by Paul MankinCan A Creditor Take My Tax Refund Check?
Has a creditor threatened to take your tax refund check or have you heard stories that they will if you do not pay the bill? Can a creditor take a tax refund check? The short answer is maybe. It depends on what you mean by ‘take my check’, who the creditor is, what point in the collection process the creditor has gotten to, and if the court will allow them to take it in any given year.
What “Take My Tax Refund Check” Means
While some states may not allow certain creditors to intercept your tax refund check, preventing it from ever coming to you, all states will allow creditors who have obtained a judgment against you to ask the court for an order allowing them to levy your bank account, and then take the money from your refund from your account, or for one requiring you to sign and turn over your refund check to the creditor. So while a creditor may not be able to get your check directly from the Internal Revenue Service (IRS), it is a really a distinction without a difference.
When Can a Creditor Take My Tax Refund?
Unless and until a creditor has filed a lawsuit against you, obtained a judgment, and asked the court for permission to take your tax check or levy your bank account your tax refund check is safe. If the creditor has sued you and obtained a judgment which you have not paid in full, it may then attempt to take your tax refund by obtaining a court order allowing the check to be intercepted, requiring you to sign and turn over the check, or allowing the creditor to levy your bank account and take your refund once it is deposited. In order to do any of this, the creditor must file a motion with the court to intercept, or take, your tax check or levy your bank account. The creditor is required by court rules to provide you with a copy of anything that it files, so if it does ask the court for permission to take your tax refund, you should receive a copy of the request that it filed. Once you get notice that the creditor is trying to take your refund, you will need to file a written objection with the court in order to attempt to prevent it from ordering the Internal Revenue Service (IRS) to send your check to the creditor, ordering you to turn it over to the creditor without cashing it, or allowing the creditor to levy your bank account and take the money once it is deposited. For this, you may want to hire an attorney, as it can be difficult to stop a court from ordering that you use your tax refund to pay a judgment that has gone unpaid for very long.
If a creditor has threatened to take your tax refund or has asked the court for permission to do so, please contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinHow Many Times Can A Car Dealership Pull My Credit?
An application for credit or a loan, including auto loans, permits a potential lender to run a “hard” credit inquiry for the purpose of assessing a consumer’s credit risk. Since a hard credit inquiry appears on the consumer’s credit report and affects the consumer’s credit score, it is important to understand what happens to their credit report when a consumer applies for auto financing.
When a consumer seeks financing through an auto dealership, the financing may be done by the dealership itself or by a third-party lender. If the dealership is, itself, the lender, a credit application permits the dealership to pull a consumer’s credit one time. In this instance, the consumer should see a single inquiry from the dealership on their credit report.
If, however, the dealership does not provide financing itself but, rather, acts as a middleman to arrange financing through a third-party institution (i.e., a bank), a consumer’s single credit application essentially gives the dealership permission to “rate shop.” It is in a dealership’s interest to offer the best possible lending terms to incentivize a customer to purchase a comparably priced vehicle from them and not from the neighboring dealer, so rate shopping is quite common.
In order to offer the best possible financing terms, a dealership will collect rate quotes from multiple lenders in hope of offering the customer the best deal available. Each rate quote, however, requires the lender to run its own hard credit inquiry. Thus, a single auto loan application made to a single auto dealership can realistically trigger 10 to 20 (and possibly even more) hard credit inquiries on a consumer’s credit report.
Fortunately, the system does not punish consumers for trying to save a little money on their car loans. Credit score reporters, such as FICO and VantageScore, use algorithms designed to detect when credit activity resembles rate shopping. Under the rate shopping umbrella, all hard inquiries will be treated as a single inquiry for the purpose of calculating the consumer’s credit score, even inquiries that are initiated by multiple applications to multiple dealerships. As long the inquiries are made during a set timeframe—e.g., 45 days for FICO—the consumer’s credit score should only feel the affect of a single inquiry (e.g., up to 5 points for FICO).
An auto dealership may also perform a “soft” credit inquiry early in the shopping process to get an idea of whether a shopper will be able to secure financing and, if so, for how much. While a soft inquiry can be helpful for the dealership in navigating price negotiations with a particular consumer, a lender cannot rely on a soft pull and will require a second, hard credit check before approving an auto’s financing. Since a soft inquiry does not affect a consumer’s credit score, it will not show up on a consumer credit report as a second inquiry even if the consumer is not considered to be “rate shopping.”
by Paul MankinWhat are the Laws About Creditor Harassment After Chapter 7?
One of the main reasons consumers file Chapter 7 bankruptcy is to stop creditor harassment, but it doesn’t always work the way it is supposed to, and sometimes when it does, it may not the way you thought it would work. So what exactly are the laws about creditor harassment after chapter 7 and what can you do if a creditor is ignoring them?
