In response to -

Article from insidearm.com

*****Warning - Sarcasm Below*****

I’ve been reading a lot of press recently about the poor debt collector.  It seems that consumers are on a litigation frenzy (aka LITIGIOUS) against debt collectors!  One recent report states that 18% of ALL new FDCPA law suits are filed by consumers that have sued another collection agency.  As the advertisements and media points out, this can only show one thing - that debtors love being in debt, they look forward to getting harassed, just so they can sue the debt collector.  This is amazing, I never knew this!!  You should be ashamed, debtor!

So, there are several new companies out there that search FDCPA lawsuits that are filed and mail collection agencies lists of these “LITIGIOUS” debtors so the collection agencies can compare the names to their current list of accounts so they will know if they have an account for one of these ”LITIGIOUS” debtors.

Shame on you Debtors!!  How dare you sue TWO collection agencies if TWO collection agencies harass you!  Shame Shame Shame!  You know, these collection agencies have a job to do….they can’t stay in business if they don’t have readily available data that tells them if YOU will sue them if they harass you.  I mean after all they have a job to do!

WAIT…..or MAYBE, just maybe, most debtors don’t know their rights against collection agencies until they are educated that there is recourse for collection agency harassment.  I find it interesting that collection agencies want to know when they are dealing with a “LITIGIOUS” debtor.  What are they doing once they find out?  They certainly aren’t sending the account back to the original creditor!  I doubt if they purchased the debt they are selling it to another unknowing “victim”.  I imagine if they know a debtor has filed an FDCPA lawsuit before, they will treat that debtor differently.  Maybe, just maybe, they will obey federal law when collecting the debt.  If only they did that all the time they wouldn’t need to know who the “LITIGIOUS” (aka educated) debtors are.

…..Imagine if another type of company was able to see if you would actually “tell on them” before they sold you something.  And, based on that answer, the product they would sell you would ultimately change…  I can’t imagine that being accepted anywhere else.  So, I guess its the debt collector that should be ashamed….again.

-Jeffrey S. Hyslip

A lot of times we get calls from clients who complain about a collection agency harassing their family members, friends, neighbors, co-workers etc.  For example, we hear them say things like, “They called my brother who lives in Connecticut!  I don’t even know how they got that phone number!”  More often than not this is a case of skip tracing.  Skip tracing is a process of pinpointing a person’s whereabouts.  Collection agencies typically use skip tracing programs in order to locate a client to collect a debt.  Essentially, they are able to type in the client’s name and pull up information on the client, including contact information for family members, neighbors, place of employment etc.  The act of using a skip tracing program is not considered a Fair Debt Collections Practices Act violation.  Collection agencies are allowed to use skip tracing programs, however, who they contact, how frequently and/or what they say to that individual may be called into question under the FDCPA.  Sometimes, if the collection agency is already in communication with the client, but is having difficulty collecting on a debt, the agency may contact a third party person as a means of embarrassing or scaring the client into making a payment to them.

Under the FDCPA, a collection agency is only allowed to contact one third party person one time to obtain any contact information needed to reach the client directly.  Therefore, if a collection agency contacts a third party person more than once or multiple third party individuals, this would constitute a violation.  If the collection agency has already made contact successfully with the client, then at that point, it’s unnecessary for them to be contacting anyone else.

In our department, our logic is that, if a collection agency has the ability to utilize a skip tracing program to get in touch with a client’s friend, family member and/or neighbor, then they certainly have the ability to employ this skip tracing program to locate the client directly.  Nonetheless, if you get wind that a collection agency is calling anyone other than yourself regarding your debt, than I strongly encourage you to contact our department.

Megan F.

As previously mentioned on the FDCPA blog, times are tough for both consumers and Collection Agencies.  Often times Collection Agencies will offer consumers a significantly reduced “settlement” amount, if they are able to remit payment immediately.  This can either be an opportunity for the consumer to satisfy his/her obligation for a reduced amount, or an underhanded ploy used by unethical collectors to get a person to pay.

In order to protect oneself from the latter, ALWAYS obtain the proposed settlement offer in writing from the Collection Agency.  Keep detailed records of your transaction with the Collection Agency.  If everything was done on the up and up, then congratulations, your delinquent debt has been settled.

However, making a payment that you were led to believe was a payment in full does not always end your trials and tribulations with the Collection Agency.

There are two potential issues that could arise.

The first is that the same collection agency could continue to collect on what would have been the remaining balance of the debt.  We have heard stories of Collection Agencies offering a “Settlement Payment for 50% of the balance.”  After receiving the payment, the collection agency then tries to collect the other 50%, claiming that the settlement payment made by the consumer was for only half the debt.

If this occurs, then this collection agency has violated the FDCPA by making misrepresentations in an effort to collect a debt.

The second problem that we have witnessed arises when the Collection Agency offers a settlement for less than the entire debt but is not the owner of the debt and is not authorized by the holder of the debt  to eliminate the remainder of the debt not covered by the “settlement” payment.  After making a payment which the consumer was led to believe was a payment in full, the Collection Agency takes their commission and returns the remainder of the balance to the original creditor; often to have it passed to another Collection Agency, starting the process again.  Again, if this occurs, the first Collection Agency has violated the FDCPA through its misrepresentation.

If you feel that you have been misled into accepting a “settlement” payment by a collection agency, please complete our case review questionnaire at www.fairdebthelpers.com.

Not all Collection Agencies engage in these unfair and misleading practices, and often consumers are able to settle their obligations for less than the total balance owed.  This is a good way to see yourself out of a difficult situation.  Whenever dealing with Collection Agencies Caveat Emptor, buyer beware.

Matthew S.

There has been growing concern over supposed collection agencies that have been calling debtors, typically with regard PayDay Loans or Cash Advance debts that are several years old. These “companies” have titles that are usually a nonsensical string of legal terms, such as ‘Legal Affidavit Processing’ or ‘Litigation Processing Division’. The agents sometimes have thick accents and sound like their phone calls are coming from overseas from outsourced department. These debt collectors often threaten imminent legal action if a payment is not made or if bank account information is not surrendered to them immediately.  Such threats include U.S. Marshals on their way to arrest the debtor or threatening to send the sheriff to arrest the debtor immediately if a payment was not made. In most cases like these that we have encountered, the supposed “company” in question turns out not to be a company at all, but a scam.  Occasionally, this may be an actual debt collector violating the Fair Debt Collection Practices Act, which we may be able to pursue under the FDCPA. If you receive phone calls of a similar nature, with agents demanding payment or bank account information, DO NOT give these companies anything without documentation or proof that you owe the debt. Obtain as much information about them as you can (company name, phone number, address, etc.) Report their number, the address where they want you to send the money and phony company name to the FBI, the FTC, and the BBB. You should also submit a Free Case Review via our homepage www.fairdebthelpers.com in the event that this is a legitimate debt collector, so we can pursue them under the FDCPA.

Jonathan H.