15 usc 1692

What is the risk of suing a debt collector in Alabama? – Alabama Consumer Credit Attorney Judson E Crump

May 5, 2014 by Attorney Judson E Crump Leave a Comment

What is the risk of suing a collection agency?

So here’s a common scenario: you have a debt collector who’s bothering you and being so rude and deceitful that you’re virtually certain they must be breaking some law. But there’s one problem: you do actually owe the money. At least, you owed the money to the original creditor, and they seem pretty sure about their right to collect from you. If you sue them in Alabama under the Fair Debt Collection Practices Act, what will happen? Can they turn right around and sue you for the money you owe? It is possible, but unlikely. Particularly if your lawyer knows what he is doing.

As I’ve written before, debt collectors very often don’t have the witnesses and documents necessary to prove their case. So even if they do counterclaim, they may not win anything on the counterclaim. Sure, they could pony up and hire a real litigator to play hardball, but that rarely happens. Why? Because litigation is expensive, and debt collectors hate spending money. Their business is taking money in, not putting it out. And since the FDCPA requires them to pay your attorney’s fees if they are found to have broken the law, what seems like a simple collection suit can become an expensive, drawn out battle that can vastly outweigh whatever amount of debt they can prove that you owe. What usually happens is this: their lawyer calls your lawyer and they review the evidence. Once your lawyer convinces their lawyer that you actually have a case, they offer you a nuisance settlement amount. Then negotiations continue until they reach terms everyone agrees on. Ideally it involves a release of the debt, payment of your attorney’s fees, and cash in your pocket. So don’t be afraid. If the people dealing with you are breaking the law, they need to pay.

How to Request Validation of a Debt via the Fair Debt Collection Practices Act – Alabama Consumer Credit Attorney Judson E Crump

April 24, 2014 by Attorney Judson E Crump 3 Comments

One of the many rights that most people don’t know they have against debt collectors is the right to request validation of the debt. Once a collector starts coming after you for money, they are required to notify you of your right to request proof that you owe them the money. Think about it this way:

Imagine that you borrowed money from your friend Luke a few years ago. You made payments as you could, but eventually fell behind and Luke got tired of asking you for the money because he didn’t want to be a jerk and had better things to do than hound you all day for payment.

So you live your life for a while, until a guy named Porkins comes up to you on the street one day and says “You owe me $500.” What? You ask. “You owe Luke $500, and Luke told me I can come get it from you, so you owe me $500. Pay up.” Do you give Porkins your money? Of course not! At least, not without proof.

Change the names from Luke and Porkins to HSBC and Portfolio Recovery Associates, and you have the same situation that tons of people face today. The law doesn’t require you to pay Portfolio Recovery Associates unless they can prove that you rightfully owe them. You have the right to request proof that the debt is owed – it’s common sense! But the law is a bit deeper than that. If you request “validation” of the debt within 30 days of first hearing from the debt collector, then THEY ARE REQUIRED to send you proof that you owed the money to HSBC and that they were rightfully assigned the debt from HSBC.

So how do you assert this right? It is easy. Just write a letter. You don’t have to quote the statute, but you should just to make it clear that they know exactly what you want. The language can be as short as this:

“I received your recent communication stating that you were collecting an alleged debt owed to HSBC. I do not believe that I owe you or HSBC for this account.

Pursuant to 15 U.S.C. §1692g, I hereby request validation of this debt. Please mail it to the address below.”
Be sure to tell them your name, address, and the account number if you have it. If you don’t know the account number, give them the last 4 digits of your social security number.

If you don’t trust yourself to do it, here is an example that I’ve written myself:

FDCPA Validation Request

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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

February 10, 2014 by Attorney Judson E Crump 4 Comments

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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