Laws Prohibiting Creditor Harassment After Chapter 7
The first law that prevents creditor harassment after chapter 7 bankruptcy is 11 U.S.C. § 362, which is a federal law that automatically stays, or stops, the debt collection process after a chapter 7 bankruptcy petition is filed. This stay goes into effect automatically the moment that a petition is filed, and prohibits most creditors and debt collectors listed on the bankruptcy petition from attempting to collect on the debt in any way. This includes sending collection letters or new bills, calling, continuing to garnish the debtor’s wages, filing a new lawsuit, or continuing the proceedings in a lawsuit that has already been filed. It may take creditors a while to get a notice of the bankruptcy filing, however, so some creditor harassment after chapter 7 can be expected to continue for a short time subsequent to the initiation of the case. Creditors should receive notice from the court and stop collection attempts within a few days of the chapter 7 bankruptcy petition being filed. Once a creditor receives notice of the chapter 7 filing, it is in violation of the federal stay if it continues to attempt to collect the debt in any way, without first getting permission from the bankruptcy court.
During the pendency of a chapter 7 bankruptcy, creditors who have secured claims (those who own a debt where property has been used as collateral), such as a mortgage, vehicle loan or rent to own agreement, may file a motion with the bankruptcy court asking for permission to foreclosure on or repossess the property securing the debt. The chapter 7 petition includes a schedule where debtors list all of their secured debt and indicate whether they intend to keep the property securing the debt and continuing paying on it or if they wish to surrender the property and have the debt discharged. If you choose to surrender the property, the creditor will ask for permission to proceed with foreclosure or repossession efforts. If the court grants the creditor’s motion, that creditor is then exempt from the automatic stay insomuch as it may take any legal action necessary to take possession of the property securing the debt. Creditors granted this exemption may not call or write in an attempt to collect on the debt. They may only take the actions necessary to take possession of the property.
Once all schedules, notices, and information have been provided to the bankruptcy court, and the petition is approved, the court will issue a discharge order and close the bankruptcy case. After the discharge order is issued, a permanent injunction, under 11 U.S.C. § 524, goes into effect for all debts listed on the petition. Creditors and debt collectors are then forever barred from attempting to collect on the debt that was discharged and are also prohibited from reporting late or missed payments to the credit reporting bureaus. This does not mean that you do not still owe the debt or that the creditor is prohibited from taking payments on it. Therefore, creditor harassment after chapter 7 discharge may continue, by unscrupulous creditors and debt collectors who hope that you do not know the law, or do not know how to enforce it, and you will simply pay in order to stop the harassment.
Exemptions to Laws Prohibiting Creditor Harassment After Chapter 7
Specific actions of certain people or entities are exempt from the automatic stay that federal law provides to debtors in a chapter 7 bankruptcy. Creditor harassment after chapter 7 may continue, without there being any violation of bankruptcy law, in these instances. A few of the more common of these exempt actions include:
- Wage garnishments, tax refund interceptions, and other collection attempts, of domestic obligations, such as child support and alimony
- Attempts to collect taxes owed to a government entity, such as the Internal Revenue Service or a State’s Department of Revenue
- Continuation of eviction proceedings where a judgment for possession of the property was obtained before the date of filing of the bankruptcy petition
- Actions to repossess property that is the subject of a lease which expired prior to the date of filing of the bankruptcy petition
Creditor harassment after chapter 7 discharge may continue without violation of the permanent injunction if the creditor owns a debt that is considered non-dischargeable under 11 U.S. Code § 523. The most common non-dischargeable debt includes debt:
- Owed to a government entity, such as income taxes, traffic tickets, or other fines
- For the payment of current and past due domestic support obligations
- Incurred for educational expenses (student loans) made, insured, or guaranteed by a
governmental unit
- Payable to a home owner’s association
What You Can Do About Creditor Harassment After Chapter 7
If a creditor is harassing you shortly after you filed your chapter 7 petition with the Court, it may be that they have not yet received notice that you have filed for bankruptcy protection. In order to stop the harassment, let the creditor know that you have filed a chapter 7, give them your case number, and get the correct address for bankruptcy notices from them. Then check your petition to ensure that the creditor is listed and the address is correct. If they are not listed on your petition, you will need to amend it to include them, or the debt will not be discharged. If the address is simply incorrect, call the court and let them know and then follow any instructions they give you. If a correctly listed creditor continues to harass you after being given enough time to get notice, you may need to contact an attorney to help you file a claim against them in the bankruptcy court.
If a creditor is calling you to collect on a debt that has been discharged, ask for the correct name and address to mail bankruptcy notices to, then check your petition to ensure that the debt is listed with the correct information. If the debt is listed on the petition, mail the creditor a copy of your discharge order. If the debt is not listed, you may need to reopen the case and amend the petition to include it, as unlisted debt is not discharged.
