Quick Answer: Massachusetts issued guidance in March 2012 defining debt validation requirements, which include the debt amount, creditor name, and a 30-day dispute notice. This state regulation provides the clearest legal definition of what debt collectors must provide when validating debts.So much stuff has been written advising people to get their debts validated. I’ve asked …
Quick Answer: A federal court ordered payday lender Joe S. Strom and his companies to pay $294,536 for illegally garnishing borrowers’ wages through deceptive “wage assignment” clauses that violated FTC Credit Practices Rules. The defendants used inconspicuous contract terms to automatically deduct loan payments from consumers’ paychecks without proper legal authority.Defendants in a payday lending …
Quick Answer: Debt validation can stop robo-signing debt collectors who file lawsuits without verifying debts, as demonstrated by Minnesota’s lawsuit against Midland Funding LLC. Midland employees admitted to signing up to 400 affidavits daily without reading them, often for decade-old “zombie debts” purchased for cents on the dollar.The following guest post was contributed by Michael …
Quick Answer: Asset protection services like Asset Guard may help shield bank accounts from creditors, but Texas already provides strong protections including wage garnishment immunity and homestead exemptions. The reader’s $25,000 credit card debt across 10 cards requires immediate action, but closing bank accounts for money order payments creates unnecessary complications when state law already …
Quick Answer: Consumer attorney Jason Rapa emphasizes that debt validation alone cannot prevent lawsuits, as debt buyers routinely sue for amounts as low as $90 even without proper documentation. Rapa advises avoiding expensive debt validation companies and instead hiring a licensed attorney, noting that only a small percentage of sold debt could actually be validated …
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