Has a creditor or debt collector sued you in a county or state where you do not live or where the contract was not signed?

by Paul Mankin

Has a creditor or debt collector sued you in a county or state where you do not live or where the contract was not signed?

CREDITORS AND DEBT COLLECTORS ARE ONLY ALLOWED TO SUE YOU IN THE COUNTY AND STATE WHERE YOU LIVE OR WHERE YOU SIGNED THE CONTRACT

Has a creditor or debt collector sued you in a county or state where you do not live or where the contract was not signed?

Under the Rules of Civil Procedure, a Plaintiff wishing to sue must do so in the proper jurisdiction and venue, or county and state court.  This helps ensure that Defendants are physically and financially able to attend court hearings and that Plaintiffs cannot “forum shop” or choose the state where the law most favors them and then file their lawsuit there. The proper place to sue is either the county and state where the defendant lives or the county and state where the incident leading to the lawsuit occurred. Not only do the Rules of Civil Procedure apply to creditors and debt collectors who are filing a lawsuit, but the Fair Debt Collection Practices Act (FDCPA) and Rosenthal Fair Debt Collection Practices Act (RFDCPA) also require that lawsuits against debtors be filed in the county and state where the debtor lives or where the contract leading to the debt was signed. For example, if you see a doctor in San Diego, California, the county and state where you live, the doctor, or anyone collecting on behalf of the doctor, must sue you in San Diego County, California. Even if the collection agency is headquartered outside of California.

Oftentimes, a debt collector or creditor will have an outdated address and will file suit in the county where the old address is located. The FDCPA however is very specific in that a debt collector can only sue in the county and state where the contract was signed or the county and state where the defendant currently resides. Original debtors may also turn accounts over to debt collectors located in another state, who will then file suit in the state where they are located instead of the county and state where the original debt occurred or where the debtor currently lives. This is a violation of the FDCPA, as it does not matter where the debt collection agency is located when determining the proper jurisdiction and venue to bring a lawsuit against a debtor.

Have you been sued by a creditor or debt collector in a county or state where you did not sign the contract incurring the debt or where you do not currently reside? If so, please contact our office for a free, no obligation consultation at 1-800-219-3577.

by Paul Mankin

Did you purchase a vehicle with a rolled back odometer (odometer fraud)?

Odometer reading is something we all take for granted when shopping from a used vehicle, at least as far as we assume it is accurate. The idea that an odometer reading can be altered is not a foreign concept, but the reference for most is based in fiction, whether in comedy—think Farris Bueller’s Day off—or in a sort of mob scam in a cinematic drama. In reality, odometer tampering does occur and it is a very serious legal offense.

Under the Motor Vehicle Information and Cost Savings Act (a.k.a. the Odometer Act), it is unlawful to advertise for sale, sell, use, install, or have installed, a device that makes an odometer register a mileage different from the mileage the vehicle has driven or to take any other action toward altering a vehicle’s odometer reading. It is also unlawful to conspire with another in furtherance of any action toward altering a vehicle’s mileage reading?

While it is fair to say that a vehicle’s condition matters more than a simple variance in mileage readout, used car shoppers use a vehicle’s mileage to assess the auto’s history and its likely future operability. If a used car that is several years old has very low mileage, a buyer might inquire into whether the car sat unused for long periods of time, which may indicate a need to check or even replace other parts, or it might indicate the existence of an issue that made the car substantially unusable. Likewise, a high odometer reading would prompt a shopper to inquire into the auto’s prior use, such as whether it was part of a rental fleet.

The act of rolling back an odometer is, in itself, a deceptive practice and should be viewed with skepticism by potential buyers. Whether the rollback was done by the seller or by a previous owner or seller, someone along the way took deceptive action regarding the true condition of the vehicle. Whatever the reason for the rollback, dealers are required to provide written notice of the accurate vehicle mileage at the time of title transfer, and it is specifically against the law to include a false statement of mileage in this notice.