If you are experiencing creditor harassment after chapter 7, contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinWhat is a Consumer Attorney?
A consumer attorney, also known as a consumer protection attorney, is an attorney who specializes in consumer protection law. These attorneys help consumers use the law to protect themselves from businesses who use unfair or deceptive practices when dealing with the public and selling goods or services. This can include product liability or personal injury cases, assisting with debt collection or credit report issues, and helping consumers who have been the victim or a scam or other fraudulent activity of a company.
Consumer Protection Laws
There are federal and state consumer protection laws to cover most any type of transaction between a consumer and a company. Most do not cover person to person transactions, but on occasion, they may. Many consumer protection laws govern financial institutions such as credit card companies, banks, mortgage companies, and other lenders. Consumer law also regulates manufacturers by imposing product safety standards, prohibits false advertising by corporations, provides standards to protect consumer’s personal information, and helps protect consumers from deceptive or abusive debt collection and telemarketing practices.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) is a federal act commonly used by a consumer attorney to help clients stop debt collector harassment, remove false information from credit reports, and even get the debt collector to pay them. The Act prohibits debt collectors from using unfair, deceptive, and abusive practices while attempting to collect on a debt and gives consumers a claim against them for employing such practices. Some of the actions specifically prohibited by the law include:
- Calling consumers before 8:00 a.m. or after 9:00 p.m.
- Causing a consumers phone to ring continuously
- Threatening a consumer with jail for not paying a bill
- Reporting false credit information
- Threatening to take any action it is not legally allowed to take
- Falsely representing they are a law enforcement officer or attorney
Many states have similar laws that also apply to creditors, such as California’s Rosenthal Fair Debt Collection Practices Act (RFDCPA), which mirrors the federal act in the prohibited collection practices, but also applies to original creditors.
Telephone Consumer Protection Act
Another federal law that a consumer attorney may use to help protect consumers is the Telephone Consumer Protection Act (TCPA). This Act was passed in 1991 and requires that auto dialed calls and pre-recorded calls made to consumers only be done so after the consumer specifically consents to receiving the calls. It was originally enacted to protect consumers from unsolicited telemarketing calls, but has since been applied to debt collectors who use auto dialers and pre-recorded messages to harass consumers into paying a bill. The Act prohibits telemarketers and debt collectors from using auto dialers, pre-recorded messages, and text messages when contacting consumers on their cell phones unless the consumer previously gave consent to be contacted in this manner and has not revoked the consent. The TCPA also prohibits telemarketers from calling residential lines with pre-recorded messages unless they have done business with the consumer within the last 18 months, and from calling any number that is registered with the national do not call registry.
A consumer attorney can help you recover from $500 to $1,500 from telemarketers and debt collectors who violate the act. And can put an end to the harassing phone calls.
Electronic Funds Transfer Act
The Electronic Funds Transfer Act (EFTA) is another federal law that a consumer attorney can use to help protect you from unfair practices when using electronic fund transfers (EFTs). EFTs include the use of:
- ATMs
- debit cards
- direct deposits
- point of sale transactions
- transfers initiated by phone
- pre-authorized withdrawals from checking or savings accounts
The EFTA allows consumers to limit their financial responsibility for unauthorized EFTs as long as they report the transaction to their bank or financial institution within 60 days of the issuance of the first statement that contains the transaction. So, for example, if someone uses your debit card on the 5th of October and your next statement is issued on October 30th, you have 60 days from October 30th to notify your bank of the fraudulent transaction. Once you have notified your bank of the unauthorized EFT, it has 10 days to conduct an investigation and another three days to report the results of the investigation to you. Most banks will return the funds to you, temporarily, while they conduct the investigation, in order to be sure that they do not miss any deadlines and that you have use of the funds until an investigation can be completed. The Act also provides for a limitation of consumer responsibility for lost or stolen cards reported in a timely manner, requires that banks limit the amount of money that can be withdrawn from your account on a given day, provides a way for consumers to stop automatic bill pays from their account, provides overdraft protection, and allows for compensation for violations of the Act.
Lemon Laws
Lemon laws are state laws governing the sale of vehicles that are still under a manufacturer’s warranty. Most used cars are not still under this warranty, and so lemon laws do not usually apply to the sale of used vehicles. These sales are generally governed by state warranty law, but depending on your state, may be governed by leman laws, if you have a written warranty. Lemon laws vary from state to state, but most cover manufacturers’ defects which cannot be repaired after reasonable attempts and that substantially impair the use, safety, or value of the motor vehicle, and they require the manufacture to replace or repurchase a covered vehicle.
If you have a vehicle that you believe is a lemon, you should consult a consumer attorney in your state to help you determine if it is covered by state lemon laws and help you enforce the law if it is.
