Judson E. Crump, PC

Judson’s Guide to Debt Collection Rights, Part II: Debt Collectors Cannot Lie to You – Alabama Consumer Credit Attorney Judson E Crump

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The Second Right: Honesty

The second right you have when dealing with debt collectors is to hear the truth.  And nothing else.  This right is enshrined in 15 U.S.C. Sec. 1692e, which says “A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.”

Sounds pretty clear, right?  Well, as usual, the “truth” can sometimes be hard to define, so both the statute and the case law takes the analysis a step further and specifies all sorts of collection activities that have been found to be illegal.  Without a doubt, this is the single most often violated aspect of the FDCPA.  Why?  Because if debt collectors told the truth, the whole truth, and only the truth, the typical collection call would sound something like this: “Hello, my name is John and I’m calling from NCEP, LLC about an account you previously may have had with CitiFinancial.  We purchased this account for 5% of the face value, and we don’t have any documentation to prove the debt, but most consumers are scared of the legal system and completely unaware of their rights, so we make a lot of money by scaring folks like you into paying us money to make this go away.  That said, we’d like to ask you to politely pay us some money.  Please?”

The truth is dull and extremely disarming.  So they withhold most of what they know about the debt, and instead focus on alarming buzzwords that are statistically likely to scare the average citizen into paying some money.  Words like “lawsuit,” “court proceeding,” “wage garnishments,” “seizures,” and “legal action.”

Not surprisingly, they often say things which, at best, are suggestions bearing a twisted relation to reality, and at worst, are outright lies.

Here are some examples of the more common lies that debt collectors tell:

– Amount Owed.  They cannot lie about the amount, legal status, or character of the debt.  This means they cannot claim you owe more than you actually do – even by a penny!  They cannot say they have a lien on your home or vehicle if they do not.  They cannot say that the debt is a judgment if it is not.

– Identity.  They cannot lie about who they are.  They must disclose the name of their corporation.  Some collection scammers will use a made up name or will give you some quick abbreviation like “NCC” and then start talking really fast in a very threatening manner.  They can’t do that.  If they don’t have a physical address, they are not real.  A debt collector cannot pretend that it is a law firm, a government agency, the original creditor, or anything else besides exactly what it is.

– False threats.  They cannot say they are going to sue you if they aren’t.  If they say, “You have 5 days to pay us or we’ll take you to court,” and they don’t actually take you to court after 5 days pass, then they have broken the law.  They cannot threaten to garnish your wages unless they already have a judgment.  They cannot threaten to tell your family, to tell your boss, to report to the credit bureaus as a condition of payment.  They cannot tell you that they’ve been authorized to settle for no less than $5,000 if they’ve actually been authorized to settle for $3,000.  These rules apply to law firms as well – so if you’re dealing with a collection lawyer, they have to follow the law as well.

– False Credit Reporting.  A debt collector cannot report false information to a credit bureau.  So for instance, if a debt collector is asking you for $1,200 on a debt that you paid down to $900, and they are reporting a balance owed of $1,200 to the credit reporting agencies, then they are breaking the law in two ways: by asking you for more than you owe and by reporting false information to the credit bureaus.

– False Accusations.  A collection agency cannot accuse you of committing a crime.  They cannot say that you will go to jail if you don’t pay.  You cannot go to jail for not paying a debt.  Period.

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Judson’s Guide to Debt Collection Rights, Part I: What Makes a Collection Call Illegal? – Alabama Consumer Credit Attorney Judson E Crump

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If you are being bothered by debt collectors, there is one very important thing you must know: YOU HAVE RIGHTS.  If yours have been violated, call the law office of Judson E. Crump at 251.272.9148.

What sort of rights, specifically?  Basically, you have four rights when dealing with debt collectors: 1) to be treated with dignity, 2) to be spoken to honestly, 3) to have your personal business kept private, and 4) to be informed about the nature of their claims against you.  Now, the text of the Fair Debt Collection Practices Act (15 U.S.C. Sec. 1692) is much longer than that.  Why?  Because debt collectors have, over the years, tried hundreds of tricks to try and weasel out of their basic obligations and the law has evolved to try and keep up with them.  As a general rule, if you think that a debt collector may be doing something illegal, they probably are.  But people need to know as much about their rights as possible.  As an attorney, one of my duties is to use my own knowledge and position to educate the public and help you understand your rights.  What can debt collectors do?  What can’t they do?  And more importantly, what can you do about it?

So here is my definitive Guide to the Alabama Citizen’s Rights Against Bad Debt Collectors.  It is a work in progress, and I will update it as needed to keep apace with new developments in the law.  I invite my fellow attorneys to email me if they have suggestions or questions.

Because I practice in Alabama, where state law provides no real protections against bad debt collectors, this guide will focus on the federal laws that protect every American citizen and resident alien.  Your state may have more protection, and if you aren’t sure, I always suggest that you call a good consumer protection attorney and find out.  One thing to remember is that these rules do not apply to original lenders – only to people collecting on their behalf – collection agencies, law firms, attorneys, debt buyers, etc.

 

The Alabama Citizen’s Guide to Fair Debt Collection

Your First Right: Dignity

Just because you owe someone money does not make you a slave, a bad person, a second-class citizen, a sinner, or a whipping boy.  Certainly, legitimate creditors have the right to make contact with you and to try to convince you to pay them.  But that’s about it.  The first protection that the law gives people in debt is the right to be accorded a basic degree of dignity: you cannot be abused, harassed, insulted, or offended.  Specifically, they cannot:

 – Use profanity.  Period.  If they are using curse words – any curse words – they’re crossing the line.