While odometer fraud can be difficult to identify, there are a few checklist items used car shoppers can use to cover as many bases as reasonably possible with regard to avoiding being misled on a car’s true mileage history. The easiest thing to do is to check the vehicle’s mileage through its chain of title, which a prospective buyer should always review prior to any used vehicle, and through oil change stickers or other service records. A shopper can also perform a quick visual inspection, including tire wear, scratches or other physical damage near the odometer, and apparent odometer misalignment (for older, analog odometers).

Odometer fraud is a serious offense, and California law provides strong remedies for victims, which are intended to also serve as a strong deterrent for would-be offenders. One who finds themself a victim of odometer fraud should consult with an attorney as soon as possible, as they may be entitled to recover an amount three times the damages suffered plus attorney’s fees and court costs.

by Paul Mankin

Debt Collectors Are Not Allowed to Harass You By Calling Multiple Times a Day!

Creditors and debt collectors are not allowed to repeatedly call you throughout the day trying to get you to pay them money.  The Fair Debt Collection Practices Act (“FDCPA”) and Rosenthal Fair Debt Collection Practices Act (“RFDCPA”) have very clear rules that state calling multiple times a day is not allowed.  Debt collectors and creditors are not allowed to perform any conduct the natural consequence of which is to harass, oppress, or abuse any person.  Click here to read 15 U.S.C. Section 1692d.  Debt collectors and creditors are also not allowed to use any unfair or unconscionable means to collect or attempt to collect the alleged debt.  Click here to read 15 U.S.C. Section 1692f.  And, debt collectors and creditors are not allowed to cause a telephone to ring repeatedly in an attempt to collect a debt.  Click here to read California Civil Code Section 1788.11(d).  While the actual code sections of the FDCPA and RFDCPA do not specifically state, there is a large volume of case law that interprets how many calls a day combined with other factors is considered too many under the FDCPA and RFDCPA.

COMMON SCENARIOS:

A consumer owes a debt and does not have the ability to pay it back at that time.  He or she receives a collection call from a creditor or debt collector asking for payment.  The consumer informs the collection representative for the collection agency that he or she doesn’t have the money and can’t pay for the next month.  The collection agency tells consumer it will call back in a month for a payment.  At that point, the consumer believes they have some relief from collection calls.  But, two hours later he or she receives another call from the same collection agency requesting payment again.  The consumer informs the collection agent that he or she just received a call that day and informed the previous collection agent that a payment could not be made now but maybe one could be made next month.  The debt collector says that it will call next month.  Now the consumer really believes he or she won’t receive any calls for a month.  But, of course, a few hours later another calls is made to the consumer by the same collection agency.  This time the consumer is frustrated and doesn’t answer the phone.  The following day the consumer again receives three or more calls from the creditor or debt collector attempting to collect a debt and this continues each day.  

It is my opinion that this is the type of repeated and harassing collection calls the FDCPA and RFDCPA are meant to protect against.  

WHAT SHOULD YOU DO IF YOU ARE RECEIVING THREE OR MORE COLLECTIONS CALLS A DAY?

It is extremely important to document these calls.  You cannot count on the debt collector or creditor admitting to calling you as frequently as they do.  Oftentimes, during the lawsuit we are initially given only a fraction of the calls that were actually made to the consumer.  Moreover, documentation is important because sometimes if you are receiving calls from multiple collection agencies it can get confusing who is calling and how often.  We have seen plenty of examples where consumers are receiving multiple collections calls a day but each call is from a different creditor.  Consequently, we suggest that consumers either take screen shots of their telephone caller ID to log the collection calls.   We also suggest writing a call log of the date, time, and telephone number that called them.  This is great evidence that can be used against creditors and debt collectors to prove the number of calls that they have been making.  If you would like a copy of a call log you can use to track calls, feel free to call us and we will provide you with a free one.

If you have received or are receiving three or more collection calls in a single day from the same creditor or debt collector, please give us a call for a no cost case evaluation.  We assist consumers is San Diego, Los Angeles, and throughout California.  1-800-219-3577.

by Paul Mankin

Can I Go To Jail for Not Paying a Bill?

While you cannot go to jail for owing a bill or even refusing to pay one, an outstanding debt can land you in jail if you are sued and you miss a court hearing. This has caused quite a bit of confusion among consumers who may believe they were jailed for simply owing the bill.

