by Paul MankinWhat Happens When You Don’t Pay a Bill?
Juggling the bills can cause a lot of anxiety when there is not enough money to pay them all every month. This can be especially true if you are not sure what will happen when you don’t pay a bill. Late or unpaid bills can result in different actions being taken by the company who is owed money and it may depend on what type of company that is.
What Happens When You Don’t Pay a Bill for Monthly Services?
When you do not pay a bill for monthly services such as water, gas, electric, internet, or telephone services, the company will eventually shut off the service. If it does this, it may also add additional fees, such as reconnection fees, that you will have to pay in order to have the service turned back on. Most service companies will not shut off your service for one late bill, and will give you a date, shortly before or after the next month’s bill is due, by which you must pay in order to keep your service on. Sometimes utility companies will work with you to help you catch up your bill without having your service disconnected, so if you have a bill you cannot pay on time, it is best to call the company and ask if there are any options for extending the due date or the disconnect date.
What Happens When You Don’t Pay a Bill for a Loan or Mortgage?
Eventually a loan or mortgage company will sue you in order to collect on a past due account or foreclose on any property that is secured by the loan or mortgage. This can take several months and the lender may be willing to modify or restructure the loan instead of filing a lawsuit as long as you contact them as soon as you become unable to make timely payments. Once a lawsuit has been filed, it may be more difficult to get the bank or loan company to work with you, so it is best if you contact them as soon as the account becomes delinquent.
What Happens When You Don’t Pay a Bill to a Credit Card Company?
Most credit card companies will begin calling you to attempt to collect on a past due payment a few days after they are due and unpaid. Eventually they may sue you and attempt to garnish your wages. Credit card companies are generally willing to negotiate payment of your debt by lowering your interest rate for a short period of time, not charging late fees for a few months, or settling the entire amount of the debt for less than you owe. If you are being harassed by a credit card company, try negotiating with them first but if that does not work you should consider hiring a consumer protection lawyer to help you. An experienced consumer protection lawyer may be able to negotiate a repayment plan or settlement of the account and can advise you of any violations of consumer protection laws that the credit card company may have committed.
What Happens When You Don’t Pay a Bill to a Doctor or Hospital?
The majority of healthcare providers who are owed money by consumers begin their collection process by sending bills marked “past due” or showing 30, 60, or 90 day past due columns. Many of them will ultimately turn your account over to a collection agency who may file a lawsuit if the amount owed is enough to make a lawsuit financially feasible. If they file a law suit and obtain a judgment against you, they will likely take the steps necessary to begin garnishing your wages if you do not make other arrangements to pay the judgment. If the amount past due is not enough to warrant the time and expense of a lawsuit, the collection agency will simply call and write letters attempting to collect on the debt. This can be become quite annoying and the company may violate consumer protection laws in their attempt to collect the debt. If you feel you are being harassed by a collection agency, you should contact a consumer protection lawyer to help you determine if you have a claim against them and to make them stop their harassment.
Consumer Protection Laws
Anytime a bill goes unpaid, the consumer becomes subject to collection efforts of the creditor or a debt collector. These efforts almost always entail phone calls that can become abusive. The federal Fair Debt Collection Practices Act (FDCPA) was enacted to help protect consumers from unfair, deceptive, and abusive practices of debt collectors when attempting to collect a debt. The Act is federal, so it applies to consumers in every state; however it only applies to debt collectors (collection agencies) and does not generally apply to original creditors who attempt to collect on their own past due accounts. Many states have consumer protection laws that do apply to creditors and these laws oftentimes mirror the FDCPA in the practices that are prohibited. Under the FDCPA, a debt collector may not:
- Call a consumer before 8:00 a.m. or after 9:00 p.m.
- Allow a consumers phone to ring continuously in order to annoy them
- Use profane or obscene language
- Threaten to have a consumer put in jail for not paying a bill
- Make false representations regarding the amount owed or the legal status of the debt
- Threaten to take any action it cannot legally take
This is just a partial list of what the Act prohibits debt collectors from doing and any collection tactic that is deceptive, abusive, or unfair may give a consumer a claim under the Act. Not only can a claim stop the debt collector from contacting the consumer, but it may also result in the debt collector having to pay the consumer for its violations.