Warranties
Both federal and state laws govern warranties, which are promises from a manufacturer or seller that the product you purchase will live up to a certain standard. There are two kinds of warranties, express and implied. Federal law requires all products come with an implied warranty. The extent of the implied warranty is then governed by state law. Depending on your state law, implied warranties may say that the product:
- Is fit for the ordinary purposes for which such goods are used, or will do what it is supposed to do
- Would pass without objection in the trade
- Is adequately packaged, labeled, and contained
- Conforms to the promises made on the label
All implied warranties require that the product will do what it is supposed to do.
Express warranties cover things that the implied warranty does not. Express warranties are promises or statements, made voluntarily by the seller or manufacturer, about a product or service their commitment to remedy defects and/or malfunctions that you may experience that are in addition to the implied warranty. Express warranties that are in writing are governed by federal law. State law governs oral express warranties.
There may be other state or federal consumer protection laws that apply to your situation and you should contact a consumer attorney if a company has caused you harm with its use of unfair, deceptive, or predatory practices. If you think you may need a consumer attorney in California, feel free to contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinIdentity Theft – Hackers, Scammers, and Old-Fashioned Thieves
There are many forms of identity theft and the term refers to any crime where someone obtains and uses another’s personal information in order to commit fraud or deception, usually for personal financial gain. Along with technology has entire new ways to steal a person’s identity, and whole new ways that we must employ in order to protect ourselves from falling victim to an identity thief.
Protecting Yourself from Identity Theft
Leaving your social security card at home and shredding or burning any personal information you throw in the trash, such as old checks and credit cards, bank account statements, paystubs, or anything that contains your social security number is still a good idea, but are no longer the only things that we must do to protect ourselves from identity theft. Computers, cell phones, and other electronic devices have made protection from identity theft something that we must now think about in our daily lives. Database hacks, shoulder surfing, spamming, scamming, and phishing are now popular ways for thieves to steal our personal information and take our money, stick us with their bills, damage our credit, and sometimes create a real mess for us to clean up.
Hackers
Everyone knows not to follow links that are sent to them by someone they do not know, to keep spyware software on their computers, and not to visit websites that cause spyware alerts, but it isn’t just your computer now that can be hacked to obtain your personal information. Healthcare providers, government agencies, and even your grocery may now have your information in web accessible databases where it can be hacked and your identity then stolen. So how do you keep your information secure when someone else is who has it? You may not be able to. But you can do some things to help protect yourself from identity theft in these situations.
- Regularly monitor your credit score. You can do this for free at Credit Karma or Mint. These sites also offer other services such as credit alerts, budgeting tools, and information about what affects your credit score and how you can improve it.
- Check your credit report at least once every 12 months. Get your free credit report every 12 months from the government website Annual Credit Report. Check your reports to make sure that all personal information on them is correct and then investigate any accounts or inquiries listed that you do not recognize.
- Open and read all of your mail, even if it looks like junk mail. Usually when a company or government database is hacked or a security breach has occurred and your information is contained in that database, you will get a letter letting you know about the security breach so that you can take the necessary steps to ensure that your information is not used to steal your identity. Sometimes, the letter will also come with an offer for free credit monitoring services for a period of time, which you should sign up for to easily stay on top of your credit and anything appearing on it that should not be.
Scammers
Scammers are getting more and more creative as each new scam is made public and they must find another way to get your money or your identity. Common scams, some of which utilize phishing or spamming, include telling the victim they have inherited or won money in an attempt to get their bank account information, sending checks that are fake, forged, or drawn on closed accounts and asking the receiver to deposit it, then immediately wire part of the money to someone, in the hopes they will get the wired money before the victim and/or his or her bank realizes the check is no good, and sending fake emails to people asking them to follow a link and enter their bank or credit card information in order to verify their identity. These emails appear to be real and contain the bank or credit card company’s logo, but the links take you to a site that belongs to the scammer so that they can steal your information once you enter it into the form and click submit. A few things you can do to protect yourself from these kinds of scams include:
- Verifying website addresses before entering personal information
- Remembering that no one will ever give you money to do something before you have done it
- Only giving personal information to those you contacted and who you know
- Providing personal information only on secure website connections (look for a little lock symbol to the left of the website address in your address bar)
- Calling financial institutions or other companies to verify that an email you received is actually from them
Shoulder Surfers
With the increased use of smart phones to do everything from checking bank account balances to paying at the drive thru, came a new way to steal personal information – shoulder surfing. This is when someone watches you use your phone over your shoulder, in order to steal any personal information you may enter into a website or app. To protect yourself from shoulder surfers, follow the same rules you would at an ATM; be aware of who is nearby, watch for anyone who may be standing behind you, and cover your keypad when entering account numbers, passwords, and PINs.
