How to stop fraudulent debt collection calls
March 8, 2011 by Todd Murray · Leave a Comment
I occasionally get calls from people dealing with debt collection scammers. The scammers acquire an innocent consumer’s contact information and begin bombarding him with debt collection calls. The callers, who usually call from overseas with a VOIP phone line, make blatantly illegal threats, such as threatening to have the consumer arrested. When I talk to victims of this scam, I usually explain the nature of the scam and tell them that an FDCPA lawsuit isn’t appropriate because there’s no way to identify the scammers. But I’ve never really had a good answer for making the annoying calls stop. Until now, that is, thanks to “Steve”. Steve (it’s not his real name) was an innocent consumer suffering from this very problem. Rather than live with the harassing calls, Steve decided to set up a website with information about how to put a stop to the calls. Here’s his tips for protecting yourself:
* Inform your employer. You are likely getting calls at home and/or at work, so make sure your employer is aware the calls are part of a scam and to not take them seriously. Advise the callers that they are no longer allowed to call you at work. If they continue to call, document the date and time of the calls you received. Save voice mails left if at all possible.
* Change your number(s). For some this may not be an option, for others a one-time number change can be done free of charge.
Be advised – any references you listed on your payday loan application will be contacted. Let those people know that this is a scam, and they can disregard.
* Use Google Voice. Google Voice is a great replacement voice mail system for just about any phone number you use. Messages can be transcribed and voice mail recordings can be saved as mp3 files.
Pro Tip – call the fraudsters with a Google Voice number before turning off your old phone numbers. Make sure when you call you identify yourself so they can start up their script. At any point after they have your information pulled up just hang up. They will then start religiously calling your Google Voice number. At this point, you are free to change your regular phone number(s) and enjoy not having these people ever call you again. (And laugh at the fact these people are basically talking to a brick wall several times a day).
I would only use this approach with a scammer. If you want to stop calls from a “legitimate” debt collector, take a look at this post.
Payday Loan Collection Scheme / Get the Facts! (via Consumerist)
You can sue a repo man that wrongfully repossesses your car
March 3, 2011 by Todd Murray · Leave a Comment
I’ve talked to a couple people lately who have told me about some really awful behavior by repossession agents. One person was run off the road by two repo agents working in tandem. Another was forced up against a wall and told that she was going to jail if she didn’t turn her car over. A third was physically dragged out of her car by the repo agent. Needless to say, all of these people were terrified by their experiences. All three of them called the police, only to be told that the police would not get involved.
Fortunately for these people, there is something that they can do. Although Minnesota law allows repossession agents to take your vehicle without a court order, they can’t create a breach of the peace while doing it. Clearly, running someone off the road, slamming someone against a wall and threatening to put them in jail, and dragging someone out of their car all result in a breach of the peace. In addition to liability for a breach-of-the-peace repossession, the repo man may also be liable for other damages as well, depending on the severity of his conduct. And in some federal jurisdictions, a wrongful repossession can also be a violation of the Fair Debt Collection Practices Act (FDCPA). In Minnesota, unfortuntely, federal courts have held that a wrongful repossession may not be a violation of the FDCPA.
You can sue a repo agent that has wrongfully repossessed your vehicle and receive money damages. If you live in Minnesota and have had a bad experience with a repo agent, feel free to contact me for a free case evaluation.
(photo: srqpix’s)
Can a debt collector call my family and friends about my debt?
January 11, 2011 by Todd Murray · Leave a Comment
The Fair Debt Collection Practices Act prohibits debt collectors from calling third-parties, such as family members or friends, about your debts. In passing the FDCPA, Congress recognized your right to privacy in your finances. There’s one very limited exception to this rule, though. Debt collectors may contact third-parties to find your address or phone number. Once he has this information, however, the debt collector can’t contact the third-party again. And during his conversation with the third-party, the debt collector can’t tell the third party that you owe a debt, can’t discuss the details of your debt, and can only identify himself and his company if asked.
