by Paul MankinIs the debt collection agency American Collections Enterprise harassing you?
Being contacted by an unknown debt collection agency can be stressful. Being contacted and told almost immediately that you must pay a debt is absolutely terrifying. Owing money to someone always means that you must watch out with what you say. So how far is too far?
American Collections Enterprise is one such debt collection agency that may be known for being harassing and abusive when collecting on debts. So are they in the wrong? Here is what you need to know about them, and if what they are doing is illegal.
What is American Collections Enterprise?
American Collections Enterprise is listed as a collections agency that serves the Metro Washington DC, Metro Philadelphia, and Eastern Pennsylvania areas. They go by the alternate names AM Collect and American Collections Enterprise Inc.
Is American Collections Enterprise a legit Debt Collection Agency?
Unfortunately, they are a very real and legitimate debt collection agency. They have been in business since 1993, and have been operating for 26 years. They are not currently accredited by the Better Business Bureau, and hold a C- rating in the BBB database.
American Collections Enterprise Contact Information
Address: 205 S Whiting St Ste 500 Alexandria, VA 22304-3632
Other Address: PO Box 30096 Alexandria, VA 22310-8096
Website: http://www.payacei.com
Phone Number: 1-703-719-9403
Other Phone: 1-800-208-2234
Fax Number: 1-703-719-9587
Does American Collections Enterprise have Complaints against them?
American Collections Enterprise has quite a few complaints against them. On the BBB database, they have 37 complaints within the last 3 years, with 14 of those complaints being closed within the last 12 months. They also have an average of 1.2 stars out of 5 from 16 customer reviews.
The Consumer Financial Protection Bureau’s Consumer Complaint Database shows 9 total complaints lodged against them through the name American Collections Enterprise Inc.
What kind of Complaints have been made?
Of the complaints made on the BBB database, 27 of those were due to billing and collections, while 10 were due to problems with the product or service provided. The reviews also mirror the complaints in issues and situations. Many stated that the representatives of the debt collection agency were harassing and threatening, and non-responsive when it came to reporting on debts paid.
The complaints made through the CFPB’s CCD also hold that American Collections Enterprise mismanaged information in an attempt to gain extra income and payments from consumers.
Are the Practices of American Collections Enterprise Legal?
The practices listed above directly contradict the guidelines set forth by the Fair Debt Collection Practices Act (FDCPA) and Rosenthal Fair Debt Collection Practices Act (RFDCPA). The Fair Debt Collection Practices Act states that there are basic practices that must be adhered to by debt collectors. These include, but are not limited to:
- No calls after excess hours
- No usage of harassing or threatening language
- No robocalls or excessive calling
- No misuse or misinformation when attempting to collect on a debt
In each instance, American Collections Enterprise is seen breaking each one. As such, the practices are considered illegal.
How can I protect myself and fight back against American Collections Enterprise?
Now that you know what tactics are being used by this debt collection agency, it is time to defend yourself against them. There are a few ways to do this, the easiest being to ask for verification. Asking for verification of the debt is well within your right as a consumer, and should be easy for any legitimate debt collection agency. If they cannot provide you proof of legitimacy, then you are under no obligation to pay.
If they continue to harass and threaten you, then it may be time to hire an debt collection harassment attorney or consumer rights lawyer. We here at the Law Office of Paul Mankin, APC have been fighting the long fight against debt collector harassment and abuse. Because it can come in so many different ways, we are able to help you identify, stop, and report the debt collector harassment if you hire us as we have a vast amount of experience and information at hand.
Not only can we help you to defend against harassment, we can also help to build a case, and assist you in understanding where the illegal collection patterns are for debt collectors. We are also able to help facilitate any communications or discussions between the parties, ensuring that nothing you say can be used against you.
The most important bit of information in your fight is to always remain vigilant. No matter who you have at your side, it can seem like a daunting battle against such a large company and agency. If you have ever been the subject of:
- Multiple calls per week from a third party collection agency
- Multiple calls in the early morning or late night from debt collectors.
- Violent and belligerent language and harassment from debt collectors.
- Threats of arrests or poor credit due to outstanding debts.
- Having your friends, family, and coworkers harassed by debt collectors.
- Automated robocalls from third party collection agencies.
Then you may have a case available. So do not wait, make sure to give us a call, and get started fighting back against the debt collection harassment.
by Paul MankinIS CACH, LLC Harassing You?