If you are being harassed by a debt collector please contact our office for a free, no obligation consultation at 1-800-219-3577.
by Paul MankinIs Transworld Systems, Inc. Calling or Harassing You
Transworld Systems Inc.
Transworld Systems Inc. (Transworld) is a third-party debt collector that provides services to medical companies, dental companies, education facilities, Fortune 500 companies, and small businesses. Transworld was founded in 1970 and is headquartered in Santa Rosa, California. According to its website, Transworld collected approximately $865 million in 2016.
Within the last three (3) years, consumers reported 283 complaints to the Better Business Bureau. In September 2017, the Consumer Financial Protection Bureau (CFPB), a Government agency tasked with protecting consumers from unfair, deceptive or abusive debt collection practices, took action against Transworld for engaging in unlawful debt collection practices. The CFPB found that Transworld filed collection lawsuits in situations where the debt could not be proven or was time-barred pursuant to the statute of limitations.
When requested, a debt collector must provide proof of a debt. The Federal Debt Collection Practices Act (FDCPA) allows consumers to request a creditor or debt collector to send proof of the debt. A consumer has thirty (30) days to dispute a debt and to request proof of the debt after being provided notice of the debt by the creditor or debt collector.
The FDCPA also prevents creditors and debt collectors from filing lawsuits against old debt. Debt collectors only have a certain number of years to file a lawsuit to collect on a debt. This is referred to as the statute of limitations. In California, there is a four (4) year statue of limitation for filing a lawsuit to collect a debt. Debts that are beyond the statute of limitations are considered “time-barred.”
Due to these violations of the FDCPA, Transworld was required to stop filing lawsuits that were time-barred, to stop attempting to collect debt without proper documentation, and to pay a $2.5 million civil penalty.
Creditors and debt collectors should be held accountable for these unethical and unlawful practices. If you are being harassed or subjected to any of these, deceptive, or abusive debt collection practices, it is time to hold Transworld accountable. Please contact our office for a free, no obligation consultation at 1-800-219-3577.
by Paul MankinIs Managed Recovery Systems, Inc., calling and harassing you?
Managed Recovery Systems, Inc. is a debt collection agency located in Greenville, South Carolina. It has been in business since 1996 and collects for all types of businesses and entities across the country.
Contact Information:
1435B Augusta St
Greenville, SC 29605
Phone: (864) 271-2402
http://www.managedrecoverysystems.net
The Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB) each report only one complaint filed by consumers against Managed Recovery Systems, Inc. in the last three years. Only one of the complaints is available to the public and it alleges that the debt collection agency refused to provide debt verification information to the consumer and threatened to take legal action on the debt.
The Fair Debt Collection Practices Act (FDCPA) is the main law that governs debt collectors behavior when attempting to collect on a debt. The FDCPA is a federal law that prohibits debt collectors from using unfair, abusive, or deceptive practices in order to collect on a debt. The Act specifically prohibits practices such as:
- Making telephone calls without properly identifying themselves
- Attempting to collect fees and charges not included in the original contract
- Falsely implying that a consumer will be arrested if they do not pay
- Calling consumers before 8:00 a.m. or after 9:00 p.m.
- Threatening to commit acts of violence against a consumer
- Falsely indicating that they are an attorney, law enforcement officer, or affiliated with a government agency
- Charging fees or interest not allowed for in the original contract
- Refusing to provide a consumer with verification of a debt it is attempting to collect
- Threatening to take action it has no legal right to take or does not intend to take
- Using abusive, profane, or obscene language when attempting to collect on a debt
- Allowing a consumer’s telephone to ring continuously in order to annoy them
Any harassing, deceptive, or abusive tactic used by a debt collection agency may also be in violation of the FDCPA or other state and/or federal consumer protection laws and if those practices are being used by a debt collector who is attempting to collect a debt from you, they may owe you money.
