Texas Court Upholds FDCPA Claim Against Collection Agency InsideARM
The suit, filed back in December of 2010 , has been slowly working its through the Texas courts. In it, a Texas woman, Naomi Boles, alleges that her mortgage company, Nationstar Mortgage, broke the law when it sent her (allegedly) past-due home equity loan account to Moss Codilis LLP, the Coloradan collection agency.
At issue is the notice Moss Codilis sent to Boles, and possibly thousands of other Texas mortgage holders, which in part states, “If you voluntarily surrender possession of the collateral specified herein, you could still owe additional monies after the money received from the sale of the collateral is deducted from the total amount you owe.”
That’s not how they roll in Texas, though. As stated in the complaint, “The letter misrepresents Texas law because Texas residents who have obtained Texas home equity loans secured by their homesteads have no personal liability for any deficiency owing on a home equity loan.”
The good news for Nationstar Mortgage is that the FDCPA violation won’t stick; Nationstar Mortgage isn’t considered a debt collector under the FDCPA. (This doesn’t help Moss Codilis at all.) Both Nationstar
Fair Debt Collection Practices Act (FDCPA) explained: Violations and remedies.
File a Telephone Harassment Report at centenniallawoffices.com if you are receiving harassing calls from a debt collection company. Watch this ...
Is this a violation of the Fair Debt Collection Practices Act?
A debt collector called my wife's mother, ex-step-father, and grandmother and told them he needed to contact her because there were fraudulent charges made on her credit card. Her mother called BS on the guy and took his information, then gave it to my wife.
Is this false representation under Section 807 of the Fair Debt Collection Practices Act?
The practice you describe would seem to be forbidden by 15 U.S.C. 1692e(10): "The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer."
http://www.law.cornell.edu/uscode/html/uscode15/usc_sec_15_00001692---e000-.html
What are the most common violations banks commit regarding the Fair debt collection practices act?
Contacting you after you have written to them requesting them to stop contacting you. Or contacting you at work.
Most violations are done by Junk Debt Buyers, third party debt collectors who buy charged off debts for pennies on the dollar. These scavengers will do almost anything to get you to pay up.
The most common violations, in my humble opinion, are threatening to do something that they cannot legally do. Some examples would be to threaten to charge the debtor with criminal violations, having collectors present themselves as attorneys and threaten to take the debtor to court in states where the Junk Debt Buyer is not licensed to practice law. Threaten to garnish wages without a court judgment, and emptying bank accounts and maxing out credit cards after obtaining the debtor's banking information.
Are these violations of fair debt collection practices act?
My husband fell 6 months behind on a credet card bill. The account was turned over to a collection agency in Texas.After repeated phone calls to both my husband and his employer. My husband called the CA and asked them to stop contacting third parties. He tried to make arrangements to pay the debt. He was not able to come up with the sum that they wanted so the calls continued. They called us numerous times. Sometimes 10 or more times in one hour. They continued to call his employer even when the employer asked them to stop calling. They called our neighbor, parents, and siblings. I contacted them and made arrangements to pay the bill in monthly enstallments. Two payments have been made as agreed. We have not missed a payment. Yesterday I was contacted by them stating that if I couldn't settle the debt that day they would send a 1099C form to the IRS. Claiming that my unpaid debt was considered nonwage income even though I was paying on it. they also called a third party this same da
We still are not sure how they got our neighbors address. We hardly ever even talk to him. I don't even know his last name. All that we can figure is that they looked up our address and then did a search on our neighbors address to get his contact information.
What really gets me is that they are continuing the harrassment even though we are paying on the debt. I could see if we had missed payments or something but we haven't.
The 1099 C form doesn't even apply to my debt. They were not offering to eliminate the debt. The lady who I spoke to on the phone tried telling me that if I didn't pay the debt that day she would file the form. When I spoke to the manager and asked him about the form he told me that it was used if part of the debt was written off and did not apply to a debt that I was paying. He is looking into the matter to find out why she would tell me this. It felt to me that she was just trying to bully me into paying it that day.
We have the payment details in writting and have made payments as agreed. We are sending a certified letter tommorow to stop contacting third parties as they are not doing so with any intentions of finding out contact information about us. They already have our information.