CACH, LLC is a company that purchases debt from banks and other financial institutions. It is located in Denver, Colorado and also uses the name Square Two Financial, who is also located in Denver.
Contact Information:
4340 S Monaco 2nd Flr
Denver, CO 80237
Phone: (877) 248-8343
CACH, LLC purchases debts from large banks, such as Capital One or Chase, for far less than what is owed on the debt. Banks sell these debts to CACH, LLC if they have determined that collecting on the debt may cost them more than they are likely to recover. Once CACH, LLC purchases a debt, it then hires a third party debt collector to begin collection attempts. This means that you may see CACH, LLC on your credit report without ever having received any communication from the company, or a debt collector may file a lawsuit against you on behalf of CACH, LLC when you had no idea you even owed the debt and have never heard of CACH, LLC. The company’s website states that once it has purchased a debt, it uses the collection agency, Resurgent Capital Services LP, to collect on the debt. The website however offers very little information and is very likely outdated, so you may have been contacted by another debt collection agency or an attorney regarding a debt CACH, LLC has purchased.
Oftentimes, companies, such as CACH, LLC, who purchase old debt, receive very little information from the original creditor and therefore are unable to verify a debt as required by the Fair Debt Collection Practices Act (FDCPA). This means that they must remove any negative information on your credit report and may not be able to continue collection attempts. Getting in contact with CACH, LLC however, may prove difficult and you might have to start by contacting Resurgent Capital Services, LP by phone at 1-888-665-0374 or internet at https://www.resurgent.com/. If you are unable to resolve any dispute over a CACH, LLC lawsuit or collection attempt to Resurgent Capital Service, LP or the attorney who filed the lawsuit against you, you may need to contact a consumer protection attorney to assist you.
If CACH, LLC has reported negative information on your credit report, or you are being harassed by a debt collector or attorney about a debt owed to CASH, LLC, please contact our office for a free, no obligation case review at 1-800-219-3577.
by Paul MankinCreditor Harassment: If I Sue a Debt Collector, Will I Have to Go to Court?
Filing any lawsuit means that at some point, you may have to appear in Court in order to prove your claim and win the case. This applies when suing a debt collector under the Fair Debt Collection Practices Act (FDCPA). However, in any lawsuit, the parties may reach an agreement without ever seeing the inside of a courtroom.
Settling a Claim Outside of Court
Many defendants, including debt collection agencies, prefer to avoid the time and expense of defending a claim in court and chose to settle instead. This way they can also avoid a judgment against them, which will become public information. Settlement in a case filed under the FDCPA generally includes a reduced debt and repayment plan in exchange for dismissing the suit. Because negotiating a settlement can be as stressful to some consumers as appearing in Court, you may want to consult with an FDCPA attorney to help you get the best deal that you can. Particularly since, once you file a lawsuit, you will be dealing with the debt collection agency’s attorney and not a call center representative.
If You Have to Go to Court
Some debt collection agencies are unwilling to settle a claim when a lawsuit has been file against them and prefer to go to court instead. This is especially true in cases where the Plaintiff has filed the lawsuit without an attorney. If no settlement agreement can be reached and you have to go Court, you will want an experienced FDCPA attorney with you. Courtroom procedure can be complicated and you will not just be able to go in and tell your story to the judge. It can be difficult to get evidence admitted, avoid asking improper questions, and prove your case when you are not familiar with the rules of procedure or how a particular judge likes to conduct proceedings in his or her courtroom. Your attorney can help you present evidence, question witnesses, and follow the proper procedure to ensure that you are able to say what you need to say, present your evidence, and make the judge understand exactly what happened and how the debt collector violated the law.
It doesn’t cost you anything to hire us for a FDCPA matter. At the Law Office of Paul Mankin, there are no upfront fees when you hire us to stop a debt collector or creditor from harassing you, and we only get paid if we win. The debt collector may pay our fees or we may split any cash settlement with you.
If a debt collector or creditor is harassing or abusing you, or of you have filed a lawsuit against one and think you may need any attorney, please contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinIs the debt collection agency Allgate Financial, LLC harassing you?
What is Allgate Financial LLC?
Founded in 2006, Allgate Financial LLC manages debt collection by arranging for buying, selling, and tracking debt as it works its ways through the debt collection process. The company is based in Chicago, Illinois and currently operated by its CEO, Mr. Irwin Bernstein, and its account executive, Mr. Paul Basa.
