Buffalo NY Collector Shut Down

Over the past several years, many Arizona consumers have called with stories of harassment and threats by collection agencies or debt buyers from Buffalo New York. The threats include arrest, criminal action, legal action, loss of one's home and car, contacting employer, etc. Though these threats seem obviously illegal, many debtors get scared and pay these criminals money.

The Syracuse.com website recently posted a news article on Maurice Sessum, a Buffalo debt collector and owner of the collection agency 4 Star Resolution, was sentenced to 7 1/2 years in prison for fraud. Sessum was operating a collection which scammed thousands of consumers to overpay their debts by $31 million. 

The article outlines many of the false statements used by 4 Star and Sessum to defraud consumers, including:

• that 4 Star was affiliated with local government and law enforcement agencies

• that debtor had committed crimes, and if debt was not paid immediately, they would be arrested

• that driver's license would be suspended if debt not immediately

• false threats of legal action

Anytime you receive a call from a collector, make sure you know who they are, including the name and address of the agency, and that they have a legitimate claim that you owe them money. You can check to see if they are licensed by the Arizona Department of Financial Affairs here. (A company collecting its own debt does not have to be licensed.) Most importantly, if there is any doubt that the company is legitimate, contact a consumer protection lawyer. 

You can always call the Bybee Law Center, PLC at (480) 756-8822 to discuss a collection call. 

DEBT COLLECTOR REFUSES TO PAY JUDGMENT

Hutchinson Kansas debt collector National Credit Adjusters, LLC, which has offices in Arizona, refuses to pay a valid federal court judgment entered against it and in favor of an Arizona consumer.

National Credit was sued for violating the federal Fair Debt Collection Practices Act, or FDCPA, when it attempted to collect on an internet payday loan which was void under Arizona law. The payday lender, Plain Green, LLC, offered internet payday loans to Arizona residents. However, the Arizona law which permitted payday loans expired on June 30, 2010, making all payday loans made after that date to Arizona consumers void and uncollectible. 

National Credit Adjusters failed to defend the lawsuit and the judge entered a default judgment against the collection agency. Even though several demands have been made to National Credit to pay the judgment, it has refused.

Once again, the collector now becomes the collected!

If you are receiving collection calls from National Credit Adjusters, LLC concerning a payday loan, you should seek the advise of a consumer lawyer who has extensive experience in these types of cases.

For a free phone consultation, please contact Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 .

Portfolio Recovery Associates Sued For Collecting on a Settled Debt

Portfolio Recovery Associates, LLC, or PRA is a huge debt buyer that files thousands of law suits every year to collect debts it has purchased for pennies on the dollar. PRA files hundreds of collection suits here in Arizona.

My office recently filed a case under the Fair Debt Collection Practices Act or FDCPA against PRA for attempting to collect an alleged balance on a judgment which had been settled in full, and which had been set aside by the justice court so there was no longer a judgment.

Collection Abuse Continues Against Arizona Consumers

As this case illustrates, collection abuse by collection agencies, zombie debt buyers, and their collection lawyers continues in spite of federal law prohibiting their actions. The FDCPA prohibits a debt collector --- including collection agencies, zombie debt buyers, and collection attorneys --- from misrepresenting that a debt is owed when it is not. The FDCPA also prohibits a debt collector from attempting to collect amounts not owe, including aksing for payment of a debt which has already been settled. 

Maricopa County Superior Court Confirms Four Year Statute of Limitations in Auto Sales Contract

Maricopa County Superior Court reaffirms Four Year Statute of Limitations in Deficiency Claim

In the Case of Autovest, LLC v. Randall, CV2014-013134, Maricopa County Judge Karen A. Mullins reaffirmed that the statute of limitations to collect on a deficiency balance for an auto loan after repossession is only four years. If the car was purchased using a Retail Installment Sales Contract, and the dealer arranged the financing, then the statute of limitations runs four years after the car is repossessed.

Complete Defense to Colleciton Action

In Arizona, if you are sued by a lender for a deficiency balance after repossession, and the lender has waited four years or more to file suit, they you should have a complete defense to the collection action. Meaning, you should be able to get the case dismissed and not owe anything.

