Fair Debt Collection Practices Act Blog

Debt Collectors often try to collect on Zombie Debts or really old debts that should have died a long time ago, yet, they somehow survive just like a zombie and keep on coming after you.

Please watch this video to learn how to deal with zombie debts.

Attorney Carmen Dellutri of the Dellutri Law Group, tells you exactly how to deal with Zombie Debt Collectors.

Continue reading "Can A Debt Collector Collect On Zombie Debts Or Old Debts?" »

As a Consumer Bankruptcy Attorney, I meet with people all the time who are experiencing debt collection problems. One of the things that drives me crazy are the small lawsuits: credit cards, medical bills, etc that are brought by a debt collector five times removed. The reason they annoy me so much is because they prey on people's fears.

If people really knew the facts about these debt collectors and what they have to prove to win their cases, things in the small claims and civil courts would change.

Continue reading "The Best Reasons To Defend Your Credit Card Lawsuit Part I" »

The law encourages assignment of contracts. When your debts are sold to a debt collector, you do not lose your legal rights.

Continue reading "What Happens If My Debt Is Sold To Another Debt Collector?" »

Attorneys Carmen Dellutri and David Fineman of the Dellutri Law Group, P.A. discuss what to do if you receive a letter from a Debt Collector.

Continue reading "What Should I Do If I Receive a Debt Collection Letter?" »

As a Consumer Protection Attorney, I get asked this question quite often, and the answer is always a qualified Yes and No. Let me explain: The first inquiry we have to make is who is the creditor and who is trying to collect the debt. Once, we determine who the creditor is: Let's say it's Visa Card. A typical unsecured creditor.

Then we have to determine who is attempting to collect the debt. Is Visa Card attempting to collect their own debt or did they hire out the debt collection process to a third party debt collector?

This is very important because if Visa Card is attempting to collect their own debts, then we are playing by one set of rules, and if they hired a third party debt collector to collect on the debt, we are playing by another set of rules.

Continue reading "Can A Debt Collector Call You If You Have An Attorney?" »

This week the Internal Revenue Service announced that it is once again offering amnesty to delinquent tax payers. The IRS will allow individuals to pay penalties and avoid jail time. This initiative follows a similar one in 2009 that the IRS deemed to be a success. Of course, the Government has only completed review of 2000 of the reported 15,000 taxpayers cases. Isn't this typical.

The IRS states that an additional 3000 taxpayers came forward after the last amnesty program ended. I think this is great. However, if the IRS doesn't have the manpower to deal with these individuals, why do another amnesty program? Is the United States broke????

Continue reading "IRS Amnesty Program And Thoughts On Income Taxes" »

When credit card companies sue for an amount owed, a consumer may see these two: Open Account or Account Stated and wonder what they are. Although there are several causes of action at a credit card companies disposal, the most prominent among those being breach of contract and damages, Open Account and Account Stated are usually included.

I want to focus on these two causes of action frequently relied on by credit card companies: Open Account and Account Stated because these are the most misunderstood by the consumer.

To properly bring a claim for Account Stated the Plaintiff must allege two elements: (1) that there was an agreement between the parties that a certain balance is correct and due, and (2) there existed an express or implicit promise to pay that balance. When this claim is used, there will often be a paragraph in the complaint alleging that the debtor made no objection to the amount due. Usually, we can object to this claim as consumers usually do object in some fashion.

Continue reading "Open Account vs. Account Stated" »

In part one of this blog I discussed why a short sale is better than a foreclosure. What can one do to try to avoid having to experience this nightmare? Short Sale the property! A successful Short Sale can result in a win-win scenario for all parties involved. A Short Sale is an opportunity for the Mortgagor to try to prevent any version of the foreclosure nightmare while trying to actively mitigate the losses for all involved. A successful Short Sale handled by a Real Estate Attorney may result in the Bank or Lender releasing the lien of the Mortgage and also canceling (forgiving or writing off) the Promissory Note and providing a full release of their deficiency judgment rights. The best outcome of a Short Sale is the issuance of a 1099C which will be discussed in future blogs.

Continue reading "Is A Short Sale Better Than A Foreclosure Part II?" »

Dorothy Rhue Allen lived in her home and paid each and every mortgage payment on a 30 year mortgage for 29 years and 11 months. She missed her last payment of $432 because she was in the hospital. Rather than allow her to just make up the payment, the bank (servicer) foreclosed. When Ms. Allen purchased the home in 1976, she borrowed $40,000.00. Assuming that her payment was $432 for the last 29 years and 11 months, Ms. Allen had paid $155,088.00 over that time. According to her attorney, Ms. Allen was in the hospital and missed the last payment.