Turn them in to the better business bureau. Also tell them you will contact your attorney(you don't have to have one) if they don't stop calling your family and his employer. They legally can't contact the IRS about your debt, so don't worry about that. Make sure you tell the BBB about all of the threats that they have made, this is wrong and against the LAW! personally I would contact an attorney and sue them for harassment and breech in privacy if they are telling other people any info about how much you owe.
They can't contact you by phone, if you've asked them to stop-
Unpaid debt is NOT income!
From another site:
When the 1099-C is issued to you and to the IRS, you must claim the indicated amount as income in the year the debt was forgiven.
Once you pay the income tax on the forgiven amount, the creditor can not come after the same amount again. The debt is forgiven.
The taxes are surely less than the debt, pay it, and forget about it.
Did you have any of this in writting. That is did your husband send them a certified letter stating that they were not to communicate with anyone else. Did you have the payment arangements in writting? If not there is really no proof other than a you said/they said sort of thing.
However, having them give you a 1099-C may not be the worst thing that could happen. Once they do this they are officially writting off the debt and can not come after you again for it. You will have to pay taxes on the amount but depending on your tax situation this might be a very small percentage based on the settled amount.
Fair Debt Collection Practices Act question?
Does the cease and desist letter have to be sent by snail mail? I sent it via the banks online system for my account, I have a confirmation number along with a reply from a Bank of America employee refusing to accept it and telling me I have to call and talk to someone.
Can I sue them for violations of the act now that they keep calling me? The agent I just talked to made a mockery of me when I told him he was violating the act with their calls (they called and talked to me twice today already).
I've been unemployed for six months and don't have anything to pay them with- all i want is for the constant harassing phone calls to my cell phone to stop, and now I'd like to sue them for refusing the follow the law with their collection attempts. They are running up my cell phone bill and calling me at least once every day and often even more than that...
The FDCPA applies only to *third party* debt collectors, NOT to original creditors. If it's BofA you owe the money to, they are not a debt collector as defined in the Act, and can keep calling you all they want.
Richard
Debt collecting practices?
When I was 25 and under my father's insurance, I had surgery. Now, two years later, I must have missed a small bill that insurance paid some on. I moved from home and guess didn't receive any other bills. The statute of limitations is almost up on collecting it and the hospital called my father's house and asked for him, even though he wasn't the patient, just the insurance carrier. The hospital then freely discussed the debt with him. Is that a violation of the Fair Debt Collection Practice Act or not because he was the insurance carrier? He's not responsible for the debt, just myself. It's my credit that is ruined, not his.
His credit does not get affected. I know this for a fact. Only mine. I was the patient, he covered me. His name was never on any bill. And I wish he would have paid the bills, seriously. I'm only concerned with their collection practices on my family. I don't care what my father knows. I just don't agree with the practices. They should be put in their place if it is unfair collection. I'll pay it, but I want to make sure they're abiding by laws at the same time.
No, he didn't sign any paperwork. He wasn't even there for the surgery. Every thing I did under his insurance, he was never there — eye exams, doctor's visits, dentist visits, etc. I was over 18.
If he had the insurance coverage, then he must have been responsible for the bill, or his insurance wouldn't have covered you. You must have been a legal dependent for insurance purposes. If so, then, of course they discussed the bill with him. And, I'd imagine that this is affecting both his and your credit.
As far as them discussing the debt with your father, that can be kind of tricky, becuase if your insurance was under his name, then technically he is the one liable for the debt.
Because of that, yes it would be legal for the collection agency to discuss it with him.
Actually it sounds like a twist of fate that it isn't also reporting on his reports.
If it is the hospital calling, and not a collection agency, then the FDCPA does not apply--it only applies to:
-Bonafide debt collectors
-Attorneys who function as debt collectors
-Original creditors who represent themselves as an entity that is different than the original creditor
What's the best way to approach Credit Solutions Corp to remove an old, paid collection?
I had a collection account with Credit Solutions Corp which I paid about 3 years ago. It was reported as PAID on my credit reports. However, on two it was reported as "Installment", and "Open Account Type" on the other. This collection account doesn't report the date of first delinquency. Do I have a case in demanding for corrections/removal?