Fake Debt Collectors & Government Agents
Another way that scammers are stealing personal information from consumers is by impersonating debt collectors and government agents in an attempt to get credit card information. These scammers call and say that you owe money and ask you to give them your credit card information so that they can take a payment over the phone. Some may even claim to be a government agent, law enforcement officer, or work for the Internal Revenue Service (IRS). They may threaten criminal charges, arrest warrants, or jail or claim that they will levy your bank account, take your personal property, or foreclose on your home if you do not pay. If you are contacted by someone claiming you owe money:
- DO NOT give them your credit card or check information, you will not be arrested for not paying a caller immediately
- Refuse to give out any personal information, such as your social security number or date of birth
- Verify only your name and address
- Ask the caller to mail you verification of the debt
Once you have requested debt verification, hang up and if they call again, do not speak with them. If the call is from a legitimate debt collector, they are required to mail you verification of the debt within five days of the initial call. The verification should include the name of the original creditor, the amount owed, and any proof that you owe the debt, such as contract or court ordered judgment.
Not So Old-Fashioned Thieves
Social media has become a hotbed of information that the patient and tech savvy identity thief can use to steal your identity or that of your loved ones. You most likely already share some personal information on social media that can be a good start for a patient thief. This includes:
- Your birthday (even if you do not intentionally share it, you may receive public birthday wishes from friend and family)
- Your mother’s maiden name, if she is your friend on the social media site and is currently using it
- Your home address when you create events that you are hosting or post items for sale
- Information you may use in passwords such as your pets names, anniversaries, and favorite foods or vacation spots
This doesn’t mean you have to stop sharing on social media sites, but you should check your privacy settings, be aware of what exactly you are sharing when you post, and never accept friend requests from people that you do not know.
If you are a victim of identity theft and are unable to correct any of the results of such theft, feel free to contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinCredit One Bank Accused of Violating Consumer Protection Laws
Credit One Bank is not a stranger to complaints and even class action lawsuits regarding its abusive collection practices. The nationally chartered bank, headquartered in Las Vegas, Nevada has been accused of violating both the federal Telephone Consumer Protection Act (TCPA) and California’s Rosenthal Fair Debt Collection Practices Act (RFDCPA) by repeatedly calling consumers while attempting to collect on a debt, calling consumers it knows are not the person that owes the debt, and by using automated dialers to attempt to collect on debts.
Consumers allege they were called up to twelve times a day and up to 2000 times in total.
Lawsuits Against Credit One Bank
In 2014 a class action lawsuit was filed against Credit One Bank in federal court in Chicago. The suit was filed by a minor child who alleged that the bank repeatedly called her cell phone for debt that her mother owed on a credit card where she was neither listed as a joint owner or an authorized user. According to the complaint, Credit One Bank made more than 1.3 billion phone callsto consumers from July 2015 through November 2015. It alleges that the bank called 144,000 people more than 500 times per person.
A 2015 law suit filed in federal court in West Virginia alleges that Credit One Bank repeatedly called the plaintiff using an auto dialer and continued placing calls to her phone after being told at least three times to stop calling. All of the calls were made in an attempt to collect on a debt the bank believed she owed to it.
California residents filed a class action suit against Credit One Bank in 2016 for violations of the TCPA and the RFDCPA. As in previous suits, the plaintiffs in this one alleged that the bank harassed them by repeatedly calling their telephones in an attempt to collect on a debt.
In another 2016 lawsuit a California resident claimed that Credit One Bank called her cell phone continuously attempting to collect a debt owed by someone she did not know. The plaintiff alleges that she repeatedly told the callers that she did not know the person they were trying to contact, but the calls continued despite the bank knowing she was not the person it was trying to reach.
A 2018 lawsuit filed against Credit One Bank in Florida alleges that the bank called his cell phone after being asked repeatedly, and once in writing, to stop calling, and by using an automated dialer to call him, in violation of the TCPA.
Complaints Against Credit One Bank
The Better Business Bureau (BBB) reports over 1200 complaints filed with it against Credit One Bank since 2015. These complaints allege that the bank has:
- Reported false information to the credit reporting agencies
- Misapplied payments it received
- Failed to remove fraudulent charges from consumers’ credit cards
- Charged fees that the consumer did not agree to and not listed in the original agreement
- Purposely posted on time payments late in order to collect late fees
- Refused to close consumers’ accounts or allow them to make payments until they provided several forms of identification
- Intentionally made it difficult for consumers to make payments online and then charged $9.95 to take a payment over the phone
Some of the reported practices of this bank may violate the RFDCPA, TCPA, or other federal or state laws
If Credit One Bank is repeatedly calling you in order to collect a debt or has reported false information to the credit reporting agencies, feel free to contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinDoes Ace Cash Express Call Your Job?