If Managed Recovery Systems, Inc. is using any unfair, deceptive, or abusive practices in order to collect a debt from you, it is time to hold them accountable for their actions. Please contact our office for a free, no obligation consultation at 1-800-219-3577.
by Paul MankinIs Firstsource Advantage, LLC calling and harassing you?
Firstsource Advantages, LLC is a debt collection agency located in Amherst, New York. It has been in business since 1985 and also uses the names Firstsource Advantage LLC and Firstsource Business Process Services, LLC. The agency provides debt collection services to a variety of companies including the telecommunications industry, healthcare providers, banks, and credit card companies.
Contact Information:
205 Bryant Woods S
Amherst, NY 14228-3609
Phone: (716) 564-4400
The Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB) report over 80 complaints filed by consumers against Firstsource Advantages, LLC in the last three years. Complaints allege that the collection agency:
- Contacted consumers at their place of employment when they knew that type of call was not allowed by the employer
- Refuses to send debt validation information to consumers
- Continues contacting consumers after being asked to stop
- Allows consumers phones to ring continuously in an attempt to annoy them into paying the debt
- Continues attempting to collect on a debt they know is paid
- Contacted a third party about a consumers debt and shared personal information about the consumer
- Continues calling consumer phone numbers after being told they have the wrong person and wrong number
- Attempted to charge fees not authorized in the original contract
These are all violations of the federal Fair Debt Collection Practices Act (FDCPA). Other practices specifically prohibited by the Act include:
- Calling a consumer before 8:00 a.m. or after 9:00 p.m.
- Falsely implying that a consumer can be arrested for not paying a bill
- Advertising a debt for sale in order to coerce payment from the debtor
- Using profane, obscene, or abusive language
A large number of the complaints allege that Firstsource Advantages, LLC continued calling their phone number after being told that they had the wrong number, the wrong person, or the debt has already been paid. If a debt collector will not stop calling you, you can write them a letter telling them to stop contacting you and mail a copy of the letter to the Federal Trade Commission at 6th and Pennsylvania Avenue, NW, Washington, D.C. 20850. Under the FDCPA, the debt collector may contact you only one more time after receiving your letter in order to let you know that they received it and will stop contacting you, as well as to advise you of any other action they intend to take, such as filing a lawsuit against you.
If Firstsource Advantages, LLC, Firstsource Advantage LLC or Firstsource Business Process Services, LLC is using any unfair, deceptive, or abusive practices in order to collect a debt from you, it is time to hold them accountable for their actions. Please contact our office for a free, no obligation consultation at 1-800-219-3577.
by Paul MankinIs Enhanced Recovery Company Calling or Harassing You?
Enhanced Recovery Company, LLC
Enhanced Recovery Company, LLC (ERC) is a third-party debt collector for clients in telecommunications, utilities, banks, and student loan industries. ERC was founded in 1999 and was previously known as Enhanced Recovery Corp. ERC is headquartered in Jacksonville, Florida.
Since 2013, the Consumer Financial Protection Bureau (CFPB), a Government agency responsible for protecting consumers from unfair, deceptive, and abusive debt collection practices, has received 6,229 complaints against ERC.
Consumers allege that ERC has engaged in the following illegal debt collection practices:
- Attempting to collect a debt that is not owed by the consumer;
- Attempting to collect a debt that has been paid;
- Attempting to collect more than what is owed; and
- Refusing to validate or provide proof of a debt.
After receiving a collection letter from ERC, one consumer responded by certified mail requesting validation of the debt. ERC refused to provide proof of the debt, yet continued to contact the consumer by telephone.
The Federal Debt Collection Practices Act (FDCPA) allows consumers to request a creditor or debt collector to send proof of the debt. Within five (5) days after its initial communication, the creditor or debt collector must send a notice, referred to as the G-Notice. A consumer then has thirty (30) days to dispute a debt and to request proof of the debt.
The consumer filed a complaint with the CFPB and the matter was satisfactorily resolved in favor of the consumer.