How a Lawsuit for a Past Due Bill Can Turn Into Jail Time

If a creditor or debt collector sues you to collect on a past due bill and you do not respond in writing or appear at hearing to dispute the debt, it will obtain a default judgment against you for the amount it claims you owe. Answering or appearing in court may also result in a judgment against you if the creditor can prove that you do in fact owe the debt. Once the creditor has a judgment, it is then entitled to collect on that judgment through additional court proceedings which may allow it to garnish your wages or put a lien on your property. In order to do this, the creditor must ask the court for a hearing and send you a notice to appear at said hearing. During the hearing, the creditor will ask you about your job and assets, and if you have any, may then ask the court for an order to garnish your wages or permission to put a lien on your property. If you fail to appear at this hearing to answer questions about your wages and assets, the creditor may then ask the court for a civil warrant, or body attachment. Courts do not generally issue civil warrants the first time a defendant fails to appear for hearing, but will reset the hearing for a later date and send you a second order to appear. Eventually, failing to appear for these hearings may allow the creditor to obtain a warrant for your arrest.

Civil Warrants or Body Attachments

The police do not generally go looking for you because you have a civil warrant or body attachment, as they are called in some states, as they may with a criminal warrant, but will simply arrest you the first time you come into contact with them for some other reason. So, you may be arrested the next time you are pulled over or go into a police station to conduct some type of business. Once you are arrested on a civil warrant, you may post bond in whatever amount the court set when the warrant was issued, and your bond money will go to the creditor to count towards payment on the judgment.  If you do not voluntarily make additional payments on the judgment, the creditor may then begin the process to collect on the judgment all over again, and if you fail to appear again, may get another body attachment issued and end up in jail once again. You can prevent this by simply appearing in court any time you receive an order to appear and answering the creditor’s questions about your wages and assets.

If you are being harassed or abused by a creditor or debt collector please contact our office at 1-800-219-3577, for a free, no obligation consultation.  

by Paul Mankin

Is it illegal for a car dealership to run your credit without permission?

Auto dealerships are not allowed to run your credit without your knowledge or permission, but there is a gray area where dealers can get away with checking out your ability to make a purchase before you even find a car you want to buy. This gray area largely concerns soft versus hard credit inquires.

IT IS ILLEGAL FOR A CAR DEALERSHIP TO MAKE A HARD INQUIRY ON YOUR CREDIT WITHOUT PERMISSION:

A hard inquiry typically only occurs when a consumer applies for credit or a loan, and the associated inquiry requires the consumer’s knowledge and consent. A soft inquiry, on the other hand, may be performed for any number of other reasons and, in many cases, can occur without the consumer ever knowing. Soft inquiries (or ‘checks’ or ‘runs’) are commonly performed for the purpose of pre-approving a consumer for an extension of credit, as demonstrated when a consumer receives a pre-approved credit card offer in the mail. Auto dealers—particularly those offering on-site financing—like to use the same kind of soft credit run to assess whether they are likely to offer financing to a particular buyer or if the buyer will have to obtain financing elsewhere in order to purchase a vehicle from that dealer. Dealers also use soft inquiries in a somewhat less scrupulous manner to assess a shopper’s buying power early in the shopping process.

From a practical perspective, a dealer cannot run your credit if they do not have your personal information, particularly if they do not have your social security number. If you take a car for a test drive, for example, a dealer will likely first make a copy of your driver’s license and might even ask you to complete a form for their records, which they might present as necessary information just in case there is an accident or in case they need to reach someone on your behalf. The dealer does not need your social security number for that purpose, so even if they ask for additional information or for you to sign some sort of liability waiver, it is fair to push back if the dealer insists that you hand over your SSN before agreeing to have your credit run or deciding to make a purchase.  Moreover, always be careful about signing a document to test drive a vehicle.  Read the document to make sure you are not providing consent for the auto dealer to run your credit unless you are actually consenting to the credit inquiry.