Does Ace Cash Express call your job attempting to collect on a past due pay day loan? If it does, it may be violating the law and you could have a claim against them. So what is the law and how do you make the calls to your place of employment stop?
Can Ace Cash Express Call Your Job?
If your employer does not allow you to get personal calls at work and Ace Cash Express knows it, it may be violating state consumer protection laws similar to the federal Fair Debt Collection Practices Act (FDCPA) by calling your job. The federal Act expressly prohibits debt collectors from calling consumers at their place of employment if their employer does not allow such calls. The Act however does not apply to original creditors such as Ace Cash Express. Many states though, have laws that mirror the FDCPA, such as California’s Rosenthal Fair Debt Collection Practices Act (RFDCPA). The RFDCPA prohibits creditors from calling California residents at work in order to collect on a debt, if the creditor is aware that the employer does not allow employees to get personal calls. The Act also prohibits a creditor from discussing a consumer’s debt with a third party, such as your boss or other co-workers who may answer calls from Ace Cash Express.
How Can I Make Ace Cash Express Stop Calling My Job?
The first thing you should do if Ace Cash Express is calling your job is tell them that you are not allowed to receive personal calls at work and ask them to stop calling you there. If the phone calls continue after this, you should write Ace Cash Express a letter asking them to stop contacting you. Be sure to keep a copy of the letter for yourself so that you have proof that you sent the request and know on what date you sent it. If Ace Cash Express calls your job after you have informed them that your employer does not allow you to take personal calls at work and have mailed them a letter requesting that they stop contacting you, you may need to consult with a consumer protection attorney. An experienced consumer protection attorney can help you determine if any laws have been violated, if you have a claim against Ace Cash Express, and can help you file the claim. This will stop the calls to your job and Ace Cash Express may even be ordered to pay you for its violation of consumer protection law.
If you are getting harassing calls from Ace Cash Express collections please contact our office for a free, no obligation consultation at 1-800-219-3577.
by Paul MankinI Am Getting Collection Calls From Companies I Do Not Owe!
Are you getting collection calls from a company you do not owe? How to make them stop can be quite simple or very difficult; it depends on who is calling, a creditor or a debt collector, and why they are calling.
Creditor vs. Debt Collector – Who is Calling Me?
A creditor is someone that a consumer owes an original debt to for goods or services they purchased directly from that person or company. Creditors may include:
- Credit card companies
- Healthcare providers
- Plumbers, accountants, and other professionals or tradesmen
- Landlords or rental companies
- Banks, mortgage companies, and financial institutions that provide consumer loans
- Governmental entities to whom you owe money for fines, fees, or taxes
Basically, a creditor is someone who provided you with goods or services before receiving payment in exchange for the promise what you would later pay for the goods or services, or a governmental entity to which you owe a fine, agency fee, courts costs, or some type of tax.
A debt collector is someone that a creditor hires to collect a debt for them. A debt collector is defined by the Fair Debt Collection Practices Act (FDCPA) as:
“Any person who regularly collects, or attempts to collect, consumer debts for another person or institution or uses some name other than its own when collecting its own consumer debts.”
Determining who is calling you is the first step in making the calls stop. If a creditor is calling you and you have paid the bill in full, you should attempt to resolve the matter by asking them to look up your account and go over any payments or charges with you. If they are calling the wrong person, let them know that you are not the person they are attempting to contact and provide them with your full name and address. If they do not agree that they have the wrong person or telephone number, or on the amount you owe or do not owe, ask for their mailing address and send them a letter outlining why you believe their information is wrong and asking them to stop collection attempts. You should also mail a copy of your letter to the Federal Trade Commission at 6th and Pennsylvania Avenue, NW, Washington, D.C. 20850. But what if the calls are coming from a debt collector?
Debt Collectors – Why Are They Calling Me?
Debt collection agencies do one thing – they take money to collect on debts. Debt collectors usually work on a contingency; which means that they receive a percentage of the amount they are able to collect from the debtor. This gives them incentive to aggressively pursue a consumer to collect on the debt, because if they do not collect, they do not get paid.
How Can a Debt Collector Attempt to Collect Money I Do Not Owe Them?
Creditors oftentimes enter into contracts with debt collectors to provide them with debt collection services. They collect on debts owed to the creditor in exchange for a flat or hourly fee, or a percentage of what they are able to collect. This enables the debt collector to act on behalf of the original creditor and make any legal attempts necessary to collect on the debt. So while you may have never agreed to pay the debt collector or have any kind of contract with them, they are allowed to collect on the debt you owe the creditor because they were hired by the creditor to collect it.
What Are Debt Collectors Allowed to Do When Collecting a Debt?
Debt Collectors are covered by the federal Fair Debt Collection Practices Act (FDCPA), which prohibits them from using unfair, deceptive, or abusive practices when attempting to collect a debt. Some of these prohibited practices are specifically mentioned in the Act, such as:
- Calling a consumer before 8:00 a.m. or after 9:00 p.m.