Creditors and debt collectors should be held accountable for these unethical and unlawful practices. If you are being harassed or subjected to any of these, deceptive, or abusive debt collection practices, it is time to hold ERC accountable. Please contact our office for a free, no obligation consultation at 1-800-219-3577.
by Paul MankinHow to File a Complaint Against a Debt Collector?
The best place to file a complaint against a debt collector is with the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau (BBB). Both bureaus will forward a copy of your complaint to the debt collector and ask for a response, which they will then forward to you. Complaints are made visible to online viewers, if you give your permission for publication, and the bureaus will attempt to help you and the debt collector resolve any issues that you are having. What you say in your complaint, how you say it, and what issue(s) you complain about can make a big difference however in whether or not your problem can or will be resolved.
Where to File Your Debt Collector Complaint
The CFPB is a federal agency that helps protect consumers against unfair treatment by banks, lenders, and other financial institutions. It provides an online complaint system on its website for consumers to file complaints when they feel that they have been treated unfairly. Not only will filing a complaint with the CFPB provide you with a way to resolve the issue, but it also gives the agency insight into the problems that consumers are facing so that it can better enforce federal consumer protection laws.
The BBB is a non-profit organization that creates and maintains searchable profiles for U.S. businesses in order to help facilitate a trustworthy marketplace where consumers can access information about a company’s dealings with previous clients and customers, post reviews, and file complaints. The BBB also offers an online complaint system on its website and provides instructions for using the system and information about what types of complaints it accepts and what actions it will take once a complaint is filed.
Valid Issues for a Complaint Against a Debt Collector
While you may feel as if you are being treated unfairly by a debt collector for a number of reasons, generally neither the CFPB or BBB can help you resolve the issue if your complaint is about the debt collector’s legal actions. So, you should first determine if the debt collector’s actions may be in violation of any consumer protection law. This may sound like a daunting task, but you do not have to locate and read every law in order to get a basic idea of what types of collection practices violate consumer protection law. The Fair Debt Collection Practices Act (FDCPA), Telephone Consumer Protection Act (TCPA), and Electronic Funds Transfer Act (EFTA) are three major federal consumer protection laws that debt collectors commonly violate. These Acts prohibit debt collectors from doing such things as:
- Calling a consumer before 8:00 a.m. or after 9:00 p.m.
- Allowing a consumer’s phone to ring continuously in order to annoy them
- Threatening jail or criminal charges if a consumer does not pay a bill
- Failing to provide a consumer with information that allows them to verify they owe a debt
- Using auto-dialers or recorded voice message to contact consumers without their permission
- Contacting a consumer after receiving a written request to stop
- Debiting a consumer’s bank account for payment without authorization
- Using obscene, profane, or abusive language
- Discussing a consumer’s debt with a third party, other than to verify contact information one time
- Reporting false information to a credit reporting agency
- Attempting to collect fees or additional sums not allowed for in the original contract
Most violations of consumer protection law by debt collectors involve the FDCPA. You can find an easy to understand guide to this act here.
Issues that are Not Valid for a Complaint Against a Debt Collector
There are some common issues that consumers include in complaints against debt collectors that are likely not going to be resolved, as they should be filed against the original creditor or involve actions which are legal and not prohibited by consumer protection laws.
The Debt Was Paid to the Original Creditor or Covered by Insurance
If you paid the debt to the original creditor, either before or after the account was given to a collection agency, or your insurance paid or should have paid the account, your complaint is not with the debt collector. It is with the original creditor who should have properly credited your payment, notified the debt collector of the payment, and/or worked with your insurance company to ensure it received payment. Because a debt collector works for the original creditor, its information is limited to that provided by the original creditor, and it may legally act on that information. If the original creditor has provided inaccurate information to a debt collector, you should contact them to have your account removed from collections, file a complaint against the original creditor, and possibly contact a consumer protection attorney for help resolving the issue.
