Card Lawsuit? Don’t Panic Just Yet

For many debtors who are facing credit card lawsuit, their worst fear is getting a default judgment and paying everything from the debt down to the creditors' legal expenses. Being sued is overwhelming but it does not mean you should just give in to your emotions and start panicking. Don't. Instead of panicking, you should look for ways to defend yourself in court.

The good news is, your creditor or their representative, won't go knocking on your door anytime soon. Before you start panicking over a potential card lawsuit, consider the following facts:

Credit card lawsuits are on steady decline: Most courts in the country are well aware that creditors, junk debt buyers and collection agencies cannot proven card debt ownership as easily due to lack of documentation and any issues relating to paper work. What's more, the robo-signing scandal as well as foreclosure crisis also revealed how dirty certain junk debt buyers and collection agencies

There are certain banks that no longer file lawsuits complete because they lack sufficient proofs, ending up sending affidavits of debts as evidence which are manufactured proof so they end up embroiled in more court trouble that they can handle.

Credit lawsuits are also a lengthy procedure that are expensive and requires paperwork. If a debtor receives a summons, he or she usually have 20 days to respond to the complaint and then once the response to the summons is sent, both parties will engage in sending documents back and forth. One credit card lawsuit will usually take several months before a resolution is found so many card companies no longer consider filing a credit card lawsuit as a great way to collect money.

Finally, it was discovered through a brave whistle blower that more than 60% of credit lawsuits that were through the court system and have won judgments are found to contain discrepancies and errors. The fact is, most credit lawsuits contain grossly exaggerated sums of money, targeting cash-strapped individuals who are already having problems making ends meet as it is.

So when you are served with a summons for credit card lawsuit, don't be too quick to panic. Just find ways to settle the dispute in a peaceful manner but when it cannot be helped, exhaust all efforts to know more about state and local laws you can use to your advantage. This way, by the time you receive a summons for unpaid credit card debt, you know what to do to defend yourself in court.