Home > Debt Articles > Debt Collection

Debt Collection

So Sue Them: What We’ve Learned About the Debt Collection Lawsuit Machine

It might not be right but it is what it is. Debt collectors and others know how to get you to do what they want by pushing your fear buttons. They do it because it works.

by Paul Kiel ProPublica, May 5, 2016, 8 a.m. Millions of Americans live with the possibility that, at any moment, their wages or the cash in their bank accounts could be seized over an old debt. It’s an easily ignored part of America’s financial system, in part due to a common attitude that people who don’t pay their debts deserve ... Read More »

    Payday Loan Scam Debt Collectors – Caught

    payday_loans

    At the request of the Federal Trade Commission and the Illinois Attorney General, a federal court has temporarily halted a Chicago-area operation that allegedly threatened and intimidated consumers to collect phantom payday loan “debts” they did not owe, or did not owe to the defendants. The defendants also allegedly illegally provided portfolios of fake debt to other debt collectors – ... Read More »

      CFPB Orders Citibank to Provide Relief to Consumers for Illegal Debt Sales and Collection Practices

      201509_cfpb_credit-card-chips-blog

      WASHINGTON, D.C. – The Consumer Financial Protection Bureau yesterday took two separate actions against Citibank for illegal debt sales and debt collection practices. In the first action, the CFPB ordered Citibank to provide nearly $5 million in consumer relief and pay a $3 million penalty for selling credit card debt with inflated interest rates and for failing to forward consumer ... Read More »

        Frederick J. Hanna & Associates Stopped by CFPB for Collection BS

        stop_paying_for_credit1

        Today, the Consumer Financial Protection Bureau (CFPB) filed a proposed consent order in federal court that would resolve a lawsuit against Frederick J. Hanna & Associates, a Georgia-based law firm, and its three principal partners, for operating an illegal debt collection lawsuit mill. The CFPB lawsuit had alleged that the defendants rely on deceptive court filings and faulty evidence to ... Read More »

          Encore Capital Group and Portfolio Recovery Associates Nailed for Deceptive Tactics to Collect Bad Debts

          debt-collective

          Today the Consumer Financial Protection Bureau (CFPB) took action against the nation’s two largest debt buyers and collectors for using deceptive tactics to collect bad debts. The Bureau found that Encore Capital Group and Portfolio Recovery Associates bought debts that were potentially inaccurate, lacking documentation, or unenforceable. Without verifying the debt, the companies collected payments by pressuring consumers with false ... Read More »

            What a Typical Debt Collector Payment Plan Looks Like

            tough-rules-debt-collection

            When a debt collector has contacted you about a past-due debt and you are unable to pay the entire amount, or settle the account for less than the balance in a lump sum payment, you may have another option — a payment plan. A payment plan is not available on every account, but for those accounts that are eligible, a ... Read More »

              Chase Bank in Deep Shit Over Bad Debt Collection Practices

              chase_bank_review

              Over half a million consumers just caught a break with help from the Consumer Financial Protection Bureau. It appears the CFPB has taken tough action against a major bank for basically screwing over consumers who were being forced to pay debt they rightfully should not have had to. The CFPB Says… Today the Consumer Financial Protection Bureau and Attorneys General ... Read More »

                How to File Debt and Credit Complaints with the CFPB

                cfpb

                Throughout this website, and several others I contribute to, I suggest people file complaints with the Consumer Financial Protection Bureau (CFPB). I am usually responding to reader comments when I do, so the reason for suggesting filing the complaint is contained in each comment exchange, but only briefly. I want to be sure readers have a strong grasp as to ... Read More »

                  Recognize and Review a Nice Debt Collector

                  The decision to file bankruptcy should be a celebration.

                  Complaints about debt collectors number in the ginormous every year. The volume is somewhat understandable. I mean… how many other professions do you spend nearly all of your time trying to get someone to do something they cannot or will not do? Let’s face it, getting people to pay bills they likely can no longer afford is not all smiles ... Read More »

                    NC Senator Michael Lee of Wilmington Might Be a Debt Collection Idiot

                    Screen Shot 2015-04-29 at 5.39.39 PM

                    North Carolina is trying to pass legislation which will roll back protections for consumers who have bad debt purchased by debt buyers. Senator Michael Lee from Wilmington, North Carolina is the sponsor of S.B. 511, titled Proof Required for Debt/Fees, which efforts to rollback the requirement the bad debt buyer must have detailed information about where and when the debt ... Read More »

                      Is the AAFES Military Star Credit Card Screwing Over Veterans?

                      Where did my debt relief company go?

                      Ashley Woods wrote to me and expressed grave concern about a situation she ran into with an AAFES Military Star credit card she owed. It’s one thing to have a balance due but it’s quite another when the collection company appears to just make up what you owe. Ashley she was contacted by Transworld Systems and appears to have gotten ... Read More »

                        CFPB Stops Bad Check Debt Collector From Frightening Consumers

                        cfpb

                        Today, the Consumer Financial Protection Bureau (CFPB) announced an enforcement action against a nationwide debt collection operation and its chief executive officer for using deceptive threats of criminal prosecution and jail time in order to intimidate consumers into paying debts for bounced checks. The company also misled consumers into believing that they must enroll in a costly financial education program ... Read More »

                          How To Reduce Debt Buyer Collection Lawsuits

                          gavel

                          Last week the CFPB and the FTC held a workshop to address what happens to unpaid debts at different stages of the debt collection cycle. The workshop brought together state and federal regulators, economists, major banks, debt collection agencies, debt buyers, consumer advocate attorneys, technology companies, members of the judiciary, credit reporting agencies, and more. The workshop was aptly titled ... Read More »

                            California Fair Debt Buying Practices Act Gives Consumers Rights

                            law books

                            If you are being hounded by a debt collector over an old debt and you live in California, you need to pay attention to the Fair Debt Buying Practices Act. Under that new California law the buyer of old debts who is now attempting to collect on the debt has certain hurdles to jump over before you have to pay. ... Read More »

                              Republican Senator Tells Hospitals to Stop Suing Poor People

                              It might not be right but it is what it is. Debt collectors and others know how to get you to do what they want by pushing your fear buttons. They do it because it works.

                              by Paul Kiel, ProPublica, and Chris Arnold, NPR, Jan. 22, 2015, 5 a.m. This story was co-published with NPR. Sen. Charles Grassley said nonprofit hospitals could be breaking the law when they sue poor patients over unpaid bills and issued a stern warning to one Missouri hospital that he hopes reverberates nationwide. Citing a ProPublica and NPR report, Grassley, R-Iowa, ... Read More »

                                Get My FREE Get Out of Debt Guy Newsletter

                                I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.You can unsubscribe at any time with just one click.After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.

                                I promise to keep your email safe and secure.