The Debt Collector Refuses to Negotiate Payment Arrangements or a Settlement
Debt collectors are not required by any law to negotiate payment arrangement or a settlement agreement. While it may seem unfair for them to refuse to do so, you must contact the original creditor in order to make payment arrangement or reach a settlement if the debt collector is not willing to do so.
I Did Not Agree to Pay the Debt Collector and Have No Contract with Them
A debt collector is a person or company hired by an original creditor to collect a debt owed to the creditor. U.S. contract law allows creditors to hire third parties to perform this service for them. Therefore, you do not have to have an agreement with the debt collector to pay them or to allow them to attempt to collect on a debt you owe to the creditor who hired them.
What to Include in Your Complaint Against the Debt Collector
Both the CFPB and the BBB will ask for basic information when you file your complaint. This includes the name and address of the debt collector and your name and address. You may also be asked to choose a category for your complaint or provide your email address or military status. The body of your complaint should include times, dates, and names of callers, dates of letters you received, and a short, concise description of what happened. For example, if a debt collector called you before 8:00 a.m. or after 9:00 p.m., you should give the date and time of the call and say whether you answered the call or it went to your voice mail or answering machine and exactly what the person calling said. If you saved a message or have a recording of the call, you should also mention this in your complaint. You should also clearly state what you want to happen, so in this example you would say that you want the debt collector to stop calling you before 8:00 a.m. or after 9:00 p.m.
What Not to Include in Your Complaint Against a Debt Collector
In order to help the CFPB, BBB, and debt collector understand what law may have been violated, what you expect to happen next, and what everyone can do to help, your complaint and statement concerning what you want to happen next must be clear and concise. Including irrelevant or excessive information, threats to sue the debt collector, or demands that simply cannot be met will decrease your chances of accomplishing anything with your complaint. Your complaint should not include:
- Names of, citations to, or quotes from the law. The debt collector, CFPB, and BBB already know the law. Including this information in your complaint will only make it harder to read and follow and less likely that the issue will be resolved.
- Any information concerning your inability to pay the debt. If you are unable to pay a debt, you should consult a consumer protection or bankruptcy attorney to help you negotiate a payment arrangement or settlement or file for bankruptcy protection.
- Threats to call your attorney or sue the debt collector. While you have every right to call an attorney, and in many cases, you probably should, threatening to do so in your complaint will not help the CFPB or BBB resolve your issue and could make the debt collector less likely to help.
If a debt collector is harassing you and the issue was not resolved after you filed complaints with the CFPB and BBB, please contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinHospital Slip and Fall Injuries
What are the different types of hospital slip and fall claims?
Top Five Causes of Hospital Slip and Fall Accidents
12 Hospital Practices to Prevent Slip and Fall Accidents
Why is a hospital slip and fall case considered a “Never Event”?
What is a hospital patient fall risk assessment?
Hospital Slip and Fall Accidents: Can you sue a hospital for a slip and fall injury?
Why do most slip and fall claims against hospitals go to arbitration instead of court?
Hospital Slip and Fall Accidents: What are you entitled to?
Hospital Slip and Fall Accidents: What must be proved to win?
How to bring a slip and fall claim against Kaiser Permanente?
by Paul MankinHas Debt Collector Attempted to Collect a Debt that You Already Paid?
Has a debt collector attempted to collect a debt that you already paid?
While it is frustrating to deal with an outstanding debt, nothing is more frustrating than being harassed by a debt collector for a debt that you have already paid. Under the FDCPA and RFDCPA, a debt collector cannot collect more money than what is owed. You are also entitled to receive proof that the debt is owed. You must request proof of the debt within thirty (30) days from when the debt collector first contacts you.
Case Example:
A client had a very old professional services bill that was sent to a debt collection agency and reported on his credit report. Our client believed this bill had been paid in full years ago. In an attempt to get more information from the debt collector, our client asked the amount owed and when the debt was incurred. The debt collector refused to provide any additional information.
Our client contacted the professional service business that supposedly charged the bill. The professional services business had a record that our client had paid the bill three (3) years prior and did not currently owe anything.
