Debt Collection Harassment and the FDCPA
Our firm has a significant amount of experience in the area of consumer debt collection law. Joe Walterman often presents continuing legal education seminars to other lawyers on these subjects. Our firm also frequently represents consumers who are the victim of third party debt collectors who have violated federal statutes such as the Fair Debt Collection Practices Act. The Fair Debt Collection Practices Act (FDCPA) is a law meant to protect individual consumers against the illegal actions of debt collectors. Our firm has filed suits against debt collectors who fail to follow this law.
Our firm has also become aware that creditors and debt collectors often do not stop attempting to collect debts when the consumer has filed bankruptcy. This type of creditor conduct is often a violation of the bankruptcy stay. If the entity violating the bankruptcy stay is a third party debt collector, then the bankruptcy stay violation may also be a violation of the Fair Debt Collection Practices Act.
Wage Garnishment Law
If you have been sued and a judgment rendered against you, then that creditor can ask the Court to garnish your wages. Indiana garnishment law allows creditors to take the lesser of what you make in a week minus $217.50 OR 25% of your wages after deducting taxes. Although it is best to try and work out a voluntary payment plan or agreed garnishment for what you can afford, some creditors will not work with you and will insist on a full garnishment. If you find that you cannot stay current on your home, car, or pay necessary living expenses because of wage garnishments on large debts, you may wish to consider discussing your options with an attorney.
Debt Collectors violating the Automatic Stay
A common debt collection violation is for a creditor or debt collector to violate the automatic stay that is imposed on them to cease collection activities when a person files bankruptcy. Failing to cease collection efforts when required by the law is an enforceable cause of action and you should contact an attorney if this has occurred to you. This may occur shortly after you file bankruptcy, or it can sometimes happen months or even years later as creditors will sometimes sell debt to third party debt collectors even though some of those debts may have been discharged in bankruptcy.
Another common problem is for creditors or debt collectors to list a debt on your credit report, but fail to mark it as either disputed or as bankrupt. The failure to accurately report credit information could be a violation of the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act or even possibly a stay violation.
The Fair Debt Collection Practices Act (FDCPA)
There is some good information and a lot of misinformation on the internet about the Fair Debt Collection Practices Act (commonly known as the FDCPA). People often misunderstand this law and think that it applies to their direct creditors. Most of the time, this law only applies to third part debt collectors or those who buy debt that is in default. It does not apply to your mortgage company, your car finance company, a hospital, or any original creditor that is attempting to collect their own debt in their own name. This law also only applies to consumer debts; thus, it would not cover debts owed by your business.
Despite these restrictions, the FDCPA is a powerful law that protects consumers from harassment and unethical debt collection practices. The law is complex and thus you should consult with an experienced attorney if you are being harassed by debt collectors. Our firm has long experience with the FDCPA and has successfully prosecuted many FDCPA cases against debt collectors who violate the law.
Dealing with debt collector harassment
Do you feel like you are being harassed by debt collectors? Do you need some practical advice on what to do?
What do I do if a debt collector calls me at home and I wish for those calls to stop? Tell them not to call you at home anymore and to only communicate with you in writing, or if you wish, tell them not to contact you in any way. Then send them a letter indicating you do not wish to receive phone calls, or any communication depending on your preference. Also make a note of the phone conversation. If the debt collector violates your wish not to be called at home, or refuses to cease communications with you, then contact our firm to discuss your rights under the Fair Debt Collection Practices Act (FDCPA).
What do I do if a debt collector calls me at work and that is inconvenient for me? Tell them not to call you at work and make a note of the phone conversation. Then, follow that up in writing and tell them how they can communicate with you or that you do not want communication at all. If the debt collector violates your wish not to be called at work, or refuses to cease communications with you, then contact our firm to discuss your rights under the Fair Debt Collection Practices Act (FDCPA).
What do I do if I dispute a debt? Send the debt collector a written dispute within 30 days of receiving the initial demand letter. It is best to send the dispute by certified mail if possible and to keep your tracking receipt with a copy of the letter so you can prove you sent the dispute letter. If the debt collector continues to try and collect the debt before they send you verification of the debt, then contact our firm to discuss your rights under the Fair Debt Collection Practices Act (FDCPA).
What do I do if a debt collector calls me, but does not send me a written demand letter? By law, a debt collector must send you a written demand letter via U.S. mail within 5 days after the first contact with you. If you do not receive a demand within 5 to 10 days (allowing time for mail delivery) after your first communication with the debt collector, then contact our firm to discuss your rights under the Fair Debt Collection Practices Act (FDCPA).
What do I do if a debt collector sues me? Remember that just because you told a debt collector not to contact you does not mean they cannot file a lawsuit against you. If you are sued for a debt, then you should contact an attorney right away. You have a limited time to file an answer to the lawsuit or you may even have a court date set in the case for you to appear.
General tips:
Remember to always keep any letters, emails, or other communications you receive from debt collectors, and to make notes about any phone calls or messages you receive from debt collectors. Also remember to keep a copy of any letter you send in reply. This will help you prove your case if a violation has occurred. Most importantly, contact our firm right away if you believe your rights have been violated by a debt collector as there is only a one year statute of limitations on FDCPA cases. This means you cannot sue for a violation that you knew about that occurred more than a year ago.
Call us today to discuss your rights under the FDCPA. Initial consultations are always free and our firm will work on contingency in FDCPA cases so that you do not owe us fees unless we are successful in the case against the debt collector.
