Our firm negotiates with your creditors, obtaining lower monthly payments that work for your budget. Many of our clients call us after being harassed by debt collectors. The Consumer Financial Protection Bureau recently highlighted the practice of collection agencies that violated laws as a means to getting consumers to pay their debts.
Under the Fair Debt Collection Practices Act, collectors are prohibited from making misleading representations when collecting a debt. The CFPB reviewed collections lawsuits initiated by collectors, and 70 percent of the time, the collection agency dropped the case when consumers filed an answer (meaning they believe they do not owe some or all of the debt pursued by the collector). The reason? The agency couldn’t find the documentation to support its claims.
The collectors never intended to follow through on the lawsuits, the CFPB said, making them a violation of FDCPA.
Read more about bad debt collection practices.
The courts are trying to put an end to unfair collection practices. Just last week, a U.S. district court put a stop to two debt collection operations that employed threats and deceptive tactics in attempts to collect $3.5 million in payday loan debts that consumers didn’t actually owe. Read more about this court decision over on the Consumerist website.
If you’re having problems with debt and debt collection, contact the Law Office of Jordan Schwartz.