Is Allgate Financial LLC a legit Debt Collection Agency?
Allgate Financial LLC has been recognized by the Better Business Bureau (BBB) since 2007 and maintains and A+ BBB rating. The company has responded to its one BBB complaint and appears to operate as a legitimate debt collector. Allgate Financial LLC is known to conduct business under several aliases, including Equable Ascent Financial (EAF), Allgate Financial LLC, and CMS Services.
Allgate Financial LLC Contact Information:
166 W Washington St
Ste 700
Chicago, IL 60602-2300
Email: [email protected]
(847) 513-9500 (phone)
(855) 255-4283 (toll free)
What kind of complaints does Allgate Financial LLC have Complaints against them?
Allgate Financial LLC has received one BBB complaint and 63 CFPB complaints. Complaints against Allgate Financial LLC predominantly include the following:
- Repeated calls regarding debt that isn’t owed, including a high rate of collection calls for debt that resulted from identity theft
- Refusal to discuss the debt, including payment, over the phone, even with the alleged debtor (harassment)
- Threats to sue on aged debt and threats to sue that are made in an aggressive and threatening manner
Are Allgate Financial LLC’s Practices Legal?
The FTC enforces the Fair Debt Collection Practices Act (FDCPA), which makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when they collect personal debts, including credit card debt, auto loans, medical bills, student loans, mortgage, and other household debts. Under the FDCPA, debt collectors are, generally, allowed to call, send letters, send emails, or even send text messages to collect on debts, but they are not allowed to bother consumers at inconvenient times without the debtor’s permission or at locations such as a debtor’s place of employment unless personal calls are permitted by the employer.
Some of the consumer complaints lodged against Allgate Financial LLC represent activity that might violate the FDCPA, including harassing consumers by repeatedly calling and then refusing to provide information sufficient to identity the debt or even refusing to discuss possible payment options. This behavior is indicative of the crooked collection practice where a collector will make feigned attempts at collecting on a debt solely for the appearance and record of the attempt. The collector often then plays the long game by repeating this behavior but preventing the consumer from actually paying off the debt until significant interest and other applicable costs have accrued. This a blatantly illegal practice under both state and federal law, and remedy is available to consumers who act in a timely manner. In addition to state remedies, each violation could mean a $1,000 penalty under federal law.
How can I defend myself against a debt collector like Allgate Financial LLC?
Complaints regarding a collector in any state may be filed with the Federal Trade Commission at www.ftc.gov or (877) FTC-HELP (877-382-4357), and complaints regarding any collector or other business can be made at BBB complaints. To learn more about how the federal government regulates debt collection and protects debtors and other individuals from collector harassment, see FTC Debt Collection pamphlet. Complaints regarding Illinois–based collectors can be made to the Illinois Attorney General’s Office. Questions or complaints regarding Springfield-based collectors specifically can be directed to 1-800-243-0618.
If you believe you have a claim for collector harassment or are a victim of another violation of state or federal debtor’s rights, you should speak with a consumer rights lawyer or debt collector harassment attorney immediately. Contact us today to discuss your matter and see how we can help at no cost to you.
by Paul MankinIs the debt collection agency Altus GTS, Inc., harassing you?
Debt collection agencies tend to go by many names. They can seem like innocent businesses, or large corporations. However, they all seem to only want one thing: your money. Through whatever means that they find, they will try to get you to pay, even if it means calling you about a debt you never even owed.
One such company is known as Altus GTS, Inc. Are they one of the good debt collectors that work through legitimate and legal means? Or are they running a darker business, one that only seeks to make ends meet? Here are the things you need to know about Altus GTS, Inc., and how to protect yourself from such harassment.
What is Altus GTS, Inc.?
Altus GTS, Inc. is listed as a debt collection agency specializing in collecting and repaying debts through consumers and businesses. Altus GTS, Inc. is the shortened form of their company name. Their proper title is Altus Global Trade Solutions, Inc.
Is Altus GTS Inc. a legit debt collection agency?
Yes, Altus GTS Inc. is a legitimate debt collection agency. They were founded in 1994 in Louisiana and have been in service for over 25 years. They currently have multiple locations active around the US, however their main hub is based in Kenner, Louisiana.
