Consumers Union Pushes For Debt Collection Reforms

Consumer Reports public policy and advocacy department, known as, the Consumers Union, recently called on federal regulators to increase the protection of consumers from abusive debt collectors.

“Too often, consumers are harassed about debts that have already been paid off or that they never owed in the first place,” said Suzanne Martindale, staff attorney for Consumers Union. “Debt buyers often target consumers even though they can not prove that the debts are legitimate. It’s time to enact some common sense reforms that protect consumers from these unfair debt collection practices.”

The FTC analyzed over 5,000 portfolios of consumer debt involving nearly 90 million consumers owing an estimated $143 billion. The study covered 9 of the largest debt buyers.  The FTC found that consumers disputed an estimated 1 million debts each year but that debt buyers only verified 500,000 of those disputed debts.

To address widespread debt collection and debt buying abuses, Consumers Union has urged state and federal regulators to enact a number of reforms, including:

• End robo-signing and attempts to collect without proper documentation: Debt collectors should be required to document that they are attempting to collect from the right person, for the right amount, and on a debt that they can lawfully recover.

• Establish a sell by date for all debt: It should be illegal to sell or attempt to collect debt that is more than seven years old, which is too old to be reported on a credit report under the federal Fair Credit Reporting Act.

• Require debt collectors to provide more information to consumers: All debt collectors, including debt buyers, should be required to identify the name of the original creditor and to provide an itemized record of the total principal, interest, fees, and other charges that have been added to the debt, and to provide detailed records about the debt to consumers within five days after the first notification.

• Require debt collectors to submit more detailed information when filing suit: Debt collectors should be required to submit basic information about the debt, including the name of the original creditor and an itemized record of the total principal, interest, fees, and other charges that have been added to the debt, when they sue over a debt, so that the consumer can see if it is his or her debt, and in the right amount.

• Increase oversight to ensure consumers are properly notified of lawsuits: Courts should be required to provide supplemental notice of all filed debt collection lawsuits to debtors and default judgments should be prohibited if the notice is returned to the court as undeliverable.

The Federal Trade Commission, (FTC) reported that it handled over 180,000 consumer complaints about debt collectors in 2011 alone.

If you are being harassed by debt  collectors you may be entitled to compensation.  Please give my office, The Law Offices of Paul Mankin a call at (877) 449-8898

FTC Reaches Settlement With Telemarketing Companies

In 2012, The Federal Trade Commission (FTC) reached a settlement with SBN Peripherals, Repo B.V. and Asia Pacific Telecom Inc., telemarketing companies that reportedly called millions of consumers illegally.

According to the FTC, the 2 companies made approximately 2.6 billion calls to consumers from January 2008 through August 2009 with prerecorded  messages about lower interest rates or auto warranties that were about to expire. The calls lured thousands of consumers into buying expensive warranties that didn’t offer much protection or signing up for “worthless debt reduction services.”

The judgement, which was approved on March 22, 2012 bans Johan Hendrik Smit Duyzentkunst and Janneke Bakker-Smit Duyzentkunst, who operated the companies, from operating in the telemarketing industry. The settlement also includes a $5.3 million fine.

SBN used phone numbers registered to Asia Pacific Telecom Inc., with addresses in the Northern Mariana Islands, Hong Kong and the Netherlands, according to the FTC.

At least seven companies used Los Angeles-based SBN Peripherals’ dialing service to sell their products. One company, Miami-based Dolce Group Worldwide LLC, allegedly made nearly $4 million selling service contracts for automobiles, the FTC alleged in a separate suit filed in federal court in Miami. The FTC also alleged that more than $6 million over a two-year period was transferred from SBN to a Repo bank account in the Netherlands.

According to the FTC, Consumers would get a call with a message falsely claiming to represent their car manufacturer and have urgent information about their auto warranty. The recorded messages asked consumers to press “1” to receive more information. Consumers were then transferred to live telemarketers who, according to the FTC, sold “inferior” extended auto service contracts, priced between $1,300 to $2,485.