Asset Acceptance LLC Sued Arizona Consumer for Navy Federal Credit Union Account which is Past the Statute of Limitations

Recent client inquiries reflect that Asset Acceptance LLC, a large national debt buyer who claims to have purchased a large portfolio of debts originating with the Navy Federal Credit Union, is suing Arizona debtors on these debts. In a recent case I investigated, it appears that the Navy debt is well beyond the applicable statute of limitations in Arizona for credit card debt which is now 6 years. Calls from other Arizona consumers confirms this may be happening on a regular basis.

Despite the underlying debt being stale (past the statute of limitations), Asset has filed suit using one of its Arizona law firms Fulton, Friedman & Gullace. It is common knowledge that many debt buyers file suit hoping that Arizona debtors will ignore the law suit and the debt buyer will obtain a default (meaning uncontested) judgment. Once the judgment is entered, the claim becomes valid and the debt buyer can garnish wages or bank accounts to collect the debt.

Not only are these stale debts completely defensible, the federal Fair Debt Collection Practices Act (FDCPA) prohibits such actions. Under the FDCPA, an Arizona consumer wrongfully sued by Asset can seek recovery of damages from the illegal lawsuit.

Protect Your Rights. If you are an Arizona consumer who has been sued by Asset Acceptance LLC on a Navy Federal Credit Union account, please contact Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation.

Commercial Recovery Systems, Inc. Sued for Harassing Arizona Consumer

My office recently filed suit under the federal Fair Debt Collection Practice Act or FDCPA against Commercial Recovery Systems, Inc. (“CRS”) for calling and harassing an Arizona consumer over a debt which was beyond the statute of limitations. The complaint alleges that the debt is stale and beyond the Arizona statute of limitation to collect by legal action, yet CRS telephoned and threatened this Arizona debtor with legal action, including threats of wage garnishment, freezing of her bank account, taking her income tax refund, and placing a lien on her current vehicle if she did not pay.

The FDCPA protects Arizona consumers from these types of threatening calls from collection agencies. In this case CRS’s alleged actions are even more egregious since the collector’s manager got on the phone and confirmed that these actions would in fact be taken unless the account was paid.

If you are an Arizona consumer who is receiving harassing or threatening collection calls from Commercial Recovery Systems, Inc. or other collection agency, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see what your rights are.

Northland Group Incorporated Sued for Collecting on Settled Debt

In December 2012, my office filed suit on behalf of an Arizona consumer who had previously settled her debt through Northland Group, and who was then subsequently contacted by Northland to collect on the same settled debt.

The Fair Debt Collection Practice Act or FDCPA protects Arizona consumers from receiving collection activity on an account which is not owed. In this case Northland’s actions are extra egregious since the account was settled through it and it knew that nothing more was owed on the account.

If you are an Arizona consumer who is receiving collection calls or letters on an account that you do not owe, or one that was previously settled, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see if I can help you.

COLLECTION AGENCIES USE FAKE CALLER ID TO DECEIVE ARIZONA CONSUMERS

Collection agencies are increasingly disguising their real identity by using fake caller ID to get Arizona consumers to pick up the phone. When a debtor fails to answer collection calls, collection agencies are using local numbers or common business names in the caller ID line to get people to answer the calls.

Even though there are regulations and laws against “caller ID spoofing,” collectors use it as a way to get consumers to pick up their phone.

However, a collection agency violates the Fair Debt Collection Practices Act (FDCPA) if it “spoofs” its identity in a call to a consumer to collect a debt.

If you are an Arizona consumer who has been contacted by a third-party debt collector or debt buyer and feel that their collection actions were deceptive, unfair, harassing, or abusive, please call attorney Floyd W. Bybee at (480) 756-8822.

West Asset Management Inc. Agrees to Pay $2.8 Million to Settle FTC Complaint.