They became accredited by the Better Business Bureau in 1995 and hold a BBB rating of A+. However, this rating does not reflect customer and consumer reviews made against Altus GTS, Inc. They currently hold a 1 star out of 5 stars from average customer reviews on the BBB.
Altus GTS Inc. Contact Information
Address: 2400 Veterans Blvd., #300 Kenner, LA 70062
Other Address: PO Box 1389 Kenner, LA 70063
Other Address: 1101 SE Tech Center Dr Ste 115 Vancouver, WA 98683-5510
Other Address: 50 Millstone Road Building 100 Suite 360 East Windsor, NJ 08520
Website: http://www.trustaltus.com
Phone Number: 1-504-469-9545
Although they only have one listed phone number on the BBB profile page, it is assumed that, since they have many other company locations, that they have multiple other numbers.
Fax Number: 1-504-471-0948
Does Altus GTS, Inc. have complaints against them?
Currently, on the Consumer Financial Protection Bureau’s Consumer Complaint Database, there are no listed complaints against Altus Global Trade Solutions, Inc., or against Altus GTS, Inc.
Altus GTS, Inc. does have 17 registered complaints against them through the BBB’s customer complaint database. They also have multiple 1-star reviews left on their page from 8 customers.
What kind of Complaints have been made?
The customer complaints vary between billing/collection issues, and problems with the product or service provided by Altus GTS, Inc. Of the 17 complaints made on the BBB page, only 3 are currently open with information, while 14 of them are locked and the details are unavailable. Many are unresolved, with them only being answered by Altus GTS, Inc.
The reviews made by consumers are also quite gritty. All of the reviews are listed as 1-star reviews, and many point out that the debt collectors calling from Altus GTS. Inc. were unruly, rude, and threatening over the phone. If true, the actions alleged would violate the Fair Debt Collection Practices Act (FDCPA) and Rosenthal Fair Debt Collection Practices Act (RFDCPA) which govern how debt collectors our allowed to collect debts.
One review even lists that the agents and debt collectors were attempting to illicit and extort money from clients through unscrupulous means. The review lists that two agents worked to take duplicate payments from the consumer, resulting in the consumer paying double for a single debt.
Are the Practices of Altus GTS, Inc. Legal?
These practices made by these debt collectors are not legal and are extremely harassing in tone and activity. The multiple calls and harassing and abusive language used by the company can be seen as directly going against the Fair Debt Collection Practices Act and should be labeled as extreme harassment and abusive behavior.
The FDCPA is seen as the laws and regulations laid bare to help protect consumers such as yourself against the prying eyes and hands of debt collectors. The FDCPA lists that a debt collector cannot use excessive force to collect on a debt, such as excessive calling, abusive and threatening language, or robocalls and repeat calls through coded numbers, among other such techniques.
How can I protect myself and fight back against Altus GTS, Inc.?
There are multiple ways for you to fight back against Altus GTS, Inc. if you have been contacted by them. The first way to do so is to ask for identification of the debt itself. This can be done through asking for a letter of the bill and contract, identification numbers for an online database, and other such verification. If they are not able to produce this information, then consider that they are attempting to scam you, which would fall under debt collector harassment.
Another way to help protect yourself is to hire an experienced and well-versed debt collection harassment attorney. We here at the Law Office of Paul Mankin, APC, have a significant and experienced team of individuals that are willing to help and assist you through this grueling process. Our team of debt collection harassment attorneys can help you identify and locate debt collector harassment, as well as put a stop to their calls, and report their wrong doings to the proper authorities and courts.
Not only can we help you to defend against debt collection harassment, we can also help to build a case, and assist you in understanding where the illegal collection patterns are for debt collectors. We are also able to help facilitate any communications or discussions between the parties, ensuring that nothing you say can be used against you.
The most important bit of information in your fight is to always remain vigilant. No matter who you have at your side, it can seem like a daunting battle against such a large company and agency. If you have ever been the subject of:
- Multiple calls per week from a third-party collection agency
- Multiple calls in the early morning or late night from debt collectors.
- Violent and belligerent language and harassment from debt collectors.
- Threats of arrests or poor credit due to outstanding debts.
- Having your friends, family, and coworkers harassed from debt collectors.
- Automated robocalls from third party collection agencies.