When obtaining financing from a dealer for a new or used car, the dealer must give you a Notice to Vehicle Credit Applicant showing the credit score that was used by the dealer, the name and contact information of the credit-reporting agencies and their range of all possible credit scores. If you receive such a notice from a dealer but do not recall giving your permission for a hard credit run or otherwise have reason to believe your credit was run without your permission, you should not hesitate to ask for a copy of the application or other documentation you provided regarding your credit.

IF A CAR DEALERSHIP RAN YOUR CREDIT WITHOUT PERMISSION, CONTACT A PROFESSIONAL FOR HELP:

In the event a dealer acts outside their authority in a manner that impacts your credit or in a way that you believe to be unlawful and against public interest, speak with a consumer law auto fraud attorney as soon as possible to discuss your rights and options.  Even though, generally, a credit inquiry does not drastically reduce your credit score, it does lower your score.  An auto fraud and credit attorney knows the laws that might allow you to remove the illegal credit inquiry from your credit reports, and secure a monetary damages settlement for you.  Best of all, the consumer protection laws allow you to obtain help from an attorney at no cost to you.

by Paul Mankin

Is Comenity Capital Bank Calling or Harassing You?

Comenity Capital Bank

Comenity Capital Bank (Comenity) issues credit cards for over 160 retailers, including Wayfair, Bed, Bath & Beyond, Victoria’s Secret, and Orbitz. The company was founded in 2003 and is headquartered in Salt Lake City, Utah.

Comenity is not accredited by the Better Business Bureau. To be accredited by the Better Business Bureau a company must demonstrate trust, honesty, transparency, responsiveness, and integrity. In fact, the Better Business Bureau gives Comenity an “F” rating for having numerous outstanding and unresolved complaints.

Comenity has received a significant amount of consumer complaints related to their debt collection practices. According to the Better Business Bureau, 2,230 complaints have been filed against Comenity in the last three (3) years. Of those 2,230 complaints, 1,712 were related to billing and debt collections.

The majority of complaints filed against Comenity are related to the following illegal debt collection practices:

• Attempting to collect a debt that is not owed by the consumer; and
• Harassing consumers by calling repeatedly and calling at places of employment.

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 Comenity accountable.

If you receive three or more calls a day from Comenity, please contact our office for a free, no obligation consultation at 1-800-219-3577.

by Paul Mankin

Is GC Services, LP Calling or Harassing You?

GC Services LP

GC Services LP (GC Services) is a third-party debt collector for clients in auto, banking, student loans, and telecommunications industries. GC Services was founded in 1957 and is based in Houston, Texas with call centers across the United States, Caribbean, and Philippines.

Within the last three (3) years, the Better Business Bureau has received 108 complaints against GC Services. These complaints included numerous illegal debt collection practices, but the most common complaints involved the following:

• 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;

• Harassing consumers by repeatedly and frequently calling;
• Improperly discussing the consumer’s debt with a third party; and
• Refusing to validate or provide proof of a debt.

In February 2017, GC Services entered into a settlement agreement with the Federal Trade Commission (FTC). The Federal Trade Commission (FTC) is responsible for enforcing the Fair Debt Collection Practices Act (FDCPA) and ensuring that creditors do not use abusive, unfair, or deceptive practices when they collect debts.

The FTC charged GC Services with using unlawful practices to collect on federal student loans. Specifically, GC Services illegally disclosed debts to third parties or persons other than the consumer. The FDCPA regulates debt collectors’ communications with third parties. Debt collectors are prohibited from informing any third party, other than a spouse or attorney, that a consumer owes a debt.

Additionally, GC Services made repeated phone calls to individuals after being told that they had called the wrong person or that the debt was not owed. When a debt collector mistakenly contacts somebody other than the intended consumer, then the debt collector has effectively contacted a third party and is not permitted to continue to contact that person.

Due to these violations of the FDCPA, GC Services was forced to pay $700,000 in civil penalties.

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 GC Services accountable. Please contact our office for a free, no obligation consultation at 1-800-219-3577.

by Paul Mankin

Creditor Harassment: What Can I Get if I Sue a Debt Collector?

The federal Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using unfair, abusive, and harassing tactics to collect a debt and allows you to sue them if they do. So what are you entitled to under the FDCPA?  

