Debt Collector Harassment Blog

Fake Debt Collectors

Jeffrey S. Hyslip — Fri, 27 Aug 2010 22:24:38 +0000

Have you received a call from a company alleging that you owe a debt that you don’t?

Have you been threatened with lawsuits, warrants, garnishments, etc. from a company that you can’t find online?

Has a company called you with “official words” in their company name? (Affidavit Processing, Federal Investigative Unit, National Collection Security Department, etc.)

Something rather interesting has been taking place in the last few months. Somehow, companies are obtaining information about consumers and are using that information to convince the consumer that the company is a debt collector and the consumer owes the company money. I’m still uncertain how they are stealing this data but I’ve spoken to endless consumers that inform me that they’ve paid a certain “bill” and later realize that the company they paid wasn’t even hired by the creditor.

Bottom Line: Please ensure that the company that you pay is actually the company you owe. Ask for verification of debt and for verification that they were hired by the creditor to collect the debt.

Buffalo’s debt collectors accused of bullying - Yahoo! Finance

Jeffrey S. Hyslip — Fri, 08 Jan 2010 14:40:50 +0000

http://finance.yahoo.com/news/Buffalos-debt-collectors-apf-2226423347.html?x=0

Happy Holidays

Jeffrey S. Hyslip — Fri, 11 Dec 2009 22:25:29 +0000

Happy Holidays from www.fairdebthelpers.com!

-Jeffrey

- The Newest Victim …..The Debt Collector -

Jeffrey S. Hyslip — Fri, 25 Sep 2009 20:46:38 +0000

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

Please Don’t Take Out a Payday Loan!

Jeffrey S. Hyslip — Tue, 18 Aug 2009 17:24:27 +0000

I can’t tell you how many clients I talk to every week that are getting harassed by a Payday Lender. As I’ve previously written, the FDCPA only applies to third party debt collectors, not the original creditor. So, the statute only gets triggered, generally, when a collection agency or a debt purchaser is collecting on a debt they didn’t originate. Congress reasoned that original lenders didn’t need to be covered by the statute because they had a business interest in complying with the statute to maintain customers. However, Payday Lenders do not have this incentive - in my opinion they are around for only one reason; to loan shark.

The most egregious stories I hear from consumers regarding harassment are from payday lenders and the companies that collect debt from them. I get it if you need money for food, but if you are taking out a payday loan for something other than a direct necessity; don’t!

If things are so tight that you need to get a payday loan to eat, please consider taking care of your debt in a more holistic manner. Talk to a Bankruptcy Attorney. Talk to a Debt Settlement/Resolution Attorney. Talk to someone! If you are interested in Bankruptcy, visit www.legalhelpers.com. If you are interested in resolving your debt for a fraction of what you owe, visit http://www.legalhelpers.com/bankruptcy-alternatives/debt-management.html. I’m a part of two law firms that were created to help consumers that are in debt. If you do nothing, nothing will change.

I hope things aren’t so bad for you that you’re considering a payday loan. If they are, my opinion is to start thinking of a long term solution rather than taking out another loan.

-Jeffrey S. Hyslip

You’ve Recovered Money for FDCPA Violations……..Now What?

Jeffrey S. Hyslip — Tue, 16 Jun 2009 22:20:47 +0000

We’re settling a lot of FDCPA cases every month and frequently I speak with clients about how they are going to use their settlement funds. Sometimes, clients use the funds for necessary expenses; food, clothes, housing, etc. Sometimes, but rarely, my clients share that they are going to use the money to purchase something questionable (in my eyes) such as a new flat screen television, down payment on a new car, etc. I am not in the position to judge anyone, however, I always try to get my clients to spend their money on something that will change their lives. A television will temporarily entertain, however, what if they would spend their money on something that would make “tomorrow” completely different than today……

What if I told you that if you gave me $1,500.00 of the money you received from your FDCPA settlement and I could use that money to pay off thousands of dollars of your debt? What if I told you a client gave me their $1,500.00 and I turned that $1,500.00 into the ability to discharge over $100,000.00 of the debt that they previously incurred? Its likely you’d think I was trying to sell you something that wasn’t real, and would turn me into the Federal Government. However, I am being completely honest.

People have different ideas about Bankruptcy; some view it as a second chance and some view it in negative light. I can tell you this; dozens of millionaires out there have filed for bankruptcy more than once. Additionally, as the news daily points out, our largest corporations are seeking bailouts and are using bankruptcy to get back on their feet. Why shouldn’t you use the same tools?

If you contact me and you have a collection agency that has violated the FDCPA, I will get you money (assuming the collection agency hasn’t filed for bankruptcy in the meantime which is becoming more frequent). Be thinking now how you want to use that money. My suggestion, obviously, is to use the money to create a new tomorrow; get a fresh start. Visit www.legalhelpers.com for more information on bankruptcy. Tomorrow doesn’t have to be another day; it could be your second chance. If you don’t have another viable long term plan; make one. If you don’t plan for anything, don’t expect anything to change.