Then you may have a case available under the Fair Debt Collection Practices Act. So do not wait, make sure to give us a call, and get started fighting back against the debt collection harassment.
by Paul MankinFree Program: Creditor Call Stopper
Are you being harassed by bill collectors? Some people receive constant calls from creditors at all hours of the day and night. We are sure that you find this annoying, especially if you are working from home due to the Covid-19 pandemic (and therefore within earshot of your home phone virtually 24/7).
For many people, however, this kind of harassment goes beyond merely annoying. In fact, bill collector harassment can get so bad that it prevents you from concentrating on your work, which in turn can prevent you from earning the money that would pay your bills and stop the phone from ringing. Other people face harassing calls for debts that are not even their own.
WOULD YOU LIKE THE CALLS TO STOP?
If you ever wondered when it will be time to put a stop to it, that time is now — because I know how to make it happen. You didn’t ask these bill collectors to call you (who would do that?). You may have told them to stop calling you, and they probably ignored you time after time.
In addition to calling your home phone and your cell phone, bill collectors might be calling your work, your friends, your family or your ex-roommate, thereby causing you significant stress and humiliation. You might even lose your job over these calls. It’s time to put a stop to this nonsense.
THE LAW IS ON YOUR SIDE:
If you are like most consumers, you have very little idea of the true extent of the rights that you possess against bill collectors. And believe me, they are extensive. I know, because I have been exercising them in favor of my clients for many years. In fact, you might end up in a position to actually demand that your creditors pay you money — in fact, that happens all the time.
A broad range of federal and state laws have been enacted to protect consumers like you from abusive bill collectors. These laws include:
- The federal Fair Debt Collection Practices Act (FDCPA), which restricts the behavior of third-party bill collectors. Although the FDCPA applies only to third-party debt collectors (a collection agency, for example, rather than the company that issued you your credit card), you can receive damage of up to $1,000 per violation.
- The California Rosenthal Fair Debt Collection Practices Act; which restricts the behavior of both third-party bill collectors and original creditors such as credit card issuers. It prohibits most (but not all) of the activities that are prohibited to third-party debt collectors under the FDCPA).
- The federal Fair Credit Reporting Act, which prevents bill collectors and other creditors from unfairly placing negative information on your credit report. It might also be possible to file a defamation lawsuit over inaccurate and negative credit information.
- New California legislation that requires debt collectors to inform you if the statute of limitations has already expired on the debt they are trying to collect.
- The federal Telephone Consumer Protection Act (“TCPA”), which prohibits “robocalls” and establishes a Do Not Call registry. This law offers victims up to $1,500 in damages per violation.
- The Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, which provides for civil fines of up to $10,000 (which go to the government, not to the victim of harassment) for robocalls.
WHAT DEBT COLLECTORS CANNOT DO:
These laws collectively prohibit bill collectors, and often original creditors as well) from the following actions:
- Knowingly or negligently placing inaccurate information on your credit report;
- Subjecting you to robocalls;
- Pretending to work for a government agency including the police, the Justice Department, the US Marshals, the prosecutor’s office or a consumer reporting agency;
- Threatening to have you arrested or prosecuted;
- Threatening to take any action against you that they are not capable of taking or are not entitled to take;
- Threatening to take any action against you, even actions they are entitled to take, that they do not actually intend to take;
- Calling you early in the morning, late at night, or at inconvenient times;
- Sending you a bogus court summons (be careful to check it out, through, because it might be real — but don’t verify it using the contact details provided in the document because they might be bogus);
- Publishing your name as a debtor in an attempt to publicly shame you;
- Discuss your debt with anyone other than you, your spouse or your attorney (they can, however, contact third parties to try to locate you, although strict limitations apply even in this case);
- Try to collect a debt you don’t owe (this is a very common practice, however);
- Fail to send you written verification of the debt (unless the creditor is an original creditor rather than a third-party debt collection agency);
- Threaten you with harm, especially physical harm;
- Use profane language;
- Call repeatedly;
- Call you after you have requested them to stop contacting you (except to confirm that they will comply with your request and to notify you that they have filed a lawsuit against you); and
- Call you at work, as long as you notify them in writing not to do so.
Any of these activities can be used as leverage to stop an aggressive creditor dead in his tracks.