- Using obscene or abusive language
- Threatening to take actions it is not legally allowed to take or does not intend to take
- Telling consumers they will be arrested if they do not pay the debt
- Discussing a debt with third parties
- Allowing a consumers phone to ring repeatedly
- Contacting a consumer at work when it knows the employer does not allow personal calls
- Committing or threatening to commit violence against a consumer in an attempt to collect a debt
- Falsely implying they are employed by or affiliated with a government agency
- Reporting or threatening to report false credit information
Other unfair, deceptive, or abusive practices are prohibited by the Act, even if not specifically mentioned in the law.
What if the Debt Collector Got Inaccurate Information from the Creditor?
There are times when a debt collector receives inaccurate or false information from a creditor, such as the legal name, phone number, or address of the debtor, the amount of the debt, or the status of the debt (whether it has been paid in full or in part). This is generally not done on purpose but can become annoying and abusive to a consumer if they are being harassed to pay a debt and they are not the person who owes it or it has already been paid. If this happens to you, ask the debt collector for their mailing address and mail a letter requesting verification of the debt and cessation of the collection attempts. You should also mail a copy of your letter to the Federal Trade Commission at 6th and Pennsylvania Avenue, NW, Washington, D.C. 20850.
I Have Done All This and The Collection Calls Won’t Stop!
If you have written letters, requested information, and told the collectors you do not owe them money and stop calling until you were blue in the face and the calls continue, you may want to consider hiring a consumer lawyer. An experience consumer attorney can not only make the calls stop, but they might even be able to get the collector to pay you!
If you are getting collection calls from companies that you do not owe, contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinAce Cash Express Settles Class Action Lawsuit Accusing it of Being a Loan-Sharking Operation.
On September 6, 2001 a class action lawsuit was filed against Ace Cash Express in the United States District Court for the Northern District of Texas. The Complaint alleged that Ace Cash Express exploited low income consumers by charging outrageous and illegal interest rates on payday loans and used unfair, deceptive, and abusive practices to make and collect on those loans. The complaint called Ace Cash Express an illegal enterprise which amounted to a “massive loan-sharking operation.
The Plaintiff’s claimed that the company’s loan and collection practices violated several federal laws, including the Truth in Lending Act (TILA), the Fair Debt Collection Practices Act (FDCPA), and the Electronic Funds Transfer Act (EFTA), as well as anti-usury and consumer protection laws in more than 30 states where it does business.
According to the Complaint, Ace Cash Express, in violation of the TILA, falsely claims that its payday loans are made by Goleta National Bank, which allows it to evade state caps on interest rates and charge a rate that is over 440% per year. The deceptive claim allows it to do this, because nationally chartered banks, such as Goleta National Bank, are not subject to state interest rate laws. The cash advance company then markets its loan services to economically disadvantaged consumers it knows will not be able to repay the loans. The Complaint alleges that the company does this in order to force those consumers to continuously extend or renew the loans, causing them to incur additional interest charges, oftentimes resulting in the consumer paying interest that is several times the amount of the original loan. This type of predatory lending, says the Plaintiff, nets Ace Cash Express and its collaborators tens of millions of dollars a year in “ill-gotten” profits, and violates state laws against unjust enrichment.
The company’s disregard for the law does not stop there, however. The Complaint further alleges that borrowers who are unable to pay their loan by the due date, and choose not to reinstate or extend the loan, and are then subject to abusive collection practices, such as being told they will be arrested and have criminal charges filed against them if they do not pay, having their personal information disclosed to third parties, and being contacted at their place of employment. These collection tactics are all specifically prohibited by the FDCPA. Ace Cash Express was also alleged to have violated the EFTA, by requiring consumers to authorize automatic debits of their checking account as a condition of obtaining a payday loan, and the FDCPA, by then repeatedly attempting to debit the accounts, causing consumers to incur unwarranted bank fees.
In October of 2002, the parties reached a Settlement Agreement and on December 11, 2003 the Court approved the Agreement. Ace Cash Express agreed to establish an $11 million settlement fund, make at least $2.5 million in cash payments to members of the class action suit who had repaid their loans, and forgive $52 million of class members’ debt who had not repaid their loans. It also agreed to refrain from associating with other banks in order to skirt state interest rate caps, stop some of its abusive collection practices, such as repeatedly attempting to debit borrower’s bank accounts, and provide consumers with specific disclosures about its debiting practices and bank fees they might incur as a result of any debits.