– Insult you.  They cannot call you bad names or try to shame your sense of humanity.  Examples: telling you that you’re a bad husband or wife, a bad example to your children, a moron, or a deadbeat.

– Make racial or religious comments.  If they say that you’re not a Christian, or that “its typical” of “people like you” to not pay them, they’re breaking the law.  They cannot say that God is going to be angry.

– Call too often – this requirement is a bit hazy, but there is a point where even legitimate collection calls cease to be attempts to communicate and become harassment.  If they’re calling 10 times a day for a week, they’re probably breaking the law.

– Call you too early or too late.  Specifically, they cannot call you before 9:00 AM or after 8:00 PM.  If you have told them that you have young children who must be in bed at 7 pm, and they keep making the home phone ring after the kids are in bed, they’re crossing the line.

– Call you at any time or place that they know to be inconvenient.  For instance, if you’ve told them that you are not allowed to take personal calls at work, and they do it again, they’re breaking the law.

– Call you after you have notified them in writing that you refuse to pay them.

– Call you after they know that you are represented by an attorney with respect to their debt.

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Running a Law Firm without Internet = IMPOSSIBLE – Alabama Consumer Credit Attorney Judson E Crump

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Today, I finally got the internet installed at my new office.  Yes, I only had to wait 1.5 days after my grand opening, but let me tell you: it was horrible.  I pride myself on being more technologically advanced than any other debtor’s attorney in town (which, in Mobile, Alabama, is easier than in most places), but living right next to the Information Superhighway (remember when people used to say that, back in the 90s?) has one drawback: you can’t do much without it.

Now, it wasn’t actually impossible: I was able to work from home.  But it was a pain.  Working from home may be an ok idea for those 29 year old hipsters who live in big cities and have no kids or families, but if you have a 3 year old kicking noisy toys down the stairs and a 9 month old grabbing your pants leg to try and get you to pick him up, you don’t get much accomplished – other than make your wife happy because she finally gets a break while the babies crawl over you for a change.

But fortunately, I’m BACK!  Expect more groundbreaking legal strategy, Gulf of Mexico Oilwell-deep insight, and biting social commentary to come.

What protections does Alabama Law give you against Debt Collection Harrassment? – Alabama Consumer Credit Attorney Judson E Crump

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Alabama law provides very few consumer protections against illegal debt collections. Unlike states like Florida that have their own fair debt collection statutes, Alabama has no specific statute that declares certain debt collection activities illegal. That does not mean that Alabama citizens are utterly without protection against unfair debt collection practices – federal laws like the Fair Debt Collection Practices Act cover the entire United States, and provides important rights to people who are facing collection harassment. But it does mean that you (and your attorney) will have to be diligent in preparing your strategy for dealing with bad debt collectors.

All that said, Alabama does have some useful law. Harassing communications is a criminal offense, and is committed when one Telephones another person and addresses to or about such other person any lewd or obscene words or language.” Ala. Code Sec. 13A-11-8(b).  The fact that it is a crime does not mean that you can get the local DA to prosecute the collectors who are calling you, but it does mean that conduct that violates the criminal code can usually be used against the debt collectors in a civil suit.

Alabama also has the Alabama Deceptive Trade Practices Act.  It is not a very broad law, but when it applies, you can take creditors and debt collectors to court for treble damages and attorney’s fees.  One of the good things about the DTPA is that it applies not only to collectors collecting on behalf of others, but to the original creditor as well.  Contrast this with the federal Fair Debt Collection Practices Act, which does not apply to original extenders of credit.  The downside of the Alabama DTPA is that before you can sue someone for violating it, you have to write them a letter explaining what they’ve done wrong and give them the chance to make it right.  I learned this lesson the hard way once, when suing a debt collector under the DTPA, the creditor’s attorney rightly answered that count of my complaint by pointing out that I had not given them the pre-lawsuit notice. (NOTE: In that case, I still had other counts that did succeed – I always try to attack with several weapons at once, in case some fail.)

An Holistic Approach to Debt – Alabama Consumer Credit Attorney Judson E Crump

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So after years working for volume bankruptcy filers, I have decided to start my own firm, dedicated to an entirely new way of helping the struggling families of Alabama: an holistic, creative approach to getting people out of debt.  The sad truth about the modern bankruptcy practice is that most people who file bankruptcy don’t really need to.  Bankruptcy should be a last resort, not a first resort.  But that isn’t how it works.  The bankruptcy system invo Rather than simply filing bankruptcies to “process” clients through the office, I look at the big picture. If we can avoid bankruptcy and accomplish the same goal, that’s what we’ll do.

Most people have no idea how debt collection works, how to defend themselves, or how to minimize the damage.  That’s fine, as long as you know a lawyer who does.  I love getting people out of debt, I love hitting greedy predatory lenders for ripping off poor people.  I’ve written a book about it.

I fight debt collection suits in court. I negotiate discounted settlements. I fight back when banks, credit card companies, debt collectors, and mortgage servicers treat people unfairly. This is a new way of doing business in South Alabama, and a long overdue service to the people here.

"Licensed in Alabama and Texas. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The use of this website DOES NOT establish an attorney-client relationship between Judson E. Crump, PC and you."