What Can I Get if I Sue a Debt Collector?

When bringing an action under the FDCPA you may be entitled to:

• Money damages;
• Attorney fees and costs;
• A court order stopping the collection calls; and
• In some cases, a debt waiver and/or a cleaned up credit report

What Does a Debt Collector Have to do Before I Can Sue Them?

The FDCPA prohibits debt collectors from using unfair, abusive, or misleading tactics to collect a debt. Some tactics specifically mentioned in the Act include:

• Calling before 8:00 a.m. or after 9:00 p.m.
• Causing a telephone to ring continuously
• Falsely representing the amount or legal status of a debt
• Using profane or obscene language
• Threatening to use violence to harm a consumer, their property, or their reputation
• Falsely implying that failing to pay a debt may cause a consumer to be arrested
• Impersonating a law enforcement officer
• Threatening to take any action that is not legal or intended
• Falsely representing that a consumer is committing a crime by not paying a bill
• Communicating with third parties about a consumers debt
• Collecting interest or fees not authorized by the original agreement

This is not an all inclusive list. The Act prohibits debt collectors from doing anything that is abusive, unfair, or misleading when attempting to collect a debt. If you feel that you have been abused or lied to by a debt collector, you may have a case against them.

The Act also requires debt collectors to provide consumers with the name and address of the original creditor, the amount of the debt, and notice that the consumer has 30 days to dispute the validity of the debt. The debt collector must do this in writing within five days of the initial communication if the information was not provided then and the debt is still unpaid. Many consumers are unable to get this information from debt collectors and therefore cannot verify that the debt even belongs to them.

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. If a debt collector or creditor is harassing or abusing you, please contact our office at 1-800-219-3577, for a free, no obligation case review.  

by Paul Mankin

Has a debt collector continued to contact you after being told by you in writing to cease contact?

Has a debt collector continued to contact you after being told by you in writing to cease contact?

The FDCPA prohibits debt collectors from communicating with you after you have informed them in writing to stop communication. Once the debt collector has received a letter from you requesting that all communication stop, the debt collector may only contact you again to either inform you that the debt collector is no longer seeking to collect the debt or to inform you that the debt collector will be filing a lawsuit.

If you have not yet requested a debt collector to stop communication, we recommend sending a letter via certified mail with a return receipt. This will provide proof that the debt collector received the letter. Please retain a copy of the letter and the return receipt for your records. If you need assistance in drafting this letter, our office is willing to help.

If you have already sent a letter via certified mail with a return receipt, and the debt collector continues to contact you either by phone or letter, please contact our office for a free, no obligation consultation at 1-800-219-3577.

by Paul Mankin

Is Grant and Weber calling and harassing you?

Grant & Weber is a debt collection agency located in Calabasas, California. It has been in business since 1977 and provides debt collection services for healthcare providers across the country. 

Contact Information:

26610 Agoura Rd STE 210

Calabasas, CA 91302-3825

Phone: (818) 871-7700

http://grantweber.com

The Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB) report over 160 complaints filed by consumers against Grant & Weber since 2015. Complaints on the two websites allege that the collection agency:

• Used abusive language when attempting to collect on a debt
• Refused to provide consumers with debt validation information
• Used profane or obscene language
• Attempted to collect the wrong amount on a debt
• Reported false information to the credit reporting agencies
• Attempted to collect fees or charges not authorized by the original contract
• Falsely implied they were an attorney or calling on behalf of an attorney
• Threatened consumers with actions they could not legally take or did not intend to take
• Contacted consumers after being told to stop contacting them

These collection practices violate 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
• Threatening to take action that is not legal or intended
• Using or threatening to use violence to collect on a debt
• Falsely indicating that they are law enforcement official or affiliated with a government agency

Many of the consumers who filed online complaints allege that the medical bill Grant & Weber are attempting to collect on should have been paid by their health insurance company. If you are being harassed about a medical bill your insurance company should have paid, see our blog post, I am Being Harassed by a Debt Collector and My Insurance Should Have Paid for more information about why this happens and what you can do to stop the collection attempts.