In regards to the credit calls, consumers were told in prerecorded calls that there was urgent information concerning their credit cards and then transferred to telemarketers who “induced” them to pay advance fees ranging from $500 to $2,000 “for worthless interest rate reduction services,” the FTC said.

Harassing telemarketing calls are also prohibited by the Telephone Consumer Protection Act, (TCPA).  if a telemarketer or debt collector is found to be in violation of either, you may be entitled to compensation.  Please give my office, The Law Offices of Paul Mankin a call at (877) 449-8898 for a free case evaluation.

 

$1.1 Million Settlement Reached Against Van Nuys Debt Collection Agency

A $1.1 million settlement was reached following federal allegations that Forensic Case Management Services, Inc., improperly bullied consumers to get them to repay overdue bills.  In addition to the money, David M. Hynes II and the other officers in the company are permanently barred from the debt collection business, according to the Federal Trade Commission.

Employees of the Forensic Case Management Services, which did business as Rumson, Bolling & Associates, violated federal law by berating and threatening people, as well as improperly disclosed information about those debts to employers, co-workers, friends and families of the victims.

“Several consumers reported that the defendants even threatened to dig up the bodies of deceased relatives for alleged nonpayment of funeral bills,”  according to the FTC.

In 2011, a federal judge halted the company’s operations.

Under the settlement announced Thursday, Forensic Case Management Services, Specialized Recovery Inc., and Commercial Receivables Acquisition Inc., along with Hynes and another company official, Lorena Quiroz-Hynes, agreed to a $33.8-million judgment.

None of the  defendants agreed to any wrongdoing, said their attorney, Christopher L. Pitet of Newport Beach.  “From Day One, we have denied doing anything wrong.”

In addition to the FTC, consumers are protected by the Fair Debt Collection Practices Act (FDCPA).  If a debt collector is found to be in violation of the FDCPA that debt collector may owe you money.

If you are being harassed by debt collectors please give my office, The Law Offices of Paul Mankin a call today at (877) 449-8898 for a free consultation.

Did A Debt Collector Call Your Work?

If so, you are not alone. According to the Consumer Financial Protection Bureau, 30 million Americans are currently subject to debt collection.

Because most debt collectors are on a commission or bonus schedule they can become very aggressive about collecting debts. While they generally are allowed to call your work, it is important to know what your rights are. If you have informed the debt collector that your employer does not permit you to accept non-business related calls then they may not call you there again. Also, according to the Fair Debt Collection Practices Act (FDCPA), the debt collector is not allowed to tell your employer or co-workers about your debt.

Debt collectors can contact your family members in an effort to try to locate a you, but they should only contact each person once and they are not allowed to tell them about your debt and are only allowed to identify themselves as a debt collector if they are asked.

Debt collectors are never allowed to threaten you, curse at you, represent themselves as attorneys if they are not or repeatedly call to harass you.  Also, as mandated by the Federal Trade Commission (FTC), debt collectors are only allowed to contact you between 8 a.m. and 9 p.m. in your time zone.

If you do not owe the debt and are contacted by a debt collector, you have 30 days to send them a letter stating that you do not owe the debt. The collection agency must then stop contacting you. However, according to the Federal Trade Commission, a debt collector can begin contacting you again if they send you written verification of the debt.

If you are being harassed by debt collectors in violation of the FDCPA you may be entitled to compensation.  Please give my office, The Law Offices of Paul Mankin at (877) 449-8898 for a free consultation.

The FTC Is Offereing Reward Money For Your Help To Stop Robo-Calls

The Federal Trade Commission,  (FTC),  is offering a $50,000 prize reward for the best technical solution to stop those annoying unwanted robo-dial telemarketing calls.

According to FTC spokesperson, Cheryl Hackley, between October 2011 and September 2012, alone the FTC received a whopping 2,260,021 robocall-related complaints.

Many scam robocalls originate from overseas and are illegal under the 2009 Telemarketing Sales Rule, which stipulates that a consumer must give written permission to receive a call from that entity.