A LOOPHOLE IN THE STATUTE OF LIMITATIONS: DON’T FALL INTO THIS TRAP:
The statute of limitations defines the length of time that a creditor has to sue you for an unpaid debt. In California this time limit is four years for most types of debt (but 20 years for state tax debts). The statute of limitations clock typically starts running on the date you fell into default, depending on the type of debt and the terms of your indebtedness.
After the statute of limitations period expires, you still owe the debt, and your creditor may still call you, but your creditor cannot sue you for it, which renders the debt uncollectible unless you make an error.
You could legally revive it by acknowledging the debt (particularly in writing) or by paying a portion of it. If this happens, your creditor will regain the right to sue you. For this reason, do not cooperate with a debt collector, even to the point of acknowledging the debt, until you confirm whether the statute of limitations has run out.
TRY OUR FREE PROGRAM TO STOP THE CREDITORS CALLS AND RESTORE YOUR PEACE OF MIND
If you give us permission to do so, we will be more than happy to stop bill collectors from calling you using every legal means at our disposal. We will take advantage of some of the specific laws mentioned above that allow us to demand that your creditors stop calling you. Your rights as a debtor are useless unless you use them. We know exactly what they are, and we will use them on your behalf.
Our Services are Free: No Hidden Fees and No Obligation
This is a unique program — we won’t charge you a dime for our assistance. Additionally, our services come with absolutely no obligation on your part, financial or otherwise. We promise you that you won’t be involved in a lawsuit or any other legal action, and it doesn’t matter how many times a week you are being called by debt collectors.
OK, so what’s the catch?
“This isn’t the way the real world works. Where is your incentive to help me? There’s GOT to be some hidden catch.” Actually there isn’t. But there is an incentive for us to help you — reputation. There’s nothing like proving it, and by proving what we can do for debtors, our reputation improves, one satisfied consumer at a time. And word of mouth advertising is the most effective kind of advertising there is.
Information We Need
In order for us to help you, we will need certain basic information such as:
- the creditor or debt collector’s name and address;
- The phone number or numbers that they called you from; and
- Enough information about you to be able to tell them who to stop calling.
ABOUT THE LAW OFFICE OF PAUL MANKIN:
The Law Office of Paul Mankin is a small law firm — small enough to offer you personal and individualized service, but not so small as to lack the resources to properly assist you (a problem frequently faced by sole practitioners). One of our major areas of practice is assisting clients who are being harassed by debt collectors.
Attorney Paul Mankin, firm founder, developed his passion to help abused debtors quite early in his career, when he saw with his own eyes just how vicious creditors are to debtors. In personal injury and bankruptcy cases, for example, he watched creditors ruthlessly pursue people who had been seriously injured in accidents and were unable to work to pay off their debts. He watched these creditors broke the law in their debt collection efforts, and it made him angry.
At the Law Office of L. Paul Mankin, we help clients who are being bullied by unscrupulous debt collectors, and we help them fight back. We see it as our job to fight for people who can’t fight for themselves.
SEEK ASSISTANCE TODAY
Contact us today by completing our online contact form (scroll down after clicking the link) and indicating your desire to participate in our program. If you do this we will be in contact with you shortly. We look forward to hearing from you!
by Paul MankinWhen Will a Debt Collector Sue?
When Will a Debt Collector Sue?
Is a debt collector threatening to sue or are you concerned that they will? Debt collectors may call or send you collection letters for weeks or even months before filing a lawsuit, may file one right away, or never file one at all; there are many factors involved in a debt collectors decision to sue. So when will a debt collector sue you? Maybe never.
Main Factors Debt Collectors Consider Before Suing
Debt collectors will consider four main factors before suing to collect on a debt:
- The age of the debt
- Their ability to locate the debtor
- The amount of the debt
- The debtors ability to pay the debt
While this is not a complete list of what a debt collector may consider before suing and there may be many other considerations, you can begin to judge your chances of a lawsuit being filed based on these factors.
Age of the Debt
All states have a statute of limitations on debt collection which limits the amount of time a creditor or debt collector has to sue to collect on a debt. For more information about time-barred debt see When is a Debt Considered Time Barred?
Ability to Locate the Debtor
The first thing any Plaintiff must be able to do before filing a lawsuit is locate the Defendant. When a lawsuit is filed, a Plaintiff must properly serve the Defendant a copy of the Complaint and Summons or a Notice of Lawsuit. If a Plaintiff does not have a current address for a Defendant or know where they work, they may not be able to properly serve them, and filing the suit could be a waste of time and money.