It appears as if the Settlement did not deterred Ace Cash Express from using predatory lending or deceptive and abusive collection practices, however. In July of 2014 the company was ordered by the Consumer Financial Protection Bureau (CFPB), a federal agency in charge of overseeing companies in the financial industry, to pay $10 million for abusive practices it called “predatory behavior that forced consumers into a cycle of debt”. The CFPB found that Ace Cash Express attempted to create a false sense of urgency in loan repayment by repeatedly calling defaulted borrowers, discussing their debt with third parties, and threatening arrest and criminal charges if they did not pay. The agency said that the company did this to convince borrowers who were unable to repay their payday loan to temporarily pay it off and then quickly take out a new loan, which caused the borrowers to incur new fees and more debt they would likely be unable to repay. Sound a bit familiar?
Sadly, a look at the almost 700 complaints filed against Ace Cash Express with the Better Business Bureau (BBB) and CFPB since the class action settlement and CFPB order to pay $10 million seems to indicate that the payday loan company still has no intention of ceasing its unlawful lending and collection practices.
If Ace Cash Express has harassed, abused or misled you in an attempt to collect on a debt, contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinCredit One Bank Harassment
Credit One Bank harassment has been reported to the Better Business Bureau (BBB) by over 1,200 consumers in the last four years. Complaints allege that the credit card company has harassed consumers by placing repeated calls to their cellular phones, attempting to collect for charges that were reported as fraudulent and suspending consumer’s online accounts for no reason. So what can be done to stop Credit One Bank Harassment?
Credit One Bank Harassment Complaints
Many of the 1000+ consumer complaints filed with the BBB against Credit One Bank describe rude and unhelpful customer service representatives, long wait times, automated menus that do not work correctly, and disconnected or dropped calls. Many consumers have also complained that the credit card company’s online account access and mobile app never work correctly, lock them out for no apparent reason, and do not provide basic services that other credit companies websites and apps provide. The company has also gotten many complaints alleging that they refused to take a payment and then charged late fees for the missing or late payment.
Other complaints allege violations of the Rosenthal Fair Debt Collection Practices Act (RFDCPA), a California law that mirrors the federal Fair Debt Collection Practices Act (FDCPA), but unlike the federal law, applies to original creditors and not just debt collection agencies. These violations include:
- Charging consumers bank accounts without permission
- Adding fees not authorized in the original agreement
- Making repeated calls to consumers to collect on late payments
- Reporting false credit information to the credit reporting bureaus
It appears as if Credit One Bank harassment comes in many forms, including preventing consumers from making payments by adding extra digits to bank account numbers then returning payments made on the ‘invalid’ account, charging a $9.95 fee to pay online, suddenly requiring verification of bank accounts and refusing to accept payments until it is received, and returning checks without reason. According to numerous complaints on the BBB’s website, after the company refuses payment, it then charges late fees and returned payment fees for the late payment. Online reviews and complaints also call the company a predatory lender and say that customer service representatives make false statements regarding fees in order to convince consumers to keep their accounts open, that the company charges the annual fee in monthly installments without notifying consumers, causing them to have late fees for months when they had a zero balance, and that they mail offers to increase consumers credit limits and then charge them a fee if the offer is accepted.
How do I Stop Credit One Bank Harassment?
There are several things that you can do to stop Credit One Bank harassment. It depends on why they are harassing you. If you are not the person they are trying to reach, they may stop calling if you simply tell them who you are and that you either do not know the person they are trying to reach, or you do not have the current contact information for the person. If you do owe Credit One Bank money you can either attempt to make payment arrangements so that the debt is more manageable, or if you cannot pay the debt or do not wish to pay the debt, you can notify them in writing that you want them to stop attempting to collect the debt. Make sure to keep a copy of the letter for yourself and also send one to the Federal Trade Commission at 6th and Pennsylvania Avenue, NW, Washington, D.C. 20850. Once the bank receives the letter they are only permitted to contact you one more time in order to let you know that they received your letter, will stop contacting you, and what other action they intend to take, if any.
But what if the charges on your card are fraudulent and the harassment will not stop? Credit One Bank harassment, according to many of the complaints filed with the BBB includes its handling of fraudulent charges and even fraudulent accounts. If you have reported a fraudulent charge or account to Credit One Bank and the issue is not resolved, you should put the information in writing and mail a copy of your letter to the Federal Trade Commission at 6th and Pennsylvania Avenue, NW, Washington, D.C. 20850. Your letter should include the dates and amounts of the fraudulent charges and why you believe the charge is fraudulent (it was unauthorized, the card was reported as lost or stolen, you paid for goods or services you never received, it was a double charge, etc.).
Credit One Bank may also be refusing to close your account and charging you monthly fees in order to keep it open. If this is the case, you should mail them a letter requesting that they close the account immediately and, as always, also send a copy to the Federal Trade Commission. In the end, you may need to consult with an FDCPA attorney to resolve your issues.
If you are experiencing Credit One Bank harassment, please contact our office at 1-800-219-3577, for a free, no obligation consultation.