Debt Collection
The Most Common Types of Debt
The most common types of debt involving debt collectors are credit card debt, deficiency debt after the sale of a vehicle or home after repossession or foreclosure, medical debt, student loan debt or debt that is not owed. There are additional types of debt such as personal loans, cell phone bills, utility bills, bank overdraft charges, auto loans, payday loans, etc. many times these debts are sold to a debt buyer by the creditor when the creditor is unable to collect the debt from the consumer.
Consumer Rights
The purchaser of the debt is commonly referred to as a debt buyer. Your rights as a consumer may vary depending on who is pursuing you for the debt in question. There are certain laws that apply to creditors and certain laws that apply to debt collectors and debt buyers. Either way a debt collector or creditor and/or their law firms may be liable to you for damages if either do not follow federal law and the laws of your state when attempting to collect or collecting a debt from you. The debt collector’s law firm is also a debt collector under most consumer protection laws so the laws discussed may apply to both the debt collector and the debt collector’s law firm.
Debt collectors and creditors must follow the law
Is a debt collector attempting to collect a credit card or student loan debt from you? How about a deficiency debt after repossession or foreclosure? Medical debt? Are they calling all the time? Leaving voicemails? Making threats? Served you with a lawsuit? Debt collectors and creditors must follow federal and state laws. CJE may be able to help as CJE has a history of bringing debt collectors, banks and other players in the debt industry to justice by fighting on behalf of consumers in both the courtroom and the boardroom to enforce your rights. With CJE you will deal directly with the debt defense attorney handling your matter. Contact CJE for a free consultation.
Help...I received a Summons!
You’re being sued by a lender or debt collector. Don’t ignore the lawsuit or summons. Respond to the summons within the time frame provided or immediately contact CJE. Ignoring the lawsuit is exactly what the creditor or debt collector wants you to do because it enables either to obtain a hassle-free judgment against you. After receiving a judgment they can pursue you for years through wage garnishment through your employer. Armed with a judgment a debt collector/debt buyer/creditor can also seize cash from your bank account.
How often do debt collectors take you to court?
Very often or all the time. Debt collectors deal in default judgments and consent judgments. Therefore, the best thing you can do for a debt collector is to ignore the lawsuit and not show up for court on the designated date on the summons. Or, if you do show up for court, you show up without a lawyer and the debt collector dupes the consumer into signing a stipulation or settlement agreement where you agree to both make payments and consent to judgment being entered against you if you miss a payment (most consumers inevitably miss a payment). This is called a consent judgment. In either scenario, the consumer may end up waiving all defenses he/she has against repayment of the debt. Though you may strongly believe you owe the debt the law may say you do not.
Judge must remain impartial
Unfortunately, throwing oneself upon the mercy of the court is a myth. The judge cannot help the consumer against the debt collector because the judge is required to stay neutral and the debt collector’s lawyer is there to make sure that is the case. So, though the judge may speak in soothing tones and may appear to have empathy for your situation the judge may be delivering impartial justice with sugar instead of vinegar. If you don’t timely assert your defenses in court then the court will simply enter a judgment in favor of the debt collector. The way to even the playing field is to have your own lawyer to fight back. You may have defenses but if you don’t know what the defenses are then you can’t assert them in court. Contact CJE for a free consultation and find out from a debt defense lawyer what your options are.
The debt collector will have a lawyer when you show up to court, you should also.
Leveling the playing field for the consumer
I'm in Court!
Consumers can ask the court for a continuance until they can speak with a lawyer hired by the consumer. If a consumer intends on retaining their own attorney then signing anything offered by the court or the debt collector/creditor/lender/credit union can affect your rights and defenses. Especially anything offered to you by way of settlement, payment agreement or stipulation typically offered by the debt collector/creditor /lender/credit union before you can become informed by speaking with your own attorney. Signing any document may waive your right to a jury trial and/or any defenses that you may have. However, the consumer can politely state that he/she would prefer to speak with their own retained attorney before signing anything offered by the court or the debt collector/creditor’s attorney.