Continue reading "LaSalle (Bank of America) Forecloses On $432 Debt ? " »

Recently, there have been two cases of interest where the Debt Collectors have been getting sneakier. It seems that the Debt Collectors are now starting to impersonate Courts and Sheriffs.

This is a sign of the times, and I'm sure this is not the end of the scams that the Debt Collectors will employ. I don't know if it is a sign of their desperation or whether they actually think that consumers are so scared that they can take advantage of them while breaking the law themselves.

Continue reading "The Debt Collectors Are Getting Sneakier" »

The Dellutri Law Group is proud to announce that it's newest website is live. The website can be found at www.consumerlawissues.com. Or, you can just click on one of the links. The website contains videos from the firm's weekly call-in television show, The Consumer Protection Program.

Continue reading "Consumer Protection Program Website Is Live" »

I sue Debt Collectors for harassing and abusive conduct in collecting debts. One thing that I have to say is that some of the debt collectors are very creative.

We’ve heard to be cautious with social media for purposes of employment and crime, but it appears there is another predator that preys upon the posts and friends on person’s social media sites – debt collectors. The ABA Journal Law News has recently reported on a lawsuit against a debt collection company out of Jacksonville, Florida where the allegations assert very normal, yet illegal, tactics of contacting friends and family over another person’s debt by the debt collection company. The twist in the case comes from the method of contact; not by phone or mail but rather, Facebook. While the debt collection company did not comment on the suit, it did acknowledge that the company will use social networking sites to contact individuals when contact cannot otherwise be made.

Continue reading "Debt Collectors Are Using Social Media To Collect" »

As a Consumer Lawyer who fights debt collectors for abusive debt collection practices, I have heard many debt collection nightmares. Recently, I read an article that honestly did not shock me after hearing numerous stories from clients who told me they were surprised to find out that they had a judgment against them. The article is about a process server and officer manager that have been criminally charged in false service filings for debt collectors in Las Vegas. I truly hope this conduct is isolated but would not be surprised to find out it isn’t. It seems the process server was allegedly attempting to help a debt collector obtain default judgments in debt collection lawsuits.

Continue reading "Abusive Debt Collection…Is There No End To Their Abuse?" »

As a Consumer Lawyer helping people deal with abusive debt collectors, I listen to consumers tell me things that shock me. Unsurprisingly in today’s economy, a recent MSN.com popular search expose showed popular searches on the following: “Lawsuits and collectors,” “Fair Debt Collection,” “Fair Debt Collection Lawsuits,” “Things debt collectors can’t do,” “Violating the collection law,” and “Complaints about bill collectors.” Why do you think this is?

Continue reading "Abusive Debt Collection Is On The Rise" »

If you are a Consumer who is being hounded and harassed by a third party debt collector, you have the right under the Federal Fair Debt Collection Practices Act to get them to stop the harassment. All you need to do is draft what I call the Good Old Drop Dead Debt Collector Letter.

Here is a sample.

ABC Debt Collector
123 Dirt Bag Lane
Anywhere, Kentucky, 666 666

Re: Your Name
Original Creditor
Original Account Number
Debt Collector's Account Number
XXX-XX-Last Four Digits of Your Social (Never Give Your Complete SSN)

Dear Sir or Madam:

Recently your organization has contacted me about a debt that I allegedly owe. I know that I am protected by the Federal Fair Debt Collection Practices Act from third party debt collectors, and therefore, pursuant to this Federal Statute, I hereby Demand that you stop contacting me with regard to this alleged obligation. I will not tolerate harassment from your organization or any other debt collectors.

Have a Nice Day

Name/ Signature

I know it is a little expensive, but, I would recommend that you send this letter CMRRR, and I would suggest that you keep the Green Cards once you receive them back from the Post Office.

Continue reading "Drop Dead Letter for Debt Collectors" »

As a consumer protection attorney, I always advise clients to request, in writing, that debt collectors provide verification of the alleged debt. To put this in perspective, let's say that you receive a letter from a debt collector and you are not sure if this is your debt.

You have thirty (30) days to request verification of the debt. Your thirty (30) days begins to run from the day that you receive the notice that the debt collector must verify the debt. If you wait too long (beyond the thirty (30) days), the debt collector no longer has to verify the debt. So, you want your debt verification letter to be perfectly clear and you want it to be timely. A subsequent blog will address what to put in the debt verification letter.

Please don't put this aside because you don't want to deal with it now.

I want the request in writing, and I want a copy of the envelope with a post mark on it, if possible, or, I want to see that the debt collector received the request by certified mail return receipt requested.

At the Dellutri Law Group, we represent individual who have been harassed and abused by the debt collectors, and we want to empower everyone with the knowledge of their legal rights. We just want everyone to know that debt collector abuse is illegal.

Continue reading "Always Request Verification Of A Debt In Writing." »