Amount of the Debt
If a Plaintiff can locate the Defendant, the next thing they will consider when deciding whether to sue is how much they may collect as a result of a lawsuit. If the amount is fairly low after taking into account the amount of the current debt, court costs, attorney fees, and interest, a debt collector may decide that suing is not worth the risk.
Ability to Pay the Debt
Once a debt collector has decided that it can locate the debtor and the amount of the debt makes a lawsuit worthwhile, it will then determine if the debtor has any ability to pay the debt. Debtors collecting pension or federal benefits who own no real property may not be able to pay the debt or have any garnishable wages to apply to a judgment and therefore are likely not to be sued.
Other Factors Debt Collectors Will Consider Before Suing
Other factors debt collectors will consider being filing a lawsuit include the original creditor’s wishes and the strength of the case against the debtor. Many smaller companies may not want to pay the expenses of a lawsuit and only hire a collection agency to attempt to collect the debt in any other way possible. A debt collector may also decide not to sue if the original creditor did not provide it with any proof of the original debt, such as a contract or other documentation proving that a service was provided to the debtor and the debtor has not paid for that service.
How Long Will it Take for a Debt Collector to Sue?
Most creditors will begin their own collection attempts after a debt is 30 days past due. Oftentimes these attempts, which may include past due invoices, some phone calls and a threatening letter or two, will continue until the account is approximately 180 days past due, at which time it will then turn the account over to a collection agency, or debt collector. The debt collector will generally attempt to collect the debt for several weeks or even several months before going to the time and expense of filing a lawsuit. The collector may threaten to sue during its collection attempts, but this does not mean that it will. Many debt collectors use the threat of a lawsuit to coerce a consumer into paying the debt. If the collector does not intent to actually sue, this is a violation of the Fair Debt Collection Practices Act (FDCPA), which prohibits a debt collector from threatening to take any action that it does not intend to take.
What to do if a Debt Collector is Threatening to Sue You
While the FDCPA prohibits debt collectors from making threats to sue if they do not actually intend to do so, many will still use this tactic as a way of scaring a consumer into making a payment on a debt. If a debt collector is threatening to sue you, there are a few things you should do:
- Avoid admitting to the debt collector that you owe the debt
- Request verification of the debt if you are unsure you owe it
- Keep track of all phone calls and threats of a lawsuit from the collector
- Consider consulting an FDCPA attorney
Avoid Admitting You Owe the Debt
The first rule of communicating with a debt collector is to never admit that you owe the debt. If you ultimately decide not to pay a debt, for whatever reason, the debt collector will have to prove that you owe it in order to successfully obtain a judgment against you. If you are recorded admitting you owe the debt, or the collector receives written communication from you admitting that you owe it, this will make obtaining a judgment against you that much easier.
Request Verification of Unknown Debts
If a debt collector is threatening to sue you for a debt you are unsure is yours or for one that you believe has been paid, you should request verification of the debt from the debt collector. You can do this on the phone, but if you do not receive the verification with ten days or so, you should follow up with a letter requesting the verification.
Keep Track of All Communication with the Debt Collector
A debt collector who is threatening to sue may be in violation of the FDCPA and you may have a lawsuit against them, so you should keep a record of all phone calls, including the time and date of the call, the name of the customer service representative you spoke with, and what they said. You should also keep all letters that you receive from the collection agency.
Consider Consulting an FDCPA Attorney
If a debt collector has sued you or threatened to sue you, you should consult an FDCPA attorney to help you determine if they have violated the FDCPA and to protect your rights. Feel free to contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinJoseph Rocco
Joseph Rocco, Law Clerk
Location: California
Phone: 323-489-6500
Fax: 323-207-3885
Joseph has had passion for assisting others throughout his life, volunteering for The Society of St. Vincent de Paul in Phoenix, Arizona throughout his high school years aiding the organization to provide food for people in need. While attending Arizona State University, Joseph assisted with a local middle school’s Emotional Disability Special Education Program. As a law student, Joseph worked as a teaching assistant and tutor for fellow law students and continues to assist alumni with bar studies to this day. Since graduating from Thomas Jefferson School of Law in 2017, and subsequently passing the California Bar, Joseph has been continuing his work assisting others by assisting consumers at the Law Office of L. Paul Mankin, dealing with issues such as unlawful debt collection, bankruptcy, and product liability.