The collection agency West Asset Management has agreed to pay a civil penalty to settle the Federal Trade Commission’s complaint against it for violating the Fair Debt Collection Practices Act. West Asset Management was accused of the following illegal behavior:
 
•    Misrepresenting itself as a law firm or that its collectors are attorneys;
•    Misrepresenting that debtors will be arrested or have their property seized if they don’t pay;
•    Threatening actions that would be illegal, or actions that the company has no intention of taking;
•    Making false statements to collect a debt or obtain information about a consumer;
•    Withdrawing funds from consumers’ bank accounts or charging their credit cards without their consent;
•    Depositing postdated checks before the date on the check, or threatening to do so;
•    Revealing to third parties that a consumer owes a debt;
•    Asking a third party for a consumer’s location information more than once without the third party’s consent or a reasonable belief that the person’s earlier response was wrong or incomplete and that the person now has correct location information;
•    Calling consumers before 8 a.m. or after 9 p.m., or at their workplace;
•    Communicating with a consumer after receiving written notice that the consumer refuses to pay or wants the collector to stop calling; and
•    Using obscene or profane language, or harassing consumers with repeated phone calls.

West Asset is not the only agency that uses all or some of these illegal collection tactics against Arizona debtors.

If you are an Arizona consumer who has been contacted by a third-party debt collector or debt buyer and feel that their collection actions were deceptive, unfair, harassing, or abusive, please call attorney Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822.

National Service Bureau Gets Sued in Arizona Federal Court

National Service Bureau, who true name is Seattle Service Bureau was recently sued by my office for violating the federal Fair Debt Collection Practices Act ("FDCPA").  In the federal district court complaint, the Arizona consumer alleges that National Service Bureau repeatedly called her at work, left messages with co-workers, and never identified that he was trying to collect a debt, or that he was working for a collection agency. 

The reason so many Arizona debtors receive phone calls at work from collection agencies is that the agency is trying to harass or embarrass you.  Calls to work scare consumers into believing that if they don't pay the debt immediately, they may end of losing their jobs. AND IT WORKS!

Many times debts which are not owed are paid by scared consumers worried that they may lose their job if the calls continue.

Under the FDCPA, a collection agency that continues to call an Arizona debtor work, when they know that the debtor cannot receive personal calls at work violate the FDPCA. Leaving a message with a co-worker IS ALWAYS a violation of the FDCPA.

The FDCPA provides the Arizona consumer with the right to collect statutory damages of up to $1,000, plus any actual damages suffered. Actual damages includes emotional distress, humiliation and embarrassment.  The FDCPA also makes the debt collection agency, National Service Bureau in this case, pay for your attorney's fees and all the court costs.

If you are being harassed by a debt collection agency, feel free to call attorney Floyd W. Bybee to see if you have a claim.  The call consultation is free with no obligation.

ARIZONA Consumer Sues Allied Interstate for FDCPA Violations

We recently sued Allied Interstate LLC on behalf of an Arizona consumer for Allied's continuing attempts to collect a student loan debt that had been previously settled.  The Arizona consumer had settled his legal obligation on the debt over four years previously, but Allied continued to try to collect the debt.

Under the Fair Debt Collection Practices Act ("FDCPA"), a collection agency that continues to collect on a debt that it knows has been satisfied violates the FDPCA. 

The FDCPA provides the Arizona consumer with the right to collect statutory damages of up to $1,000, plus any actual damages suffered.  The FDCPA also makes the debt collection agency, Allied Interstate in this case, pay for your attorney's fees and all the court costs.

If you are being harassed by a debt collection agency, feel free to call attorney Floyd W. Bybee to see if you have a claim.  The call consultation is free with no obligation.

FTC Issues 2010 Annual Report on FDCPA to Congress

FTC Reports Consumer Complaints Rise 17% in 2010

The Federal Trade Commission recently issued its 2011 annual report to Congress on the Fair Debt Collection Practices Act (FDCPA) showing that consumer debt collection complaints rose 17% in 2010.  The federal agency received 140,036 debt collection complaints in 2010 compared to 119,609 in 2009.  The FTC also reported that it received more complaints about the debt collection industry than from any other specific industry.


Top Categories for Debt Collection Complaints

The top areas which consumers complain about were:

•    calling repeatedly or continuously

•    misrepresenting the character, amount or status of the debt (including demanding a larger payment that is permitted by law)

•    Failing to send consumers the required written notice about the debt and their rights

•    Threatening dire consequences if the consumer fails to pay, including false threats of legal action, threats of criminal prosecution, wage garnishment, and damage to consumer’s credit rating.