Our firm has a significant amount of experience in the area of consumer debt collection law. Joe Walterman often presents continuing legal education seminars to other lawyers on these subjects. Our firm also frequently represents consumers who are the victim of third party debt collectors who have violated federal statutes such as the Fair Debt Collection Practices Act. The Fair Debt Collection Practices Act (FDCPA) is a law meant to protect individual consumers against the illegal actions of debt collectors. Our firm has filed suits against debt collectors who fail to follow this law.
Our firm has also become aware that creditors and debt collectors often do not stop attempting to collect debts when the consumer has filed bankruptcy. This type of creditor conduct is often a violation of the bankruptcy stay. If the entity violating the bankruptcy stay is a third party debt collector, then the bankruptcy stay violation may also be a violation of the Fair Debt Collection Practices Act.
Wage Garnishment Law
If you have been sued and a judgment rendered against you, then that creditor can ask the Court to garnish your wages. Indiana garnishment law allows creditors to take the lesser of what you make in a week minus $217.50 OR 25% of your wages after deducting taxes. Although it is best to try and work out a voluntary payment plan or agreed garnishment for what you can afford, some creditors will not work with you and will insist on a full garnishment. If you find that you cannot stay current on your home, car, or pay necessary living expenses because of wage garnishments on large debts, you may wish to consider discussing your options with an attorney.
Debt Collectors violating the Automatic Stay
A common debt collection violation is for a creditor or debt collector to violate the automatic stay that is imposed on them to cease collection activities when a person files bankruptcy. Failing to cease collection efforts when required by the law is an enforceable cause of action and you should contact an attorney if this has occurred to you. This may occur shortly after you file bankruptcy, or it can sometimes happen months or even years later as creditors will sometimes sell debt to third party debt collectors even though some of those debts may have been discharged in bankruptcy.
Another common problem is for creditors or debt collectors to list a debt on your credit report, but fail to mark it as either disputed or as bankrupt. The failure to accurately report credit information could be a violation of the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act or even possibly a stay violation.
The Fair Debt Collection Practices Act (FDCPA)
There is some good information and a lot of misinformation on the internet about the Fair Debt Collection Practices Act (commonly known as the FDCPA). People often misunderstand this law and think that it applies to their direct creditors. Most of the time, this law only applies to third part debt collectors or those who buy debt that is in default. It does not apply to your mortgage company, your car finance company, a hospital, or any original creditor that is attempting to collect their own debt in their own name. This law also only applies to consumer debts; thus, it would not cover debts owed by your business.
Despite these restrictions, the FDCPA is a powerful law that protects consumers from harassment and unethical debt collection practices. The law is complex and thus you should consult with an experienced attorney if you are being harassed by debt collectors. Our firm has long experience with the FDCPA and has successfully prosecuted many FDCPA cases against debt collectors who violate the law.
Dealing with debt collector harassment
Do you feel like you are being harassed by debt collectors? Do you need some practical advice on what to do?
What do I do if a debt collector calls me at home and I wish for those calls to stop? Tell them not to call you at home anymore and to only communicate with you in writing, or if you wish, tell them not to contact you in any way. Then send them a letter indicating you do not wish to receive phone calls, or any communication depending on your preference. Also make a note of the phone conversation. If the debt collector violates your wish not to be called at home, or refuses to cease communications with you, then contact our firm to discuss your rights under the Fair Debt Collection Practices Act (FDCPA).
What do I do if a debt collector calls me at work and that is inconvenient for me? Tell them not to call you at work and make a note of the phone conversation. Then, follow that up in writing and tell them how they can communicate with you or that you do not want communication at all. If the debt collector violates your wish not to be called at work, or refuses to cease communications with you, then contact our firm to discuss your rights under the Fair Debt Collection Practices Act (FDCPA).
What do I do if I dispute a debt? Send the debt collector a written dispute within 30 days of receiving the initial demand letter. It is best to send the dispute by certified mail if possible and to keep your tracking receipt with a copy of the letter so you can prove you sent the dispute letter. If the debt collector continues to try and collect the debt before they send you verification of the debt, then contact our firm to discuss your rights under the Fair Debt Collection Practices Act (FDCPA).
What do I do if a debt collector calls me, but does not send me a written demand letter? By law, a debt collector must send you a written demand letter via U.S. mail within 5 days after the first contact with you. If you do not receive a demand within 5 to 10 days (allowing time for mail delivery) after your first communication with the debt collector, then contact our firm to discuss your rights under the Fair Debt Collection Practices Act (FDCPA).
What do I do if a debt collector sues me? Remember that just because you told a debt collector not to contact you does not mean they cannot file a lawsuit against you. If you are sued for a debt, then you should contact an attorney right away. You have a limited time to file an answer to the lawsuit or you may even have a court date set in the case for you to appear.
General tips:
Remember to always keep any letters, emails, or other communications you receive from debt collectors, and to make notes about any phone calls or messages you receive from debt collectors. Also remember to keep a copy of any letter you send in reply. This will help you prove your case if a violation has occurred. Most importantly, contact our firm right away if you believe your rights have been violated by a debt collector as there is only a one year statute of limitations on FDCPA cases. This means you cannot sue for a violation that you knew about that occurred more than a year ago.
Call us today to discuss your rights under the FDCPA. Initial consultations are always free and our firm will work on contingency in FDCPA cases so that you do not owe us fees unless we are successful in the case against the debt collector.