Via Express Mail, I sent a debt validation letter to one of CSC's vice presidents. The letter was enhanced with "Please correct/remove or pay me $1,000 for violations of Fair Debt Collections & Practices Act" kind of tone. It's been a week and I haven't heard from them. No correction/removal on my reports yet. I've already disputed this account with the credit reporting agencies. What should my next step be after 30 days and no response from CSC? Ways to expedite this?
You leglly have to wait the 30 days.... If they do not respond to you, report that to the credit bureau as well.... PLEASE keep track of names addresses and phone # of everyone you deal with.... Put in the sisputes with the Cred. Bur. if the creditor does not respond to the cred. bur. , the cred. bur. must remove.
How can I deal with bill collectors?
It is very simple. Hang up the phone. Make them contact you in writing. That is usually where they "trip up". The correspondence usually has some violation of 1692 of the Fair Debt Collection Practices Act. But, by all means, NEVER send money to a stranger, simply because they sound authorative.
pay your bills
more legal questions - please help?
12 Consumer Financial Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on
a. educational achievement.
b. income.
c. marital status.
d. unfavorable credit reports.
13 When Bruce applies to First State Bank for a credit card, he is denied credit. He can obtain information on his credit history in a credit bureau’s files under
a. the Equal Credit Opportunity Act.
b. the Fair Credit Reporting Act.
c. the Fair Debt Collection Practices Act.
d. none of the above.
14 The credit department of Nationwide Department Stores, Inc., frequently calls Maxine at work, even though her employer objects to the calls, about her overdue bill. This is a violation of
a. the Fair Credit Reporting Act.
b. the Fair Debt Collection Practices Act.
c. the Truth-in-Lending Act.
d. none of the above.
15 Excel Furniture Store, from which Frank bought home-office furniture, sends a letter to Frank—who failed to make his scheduled payments for four months—asking for payment for the furniture. This is a violation of
a. the Fair Credit Reporting Act.
b. the Fair Debt Collection Practices Act.
c. the Truth-in-Lending Act.
d. none of the above.
16 National Toy Company makes a toy that the Consumer Product Safety Commission (CPSC) believes to be hazardous. The CPSC may require National Toy to
a. remove the toy from the market.
b. report on any items sold, but not remove the toy from the market.
c. remove the toy from the market and report on any items sold.
d. none of the above.
12. c
13 b
14 b
15 d
16 c
What occurs at a Default Civil Hearing?
I filed a Michigan Small Claims lawsuit, alleging violation of the FCRA (Fair Credit Reporting Act) and FDCPA (Fair Debt Collection Practices Act). I then filed a request to send the case from the Small Claims court to the General Civil Court. The reason for the demand, was to be able to use discovery, so I could get documents to prove the collection failed to do a "reasonable investigation". Judicial magistrate signs off on the order. Today, I filed a default affidavit. However, due to me proceeding on the case Pro Per (Without Council), I have to appear for a Default Hearing. My question is, "What happens at the default hearing, if the defendant fails to appear at the meeting?", "Will I be required to prove my case?"
Fair Debt Collection Practices Act question?
Does the cease and desist letter have to be sent by snail mail? I sent it via the banks online system for my account, I have a confirmation number along with a reply from a Bank of America employee refusing to accept it and telling me I have to call and talk to someone.
Can I sue them for violations of the act now that they keep calling me? The agent I just talked to made a mockery of me when I told him he was violating the act with their calls (they called demanding payment twice already today). Each time I tell them that I'm still unemployed and looking for work, and they say ok and call me back later that same day or else the following day to repeat the whole call. If I don't pick up when it rings they will call me at least 10 times a day until I answer the call.
I've been unemployed for six months and don't have anything to pay them with- all i want is for the constant harassing phone calls to my cell phone to stop, and now I'd like to sue them for refusing the follow the law with their collection attempts. They are running up my cell phone bill and calling me at least once every day and often even more than that...
Yes, it has to be by snail-mail. Personally, I'd use Certified and get a Return Receipt.
For about $10 you can go to Radio Shack and buy a gizmo that you attach to your phone line. Each time you answer it sends a signal (not audible) down the line. If it's a machine dialing your number... you know, you answer and it takes a minute for the person to come on-line, the signal tells the machine that it's a disconnected number. The dialing machine will then take your number out of the que.
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