•    Failing to identify that it is a debt collector

•    Revealing alleged debt to third parties, including family, friends, and co-workers.

•    Calls to consumer’s place of employment

•    Failing to verify disputed debts

•    Continuing to contact consumers after receiving written notice to stop all communication.


FTC Provides Information About Consumers’ Rights

The FTC’s “Debt Collection FAQs: Guide for Consumers” brochure is available at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm.  The FTC also has an animated video that explains consumer rights regarding debt collection. It can be viewed at http://www.ftc.gov/debtcollection and http://www.youtube.com/ftcvideos.


FDCPA Prohibits Deceptive, Unfair and Abusive Practices

The FDCPA prohibits debt collectors from using any deceptive, unfair, and abusive collection tactics to attempt to collect a debt. Though the FTC may take action against some third-party debt collectors or debt-buyers, most Arizona consumers will obtain relief only from bringing a private action in Arizona courts.


If you are an Arizona consumer who has been contacted by a third-party debt collector or debt buyer and feel that their collection actions were deceptive, unfair, harassing, or abusive, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822.


Why Debt Buyers Must Provide Proof Debt Ownership

I regularly hear debt buyers filing suit in Arizona courts argue that of course they own the old credit card account they are attempting to collect, otherwise they would not be suing the debtor.  And, since they say the own the debt, they do not need to provide any verifiable proof of ownership. 

When challenged to provide proof of ownership, these same debt buyers usually come up with a copy of a billing statement or two from the original credit card company, and argue that their possession of these billing statements proves that in fact they own the debt.  Other times, they simply get one of their own employees to sign an affidavit saying that the debt buyer owns the debt.

Why You Must Require Debt Buyers to Provide Verifiable Proof of Ownership.

The Associate Press recently reported that the director of a Buffalo debt collection company had sold information from the company’s computer files to two illegitimate debt collectors who then scared consumers into paying made-up debts.  There have been other reports of debt buyers selling the same account to two or more debt buyers, who both later attempt to collect on the same debt.

If you have been sued by a debt buyer, make them provide absolute proof that they are the rightful owner and assignee of the original credit card company.  They will seldom be able or willing to do so. 

If you are an Arizona consumer who has recently been served with a lawsuit by a debt buyer, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see if you may have a defense to the lawsuit.

Arizona Federal Court finds Gurstel Staloch & Chargo Violated FDCPA.

In a recently published decision, a federal Magistrate Judge for the District of Arizona found that Gurstel, Staloch & Chargo, P.A., now known as Gurstel Chargo, P.A., now known as Gurstel Law Firm, P.C., violated the Fair Debt Collection Practices Act (“FDCPA”) because it failed to ceased communications with the consumer after she notified Gurstel both verbally and in writing that she was represented by a lawyer.  The Court also found that Gurstel violated the FDCPA by continuing to contact the consumer after she notified the firm that she disputed the debt, refused to pay, and demanded that Gurstel cease all communications with her.

A copy of the decision can be reviewed here.

If you have sent a letter (certified return receipt requested) to a debt collection company telling it that you refuse to pay the debt, or that you want it to stop contacting you, but they continue to call and / or write you, then it is violating the FDCPA as Gurstel did in this case.  You would be able to sue the collection agency and recover damages.

If you are an Arizona consumer being harassed or threatened by a debt collector or junk-debt buyer regarding a consumer debt, I can help.  Please call Floyd W. Bybee at 480-756-8822






Bartolini Finance Still Filing Suits on Old Debts.

Recently I have been contacted by several Arizona consumers who have been sued by Bartolini Finance, also known as CNAC and J.D. Byrider.  In each instance, the account defaulted over four years prior to the suit being filed.

Arizona Statute of Limitations for Collecting on a Repossession is Four (4) Years.

A.R.S. § 47-2725 requires that Bartolini Finance file its suit to collect the remaining balance on your car loan within four (4) years after the repossession.