Jeffrey S. Hyslip

No More Liens!

Jeffrey S. Hyslip — Thu, 11 Jun 2009 22:02:57 +0000

As many of my readers know, I used to be a debt collector/collection attorney between 2003 and 2007. I’d sue consumers and get judgments awarded for my clients (creditors). Once the judgment was awarded, we’d search various databases to determine what assets the consumers possessed that I could execute on to enforce the judgment. The three main assets I searched for were (1) wages, (2) bank accounts, and (3) real estate.

Whenever I found real estate, I got really excited. I would pay the $33 to file a certificate of judgment against the consumer which would in turn place a lien on the consumers real property (house). When a lien is recorded/filed, it is placed behind all previously filed liens (Mortgages, etc.). Back in the heyday of the real estate market, I’d routinely get checks in the mail from title companies paying off the liens that were filed. You see, when a consumer with a lien would re-finance or sell their house, the liens that were on the house would get paid before the proceeds were dispersed to the consumer. Since homes were appreciating, there was regularly enough equity to pay off the mortgage company and lien holders.

Now, that has changed. Consumers are upside down on their homes and it is rare there is any available equity to justify placing a lien on real property. So, now we get to the point; anytime a collection agency threatens to place a lien on your home (unless your home is paid for or has SIGNIFICANT equity) they are most likely lying to you (not to mention the fact that collection agencies CAN’T put liens anywhere since they are not attorneys). So, since there is no justifiable reason to place a lien on a home that doesn’t have equity that means its unlikely anyone will place a lien on your property. As such, if a collection agency threatens you with (or mentions) a lien, they are lying to you. It is illegal for collection agencies to lie under the FDCPA. As such, if a collection agency mentions a lien, they have violated the FDCPA.

At least there is ONE upside to the housing crisis - No More Liens!

-Jeffrey S. Hyslip

What Debts are Covered under the FDCPA?

Jeffrey S. Hyslip — Fri, 30 Jan 2009 15:52:14 +0000

The FDCPA prohibits debt collectors from harassing or misleading consumers while collecting debt. However, the only debt that is covered under the Statute is Consumer debts. The FDCPA defines Consumer debts as debts incurred primarily for personal, family or household purposes. Therefore, if you incur a debt for your business, the debt collector is not covered by the FDCPA. Congress assumed that if someone was sophisticated enough to run and operate a business, then they were most likely able to decipher when a collection agency was making false threats, etc. If you have a question regarding whether or not the debt you have incurred allows FDCPA protection, feel free to contact us at 866-339-1156.

Jeffrey S. Hyslip

Skip Tracing

Jeffrey S. Hyslip — Fri, 30 Jan 2009 15:45:42 +0000

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.

Settlement Conference

Jeffrey S. Hyslip — Thu, 29 Jan 2009 14:04:13 +0000

I recently attended a settlement conference on an FDCPA case somewhere outside of Chicago. In this particular jurisdiction, the Judge had the parties split up into two different rooms and went back and forth between the rooms trying to get the parties to reach middle ground regarding the settlement figure. Our case was what we considered to be a slam dunk. Not only was my client steadfast in its recollection of the events, we also had recordings to substantiate her claims.

Believe it or not, the parties were not that far off in their settlement figures; it wasn’t settling for another reason. My client didn’t necessarily want money; she wanted an apology and for this collection agencies representative to promise they were going to change their ways. When my client told this to the Judge the Judge, who has a lot of experience handling FDCPA cases, said something I will never forget. He said, “Mrs. XYZ, you’re not going to get them to change their ways. I see them getting sued day after day and their ways don’t change. I guarantee you that I am going to see them again later this week. There is nothing that will happen in this courtroom today that is going to make them act differently. As we speak there is a collection agency violating the law”.

I have frequently reflected on this comment since I’ve returned to Chicago and its raised so many questions in my head. First, how could this be? How can someone or something constantly violate the law and their lawlessness be reduced to a simple nonchalant recognition from the Judge that its absolutely certainly going to happen again. If the judges that are hearing these cases recognize that regardless of what takes place in their courtroom the defendant’s actions are not going to change, what difference am I really making?

This incident, more than any other, has solidified my belief that the FDCPA needs amended. I mean really; the statute that was supposed to prevent and deter collection agencies from stepping over the line has become a joke to the offenders. The statute provides for damages up to $1,000.00 and actual damages if they can be proven. The statute was written in the early seventies and the amount of damages has never been increased. If the Judges that are hearing these cases can conclude that regardless of what happens the defendant’s behavior isn’t going to change then its pretty obvious we need a new mechanism for deterrence. If the punishment doesn’t modify their behavior then you need to tailor the punishment to one that is effective.

Also, the thing that ……..oooh sorry, I need to answer my phone; a potential client is calling. Guess the Judge knew what he was talking about…..

Jeffrey S. Hyslip