Our legal services were retained to hold this debt collector accountable for its illegal actions. Our office was able to remove the negative item from our client’s credit report, and the debt collector paid our client a settlement and all of our attorneys’ fees and costs.
If a debt collector is demanding payment for a debt that you already paid, please contact our office for a free, no obligation consultation at 1-800-219-3577.
by Paul MankinHas a debt collector or creditor impersonated a police officer in an attempt to collect a debt?
DEBT COLLECTORS ARE NOT ALLOWED TO IMPERSONATE A LAW ENFORCEMENT OFFICER WHILE ATTEMPTING TO COLLECT A DEBT.
Has a debt collector or creditor impersonated a police officer in an attempt to collect a debt?
Debt collectors have been known to do some outrages things in their attempts to collect a debt and earn a commission. Some are even resorting to impersonating law enforcement officers, including local police, Internal Revenue Service (IRS) agents, Sheriff’s deputies, and other state and US officials. These fake police officers introduce themselves using titles such as chief, captain, or agent, threaten to arrest consumers if they do not pay a bill immediately, and sometimes even show up at consumers homes wearing fake uniforms, sporting fake badges, and carrying fake arrest warrants.
The police do not work for or assist debt collectors in collecting a debt and they do not make telephone calls or show up at people’s homes in order to collect on a debt. A real police officer will also never come to your home with an arrest warrant and then give you the option of doing something (like paying a bill) in order to avoid being arrested. Collectors will employ these tactics however because many consumers do not know, or are unsure of, what their rights are and some can be intimated into paying a bill, even if it is not their bill, when threatened with going to jail.
So what should you do if you are contacted by someone claiming to be a law enforcement officer attempting to collect on a debt?
- Ask the person for their name, the name of the company they are collecting for, the name of the original creditor, and a contact telephone number.
- Write down the time and date of the call, the number the call came from, and any information given to you by the person calling.
- Do not engage the caller in any conversation that is not in direct response to your questions.
- Do not give the caller any personal information such as your social security number, bank account information, or debt or credit card number.
- Save the caller information on your phone if your phone offers a feature that allows you to do so.
- If the person claiming to be a police officer or other agent of the state or federal government has come to your home, call the police.
Not only can impersonating a law enforcement officer land you in jail in every state, but when a debt collector does it in an attempt to collect a debt, they are in violation of the Fair Debt Collection Practices Act (FDCPA) and subject to a law suit where they can be forced to pay the alleged debtor.
If a debt collector or creditor has pretended to be affiliated with a government agency in an attempt to collect a debt, call us today for a free, no obligation, case review at 1-800-219-3577.
by Paul MankinHas a Debt Collector or Creditor Called Your Family, Friends, or References Without Your Permission?
A DEBT COLLECTOR OR CREDITOR MAY ONLY CONTACT THIRD PARTIES UNDER LIMITED CIRCUMSTANCES.
Has a debt collector or creditor called your family, friends, or references without your permission?
The FDCPA and RFDCPA allow a debt collector or creditor to call your friends, family, or references only if they are unable to locate you and only to verify or correct information such as your address and telephone number. Your spouse, however, may be contacted under the same rules that apply to a collector’s contact with you.
The collector may only contact another third party once, unless the third party gives permission to be contacted again, or the collector believes information provided was incorrect or outdated and your friend, family member, or reference now has new information available. When contacting third parties, the debt collector may not, unless specifically asked, reveal the name of the agency for which they are collecting or the fact that you owe any money.
COMMON SCENERIOS
A creditor or debt collector contacts your former spouse asking for your telephone number or address. Debt collectors do this hoping to find a cooperative ally in locating you. Collectors also commonly contact parents, credit application references, and employers, or anyone whose contact information you may have given on the credit application. These calls can become harassing enough to the third party that they eventually disclose information about you, which is what the creditor is hoping they will do.
If a debt collector has been repeatedly contacting or discussing your debt with any person other than your current spouse, please contact our office for a free, no obligation consultation at 1-800-219-3577.