Consent Judgments
The debt collector will try very hard to get you to sign an agreement or stipulation to make payments so that when you default (most consumers default), the debt collector or creditor can collect a consent judgment against you from the court without ever having to litigate their claim. The last person the debt collector or creditor wants to face is a lawyer retained by the consumer that is experienced in consumer protection law. So make sure that that is exactly who you put forth to fight this battle for you. Immediately upon leaving the court contact an experienced consumer rights lawyer to explain to you your options.
Contact CJE
CJE brings debt collectors, credit unions, banks and other players in the debt industry to justice by fighting on behalf of consumers in both the courtroom and the boardroom to enforce your rights. Contact CJE for a free consultation and deal directly with a consumer debt attorney to find out your options.
Don’t Allow an Uncollectable Debt to Be Converted Into a Valid Judgment
Debt collectors threatening legal action
Dealing with debt collectors and their law firms can be a traumatic experience especially when they are acting unlawfully. Are you being harassed by a debt collector? Is the debt collector falsely threatening legal action? Are you receiving harassing calls from debt collectors? Are you the wrong person? You do not have to suffer debt collection abuse in silence. You have rights. If you retain a lawyer, the debt collector must deal with the lawyer and can no longer contact you directly.
FDCPA and local laws
The debt collector’s law firm is also a debt collector under consumer protection laws. The Fair Debt Collection Practices Act and District of Columbia and California local laws provides protections to consumers against abusive, deceptive, unfair and aggressive debt collection practices from debt collectors, debt buyers, creditors and their lawyers. The consumer may recover damages for violating such consumer protection laws. The FTC provides a summary of some of your rights here. CJE is an experienced debt harassment attorney that can explain to you your options.
What is Happening?
- Is the debt collector calling you late evenings or early mornings?
- Is the debt collector calling you multiple times per day?
- Are you being called on your cell phone?
- Is the debt collector calling you at work?
- Is the debt collector calling your friends and family?
- Are you being threatened with jail?
- Is a debt collector threatening you with violence?
- Is the debt collector using profane or obscene language?
- Is the debt collector misrepresenting the amount/status of the debt?
- Is the debt collector contacting you about debt you do not owe?
- Is the debt collector misrepresenting his/her identity in order to get you on the phone or to make contact? e.g. police, attorney, false company name, officer of the court
Steps to Take:
- Keep track of and save all communications from the debt collector (call log, letters, voicemails etc.)
- Dispute the debt by requesting, in writing, a letter from the debt collector verifying the debt at issue. If you send a dispute letter within 30 days from the date the debt collector first contacts you the debt collector must send a written verification of the debt before continuing to collect.
- Contact a consumer rights lawyer to explain your options
- When you retain a lawyer the debt collector can no longer contact you they must deal with your lawyer
The practices described above can be considered abusive and a violation of consumer protection laws in the District of Columbia and California. Contact CJE, an experienced consumer protection attorney, for a free consultation and find out what your options are.
Leveling the Playing Field is CJE’s Job
I'm on active duty and being contacted by a debt collector!
The Servicemembers Civil Relief Act (SCRA) provides protections for active duty service members. The SCRA provides an array of financial security related protections for active duty servicemembers and members of their families. See more about your rights here. The SCRA covers rental agreements, security deposits, prepaid rent, payday loans, repossessions, eviction, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosure, civil judicial proceedings, automobile leases, life insurance, health insurance and income tax payments. The SCRA may also provide benefits to those who co-signed for a loan with a servicemember.
You may have a claim
For example, before a lender/debt collector obtains a judgment from the court, the lender/debt collector must also file an affidavit stating your military status. If the affidavit states that you are not on active duty when you in fact were or no affidavit is filed, you may have a claim against the lender for violating the SCRA. There are also protections relating to the amount of interest a lender or debt collector can charge while you’re on active duty.
Contact CJE for a free consultation and find out what your options are.