Outside of the office, Joseph enjoys surfing, hiking, playing music, and assisting with community activities put on by his local congregation.
by Paul MankinWhat is a Credit Report?
Credit reports come up in almost any serious conversation about personal finance and many companies now offer access to this information on a limited free or monthly subscription basis. But what is a credit report, where does the information on it come from, and how does someone get yours?
Credit Reporting Agencies
In the United States, there are three main credit reporting agencies that maintain credit reports on consumers. These agencies are:
Equifax
Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30374-0256
https://www.equifax.com/personal/
Transunion
P.O. Box 2000
Chester, PA 19016
Experian
P.O. Box 4500
Allen, TX 75013
Creditors and debt collectors can report your account information to these agencies, who then compile and maintain your credit report.
Information Contained on Your Credit Report
Your credit report contains basic information about you such as your full name, address, social security number, and current employer. It may also contain previous names or aliases that you have used. Your debts are then listed on your report showing that the creditor or debt collector is, when the account was opened or placed for collection, whether the account is still open or has been closed, how much you currently owe, and the highest amount you have ever owed or the highest amount of credit that has even been extended to you. A graphic is then provided showing each month a payment was due and whether it was made on time or was 30, 60, or 90 days past due when it was paid. The credit reporting agency receives this information from the creditor or debt collector and then adds it to your report.
Do All Creditors Report Information to Credit Reporting Agencies?
Not all creditors report your account information to the credit reporting agencies, and some may only report it to one or two of the agencies. Companies who may not report any information to credit reporting agencies include:
- Utility companies
- Professional service companies such as accountants, attorneys, plumbers, and electricians
- Small local business who extend you credit
- Insurance companies
- Landlords
Those who you can pretty much count on reporting your account information to the credit reporting agencies include:
- Credit card companies
- Large cell phone and land line companies, such as Verizon, Sprint, and AT & T
- Mortgage companies
- Medical service providers
- Banks and other loan institutions
How Can Someone Get My Credit Report?
Each of the credit reporting agencies make your credit report available to companies who you authorize to view the report. Companies who may ask for authorization to see your report include banks, mortgage and loan companies, landlords, credit card companies, potential employers and any other company or agency from whom you are attempting to gain employment or receive credit or a loan.
If you are experiencing problems with your credit report, such as inaccurate information from a creditor or debt collector, feel free to contact our office at 1-800-219-3577, for a free, no obligation consultation.
by Paul MankinIs Capital One Financial Calling You?
Capital One Financial Corporation
Capital One Financial Corporation (Capital One) is a Fortune 500 company and one of the top ten (10) largest banks in the United States. Capital One provides various financial products and services that include credit cards, auto loans, and home loans. The company was founded in 1988 and is headquartered in McLean, Virginia.
The Better Business Bureau has received 5,139 consumer complaints against Capital One in the last three (3) years. Almost half of these consumer complaints are related to Capital One’s billing and debt collection practices. The most common complaints leveled against Capital One include:
- Attempting to collect debts not owed by the consumer;
- Attempting to collect more than what is owed;
- Making false statements;
- Harassing consumers by calling repeatedly and calling at places of employment; and
- Threatening legal action if payment is not made.
For example, the Consumer Financial Protection Bureau (CFPB), which is a Government agency charged with protecting consumers from unfair, deceptive or abusive debt collection practices, received a complaint against Capital One for repeatedly hounding a consumer by phone. Capital One repeatedly called the consumer at his job, even after being informed by the consumer that personal calls were not permitted at work.
The Fair Debt Collection Practices Act (FDCPA) and the Rosenthal Fair Debt Collection Practices Act (RFDCPA) prevent creditors and debt collectors from abusive and harassing debt collection practices. This includes calling consumers repeatedly or continuously with the intent to annoy, abuse or harass. Although federal and state law does not state the exact number of calls that would constitute harassment, there is a large volume of case law that interprets three (3) or more calls a day from the same debt collector to be harassing.
The FDCPA and the RDCPA also prohibits creditors and debt collectors from contacting a consumer at work if the creditor or debt collector knows that the consumer’s employer prohibits such phone calls.
Given Capital One’s clear violations of the law, the company settled the complaint and provided monetary relief to 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 Capital One accountable. Please contact our office for a free, no obligation consultation at 1-800-219-3577.