In the cases I am seeing right now, the repossession took place nearly six (6) years ago, meaning that Bartolini is too late.  However, if the Arizona debtor does not properly respond to the lawsuit, then Bartolini is able to get a default judgment.  This is obviously what Bartolini is hoping for.

Don’t Let Bartolini Get a Default Judgment Against You!

The large majority of the cases Bartolini Finance has filed have ended up with default judgments.  Many times the interest that has accrued far exceeds the amount of the original debt. 

You must file an appropriate answer with the Court in order to avoid judgment being entered against you.

Hire a Lawyer to Assist You.

If you have been sued by Bartolini Finance, hire the assistance of an attorney.  There are several consumer lawyers in Maricopa County which are capable of defending these Bartolini Finance lawsuits.  The cost of hiring a lawyer is usually much less than the amount of the potential judgment.  Plus, with the damage to your credit file by having a judgment entered, the cost of obtaining legal counsel is usually well worth it.

I would be glad to assist you in reviewing your case to see if you have a valid defense.  Please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a consultation.



Arizona Consumers Hounded on Discharged Debt.

Are you an Arizona consumer who has filed bankruptcy within the past few years?

Are your creditors still trying to collect your discharged debt?

Are your discharged debts still reporting as owed on your credit report?

I am regularly contacted by Arizona debtors who are still suffering the collection harassment the bankruptcy was supposed to stop!  Unfortunately, many creditors sell the debts after they get notice of your bankruptcy. And, the debt-buyers who buy these accounts ignore the bankruptcy and hope you will too.

Sometimes their tactics are subtle, like reporting the accounts as outstanding to the credit bureaus, or sending soft letters suggesting that paying the debt will improve your ability to get new credit.  Either way, they are violating the bankruptcy laws and perhaps the federal Fair Debt Collection Practices Act (FDCPA).

Sometimes they act much more boldly.  When you question the validity of the debt, the creditor or debt-buyer will suggest that perhaps the debt was not discharged in the bankruptcy and that you still owe the money.

The bottom line is that if a creditor, a debt-buyer, or a collection agency makes any attempt to collect one of the debts included in your bankruptcy, they have violated the law.

If you are an Arizona consumer, I may be able to help you stop the collection attempts, and recover damages from these unscrupulous collectors.  I offer a free phone consultation.  

Call me, Floyd W. Bybee, at 480-756-8822

J.R. Brothers Sued by Arizona Consumer over Illegal Threats.

My office recently filed suit on behalf of an Arizona consumer against J.R. Brothers Financial, Inc., an Arizona collection agency. The lawsuit alleges that the J.R. Brothers’ collector told the consumer that because she had written a bad check, she had committed a felony.  It also alleges that J.R. Brothers’ threatened to “press charges” against her for passing a bad check.  Finally, the suit alleges that the collector told the consumer that her doctor would no longer see her because she had not paid her bill. These threats violate federal law!

False Threats Under FDCPA Illegal.

The basis for the Arizona lawsuit is that J.R. Brothers violated the Fair Debt Collection Practices Act or FDCPA by making false threats to coerce payments on a debt.  Even when a debt is owed, a collection agency such as J.R. Brothers is prohibited from threatening or implying criminal prosecution unless the action is lawful (which it was not here), and the debt collector intends to take such action (which it did not intend to take here).

J.R. Brothers’ false statement that the doctor would no longer see the consumer as a patient is also illegal under the FDCPA.

Any false or misleading representations made in connection with the collection of a debt are prohibited by the FDCPA.

FDCPA Provides Recovery of Damages for False or Misleading Representations.

The FDCPA provides that any collection agency, such as J.R. Brothers in this instance, is liable to the consumer for money damages for making false or misleading statements or representations in order to collect a debt. Damages under the FDCPA include statutory damages of up to $1,000, plus actual damages resulting from the violation. They are also liable for court costs and attorney’s fees.   

Take Action to Stop Collection Harassment.

If you are being harassed or threatened by a debt collector or junk-debt buyer regarding a consumer debt, I can help.  Call Floyd W. Bybee at 480-756-8822

Debt Collection Harassment and Abuse Top Complaints to State Attorneys General.

