Debt Litigation Myths

April 9, 2012
Unfortunately, many of us may face litigation over unpaid debts. It has become a reality for more Americans over the last five years than ever before. Job loss, divorce, or any number of other reasons can be the root cause. Whatever the reason you find yourself in this situation, here are a few litigation myths that you should be aware of.

  • I have to appear in court on the answer date. No, the answer date is the last day to present a written answer to the collectors suit. This is not a hearing date. If you fail to answer, the collector will win the suit, so do not ignore this date altogether.
  • I need to tell the judge why I did not pay the debt. This is the worst thing that you could do. An explanation is as much as an admission of owing the debt and you will most likely have a judgment awarded against you.
  • The judge will help me in court. No, the judge is not there to help you stumble through the process. If you fail to prove your case, you will lose. If the debt is fairly large, you may want to hire an attorney.

The knee jerk reaction to a lawsuit of debt is to ignore it. That makes it easier for the debt collector because they will win a default judgment for the full amount plus any reasonable costs associated with the lawsuit. If the debt is small enough, pay before it goes to court. If it is large, retain an attorney. Whatever you do, do not ignore the lawsuit. It will not go away.

This guest post provided by DebtReliefAlabama.org, a leader in helping people in need of Alabama debt settlement and Alabama debt consolidation services.
 

Five Things That Debt Collectors Are Never Allowed To Do

April 2, 2012
Falling behind on bills has become a part of many people's lives. Often, that leads to having to deal with a monster more hideous than any imagined or put on a movie screen...the debt collector. These are many headed creatures that strike fear with the mere mention of their name. Despite their pitiful reputations, debt collectors are regulated by the Federal Trade Commission (FTC) and there are certain things that a debt collector may never say or do. Here are five of them.

  • In the past, many d...

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Checklist To Follow When Switching Banks

March 22, 2012
As some banks continue to add new fees and increase others, many of us are looking to switch to a more customer friendly institution. That sounds pretty simple, but in the age of direct deposit and auto drafts it can become a nightmare if you forget even one item. The last thing you want to do is rack up those crushing fees, and have the debt collectors after you because you can't pay your auto or mortgage.  Here is a short checklist to help you avoid any inconveniences that could affect dail...

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Attorney Fee Awards from FDCPA Cases

April 16, 2010
Damage classification and FDCPA violations

When it comes to FDCPA violations and damages, the FDCPA classifies damages into the following categories:

  1. Monetary damages. This includes payments made on time-barred debt, attorney fees and long distance phone fees.
  2. Actual damages. When a consumer experiences psychological damages incurred by the consumer including psychological damages such as stress, emotional and mental problems.  A person may also experience emotional damages such as emotional pa...

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Illegal Threats of Litigation

April 15, 2010
Often times, a debt collector or collection agency will threaten a consumer with litigation.  If you have been threatened with litigation or abused and harassed by a debt collector, you have the right to file a FDCPA claim.  Under Section [15 USC 1692e] § 807(5) of the FDCPA, a debt collector is breaking the law by threatening a consumer with legal actions. In addition, they are not allowed to do the following against you:

•    Reduce your credit scores
•    Wage garnishment
•    Causing ...
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Proof: Saving Correspondence with Debt Collectors

April 15, 2010

Why it is important to save all correspondence?

Even 30 years after the Consumer Debt Protection Act was enforced, there are still a few collection agencies out there that slip through the cracks when it comes to obeying the law. It is highly recommended that you save all correspondence, letters, emails, voicemails or phone calls that have the potential to go to litigation. This can be utilized as proof in the court of law.

Recording Phone Calls Under the FDCPA

Today there are 12 states that per...
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FDCPA Cases: Actual Damages

April 15, 2010
FDCPA Judgments against a Collection Agency

Consumers can file FDCPA claims against a debt collector and be awarded for damages caused by improper practices. In addition, a consumer can also file a private lawsuit at the federal or state level. As a consumer, you don’t have to prove “actual damages” to be awarded money.

The most that you can win in a FDCPA case is $1,000. Keep in mind that you will be given 1 year to file a FDCPA claim in court. The collection agency may be held liable f...
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Your Rights Under The FDCPA Law

April 15, 2010
Under the Fair Debt Collection Practices Act (FDCPA) of 1978, consumers have protection. This gives consumers the right to sue debt collectors who are abusive. You can sue a debt collector if they do the following:

  • Call during strange hours
  • Harass or threaten you
  • Threaten to sue you
  • Threaten to embarrass you by calling family or friends
  • Continue to make collection efforts after you told them to discontinue
  • Make misleading statements in written collection notices
  • Report false information about y...

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Fighting for fair debt collection one web visitor at a time.