Although it violates the FDCPA, many debt collectors use this tactic because it’s profitable. If you’re like most people, you’re understandably embarrassed by not being able to make ends meet. It’s stressful enough to suffer this embarrassment privately. But when a debt collector tells your friend or family member that you aren’t paying your bills, your private embarrassment quickly turns into semi-public humiliation. Debt collectors know this and use the third-party calls to put pressure on you to make a payment. Debt collectors also know that most consumers don’t know about their rights under the FDCPA, so there is little chance that the consumer will do anything about the illegal third party calls. Rather than paying the debt collector to make the third party calls stop, it may be best to discuss your situation with a consumer lawyer. Paying the shady debt collector will only encourage him to keep breaking the law. But a consumer lawyer can help you hold the debt collector accountable by bringing a FDCPA lawsuit on your behalf. After being sued for violating the FDCPA, most debt collectors will think twice about violating it again.
If you’re dealing with debt collectors, make sure to download and use my free debt collection call log so that you can document all of the debt collectors’ communications. And if the debt collector does anything that you think was unfair; untrue; or harassing, oppressive, or abusive, please contact me to discuss the situation further. I offer a free case review for all FDCPA cases and if I agree to handle your case, you won’t have to pay me any money up front. My fees come from the money I recover from you if you win your case or accept a negotiated settlement.
(photo: JonJon2k8)
Can a debt collector call my parents about my debt?
January 4, 2011 by Todd Murray · Leave a Comment
Under the Fair Debt Collection Practices Act, debt collectors can only communicate with you or your attorney about your debt. There’s a very narrow exception that allows debt collectors to contact third parties, such as your parents, but only to obtain location information. Location information means your address and telephone number. During this conversation, the debt collector must tell your parents that he is attempting to confirm your location information, he can’t tell them that you owe a debt, and he is only allowed to identify his employer if asked. Of course, your parents have no obligation to give the debt collector your address and telephone number. And once the debt collector has your location information, there is no permissible reason under the FDCPA to contact your parents, or any third party for that matter. In other words, if you’ve already talked to a debt collector and he knows how to contact you, it’s a violation of the FDCPA for him to call a third party because he already knows your location information.
It’s fairly common for debt collectors to contact people’s parents about their debt. And it’s not just college students and recent college graduates. I’ve had clients in their 40’s and 50’s whose elderly parents were called by debt collectors. I suppose it’s possible that some debt collectors contact consumers’ parents by mistake. But I also think that some debt collectors call people’s parents as a collection tactic to put pressure on the consumer to pay the debt. Either way, its a violation of the FDCPA, unless it falls under the very narrow “location information” exception described above.
If you’re dealing with debt collectors, make sure to download and use my free debt collection call log so that you can document all of the debt collectors’ communications. And if the debt collector does anything that you think was unfair; untrue; or harassing, oppressive, or abusive, please contact me to discuss the situation further. I offer a free case review for all FDCPA cases and if I agree to handle your case, you won’t have to pay me any money up front. My fees come from the money I recover from you if you win your case or accept a negotiated settlement.
Photo: http://www.flickr.com/photos/randya38/3151772326/
New Mexico now requires debt collectors to tell consumers that the statute of limitations has passed
December 21, 2010 by Todd Murray · Leave a Comment
A recently-passed New Mexico law requires debt collectors to tell consumers when the debt they are collecting is past the statute of limitations. The statute of limitations, of course, is the time limit for bringing in a lawsuit. In Minnesota, for example, most collection lawsuits must be brought within 6 years of the date the consumer defaulted on the account.
There is nothing to stop a debt collector from attempting to collect a debt that is past the statute of limitations, they just can’t resort to a lawsuit if their voluntary collection efforts fail. If they do, they’ve violated the Fair Debt Collection Practices Act and can be sued. But it’s not uncommon for debt collectors to imply, or outright mislead, people into believing that they can still be sued even though the debt collector knows the SOL has passed. They get away with this because many consumers either don’t know what the statute of limitations is, or don’t know how long it is in their state. With its new law, New Mexico became the first state to level the playing field created by this knowledge imbalance. It would be great if other states, including Minnesota, follow New Mexico’s lead.
New Rule Requires that Collectors Disclose that a Debt is Time-Barred | Credit Slips | December 17, 2010
Photo: http://www.flickr.com/photos/faithx5/2549730409/
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