The National Association of Attorneys General recently released their Top 10 List of Consumer Complaints for 2008, and Debt collection was number one.

The complete list is:
 
    1.    Debt Collection
    2.    Auto Sales
    3.    Home Repair/Construction
    4.    Credit Cards (tie)
    5.    Internet Goods and Services (tie)
    6.    Predatory Lending/Mortgages
    7.    Telemarketing/Do-Not-Call
    8.    Auto Repair
    9.    Auto Warranties (tie)
    10.    Telecom/Slamming/Cramming (tie)

Collection Harassment and Abuse Likely to Continue.

With the current economic struggles, Arizona consumers will likely continue to see increased collection harassment and abuse from collection agencies and junk-debt buyers. With fewer dollars in consumer’s pockets, collectors are resorting to more aggressive, abusive and threatening tactics to wrestle the limited money away from the consumer into their own pockets.

Report to Your State’s Attorney General.

If you have been subjected to collection harassment or abuse, you can report it to your own state’s attorney general. For you Arizona consumers, you can file a complant at the Arizona Attorney General's website.

Remedies Under the Fair Debt Collection Practices Act or FDCPA.

Remember, you also have the right to file suit against the abusive debt collector and recover damages under the Fair Debt Collection Practices Act or FDCPA.

If you are an Arizona debtor current being harassed or abused by a debt collector or junk-debt buyer regarding a consumer debt, I can help. I offer a free consultation. 

Call Floyd W. Bybee at 480-756-8822

Arizona Department of Financial Affairs Obtains Consent Decree Against Child Support Network, Inc.

Child Support Network, Inc., an Arizona collection agency, recently entered into a Consent Decree with the Arizona Department of Financial Affairs, the regulator of Arizona collection agencies.  The Decree was the result of Child Support Network’s misrepresentation of available remedies to enforce collection of a child support order, including threatening jail time and suspension of driver’s license, continued contact with the debtor’s employer, and contact with the debtor’s father threatening jail time if the father did not pay the debt.

Since this debt was for child support, there would be no remedies under the Fair Debt Collection Practices Act or FDCPA — the FDCPA requires that the debt or obligation arise out of a transaction in which the money, property, insurance, or services are primarily for personal, family, or household purposes.  However, many of the tactics used by Child Support Network are regularly employed by third party collection agencies and by junk-debt buyers collecting on consumer debts and would violate the FDCPA.  

Stop Collection Harassment Today!

If you are being harassed or abused by a debt collector or junk-debt buyer regarding a consumer debt, I can help.  I offer a free consultation.  

Call Floyd W. Bybee at 480-756-8822

 

Arizona Law Against Calling At Work.

I am frequently asked whether Arizona law prohibits collectors from calling a consumer at work.  While Arizona does not have its own law similar to the federal Fair Debt Collection Practices Act or FDCPA, in most cases Arizona debtors are protected by the FDCPA.  

Fair Debt Collection Practices Act (FDCPA) Prohibits Calls At Work.

The FDCPA protects a consumer from receiving calls at work “if the debt collector knows or has reason to know that the consumer’s employer prohibits the consumer from receiving such [calls].”  So, if the debt collector knows — meaning you have told them before by phone (good) or by letter (better) or by certified letter sent return receipt requested (best) — that your employer does not allow you to take calls from a collector, then they can no longer call you at work.  And if they do, they have violated the FDCPA.

Calls Must Be from “Debt Collector”.

The FDCPA only applies to “debt collectors” which includes almost all collectors other than the original creditor.  For example, if the calls are coming from a junk-debt buyer, then they are covered.  If the calls are from an original pay day lender, then they are not covered.  The calls must be from a third party collection agency, collection lawyer, or a junk-debt buyer.  Original creditors are excluded.

What To Do If The Calls Keep Coming.

If a collector keeps calling you at work, even after you have told them to stop and that your boss/employer does not allow you to take these types of calls at work, then your remedy will be to take legal action against the collector.  You are entitled to recover damages, including statutory damages of up to $1,000, against any agency who has violated the FDCPA.

Call BYBEE LAW CENTER, PLC in Mesa Arizona.

Call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 to set up a free consultation.