In addition to the $50,000, the FTC Robocall Challenge winner will also retain intellectual property rights to their idea.  To enter the FTC Robocall Challenge you must live in the United States and be over 18.

The contest is open until January 17th, 2013 and the winner will be announced on April 1, 2013.  For more information about the contest please visit: http://robocall.challenge.gov/rules

If you are receiving unwanted robocalls you may be entitled to compensation. Please give my office, The Law Offices of Paul Mankin a call today at (877) 449-8898 for a free consultation.

FTC Files Complaint Against DISH Network

The Federal Trade Commission, (FTC) has filed a suit against Dish Network LLC alleging violations of the FTC’s Telemarketing Sales Rule, (TSR). According to the FTC,  Dish Network is a “seller” and “telemarketer” as such terms are defined by the TSR because the company sells satellite television programming to consumers and also markets its programming through a variety of methods, including telemarketing.  According to the complaint, since September 2007,  Dish Network has engaged in initiating millions of outbound telephone calls to phone numbers of individuals who have previously stated that they do not wish to be contacted by  Dish Network. Accordingly, the FTC argued that Dish Network violated the TSR’s entity-specific Do-Not-Call Rule even if the affected individuals were not on the national Do Not Call list.

If you are getting unsolicited calls from Dish Network, or any other telemarketers that you have told to stop calling you, they may be in violation of the Telephone Consumer Protection Act, (TCPA).  If so, you may be entitled to compensation, please call my office, The Law Offices of Paul Mankin at (877) 449-8898 to discuss your case.

Are The Telemarketers Promising To Reduce Your Debt Up To 50%For Real Or A Scam??

Ugh!  Unfortunately, there are many scammers looking to take advantage of the fact that in today’s slow economy,  many consumers are struggling with their finances.  These scammers take play on  your vulnerability with promises of  reducing your debt by up to 50%.

According to a Federal Trade Commission (FTC) complaint against Jeremy R. Nelson and his companies, Nelson Gamble & Associates LLC, Jackson Hunter Morris & Knight LLC, BlackRock Professional Corporation, and Mekhia Capital LLC ,  recorded sales pitches were used claiming to be “public service announcements.”  People were told that because President Barack Obama wants to help consumers get out of debt, people can settle for 50% of their debt owed.  In an attempt to not be identified, they allegedly “spoofed” their identity by transmitting phony caller ID information, so that consumers couldn’t track who was actually calling them.

The FTC alleges other violations, such as tricking consumers out of their Social Security numbers, bank account numbers, and security information under the pretext that the information was needed to pull the person’s credit report or confirm their debt-to-income ratio.

For people who signed up for the services, the defendants debited an up-front fee of $200 or more from their bank accounts before the defendants had settled any of their debts.

The complaint alleges that the defendants’ course of conduct violated numerous consumer protection laws, including the ban on robocalls to cell phones, transmitting deceptive caller ID information, and accepting fees upfront before settling consumers’ debts.  The complaint also alleges that the defendants violated the Electronic Fund Transfer Act and Regulation E, which bans debits to consumers’ bank accounts on a recurring basis without their written authorization and without providing consumers with a copy of the authorization.

If you have been the victim of robodial telemarketers to your cell phone you may be entitled to compensation.  Please give my office, The Law Office of Paul Mankin a call at (877) 449-8898 to discuss your case.

FTC Settles Cases Following Allegations of Illegal Use of Consumer Information

The Federal Trade Commission has settled 2 cases regarding improper use of consumer credit information. The 1st settlement resolves FTC allegations that Equifax Information Services violated the FTC Act and the Fair Credit Reporting  Act by selling lists of consumers who were late on their mortgage payments. Under this settlement, Equifax has agreed to pay $393,000. In a 2nd  settlement, Direct Lending Source, (the company that bought the information from Equifax and resold it) will pay $1.2 million and be barred from “using or selling  prescreened lists without a  permissible purpose, or in connection with  solicitations for debt  relief or mortgage assistance relief products or  services.”